Statutes, codes, and regulations
New York Codes, Rules and Regulations
Title 6 - DEPARTMENT OF ENVIRONMENTAL CONSERVATIONChapter V - RESOURCE MANAGEMENT SERVICESSubchapter B - Mineral Resources
Part 556 - Operating Practices
Section 556.1 - Oil wells

N.Y. Comp. Codes R. & Regs. tit. 6 § 556.1

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Current through Register Vol. 46, No. 50, December 11, 2024
Section 556.1 - Oil wells
(a) The operating practice requirements of subdivisions (b) through (h) of this section shall be applicable only to oil wells.
(b) All oil wells capable of production shall be equipped with welhead controls adequate to properly contain and control the flow thereof.
(c) All flowing oil wells except those flowed artificially as a result of water flooding or other secondary recovery techniques must be flowed through an adequate oil and gas separator. In addition, connections or fittings of size adequate to permit efficient measurement of the effluent gas by meter or orifice or other industry-accepted well tester for the purpose of obtaining gas-oil ratios shall be installed on the gas vent line of said separator. Wellhead equipment also shall be installed and maintained in first-class condition so that static bottom hole pressure may be obtained at any reasonable time by the department after notification to the owner or operator and valves shall be installed so that surface pressures can readily be obtained on both casing and tubing.
(d) Except where some alternative rules governing a specific pool are in effect, the owner or operator of any oil well producing from a pool which contains both oil and gas shall be required at least once each calendar year to measure the gas-oil ratio of said well and report same to the department on form OG14. Unless the owner or operator wishes some alternative reporting time, the gas-oil ratio report should be flled with the annual production report on form OG2 as specified in section 551.2(a) of this Title. At the option of the owner or operator of the well, or upon written request from the department, in order to demonstrate the status of the well on a more current basis, the gas-oil ratio test may be made at a more frequent interval and the resuits thereof filed with the department on form OG14. Such more recent test shall remain in effect until the annual test shall again be required.
(e) Each oil well shall be permitted to produce without penalty of a restriction in oil production only that volume of gas equivalent to the applicable limiting gas-oil ratio multiplied by the oil production potential of the well as determined by the production rate reported on form OG14. In the event the department has not established a specific gas-oil ratio limit for a particular oil pool, the limiting gas-oil ratio shall be 2,000 cubic feet for each barrel of oil production. If the gas-oil ratio exceeds 2,000 cubic feet of gas for each barrel of oil, it shall be unlawful to produce more oil than is determined by multiplying the oil production potential of the well as reported on form OG14 by a fraction, the numerator of which shall be the limiting gas-oil ratio for the pool and the denominator of which shall be the official gas-oil ratio test of the well as reported on form OG14. All gas produced with the current oil production pursuant to the foregoing ruling shall be deemed to have been lawfully produced.
(f) All wells or developed spacing units which are to be restricted in production because of high gas-oil ratios will be so indicated in a production schedule prepared by the department.
(g) Upon the application therefor by any interested owner or operator, or on the department's own motion, a limiting gas-oil ratio shall be established only after appropriate notice and public hearing. Subsequent hearings may be held in the same manner for the purpose of considering a change in the limiting gas-oil ratio when there is apparent good cause for such revision.
(h) Water-oil ratio surveys and reports shall be conducted by the owner or operator or any producing oil well or wells upon request of the department. Such request may be made on the department's own motion or as a result of a petition therefor and subsequent demonstration of good cause in a public hearing. After a study of the results of the water-oil ratio survey by the department and all interested owners or operators to whom same shall be made available by the department upon request, a public hearing will be held and a ruling issued by the department on the establishment of water-oil ratio limits and restrictions in oil production as a result of excessive water production.

N.Y. Comp. Codes R. & Regs. Tit. 6 § 556.1