N.Y. Comp. Codes R. & Regs. tit. 6 § 559.5

Current through Register Vol. 46, No. 45, November 2, 2024

Section 559.5 - Production rates

(a) The provisions of this section supersede section 556.1(e) of this Title.

(b) Absent a department order establishing oil production rates for a particular "Bass Island" pool and subject to subdivision (c) of this section, the daily oil production allowable for those days a "Bass Island" well is on production is 2 1/2 barrels of oil for each acre which that well's application to drill, deepen, plug back or convert shows is assigned to it, but not to exceed 200 barrels; and in gas production to whatever is produced in association with the well's daily oil production allowable. In the case of a "Bass Island" wildcat well, the daily production allowable is 200 barrels of oil per day, regardless of the number of acres assigned to it, for a period of one year from the date on which production from that well first begins. Subsequently, that well's daily oil production allowable will be determined by the method stated in the first sentence of this subdivision. Upon provision to the department of copies of bottom hole oil sample analyses and other data demonstrating that a "Bass Island" well may produce oil at a daily rate greater than 200 barrels without going below the bubble point pressure at the midpoint of the production interval, the department may, on an administrative basis, allow production at that rate to occur until the bubble point is reached; subsequently, the daily production allowable will be determined by the methods stated in the first three sentences of this subdivision. Data demonstrating that continued daily production in excess of 200 barrels of oil is warranted must be submitted to the department monthly. Oil not actually produced under the daily production allowable cannot be produced at a later date.

(c) If a "Bass Island" well is determined to have a gas-oil ratio greater than 2,000 standard cubic feet of gas per barrel of oil measured at the stock tank based upon the gas-oil ratio tests under sections 559.3(b) and 559.4(b) of this Part, that well is limited in oil production to the amount determined by multiplying the allowable as calculated under subdivision (b) of this section by a fraction, the numerator of which is 2,000 standard cubic feet of gas per barrel of oil measured at the stock tank and the denominator of which is the latest reported gas-oil ratio; and in gas production to whatever is produced with the oil produced under the well's daily oil production allowable. If the gas-oil ratio aproaches infinity, the well is limited in daily gas production to the amount determined by multiplying the daily oil allowable as calculated under subdivision (b) of this section by 2,000 standard cubic feet of gas. Gas not actually produced under the daily production allowable cannot be produced at a later date. The department may increase the limiting gas-oil ratio on an administrative basis to an amount greater than 2,000 standard cubic feet whenever the operator presents data to the department which the department determines on an administrative basis is adequate justification for such increase.

(d) The operator of a "Bass Island" well may at any time petition the department for a change in production allowable for that well. In so doing, he must use the procedures set forth in section 559.3(b) of this Part if gas-oil ratio test results are submitted with that request.

N.Y. Comp. Codes R. & Regs. Tit. 6 § 559.5