Okla. Admin. Code § 165:10-15-1

Current through Vol. 42, No. 4, November 1, 2024

Section 165:10-15-1 - Classification of oil pools and projects

(a)Types of oil pools. Each producing oil pool shall be classified by the Commission into one of the following categories:

(1) Discovery oil pool (165:10-15-5 ).

(2) Allocated oil pool (165:10-15-9 ).

(3) Unallocated oil pool (165:10-15-12 ).

(4) Enhanced oil recovery project (165:10-15-14 ).

(5) Excessive water exempt oil project (165:10-15-16 ).

(6) Reservoir dewatering oil spacing unit (165:10-15-18 ).

(b)Treatment of an oil well located in a gas pool. An oil well located in a gas pool shall be treated as an unallocated oil well, unless the oil well is subject to one of the following:

(1) Pool rules controlled by volumetric withdrawal.

(2) Discovery oil pool rules.

(3) Allocated oil pool rules.

(4) Some other order of the Commission.

(c)Discovery oil pools.

(1) A new oil pool which has complied with the provision of 165:10-15-5 may be granted discovery allowable production rates, administratively, subject to either:

(A) Spacing requirements.

(B) Order of the Commission.

(2) Each permitted discovery oil well shall be subject to discovery oil pool rules until either:

(A) Expiration of the discovery allowable period.

(B) Reclassification of the well or pool.

(d)Allocated oil pool.

(1) The Commission shall classify an oil pool as an allocated oil pool when:

(A) At any market demand hearing the total production from an oil pool or from any well within the pool needs to be regulated; or

(B) For good cause shown, upon application, notice, and hearing.

(2) A gas well located in an allocated oil pool that is reclassified as an oil well for allowable purposes shall be subject to allocated oil pool rules.

(3) Each allocated oil well shall be subject to the allocated oil pool rules until the Commission reclassifies the well or pool.

(e)Unallocated oil pools.

(1) Classification of unallocated oil pool:

(A) Any pool or area which does not require specific regulation and control by the Commission to restrict production to the market demand, aid in the prevention of waste, assure the maximum ultimate recovery of oil and gas from the pool, or protect correlative rights shall be classified as an unallocated pool.

(B) The Commission shall determine which discovery and allocated pools will be placed in the unallocated classification at each market demand hearing.

(2) Each unallocated oil well shall be subject to unallocated oil pool rules until the Commission reclassifies the well or pool.

(f)Enhanced oil recovery projects.

(1)Authorized pressure maintenance. The Commission may, upon application, notice, and hearing, authorize the pressure maintenance of a pool or the production of oil by the injection of fluid, fluids, gas, gases, or other material into a common source of supply or a portion thereof, whether unitized or not, where substantial quantities of additional oil may be recovered which could not be recovered under ordinary primary depletion methods. When so authorized, the project will be classified as an Enhanced Oil Recovery Project with one of the following classifications:

(A) Pressure Maintenance Project

(B) Gas Repressuring Project

(C) Waterflood Project

(D) Other Enhanced Recovery Projects

(2)Status of a gas well reclassified as an oil well. If a well classified as a gas well in an enhanced oil recovery project is reclassified as an oil well for allowable purposes, the well shall be subject to the appropriate enhanced oil recovery project rules.

(3)Termination of enhanced oil recovery status. Each enhanced oil recovery well shall be subject to enhanced oil recovery project rules until one of the following occurs:

(A) Termination of the enhanced oil recovery project.

(B) The well is reclassified as a gas well for allowable purposes.

(C) The Commission issues an order reclassifying the well or project.

(D) The well is abandoned.

(g)Excessive water exempt oil projects.

(1)Oil production rates. The Director of Conservation may administratively authorize the production of oil at rates greater than the normal allowable provided the water-oil ratio of the well and/or pool is greater than or equal to 3:1. All applications shall comply with 165:5-7-12.

(2)Status of a gas well reclassified as an oil well. If a well classified as a gas well in an excessive water exempt oil project is reclassified as an oil well for allowable purposes, the well shall be subject to excessive water exempt oil project rules.

(3)Termination of excessive water exempt status. Each excessive water exempt well shall be subject to excessive water exempt oil project rules until at least one of the following occurs:

(A) The water-oil ratio declines below 3:1.

(B) Termination of the excessive water exempt oil project.

(C) The well is reclassified as a gas well.

(D) The Commission issues an order reclassifying the well or project.

(h)Allowable for reservoir dewatering oil spacing unit.

(1)Oil production rates. To set an allowable for a well in a reservoir dewatering oil spacing unit, the operator shall refer to Appendix J and submit the appropriate forms and/or application as provided in OAC 165:10-15-18.

(2)Reclassification of oil well as gas well. If a well in a reservoir dewatering oil spacing unit is later subject to reclassification as a gas well for allowable purposes, such reclassification will be determined according to general classification procedures based on its gas/oil ratio pursuant to OAC 165:10-1-6(d) and (e) and 165:10-13-2. If the subject well is designated an excessive water exempt oil project pursuant to OAC 165:10-15-1(g) and 165:10-15-16, reclassification shall be determined by OAC 165:10-15-1(g)(2). If the subject well is assigned an allowable based upon its most efficient rate pursuant to OAC 165:10-13-5, such allowable shall remain in effect under the order establishing the production rate, so that the well will not be reclassified, until its status is modified or terminated by the terms of the instant or a subsequent Commission order.

(3)Termination of reservoir dewatering oil spacing unit allowable. The oil allowable assigned a reservoir dewatering oil spacing unit shall remain in effect until one of the following occurs:

(A) The subject well is reclassified as a gas well pursuant to OAC 165:10-1-6 and 165:10-13-2.

(B) The subject well's status as an excessive water exempt oil project is terminated pursuant to OAC 165:10-15-1(g)(3).

(C) The subject well's status under a most efficient rate order is modified or terminated by the terms of the instant or a subsequent Commission order.

Okla. Admin. Code § 165:10-15-1

Amended at 19 Ok Reg 639, eff 1-14-02 (emergency); Amended at 19 Ok Reg 966, eff 7-1-02

Amended by Oklahoma Register, Volume 32, Issue 23, August 17, 2015, eff. 8/27/2015.