Okla. Admin. Code § 165:10-15-13

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

Section 165:10-15-13 - Production tests and reports for unallocated oil wells

(a)Per-well basis allowable.

(1) If the well is an allocated well, or an unallocated well located on lands in which drilling and spacing units have not been established and the operator elected to accept allowables on a per-well basis, or an unallocated well located on lands in which drilling and spacing units have been established, the operator shall file a production test no later than 30 days after the earlier of:

(A) Making the election,

(B) Completion of the well, or

(C) Recompletion of the well.

Each individual well shall be tested for not less than six hours and not more than 24 hours with the production calculated and reported at a daily rate (24 hours).

(2) Each new well shall be given an allowable equal to the allowable for an unallocated per-well basis well until the production test has been performed with the results reported to the Conservation Division. The allowable shall be effective for a period not longer than 30 days from completion of the well. A Form 1002A Completion Report may be used in lieu of a Form 1029A to establish an oil allowable if oil and gas production rates reported on Form 1002A establish the well's classification as an oil well. No further allowable shall be assigned to the well until compliance with this subsection.

(3) Until an operator submits the required test results for any well, as provided in subsection (a)(1), no allowable shall be assigned to the well. If said test results are filed late, then the allowable shall be effective the first day of the following month after the Conservation Division accepts the test.

(4) All initial tests shall be conducted in the manner set forth in (1) of this subsection.

(5) Annual testing shall not be required.

(b)Per-lease basis allowables.

(1) If the well is an unallocated well located on lands in which drilling and spacing units have not been established and the operator elects to accept allowables on a per-lease basis, the operator shall file a production test with the Conservation Division not later than 30 days after:

(A) Making the election,

(B) Completion of the initial well on the lease,

(C) Completion of a subsequent well on the lease,

(D) Recompletion of any well on the lease, or

(E) Retesting of any well on the lease.

Each well on the lease shall be tested for not less than six hours and not more than 24 hours with the production calculated and reported at a daily rate (24 hours).

(2) Each lease shall be given an additional allowable equivalent to the shallowest ten-acre or less allowable from the Allocated Well Allowable Table (Appendix A to this Chapter) multiplied by the current market demand factor for each new producing well added to the lease until the production test has been performed with the results reported to the Conservation Division. The additional allowable shall be effective for a period not longer than 30 days from completion of the well. No further additional allowable shall be assigned to the lease until compliance with this subsection.

(3) If an operator fails to submit the required test results for any lease with allowables calculated on a per-lease basis, no allowable shall be assigned to the lease. The operator may submit the results of the test to the Conservation Division to reinstate the allowable. A Form 1002A Completion Report may be used in lieu of a Form 1029A to establish an oil allowable if oil and gas production rates reported on Form 1002A establish the well's classification as an oil well. The allowable shall be effective the first day of the following month after the Conservation Division accepts the test.

(4) No lease shall be granted underage resulting from failure to perform a required test in compliance with this Section.

(5) All initial tests, annual tests and retests shall be conducted in the manner set forth in (1) of this subsection.

Okla. Admin. Code § 165:10-15-13

Amended at 9 Ok Reg 2337, eff 6-25-92; Amended at 16 Ok Reg 2206, eff 7-1-99; Amended at 26 Ok Reg 2498, eff 7-11-09

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