Okla. Admin. Code § 165:10-17-7

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

Section 165:10-17-7 - Well tests

(a)Wells in special allocated pools.

(1) An initial test shall be filed for each newly completed gas well in each special allocated pool. The well shall be tested into a pipeline no later than 30 days after the date of the first sale of gas. Test procedures shall be those specified in the applicable pool rules subject to the uniform requirements of 165:10-17-6.

(2) An annual test shall be filed in accordance with the requirements of the applicable pool rules, subject to the following provisions specific to the Guymon-Hugoton special allocated pool.

(3) Wells in the Guymon-Hugoton special allocated pool.

(A) The Conservation Division staff will not be required to witness any well test on any well in the Guymon-Hugoton special allocated gas pool unless requested to do so by an offset operator. Operators have a right to witness any well test on any well offsetting said operator's well in the pool. Operators of offsetting wells will be given sufficient prior notice of testing to allow for a representative to be present to witness testing, and will be provided access to the designated witness throughout testing.

(B) Wells in the Guymon-Hugoton special allocated gas pool which are not capable of producing 450 Mcf/day will be exempt from biannual deliverability tests. Operators shall have the right to elect to receive the minimum allowable by deciding not to conduct well deliverability tests on any such wells in the pool. No well shall be exempt from the annual wellhead shut-in pressure test requirements. For the purpose of the annual wellhead shut-in pressure test, the shut-in pressure shall be measured after the well has been shut-in for approximately 48 hours. In no case shall the well have been shut-in for less than 44 hours at the time the shut-in pressure is taken.

(b)Wells in unallocated pools.

(1)Testing of newly completed or newly recompleted wells.

(A) An initial test shall be submitted to the Conservation Division for each newly completed gas well or recompleted gas well involving a new formation in an unallocated gas pool under 165:10-17-2. The well shall be tested into a pipeline no later than 30 days after the date of first sale of gas into a pipeline. The flow period for the initial test shall be 24 hours.

(B) It shall not be necessary for the operator to submit the initial flow potential test for an unallocated well with a maximum flow rate of less than the minimum allowable. Only a current 24-hour wellhead shut-in pressure is required, unless otherwise requested by the Commission. A copy of the Form 1002A Completion Report may be submitted in lieu of Form 1016 to establish the minimum allowable, provided the section on the Form 1002A Completion Report requesting a minimum gas allowable is explicitly marked, and the following items are reported:

(i) current 24 hour shut-in pressure;

(ii) date of first sales and date of recompletion, if applicable;

(iii) Oklahoma Tax Commission production unit number; and

(iv) name of reporting entity of monthly gas volumes for the well (either the purchaser/measurer, or self-reporting operator). If the required information is not provided on the Form 1002A Completion Report submitted to the Commission, an initial test on Form 1016 containing the information must be filed with the Commission to establish an initial allowable for the well.

(C) An initial potential test is required to receive an allowable greater than a minimum allowable. The established allowable shall be from the date of first sales of gas, provided that a complete and correct Form 1002A Completion Report for the well is filed with the Commission within 60 days after the date of first sales. If the Form 1002A Completion Report is filed with the Commission after the 60 day period, the allowable will become effective on the first day of the month in which the Form 1002A Completion Report is approved by the Commission. A request to extend the time to test may be granted by the Conservation Division in order to recover fluids introduced into the well. The request shall be submitted in writing to the Conservation Division with the expected test date.

(2)Testing or retesting of established gas wells. A potential test to assign a new allowable for an initially tested well may be submitted on Form 1016 at any time after three months from the date of the initial test. To establish or maintain an allowable greater than the minimum allowable after the initial potential test, a potential test shall be run at least once every 12 months for the first two years, and every two years thereafter. The established allowable from any potential test shall be valid within that specific 12-month or two year period, based on the appropriate anniversary dates of the first gas sales of the well. The Director of the Conservation Division may require additional tests at any time. Tests become effective the first day of the month following acceptance of the test by the Conservation Division.

(A) Unless specifically requested by the Director of the Conservation Division, it shall not be necessary to run a potential test or retest for an established well having a flow rate of less than the minimum allowable.

(B) Upon expiration of a potential test, the well will revert to a minimum allowable status, unless superseded by a later potential test.

(C) If two or more potential tests are submitted for a well, and the effective periods of the tests overlap or conflict, the test having the greatest calculated open flow potential shall be utilized to determine the well's allowable for the overlapping period.

(3)One-point tests. The potential test required for each gas well in each unallocated pool shall use the one-point back pressure method and an assumed flow characteristic of 0.85 shall be used in establishing the wellhead absolute open flow. The test shall be governed by the requirements of OAC 165:10-17-6.

(4)Durability of minimum allowable. Once an initial allowable is established for a well, that well shall be assigned at least a minimum allowable until such time the well is plugged, reclassified, recompleted or commingled into an additional formation, or is found to be in violation of a rule or order of the Commission. If a potential test is submitted for the well, that test will supersede the minimum allowable for the effective period of the test set out herein.

(5)Test exemptions for certain minimum wells.

(A) The following types of gas wells shall be exempt from initial and annual potential and shut-in tests:

(i) Minimum gas wells producing exclusively from coal bed methane formations.

(ii) Minimum gas wells producing from shale formations or including shale formations, if commingled.

(iii) Minimum gas wells using down hole pumps for artificial lift of produced liquids.

(iv) Minimum gas wells producing less than 100 mcf/day.

(B) For these exempt wells operators shall report the initial stabilized rate of production on Form 1002A "Completion Report" in lieu of reporting an initial test on Form 1016 "Backpressure test for Natural Gas Wells".

(6)Alternate shut-in pressure. The Conservation Division may allow the equivalent of the 24-hour shut-in pressure required in this Section and in OAC 165:10-17-6 to be derived from accepted industry methodologies if the operator sufficiently demonstrates to the Division that such calculations will result in an appropriate representation of the actual 24-hour shut-in pressure.

(7)Minimum compliance. Each operator shall be responsible for conducting and submitting the required potential tests on the applicable form. All submitted tests must contain complete and accurate information. Permitted production rates will be granted only to those wells which meet this requirement and all other rules or orders of the Commission.

Okla. Admin. Code § 165:10-17-7

Amended at 14 Ok Reg 2198, eff 7-1-97 ; Amended at 15 Ok Reg 2165, eff 7-1-98 ; Amended at 16 Ok Reg 2206, eff 7-1-99 ; Added at 24 Ok Reg 183, eff 10-4-06 (emergency); Amended at 24 Ok Reg 1784, eff 7-1-07 ; Amended at 25 Ok Reg 2187, eff 7-11-08 ; Amended at 30 Ok Reg 1041, eff 7-1-13

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

Amended by Oklahoma Register, Volume 38, Issue 24, September 1, 2021, eff. 10/1/2021

Amended by Oklahoma Register, Volume 40, Issue 24, September 1, 2023, eff. 10/1/2023