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DEPARTMENT OF GEOLOGY AND MINERAL INDUSTRIES
DIVISION 10
OIL AND GAS RULES
632-010-0002
General Rules
These general rules
apply to all lands within the jurisdiction of the State of Oregon unless otherwise
specifically stated.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1, f. 1-27-54; GMI 1-1982, f. & ef. 6-25-82; GMI 4-1985, f. & ef. 11-20-85;
GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95
632-010-0004
Supremacy
of Special Rules
The board may issue
special rules, including field rules. A special rule supersedes a general rule on
the same subject to the extent that the general rule is in conflict with the special
rule.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1, f. 1-27-54; GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef.
12-5-90; DGMI 1-2013, f. & cert. ef. 3-21-13
632-010-0008
Definitions
The definitions
in ORS 520.005 apply to this rule division. In addition, the following definitions
apply:
(1) "Allowable
Quantity" means the amount of natural gas or oil allowed by order of the board to
be produced within a stated period.
(2) "Atmospheric
Pressure" means the pressure of air at sea level, equivalent to about 14.73 pounds
per square inch absolute.
(3) "Barrel"
means 42 U.S. gallons of oil at a temperature of 15.55 degrees Centigrade (60 degrees
Fahrenheit), with deductions for the full percent of basic sediment, water, and
other impurities present, ascertained by centrifugal or other recognized and customary
tests.
(4) "Blowout"
means an uncontrolled escape of oil, natural gas, or water as a flow from a well.
(5) "Blowout
Preventer" means a heavy casing-head control of special gates or rams that will
seal the annular space between drill pipe or tubing and casing or completely close
off the top of the inner casing string.
(6) "Board"
means the Governing Board of the State Department of Geology and Mineral Industries.
(7) "Bottom
Hole Pressure" means the pressure in pounds per square inch at or near the bottom
of an oil or gas well determined at the face of the producing horizon by means of
a pressure recording instrument, adopted and recognized by the oil and gas industry,
and corrected to the sea level elevation.
(8) "Casing
Pressure" means the pressure in the annular space between the tubing and casing
measured at the wellhead.
(9) "Completion"
means a well is in such condition that it is capable of producing oil or gas, or
both.
(10) "Contaminate"
means any chemical, ion radionuclide, synthetic organic compound, microorganism,
waste or other substance that does not occur naturally in groundwater or that occurs
naturally but at a lower concentration.
(11) “Contamination”
means introduction of contaminate.
(12) "Decommission"
means the condition of a well when it has been lawfully and permanently plugged
and the well pad, access road and other related disturbance reclaimed to a secondary
beneficial use that is compatible with the land use designation according to these
rules with the approval of the department.
(13) “Department”
means the State Department of Geology and Mineral Industries.
(14) "Development"
means any work performed to bring about production of oil or gas, or both.
(15) "Developed
Area or Developed Unit" means a unit as defined in ORS 520.005(12) having a well
completed thereon capable of producing oil or gas in paying quantities. However,
in the event the board finds that a part of any unit is nonproductive, then the
developed area of the unit includes only the productive part.
(16) "Differential
Pressure" means:
(a) In the
case of wellhead measurement, the difference between the tubing pressure and the
casing pressure; or
(b) In the
case of an orifice meter, the pressure difference between the upstream and the downstream
sides of the orifice, a pressure difference measured with a differential gauge or
with a manometer (U tube).
(17) "Disposal
Well" means any well used for the purpose of disposal of produced saltwater and
produced oil field waste.
(18) "Drilling
Unit" means the acreage dedicated to a well before field limits and spacing rules
are established by the board.
(19) "Edge
Water" means water that holds the oil or gas, or both, in a higher structural position
usually encroaching on a pool as the oil or gas is recovered.
(20) "Fair
Share" means that part of recoverable oil or gas, or both, in a developed area of
a pool proportional by area to the recoverable oil or gas, or both, in the entire
developed area of the pool, insofar as these amounts can be practically ascertained.
(21) "Gas
Allowable" means the amount of natural gas authorized to be produced by order of
the board.
(22) "Gas-Oil
Ratio" means the relation of the gas in cubic feet to the production of oil in barrels
as accepted by pipelines.
(23) "Gas
Repressuring" means the introduction of gaseous substances into a pool by artificial
means in order to replenish, replace, or increase the reservoir energy.
(24) "Gas
Well" means:
(a) A well
that produces natural gas only;
(b) That
part of a well where the gas producing stratum has been successfully cased off from
the oil so that the gas and oil are produced through separate casing or tubing;
(c) Any well
capable of producing gas in commercial quantities; or
(d) A well
producing from a reservoir containing no commercially significant liquid hydrocarbons.
(25) "Idle
Well" means an inactive well that has not been completed, suspended, or decommissioned
with approval of the department.
(26) "Illegal
Gas" means gas that has been produced within the state from any well or wells in
excess of the amount allowed by any rule, regulation, or order of the board.
(27) "Illegal
Oil" means oil that has been produced within the state from any well in excess of
the amount allowed by any rule, or order of the board.
(28) "Illegal
Product" means any product of oil or gas, any part of which was processed or derived,
in whole or in part from illegal oil or illegal gas, or from any product thereof.
(29) "Indices
of Productive Value" means the factors to be considered in ascertaining the productivity
of all property in a pool for the purpose of fixing the allowable production. These
indices may include, at the discretion of the board, potential acreage, gas-oil
ratios, static reservoir pressures, flowing pressures, fluid level drawdowns, the
well or wells, or any other pertinent factors.
(30) "Lease"
means the exclusive right to explore for, drill for, and produce petroleum, natural
gas, and associated hydrocarbons.
(31) "Lessee"
means a person who becomes a mineral rights owner by leasing mineral rights from
a mineral rights owner.
(32) "Mineral
Rights Owner" means the person who has the exclusive right to lease or grant rights
for mineral exploration and includes owners of unleased mineral rights and lessees
of mineral rights.
(33) "Mud-Laden
Fluid" means any approved mixture of fluid and clay or other material that will
effectively seal the formation to which it is applied.
(34) "Net
Drainage" means the drainage or migration of oil or gas within the reservoir not
equalized by counter-drainage.
(35) "Oil
Allowable" means the amount of oil authorized to be produced by order of the board.
(36) "Oil
Well" means any well that is not a gas well and is capable of producing oil or condensate
in paying quantities.
(37) "Operator"
means any person who is in charge of the development of a lease or the construction,
development or operation of a well subject to the division.
(38) "Overage,
Overproduction" means the oil or gas produced in excess of the allowable quantity
fixed by the board.
(39) "Period
Allowable" means the period as designated by the department, in which an allowable
quantity may be produced.
(40) “Pool”
means an underground reservoir containing a common accumulation of oil and natural
gas. A zone of a structure that is completely separated from any other zone in the
same structure is a pool.
(41) "Potential"
means the computed daily ability of a well to produce oil and/or natural gas as
determined by a test made in conformity with rules prescribed by the board.
(42) “Permittee"
means any person who has the right to drill a well and has received a permit or
is an operator.
(43) "Pressure
Maintenance" means:
(a) The re-introduction,
in the early stages of field development, of gas or fluid produced from an oil or
gas well to maintain the pressure of the reservoir; or
(b) The introduction
of gas or fluid for the same purpose, but obtained from an outside source.
(44) "Producer"
means the owner of one or more wells capable of producing oil or gas or both.
(45) "Proved
Oil or Gas Area" means the area that has been shown by development or geological
information to be such that additional wells drilled thereon are reasonably certain
to be commercially productive of oil or gas, or both.
(46) "Purchaser"
means any person who directly or indirectly purchases, transports, takes, or otherwise
removes production from a well, wells, or pool.
(47) "Run"
means oil or gas piped from one place to another.
(48) "Separator"
means an apparatus for separating fluid, as it is produced.
(49) "Service
Well" means any well drilled to be used for the purpose of underground natural gas
storage or to monitor such underground storage.
(50) "Shortage
or Underage" means the amount of production less than the allowable.
(51) "Spacing
Unit" means the acreage dedicated by the board to a well after field limits and
rules are established.
() (52) "Storage"
means produced oil, gas, or both confined in tanks, reservoirs, or containers.
(53) "Suspension"
means the status of a well that is not in a plugged or completed condition when
it has been safely left unattended, with the written approval of the department,
for a period of 30 days or more.
(54) "Unlawful
Abandonment" means the condition of:
(a) An idle
well from which drilling equipment has been removed;
(b) An idle
well with drilling equipment present but no activity for 30 consecutive days; or
(c) Any suspended
well whose period of approved suspension has expired and an additional 30 days has
elapsed.
(55) "Wellhead"
means equipment consisting of valves installed at the surface of the well.
(56) "Well
Log" means the written record progressively describing the strata, water, and oil
or gas encountered in drilling a well with such additional information as to give
volumes, pressure, rate of fill-up, water depths, caving strata, casing record,
etc., as is recorded in the normal procedure of drilling. It also includes all electrical
and mechanical surveys performed in the well bore.
(57) "Wildcat
Well" means a drilling or producing well located in an area that is not a “Proved
Oil or Gas Area”.
NOTE: Additional
definitions may be found in ORS 520.005 and 520.015.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1, f. 1-27-54; GMI 2, f. 6-20-55; GMI 1-1979, f. & ef. 1-25-79; GMI 1-1982,
f. & ef. 6-25-82; GMI 1-1985(Temp) f. & ef. 6-7-85; GMI 4-1985, f. &
ef. 11-20-85; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995, f. & cert.
ef. 3-10-95; GMI 3-1997, f. & cert. ef. 12-3-97; DGMI 1-2013, f. & cert.
ef. 3-21-13
632-010-0010
Application
and Permit to Drill, Redrill, Deepen, Alter Casing, or Rework
(1) No person may
construct, drill, operate, or decommission a well until the person has received
a permit, paid to the department a nonrefundable fee for each such well pursuant
to ORS 520.017, and posted a bond or other financial security pursuant to OAR 632-010-0205.
Construction includes construction of access roads, well pads and other site disturbances
relating to the development of the site. Drilling includes redrilling, deepening,
and drilling to set conductor pipe. Operation includes maintaining the well while
in use or while production is suspended. Decommissioning includes plugging and restoration
of the well site.
(2) The application
for a permit must include:
(a) The location
of the well;
(b) The name
and address of the surface owner, operator, permittee and any other person responsible
for the conduct of the drilling operations;
(c) The elevation
of the well above sea level;
(d) Casing
and cementing programs giving details of casing sizes, casing grade, hole diameters,
and volume of cement to be used;
(e) Geologic
objectives for wells proposed for known producing areas and proposed depth in all
cases; and
(f) Documentation
of the ownership of mineral rights or a mineral rights lease on the property to
be drilled, or the right or obligation, under the terms of an existing contract,
to drill a well.
(3) The permit
will be suspended if the applicable rights in subsection (2)(f) of this rule cease
to exist prior to the decommissioning of the well, access roads and any related
disturbance.
(4) If a
completed application has not been received by one year from the date of the receipt
of the initial application, the application will be automatically returned to the
applicant and will be deemed withdrawn.
(5) The applicant
must be registered with the Secretary of State if registration is required by the
laws of the State of Oregon.
(6) Upon
receipt of an application the department will determine within 21 days if the application
is complete. The department will notify the applicant of the determination in writing.
(7)(a) The
department will circulate each application for a permit to drill for technical review
to appropriate state agencies and the governing body of the county or city in which
the well will be located. The agencies and governing body have 45 days from the
date the department circulates the application in which to comment. The department
can extend this period upon request by the reviewing agency for good cause. Within
60 days after receipt of a complete application for a permit, the department shall
issue or deny the permit unless the department determines that a longer period is
necessary to respond to comments or new information, or for any other good cause.
(b) The department
may approve immediately without circulating for technical review an application
for a permit to redrill, deepen, or rework if the drilling operations are an uninterrupted
continuance of previous drilling operations, provided conditions of OAR 632-010-0142(3)
are met.
(8)(a) The
application for permit must be denied if the applicant is currently in violation
of ORS 520 or with the rules in this division with respect to another well. A permit
may also be denied if:
(A) The permittee
has unlawfully abandoned a well or failed to submit records or samples in a timely
manner; or
(B)If the
applicant controls or is controlled by a person that has been determined by the
department to be in violation of ORS chapter 520 or the rules in this division or
has unlawfully abandoned a well or failed to submit records or samples in a timely
manner.
(b) If the
department refuses to issue a permit, it will notify the applicant and concurrently
provide the reason for denying the permit. A person adversely affected by refusal
to issue a permit may seek review of the decision by filing an appeal with the board
within 30 days of the date the notice of the refusal to issue the permit is received
by the applicant.
(9) When
issuing the permit, the department shall inform the applicant that:
(a) Issuance
of the permit is not a finding of compliance with the Statewide Planning Goals (ORS
197.225) or compatibility with the acknowledged comprehensive plan and land use
regulations; and
(b) The applicant
must receive land use approval from the affected local government supported by written
findings as provided in OAR 632-001-0015 before the use can commence.
(10) The
department may temporarily suspend operations if they are not in compliance with
applicable laws or rules of this chapter, or departmental orders.
(11) The
department may revoke a permit for noncompliance with applicable statutes, rules,
orders, and permit conditions.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
2, f. 6-20-55; GMI 1-1978(Temp), f. 5-26-78, ef. 7-1-78; GMI 1-1979, f. & ef.
1-25-79; GMI 3-1980, f. 2-29-80, ef. 3-1-80; GMI 1-1981, f. & ef. 2-26-81; GMI
1-1982, f. & ef. 6-25-82; GMI 1-1985(Temp), f. & ef. 6-7-85; GMI 4-1985,
f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 1-1991, f. 9-5-91,
cert. ef. 9-6-91; GMI 2-1995, f. & cert. ef. 3-10-95; GMI 3-1997, f. & cert.
ef. 12-3-97; DGMI 2-1999, f. & cert. ef. 8-30-99; DGMI 1-2013, f. & cert.
ef. 3-21-13
632-010-0011
Active Permits
On or before the
anniversary of the issuance date of each active permit issued by the department,
the permittee must pay to the department an annual nonrefundable fee in the amount
specified in ORS 520.017.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1-1991, f. 9-5-91, cert. ef. 9-6-91; GMI 2-1995, f. & cert. ef. 3-10-95; DGMI
1-2013, f. & cert. ef. 3-21-13
632-010-0012
Modifications
to Drilling Permits
Proposed modifications
to a drilling permit must be approved by the department prior to taking effect.
(1) Modification
to a permit involving depth, casing, or location within the same drilling or spacing
unit must be submitted on an application form provided by the department, along
with the applicable fee. (2) A modification of location to a different drilling
or spacing unit requires a new application and fee, and may constitute a significant
modification for land use purposes.
(3) The Permittee
may not transfer the permit without written approval from the department. The department
may transfer a permit to a new owner or operator if the following items are provided
to the department:
(a) A completed
application signed by the original permittee and the new permittee;
(b) A bond
or alternative form of security acceptable to the department in the name of the
new permittee; and
(c) A new
organization report.
(4) Deepening:
A permittee must obtain written approval from the department before a well may be
drilled to a depth below the maximum depth specified in the permit. To obtain approval,
the permittee must file a written application that describes the present condition
of the well, including the complete casing record, and the proposed work, including
the plan for sealing off any oil, gas, brine, or fresh-water strata to be found
or expected to be found in the deepening, and the new proposed total depth. If the
method set forth is satisfactory and the permittee is not in violation of ORS chapter
520, the board’s rules implementing that chapter or the orders of the board,
the department, the department may approve a permit modification. The permittee
may not begin the actual deepening of the well until the modified permit has been
posted at the well location.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
2, f. 6-20-55; GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef.
12-5-90; DGMI 1-2013, f. & cert. ef. 3-21-13
632-010-0014
Drilling
Practices
(1) Pits for drill
cuttings: At every well site, the permittee must provide and use one or more pits,
sumps, or above-ground containers of approved design and size for holding the drill
cuttings and fluid removed from the well. All pits, sumps, or above-ground containers
must be constructed in a way that allows for egress.
(2) Casing
and sealing off formations general requirements:
(a) Surface
casing:
(A) Surface
casing used in all wells must be of suitable size, grade, condition, and wall thickness;
(B) In areas
where pressure and formation are unknown, sufficient surface casing must be run
to reach a depth below all known potable fresh water levels;
(C) In areas
where subsurface conditions have been established by drilling experience, sufficient
surface casing must reach a depth 100 feet below all fresh-water levels;
(D) The depths
referred to in paragraphs (B) and (C) of this subsection must be at least 25 percent
of the proposed next casing point or total depth, unless otherwise approved by the
department;
(E) Surface
casing and conductor pipe must be cemented. Surface casing must be cemented by the
pump and plug or displacement method with sufficient cement to circulate to the
surface. The conductor pipe must be cemented to the surface to prevent the migration
of fluids to other zones or to the surface; and
(F) Cement
must be allowed to set a minimum of 12 hours before drilling the plug.
(b) Other
casing requirements: Each fluid-bearing zone above the producing horizon must be
cased and sealed off to prevent the migration of formation fluids to other zones.
Such casing and sealing off must be completed and tested in a manner and method
approved by the department.
(c) A formation
leakoff test or a casing shoe integrity test may be required by the department.
If required, the results must be provided to the department for review and approval
prior to the continuation of drilling operations.
(3) When
drilling, a suitably weighted mud-laden fluid must be continuously maintained in
the hole, from top to bottom, in accordance with recognized safe practices. The
permittee may request permission from the department to use other fluids. The request
must be approved in writing by the department prior to use.
(4) Wellhead
equipment:
(a) When
drilling in areas where high pressures are likely to exist, as determined by the
department, all proper and necessary precautions must be taken for keeping the well
under control, including, but not limited to, the use of blowout preventers and
high-pressure fittings attached to casing strings properly anchored and cemented:
(A) The Blowout
Prevention Equipment schematic diagram must indicate the minimum size and pressure
rating of all components of the wellhead and blowout preventer assembly;
(B) The department,
on a site-specific basis, may require the use of blowout preventers or other methods
of controlling shallow coal bed methane wells;
(C) All blowout
preventers, choke lines, and choke manifolds must be installed above ground level.
Casing heads and optional spools may be installed below ground level provided they
are visible and accessible;
(D) Blowout
preventer equipment and related casing heads and spools must have a vertical bore
no smaller than the inside diameter of the casing to which they are attached;
(E) All ram
blowout preventers must be equipped with hydraulic locking devices and manual locking
devices with hand wheels extending outside of the rig’s substructure;
(F) Blowout
prevention equipment installed on the well must have a rated expected formation
pressure higher than the working pressure;
(G) In addition
to the minimum blowout preventer requirements outlined in this section, wells drilled
while using tapered drill strings must use either a variable bore pipe ram preventer
or additional ram type blowout preventers to provide a minimum of one set of pipe
rams for each size of drill pipe in use, and one set of blind rams.
(b) Unless
otherwise approved by the department, the blowout prevention equipment must include
a minimum of at least one annular blowout preventer and one double-gate preventer
with pipe and blind rams or two single-ram type preventers; one equipped with pipe
rams and the other with blind rams. Ram preventers or a drilling spool must have
side outlets with a minimum inside diameter of 2 inches on the kill side, and 3
inches on the choke side to accommodate choke and kill lines. Outlets on the casing
head may not be used to attach choke or kill lines;
(A) Additional
blowout preventer equipment includes, but is not limited to, one upper kelly cock,
and one drill pipe safety valve with subs to fit all drill string connections in
use;
(B) Choke
manifold and related equipment consists of one kill line valve, one check valve,
two choke line valves, choke line, two manual adjustable chokes (each with one valve
located upstream of the choke), one bleed line valve, and one mud service pressure
gauge with a valve upstream of the gauge;
(C) All choke
manifold valves, choke and kill line valves, and the choke line must be full bore.
Choke line valves, choke line, and bleed line valves must have an inside diameter
equal to or greater than the minimum requirement for the blowout preventer or drilling
spool outlet;
(D) The choke
line must be as straight as possible, and any required turns must be made with flow
targets at all bends and on block tees. All connections exposed to well bore pressure
must be welded, flanged, or clamped. Choke hoses with flanged connections designed
for that purpose will be accepted in lieu of a steel choke line. The choke line
must be securely anchored;
(E) The accumulator
must have sufficient capacity to operate the blowout preventer equipment as outlined
in this section, and have two independently powered pump systems connected to start
automatically after a 200 psi drop in accumulator pressure, or one independently
powered pump system connected to start automatically after a 200 psi drop in accumulator
pressure and an emergency nitrogen back-up system connected to the accumulator manifold.
Blowout preventer controls may be located at the accumulator or on the rig floor;
(F) A hydraulically
operated accumulator; and
(G) A pit
horn.
(c) Minimum
requirements for blowout preventer equipment testing:
(A) All blowout
preventers and related equipment that may be exposed to well pressure must be tested
first to a low pressure and then to a high pressure;
(i) A stable
low of 200-300 psi must be maintained for at least 30 minutes prior to initiating
the high-pressure test;
(ii) The
high-pressure test must be to the rated working pressure of the ram type blowout
preventer equipment and related equipment, or to the rated working pressure of the
wellhead on which the stack is installed, whichever is lower. A stable high-pressure
test must be maintained for 30 minutes;
(iii) Annular
blowout preventer must be high-pressure tested to 50 percent of the rated working
pressure and maintain a stable pressure for 30 minutes; and
(iv) Manual
adjustable chokes not designed for complete shutoff must be pressure tested only
to the extent of determining the integrity of the internal seating components to
maintain back pressure. Hydraulic chokes designed for complete shutoff must be pressure
tested to 50 percent of the rated working pressure.
(B) All casing
below the conductor pipe must be pressure tested to 0.22 psi per foot or 1,500 psi,
whichever is greater, but not to exceed 70 percent of the minimum internal yield
strength of the casing. A stable pressure must be maintained for 30 minutes. Higher
pressures, using a test plug in the casing head, may be required by the department
on a case-by-case basis;
(C) During
blowout preventer pressure testing the casing must be isolated with a test plug
set in the wellhead, and the appropriate valve must be opened below the test plug
to detect any leakage that may occur due to failure of the test plug;
(D) The choke
and kill line valves, choke manifold valves, upper and lower kelly cocks, drill
pipe safety valves, and inside blowout preventer must be tested with pressure applied
from the wellbore side. All valves, including check valves, located downstream of
the valve being pressure tested, will be in the open position;
(E) Manually
operated valves and chokes on the blowout preventer stack, choke and kill lines,
or choke manifold must be equipped with a handle provided by the manufacturer, or
a functionally equivalent fabricated handle, and be lubricated and maintained to
permit operation of the valves without the use of additional wrenches or levers;
(F) All operational
components of the blowout preventer equipment must be function tested at least once
a week to verify the components' intended operations;
(G) The blowout
prevention equipment must be pressure tested when installed, prior to drilling out
casing shoes, and following repairs or reassembly of the preventers that require
disconnecting a pressure seal in the assembly;
(H) During
drilling operations, blowout prevention equipment must be actuated to test proper
functioning once each trip, or once each week, whichever is more frequent;
(I) All flange
bolts must be inspected at least weekly and retightened as necessary during drilling
operations;
(J) The auxiliary
control systems must be maintained in working order and be inspected daily to check
the mechanical condition and effectiveness and to ensure personnel at the site are
familiar with their operation;
(K) A blowout
prevention practice drill must be conducted weekly for each drilling crew, and be
recorded on the driller's log;
(L) The results
of all blowout preventer equipment pressure tests and function tests must be recorded
on the tour sheet and include the type of test, testing sequence, low and high pressures,
duration of each test, and results of each test;
(M) All blowout
preventer equipment test results submitted to the department must have a signed
certification stating that the testing procedures of the blowout preventer equipment
and the passing results are accurate and comply with OAR 632-010-0014;
(N) The department
may require any blowout preventer equipment test to be conducted or witnessed by
an independent third party that will report all test results to the department for
review and approval prior to commencement of drilling operations;
(O) All tool
pushers, drilling superintendents, and permittees' representatives (when the permittee
is in control of the drilling) are required to have completed an API, IADC, or similar
governing body sanction well control certification program and furnish the certification
of satisfactory of completion to the department prior to the start of any drilling
operations. The certification must be renewed every two years.
(5) Inclination
Surveys:
(a) Unless
exempted by the department, for all wells where production will be from a depth
greater than 1500 feet, inclination surveys to determine the angle of the hole from
the vertical must be performed before completion.
(b) The department
may, for good cause, require a permittee to perform a directional survey to determine
the location of the borehole at various intervals.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1, f. 1-27-54; GMI 1-1979, f. & ef. 1-25-79; GMI 1-1982, f. & ef. 6-25-82;
GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995,
f. & cert. ef. 3-10-95; DGMI 1-2013, f. & cert. ef. 3-21-13
632-010-0015
Down Hole
Loss and Decommissioning of a Radioactive Source
(1) A permittee
must notify the department within 2 hours of the down hole loss of a radioactive
source (source or radioactive source). The notice must include the date of loss
and location (county, survey name, abstract number, lease name, well API number,
distances from survey boundaries, and Lambert Coordinates).
(2) Procedures
for recovery of the lost radioactive source must be furnished to the department,
and the radioactive source may not be declared decommissioned until all reasonable
effort has been expended to retrieve the radioactive source, as determined by the
department.
(3) Decommission
procedures.
(a) Wells
with decommissioned radioactive sources must be mechanically equipped to prevent
either accidental or intentional mechanical disintegration of the radioactive source.
(A) Radioactive
sources decommissioned in the bottom of a well must be covered with a cement plug,
dyed a standard color red iron oxide at least 100 feet thick, on top of which a
whipstock or other approved deflection device is set. The dye is to alert a reentry
drilling engineer prior to encountering the source.
(B) Upon
decommissioning a well where a radioactive source has been cemented in place behind
a casing string above total depth, a standard color-dyed cement plug must be placed
opposite the decommissioned source and a whipstock or other approved deflection
device placed on top of the plug. The standard color-dyed cement plug must have
a minimum 100-foot cement plug set opposite the source, extending at least 50 feet
above and 50 feet below the source.
(C) In the
event a permittee finds that after expending a reasonable effort it is not possible
to decommission the source as prescribed in subparagraphs (A) and (B) of this section,
the permittee may seek department approval for an alternate decommission procedure.
(D) If the
hole is later sidetracked above the source, the sidetracked hole must be controlled
to ensure that it is at least 15 feet away from the source.
(b) Upon
permanent decommission of any well in which a radioactive source is left in the
hole, and after removal of the wellhead, a permanent plaque must be attached to
the top of the casing left in the hole in such a manner that reentry cannot be accomplished
without disturbing the plaque. This plaque will serve as a visual warning that a
radioactive source has been decommissioned in place in the well. The plaque must
contain the trefoil radiation symbol with a radioactive warning and must be constructed
of a long-lasting material such as monel or brass, in accordance with specifications
established by the department. Additionally, the plaque must be labeled with the
well name, API number, and “Oregon Department of Geology and Mineral Industries.”
(c) A plugging
report must be filed with the department and must identify the well as a decommissioned
radioactive source well and include a signed affidavit stating that all plugging
reports are accurate and comply with OAR 632-010-0015.
(d) The
permittee must erect, under supervision of the department, a standardized permanent
surface marker as a visual warning showing that the well contains a radioactive
source. This marker must contain the following information: well name, API number,
surface location, name of the permittee, name of the lease, the source or material
decommissioned in the well, the total depth of the well, the depth at which the
source is decommissioned, the plug-back depth, the date of the decommission of the
source, the activity of the source, and a warning not to drill below the plug-back
depth;
(4) The department
will maintain a list of all decommissioned radioactive source wells.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995,
f. & cert. ef. 3-10-95; DGMI 1-2013, f. & cert. ef. 3-21-13
632-010-0016
Enclosure
and Identification of Wells, Tanks, and Other Oil Measuring Devices
(1) The permittee
must identify every well, tank, sump, or other oil-measuring device. Identification
must include a sign posted in a conspicuous place near the well, tank, sump, or
device with the following information:
(a) Name
of permittee;
(b) Name
of lessee;
(c) Section,
township, and range;
(d) The department’s
phone number and web page address;
(e) A 24-hour
emergency telephone number; and
(f) In addition,
for wells, the API number must also be included.
(2) The department
may require that a well or sump be fenced or walled to a minimum height of 8 feet.
Such an enclosure is to be kept locked to protect life, wildlife, and property.
Identification signs described in (1) of this rule must be prominently displayed.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1, f. 1-27-54; GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef.
12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95; DGMI 1-2013, f. & cert. ef.
3-21-13
632-010-0017
Well Records
(Logs)
(1) During the drilling,
redrilling, deepening, or reworking of a well (except seismic, core, or other shallow
wells drilled solely for geological data), the permittee must keep a detailed and
accurate record of the well and have it available at the well site for review by
the department. The well record is to progressively describe the strata, water,
and oil or gas (or both) encountered. All additional information collected shall
be made available to the department, including but not limited to the following:
pressures, test results, caving strata, casing record, perforating, chemical treatment,
and other pertinent information usually recorded in the normal procedure of drilling,
provided that information submitted to the department need not include findings,
interpretations, or conclusions derived from such data. This shall also include,
if available, formation water chemistry analysis and hydrocarbon analysis including
BTU content. All well records must include the exact surface location of the well.
A copy of the records must be furnished to the department within 30 days after the
completion, suspension, or decommission of any well.
(2) All well
logging must be recorded. One digital copy and one paper copy is to be submitted
to the department within 30 days after completion, suspension, or decommission.
(3) A complete
set of cuttings, washed and dried, and correctly labeled and identified as to depth,
must be filed with the department within 30 days after completion, suspension, or
decommission. Core samples, if taken, would be made available to the department
30 days after analysis is completed.
(4) Well
logs, electric logs, cuttings, and cores will be kept confidential by the State
for a period of 2 years from the date of completion, suspension, or decommission
of the well.
(a) This
period of time may be extended by the department for the protection of the economic
interests of the permittee of the well upon written request by the permittee showing
good cause in the opinion of the department. The written request must be received
by the department at least 30 days before the expiration of confidentiality. The
request must include a proposed length of extension and reasons for such extension.
(b) A permittee
may authorize the department to release records before the end of the 2-year confidentiality
period by providing a written release from an officer of the company or its attorney-in-fact.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 1-1991,
f. 9-5-91, cert. ef. 9-6-91; DGMI 2-1999, f. & cert. ef. 8-30-99; DGMI 1-2013,
f. & cert. ef. 3-21-13
632-010-0018
Organization
Reports
Every person acting
as principal, agent for another, or independently engaged in drilling for, producing,
or storing oil or gas in Oregon, must immediately file with the department an organization
report on a form provided by the department. A supplementary report shall be filed
immediately after any change occurs as to the facts stated in the original report.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
2, f. 6-20-55; GMI 4-1985, f. & ef. 11-20-85; DGMI 1-2013, f. & cert. ef.
3-21-13
632-010-0020
Surface Equipment
Meter fittings of
adequate size to measure the gas efficiency for the purpose of obtaining gas-oil
ratios must be installed on the gas vent-line of every separator. Wellhead equipment
must be installed and maintained in good operating condition so that static bottom
hole pressure may be obtained at any time by the duly authorized agents of the board
or the department. Valves must be installed so that pressures can be readily obtained
on both casing and tubing.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1, f. 1-27-54; GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef.
12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95; DGMI 1-2013, f. & cert. ef.
3-21-13
632-010-0128
Boiler or
Light Plant
No open flame or
source of sparks may be placed nearer than 150 feet from any producing well, hydrocarbon
storage, or other flammable source.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1, f. 1-27-54; GMI 2-1995, f. & cert. ef. 3-10-95; DGMI 1-2013, f. & cert.
ef. 3-21-13
632-010-0130
Rubbish or
Debris
Any rubbish or debris
that might constitute a fire hazard must be removed to a distance of at least 150
feet from the vicinity of wells, tanks, and pump stations. All waste must be removed
from the site upon completion, suspension, or decommission of the well and disposed
of in such a manner as to avoid creating a fire hazard or contaminating streams
and freshwater strata and in compliance with state and federal law, including any
necessary permits.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1, f. 1-27-54; GMI 1-1982, f. & ef. 6-25-82; GMI 6-1990, f. & cert. ef.
12-5-90; DGMI 1-2013, f. & cert. ef. 3-21-13
632-010-0132
Tubing
All wells must be
equipped with tubing. Production must be exclusively through tubing, unless otherwise
approved by the department. The bottom of tubing on flowing wells may not be higher
than 100 feet above the top of the producing horizon, or as otherwise approved by
the department.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1, f. 1-27-54; GMI 1-1979, f. & ef. 1-25-79; GMI 1-1981, f. & ef. 2-26-81;
GMI 2-1995, f. & cert. ef. 3-10-95; DGMI 1-2013, f. & cert. ef. 3-21-13
632-010-0134
Chokes
All free-flowing
wells must be equipped with chokes or beans adequate to control the flow thereof.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1, f. 1-27-54; GMI 6-1990, f. & cert. ef. 12-5-90; DGMI 1-2013, f. & cert.
ef. 3-21-13
632-010-0136
Separators
All wells flowing
oil and gas must be produced through an oil and gas separator.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1, f. 1-27-54; GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef.
12-5-90; DGMI 1-2013, f. & cert. ef. 3-21-13
632-010-0138
Fire Walls
Every permanent
oil or condensate tank, or battery of tanks, must be surrounded by a dike or firewall
with a capacity of one and one-half times that of the tank or battery of tanks.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1, f. 1-27-54; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995, f. & cert.
ef. 3-10-95; DGMI 1-2013, f. & cert. ef. 3-21-13
632-010-0140
Reserve Pits,
Sumps, and Above-Ground Tanks
(1) Materials or
any fluid necessary to the drilling, production, or other operations by the permittee
must be discharged to or placed in pits, sumps or above-ground tanks approved by
the department and the Oregon Department of Environmental Quality. The permittee
must provide pits, sumps, or tanks of adequate capacity and design to retain all
materials. Under no circumstances are the contents of a pit or sump allowed to:
(a) Contaminate
streams, artificial canals or waterways, groundwater, lakes, rivers, or other water
bodies; or
(b) Adversely
affect the environment, including but not limited to, persons, plants, fish, and
wildlife and their populations.
(2) When
no longer needed, and within one year of completion of drilling operations, fluid
in pits, sumps, or tanks must be disposed of in a manner approved by the Oregon
Department of Environmental Quality. In addition, sumps must be filled and covered
and the premises reclaimed. Restoration is not required if arrangements are made
with the surface owner to leave the site suitable for a secondary beneficial use
that is compatible with the applicable local comprehensive plan and land use regulations.
The permittee must notify the department to inspect the site reclamation.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1, f. 1-27-54; GMI 1-1979, f. & ef. 1-25-79; GMI 1-1982, f. & ef. 6-25-82;
GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995,
f. & cert. ef. 3-10-95; DGMI 1-2013, f. & cert. ef. 3-21-13
632-010-0142
Directional
Drilling
(1) Any well intentionally
deviated from the vertical must be surveyed at intervals of at least 250 feet to
determine the location of the borehole at those intervals. Deviation from the vertical
for short distances is permitted without special permission to straighten the hole,
sidetrack junk, or correct other mechanical difficulties.
(2) Except
for the purpose of straightening the hole, sidetracking junk, or correcting mechanical
difficulties as provided in this rule, no well may be intentionally deviated from
the vertical unless the permittee files an application and obtains a permit from
the department.
(a) Prior
to drilling, an application to deviate a well may be approved as part of the drilling
permit.
(b) If drilling
is in progress, the permittee must notify the department immediately of the deviation
of the hole or of the intention to deviate the hole. When a permittee follows this
procedure, an application must be submitted as soon as practicable to obtain a permit.
The application for a permit to deviate the hole is to be submitted to the department
along with the appropriate fee pursuant to ORS 520.017 and must include:
(A) Surface
location in terms of distances from lease and section boundaries, and plan coordinates
of top of producing interval and bottom of hole from surface location;
(B) Reason
for deviation;
(C) If the
proposed or final location of the producing interval of the directionally deviated
well is not in compliance with the spacing or other rules applicable to the reservoir:
(i) List
of affected mineral rights owners or evidence that the applicant is the only affected
mineral rights owner. For the purposes of this rule, affected mineral rights owners
are the mineral rights owners in adjoining or cornering drilling or spacing units
toward which the well is to be deviated;
(ii) A plat
of the lease and of all affected leases showing the names of all affected mineral
rights owners and the surface and proposed producing interval locations of the well.
The plat must be drawn to a scale that allows easy observation of all pertinent
data; and
(D) Other
information as the department may require.
(3)(a) The
department will notify all affected mineral rights owners, located in drilling or
spacing units toward which a well is being directionally drilled, of the proposed
deviation before approving an application. Approval of the application to deviate
will be granted or denied at the discretion of the department. Affected mineral
rights owners may submit a written request for a hearing to consider the application.
If any such mineral rights owner requests a hearing within 20 days of the date of
the department’s notice, , the hearing will be held without undue delay by
the board or its designated representative. If no request for a hearing is made
within 20 days of the department’s notice, the department may approve the
application.
(b) If the
applicant is the only affected mineral rights owner or has leased the right to drill
from the only affected mineral rights owner or has obtained a waiver from the affected
mineral rights owner and the department does not object to the application, the
department may approve the application immediately.
(c) If a
well is being directionally drilled as part of a continuous drilling operation,
the department may permit deviation of the well without providing a 20-day notice
to all affected mineral rights owners in spacing units toward which the well is
being directionally drilled. If a well is completed in a setback location, affected
mineral rights owners will be notified and a public hearing will be held, if requested.
(4) Upon
completion, suspension, or decommission of a well, whichever comes first, the permittee
must file a complete directional survey, obtained by approved well surveying methods,
with the department, together with other regularly required reports.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1, f. 1-27-54; GMI 1-1979, f. & ef. 1-25-79; GMI 3-1980, f. 2-29-80, ef. 3-1-80;
GMI 1-1982, f. & ef. 6-25-82; GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990,
f. & cert. ef. 12-5-90; DGMI 2-1999, f. & cert. ef. 8-30-99; DGMI 1-2013,
f. & cert. ef. 3-21-13
632-010-0144
Report of
Perforating or Well Stimulation Treatment
Within 60 days after
either the perforating or well stimulation treatment of a well, the permittee must
file a report with the department describing the perforation or stimulation procedures
used and the results obtained.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1, f. 1-27-54; GMI 1-1979, f. & ef. 1-25-79; GMI 4-1985, f. & ef. 11-20-85;
GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95;
DGMI 1-2013, f. & cert. ef. 3-21-13
632-010-0146
Vacuum Pumps
Prohibited
The use of vacuum
pumps or other devices for the purpose of putting a vacuum on any gas- or oil-bearing
stratum is prohibited, unless approved by the department.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1, f. 1-27-54; GMI 1-1982, f. & ef. 6-25-82; DGMI 1-2013, f. & cert. ef.
3-21-13
632-010-0148
Production
Practice
Naturally flowing
wells must be produced at a continuous uniform rate as far as is practical, in keeping
with the current allowable, unless the board specifically permits stop-cocking to
reduce the gas-oil ratio.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1, f. 1-27-54; GMI 2-1995, f. & cert. ef. 3-10-95; DGMI 1-2013, f. & cert.
ef. 3-21-13
632-010-0150
Removal Of
Casing
No person may remove
a casing, or any portion of a casing, from a well without first giving advance written
notice and obtaining written approval from the department.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1, f. 1-27-54; GMI 1-1979, f. & ef. 1-25-79; GMI 4-1985, f. & ef. 11-20-85;
GMI 2-1995, f. & cert. ef. 3-10-95; DGMI 1-2013, f. & cert. ef. 3-21-13
632-010-0151
Notification
of Fire, Breaks, Leaks, or Blowouts
(1) All persons
controlling or operating any well, receiving tank, storage tanks, or receiving and
storage receptacle where crude oil is produced, received, or stored must immediately
notify the local fire marshal and the department, giving full details concerning
all fires that occur at such oil or gas wells or tanks or receptacles on their property,
and immediately report any breaks in tanks or receptacles and pipelines where oil
or gas is escaping or has escaped.
(2) In all
reports of fires, breaks, leaks, or escapes, or other accidents of this nature,
the following information must be provided:
(a) The location
of the well, tank receptacle, or line break by section, township, range, tax lot,
and latitude/longitude, as well as the name of the landowner, so that the exact
location can be readily located on the ground;
(b) The steps
that have been taken, or are in progress, to remedy the situation reported; and
(c) The quantity
of oil or gas lost, destroyed, or permitted to escape.
(3) In case
any tank or receptacle is overfilled, the escape must be reported as in the case
of a leak.
(4) Notify
the department of all blowouts.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1, f. 1-27-54; GMI 1-1982, f. & ef. 6-25-82 ; GMI 2-1995, f. & cert. ef.
3-10-95; DGMI 1-2013, f. & cert. ef. 3-21-13
632-010-0152
Multiple
Completion of Wells
Neither oil or gas
may be produced from different strata through the same tubing without the prior
approval of the department. The approval of the department will require evidence
of adequate and complete separation as ascertained by pressure or circulated tests
conducted at the time the packers are set. Subsequently, if packer leakage is suspected,
the department may require the permittee to provide proof of adequate and complete
separation of the pools involved in the completion, or perform a packer leakage
test. The permittee must notify the department prior to performing a packer leakage
test so that a representative may be on site to observe. The department may also
require the permittee to demonstrate the operation of multiple completion of a well.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1, f. 1-27-54; GMI 1-1979, f. & ef. 1-25-79; GMI 6-1990, f. & cert. ef.
12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95; DGMI 1-2013, f. & cert. ef.
3-21-13
632-010-0154
Determining
and Naming Fields and Pools
(1) Field names
and boundaries are determined by the board after establishment of evidence acceptable
to the board that geologic, geographic, or other conditions warrant the assignment
of a new field designation.
(2) Wells
are classified by the pool from which they produce, and pools are named by the department.
(3) A permittee
making new field or pool discoveries may recommend names to the department.
(4) Any person
dissatisfied with a new field designation or a well or pool classification or determination
may request in writing a reconsideration by the board.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1, f. 1-27-54; GMI 1-1982, f. & ef. 6-25-82; GMI 4-1985, f. & ef. 11-20-85;
GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95;
DGMI 1-2013, f. & cert. ef. 3-21-13
632-010-0156
Spacing Units,
Notification
(1) Immediately
upon the discovery of any pool, or at any time after the effective date of this
rule, the board may prescribe spacing units for each pool and specify the size,
shape, and location and establish field limits and special rules.
(2) Before
establishing spacing units, field limits, and special rules, the board will schedule
and hold a hearing. Notification will be provided to mineral owners in the area
surrounding the discovery well according to the following:
(a) In areas
of the state with surveyed sections, and where the top of the productive interval
in the well is at a depth of less than 7,000 feet below the surface, the department
will notify mineral owners in the 160-acre quarter section where the well is located.
If the top of the productive interval is located within 250 feet from any 160-acre
quarter section line, the department will notify mineral owners in the affected
adjacent quarter sections;
(b) In areas
of the state with surveyed sections, and where the top of the productive interval
in the well is at a depth of 7,000 feet or greater below the surface, the department
will notify mineral owners in the 160-acre quarter section where the well is located
and in the eight surrounding quarter sections;
(c) In areas
of the state that are without surveyed sections, the department will notify mineral
owners located within the boundary of a superimposed 640-acre section, with the
well being in the center of the section, and the superimposed section will be oriented
north-south.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1, f. 1-27-54; GMI 4-1985, f. & ef. 11-20-85; GMI 2-1995, f. & cert. ef.
3-10-95; DGMI 1-2013, f. & cert. ef. 3-21-13
632-010-0157
Exceptions
to Special Rules
(1) The board may
grant exception to special rules after holding a hearing, when necessary, on the
basis of geology, productivity, topography, or environmental protection.
(2) Before
granting an exception for a well proposed within the setback distance set forth
in a special rule, the department will notify mineral owners in the spacing unit
where the well is proposed to be drilled and in the adjacent spacing unit(s) within
the setback distance. A mineral owner may request a hearing by the board to consider
the application. The owner must request hearing within 20 days of the date of the
department notice or waive the right to one. If no written request for a hearing
is made, the department may issue a permit for the proposed well. If the applicant
is the only mineral owner in the adjacent spacing units, or has leased the right
to drill from the mineral owner(s) in the adjacent spacing units, and has obtained
a written waiver from these mineral owners to allow the drilling, the department
may approve the application immediately.
(3) If a
mineral rights owner submits a written request for a hearing, it will be held within
30 days of receipt of request, provided the request is made within the 20-day period
specified in section (2) of this rule. A mineral owner must request hearing within
20 days or waive the right to one. Any order by the department or board granting
an exception to special rules under this rule will include provisions to prevent
the production from the proposed well in excess of its just and equitable share
of oil and/or gas in the pool.
(4) If a
permittee proposes to change the planned location of a well, such that it will not
comply with the setback distances in a special rule, an exception necessary for
the permit to remain valid may be granted according to the process above.
(5) Whenever
a uniform spacing plan has been prescribed for any pool, exceptions may be permitted
if the board finds, after notice and hearing, that conditions within the pool are
such that the special rules would be impracticable.
Stat. Auth.: ORS
516.090, 520.095, 522.019, 522.305, 522.405, 522.434 & 522.545
Stats. Implemented:
ORS 520.095
Hist.: GMI
2-1995, f. & cert. ef. 3-10-95; DGMI 1-2013, f. & cert. ef. 3-21-13
632-010-0159
Underground
Reservoirs for Natural Gas Storage
Rules providing
for well spacing and proration of gas do not apply to gas storage wells, injection
wells, or monitor wells.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
3-1980, f. 2-29-80, ef. 3-1-80; DGMI 1-2013, f. & cert. ef. 3-21-13
632-010-0161
Compulsory
Integration Orders
(1) Definitions.
For purposes of this rule:
(a) "Costs"
include:
(A) "Drilling
costs," which means all reasonable costs and expenses of drilling, redrilling, reworking,
deepening, plugging back, testing, and completing the well; and
(B) "Production
costs," which means all reasonable on-site costs and expenses of production and
production equipment for the well, including wellhead, but not pipeline costs and
not overhead.
(b) "Participating
owner" means each owner in the spacing unit who, prior to commencement of drilling
operations, entered into a written agreement with the operator to share costs, production,
and entitlements. However, where no such agreement has been reached, an owner, who
prior to drilling tendered the operator a written agreement to pay not less than
the owner’s pro rata share of costs attributable to the owner’s interest,
as computed in section (2) of this rule, in the spacing unit in exchange for a share
of production and entitlements, will be considered to be a participating owner and
to have entered into a constructive agreement to that effect.
(2) Timing.
In the absence of a voluntary integration agreement for the entire spacing unit,
the board will enter an order integrating all mineral rights ownership interests
in a spacing unit pursuant to ORS 520.220(2), at any time following the entry of
an order establishing the spacing unit for a pool pursuant to ORS 520.210.
(3) Determination
of Interests. A compulsory integration order determines the interest of each mineral
rights owner in the spacing unit by dividing:
(a) The number
of surface acres subject to an owner's mineral rights located in the spacing unit;
by
(b) The total
number of surface acres in the spacing unit.
(4) Content.
The compulsory integration order will provide for the drilling, if necessary, and
operation of the well on the spacing unit for the sharing of production and for
the payment of costs.
(5) Effective
Date. The compulsory integration order becomes effective on the date of initial
production, unless the board establishes another date.
(6) Allocation
of Costs and Earnings:
(a) The compulsory
integration order will treat the operator and participating owners as a single entity.
The operator-participating owners' entity is entitled to share production and pay
costs, both in proportion to the total interest, as computed under section (2) of
this rule, of the operator-participating owners' entity in the spacing unit. The
express and constructive agreements between the operator and participating owner(s)
control the allocations of production and costs attributable to the operator-participating
owners' entity; and
(b) The compulsory
integration order will allocate each non-participating owner a full share in production
in proportion to the owner’s interest in the spacing unit subject to royalty
obligations, if any.
(c) The compulsory
integration order will authorize the operator-participating owners’ entity
to withhold from each nonparticipating owner’s share of production a pro rata
share of drilling and production costs. The pro-rata share of costs may also be
subject to a multiplier established by the Board to compensate the operator-participating
owners assumption of risks associated with production.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
3-1982, f. & ef. 8-16-82; GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f.
& cert. ef. 12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95; DGMI 1-2013, f.
& cert. ef. 3-21-13
632-010-0162
Illegal Production
No purchaser, producer,
operator, permittee, or any other person may produce any crude oil, natural gas,
or waste oil from any spacing unit or pool in this state except in accordance with
the rules, regulations, and orders of the board.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1, f. 1-27-54; GMI 2-1995, f. & cert. ef. 3-10-95; DGMI 1-2013, f. & cert.
ef 3-21-13
632-010-0163
Limitation
of Production
In the absence of
unitization, whenever the board, after notice and hearing, finds that waste as defined
in ORS 520.005 is occurring or is imminent in any oil or gas field or pool, and
that the production of oil or gas from such field or pool should be limited to prevent
waste, then the board must issue an order limiting production from the field or
pool and specify rules for the allocation or distribution of allowable production
as provided for in ORS 520.005(11) and 520.015.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
3-1980, f. 2-29-80, ef. 3-1-80; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995,
f. & cert. ef. 3-10-95; DGMI 1-2013, f. & cert. ef. 3-21-13
632-010-0164
Commingling
of Production Prohibited
The production from
one pool must not be commingled with that from another pool in the same well before
delivery to a purchaser, unless otherwise approved by the board.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1, f. 1-27-54; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995, f. & cert.
ef. 3-10-95; DGMI 1-2013, f. & cert. ef. 3-21-13
632-010-0165
Allocation
of Gas Pursuant to Special Pool Rules
Whenever the full
production from any pool producing natural gas is in excess of the market demand
for gas from that pool, any permittee or interest owner, pursuant to ORS 520.115,
may petition the board for a hearing and an order establishing a method of determining
the market demand from the pool and of distributing that demand among the producing
wells.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
3-1980, f. 2-29-80, ef. 3-1-80; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995,
f. & cert. ef. 3-10-95: DGMI 1-2013, f. & cert. ef. 3-21-13
632-010-0166
Reports by
Purchasers and Producers
(1) Purchasers:
Each purchaser or taker of any oil or gas from any well, lease, or pool must, on
or before the last day of each month succeeding the month in which the purchasing
or taking occurs, file with the department, on a form furnished by the department,
a signed report of all oil or gas purchased or taken from any such well, lease,
or pool during the preceding month.
(2) Producers:
The producer or permittee of a well or spacing unit must, on or before the last
day of each month succeeding the month in which the production occurs, file with
the department, on a form furnished by the department or other form acceptable to
the department a signed report of all production made by each well.
(3) If the
purchaser and the producer are the same, only one report need be submitted.
(4) Information
submitted in accordance with sections (1), (2), and (3) of this rule shall not be
confidential.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1, f. 1-27-54; GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef.
12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95; DGMI 2-1999, f. & cert. ef.
8-30-99; DGMI 1-2013, f. & cert. ef. 3-21-13
632-010-0167
Maximum Efficient
Rate Hearings
A hearing to determine
the maximum efficiency rate at which any pool in the state can produce oil and gas
without waste may be held by the board on its own motion or at the request of any
interested party.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
3-1980, f. 2-29-80, ef. 3-1-80; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995,
f. & cert. ef. 3-10-95; DGMI 1-2013, f. & cert. ef. 3-21-13
632-010-0168
Use of Earthen
Reservoirs
Oil may not be stored
or retained in earthen reservoirs or in open receptacles.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1, f. 1-27-54; DGMI 1-2013, f. & cert. ef. 3-21-13
632-010-0170
Reservoir
Surveys
The board, by order,
may require the permittee of a well producing oil or gas to conduct periodic surveys
of the reservoirs in the state that contain oil or gas or both. These surveys must
be thorough and complete and conducted under the supervision of the department.
Each survey must address the condition of the reservoirs containing oil or gas,
or both, and the practices and methods employed by the permittee. Such investigation
must include, but need not be limited to: the volume and source of crude oil and
natural gas; the pressure of the reservoir as an average; the areas of regional
or differential pressure; stabilized gas-oil ratios; and the producing characteristics
of the field as a whole and of the individual wells within the field.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1, f. 1-27-54; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995, f. & cert.
ef. 3-10-95; DGMI 1-2013, f. & cert. ef. 3-21-13
632-010-0172
Operators
to Assist in Reservoir Surveys
All permittees of
oil or gas wells intercepting a reservoir are required to conduct a survey as required
under OAR 632-010-0170 and to assist the representatives of the board and the department
in making any and all tests, including bottom hole pressure and gas-oil ratio determinations,
required by the board or department on any or all of such operators' wells.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1, f. 1-27-54; GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef.
12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95; DGMI 1-2013, f. & cert. ef.
3-21-13
632-010-0174
Measurement
of Potential Open-Flow of Gas Wells
The permittee must
determine the potential open-flow of a gas well by U.S. Department of Energy back-pressure
method unless the department approves in writing the use of an alternative method.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1, f. 1-27-54; GMI 6-1990, f. & cert. ef. 12-5-90; DGMI 1-2013, f. & cert.
ef. 3-21-13
632-010-0176
Supervision
of Open-Flow and Pressure Tests
All tests made in
determining the potential flow and shut-in, well-head, or bottom hole pressure of
a gas well must be conducted by the permittee and may be monitored by the department
to ensure that:
(1) Initial
flow to the surface is accomplished during daylight hours;
(2) Gas will
be flared during tests when feasible; and
(3) Proper
safety precautions are taken to prevent fire or explosion during tests.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1, f. 1-27-54; GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef.
12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95; DGMI 1-2013, f. & cert. ef.
3-21-13
632-010-0178
Duration
of Tests
The permittee must
test for open-flow and pressure of completed gas wells at such intervals and continue
for such time as is necessary to effect accurate determination. The permittee must
file a report of all tests with the department within 60 days of the completed test.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1, f. 1-27-54; GMI 1-1979, f. & ef. 1-25-79; GMI 6-1990, f. & cert. ef.
12-5-90; DGMI 1-2013, f. & cert. ef. 3-21-13
632-010-0182
Gas to Be
Metered
(1) Meters: All
gas sold must be metered with a meter of sufficient capacity, provided that gas
may be metered from a lease or unitized property as a whole, if it is shown that
a ratable taking can be maintained. Meters are not required for gas produced and
used on the lease for development purposes and lease operations.
(2) Meter
Charts and Records: Purchasers must keep meter charts and gas purchase records for
a period of at least two years and make the charts and records available to the
department.
(3) Bypasses:
Bypasses are not to be connected around meters or points where custody of the fluid
is transferred.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1, f. 1-27-54; GMI 1-1982, f. & ef. 6-25-82; GMI 4-1985, f. & ef. 11-20-85;
GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95;
DGMI 1-2013, f. & cert. ef. 3-21-13
632-010-0184
Direct Well
Pressure
Where gas release
to the atmosphere is involved, the use of direct well pressure to operate any machinery
is prohibited.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1, f. 1-27-54; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995, f. & cert.
ef. 3-10-95; DGMI 1-2013, f. & cert. ef. 3-21-13
632-010-0186
Gas-Oil Ratio
No well is permitted
to produce gas in excess of the maximum ratio determined for a pool unless all gas
produced in excess is returned to the pool.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1, f. 1-27-54; DGMI 1-2013, f. & cert. ef. 3-21-13
632-010-0188
Gas-Oil Ratio
Surveys and Reports
Gas-oil ratios and
surveys must be taken in the manner prescribed by the board for individual fields
where gas-oil ratio limits have been fixed and in accordance with the rules prescribed
for each individual pool.
(1) Flowing
Wells Intermittently (Stop-Cocked) Produced: In computing the operating gas-oil
ratio, the total volume of gas and the total barrels of oil that are produced in
order to obtain the daily oil allowable must be used regardless of the flowing time
in the 24-hour period.
(2) Gas Lift
or Jet Wells: The total volume of gas to be used in computing the operating gas-oil
ratio is the total output volume minus the total input volume.
(3) Pumping
Wells: Gas withdrawn from the casing in an attempt to maintain a fluid seal, or
for any other reason, must be added to the gas produced through tubing in computing
the gas-oil ratio.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1, f. 1-27-54; GMI 1-1982, f. & ef. 6-25-82; GMI 4-1985, f. & ef. 11-20-85;
GMI 6-1990, f. & cert. ef. 12-5-90; DGMI 1-2013, f. & cert. ef. 3-21-13
632-010-0190
Gas Utilization
(1) A permittee
must not allow hydrocarbon gas to escape to the atmosphere except for short periods
outside of normal drilling operations and testing or flowing wells during workovers
or repairs when an escape has been preauthorized by the department.
(2) Unless
otherwise directed by the board, produced gas must be flared.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1, f. 1-27-54; GMI 1-1979, f. & ef. 1-25-79; GMI 6-1990, f. & cert. ef.
12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95; DGMI 1-2013, f. & cert. ef.
3-21-13
632-010-0192
Disposal
of Brine or Salt Water
In addition to the
requirements of ORS 520.095(1), and in addition to applicable rules of the Oregon
Department of Environmental Quality and the Oregon Water Resources Department, the
following requirements apply to the disposal of brine or saltwater liquids:
(1) Disposal
in pits, sumps or above ground tanks:
(a) Brine
or saltwater may be disposed of by evaporation when impounded in excavated earthen
pits, but only when the pits are lined with impervious material and a Water Pollution
Control Facilities permit has been obtained from the Oregon Department of Environmental
Quality;
(b) Impounding
brine or saltwater in porous earthen pits is prohibited. Earthen pits used for impounding
brine or saltwater must be constructed and maintained to prevent the escape of fluid;
(c) The department
has the authority to prohibit the use of any pit that does not properly impound
water and to order the proper disposal of water impounded in the pit;
(d) The level
of brine or saltwater in earthen pits may not rise above the lowest point of the
ground surface level. All pits must have a continuous embankment surrounding them
sufficient to prevent surface water from running into the pit. An embankment may
not be used to impound brine or saltwater; and
(e) Brine
or saltwater impounded in earthen pits may not escape onto adjacent land or into
waters of the state.
(2) Disposal
by Injection: Saltwater may also be disposed of by injection into the strata from
which it was produced or into other proved saltwater-bearing strata pursuant to
an Underground Injection Control permit issued by the Oregon Department of Environmental
Quality.
(3) Ocean
discharge of saltwater may be permitted pursuant to a National Pollutant Discharge
Elimination System permit issued by the Oregon Department of Environmental Quality.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1, f. 1-27-54; GMI 1-1979, f. & ef. 1-25-79; GMI 1-1982, f. & ef. 6-25-82;
GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995,
f. & cert. ef. 3-10-95; DGMI 1-2013, f. & cert. ef. 3-21-13
632-010-0194
Water Injection
and Water Flooding of Oil and Gas Properties
(1) Application
and Approval: The permittee of a well may inject water under pressure into the formation
containing oil or gas for the purpose of obtaining oil or gas from the reservoir,
upon application to and approval by the Oregon Department of Environmental Quality.
No water injection or water flooding program may be instituted until it has been
authorized by the Oregon Department of Environmental Quality.
(2) Casing
and Cement: Wells used for the injection of water into the producing formation or
repressuring wells must be cased with sound casing so as not to permit leakage,
and the casing must be cemented in a manner such that damage will not be caused
to oil, gas, or freshwater resources.
(3) Application,
Contents, Notice, Objection, Hearing, and Approval:
(a) An application
for use of water injection must be verified and filed with the department and include:
(A) The location
of the injection well;
(B) The location
of all oil and gas wells, including any wells and dry holes, and the names of mineral
rights owners within one-half mile of the injection well;
(C) The formations
from which wells are producing or have produced;
(D) The name,
description, and depth of the formations to be injected;
(E) The elevations
of the top of the oil- or gas-bearing formation in the injection well and the wells
producing from the same formation within one-half mile radius of the injection well;
(F) The log
of the injection well or similar available information;
(G) Description
of the injection well casing;
(H) Description
of the liquid, stating the kind, where obtained, and the estimated amounts to be
injected daily;
(I) The names
and addresses of the permittees; and
(J) Other
information as the department may require to ascertain whether the injection or
flooding may be safely and legally made.
(b) Applications
may be made to include the use of more than one injection well on the same spacing
unit, or on more than one spacing unit;
(c) Applications
must be executed by all permittees who are to participate in the proposed water
injection or water flooding plan.
(4) Notice
of Commencement and Discontinuance of Water Injection or Water Flooding Operations:
(a) Immediately
upon the commencement of water injection or water flooding operations, the applicant
must notify the department;
(b) Within
10 days after the discontinuance of water injection or water flooding operations,
the permittee must notify the department of the date of discontinuance and the
reasons for the discontinuance; and
(c) Before
any injection well is decommissioned, the permittee must submit an application to
the department, per OAR 632-010-0198.
(5) Records.
The permittee must keep the following records and make them available to the department:
(a) The amount
of water injected into the injection wells;
(b) The total
amount of water produced; and
(c) The total
amount of oil or gas produced from the area flooded.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1, f. 1-27-54; GMI 1-1982, f. & ef. 6-25-82; GMI 4-1985, f. & ef. 11-20-85;
GMI 6-1990, f. & cert. ef. 12-5-90; DGMI 1-2013, f. & cert. ef. 3-21-13
632-010-0196
Gas Injection
of Oil and Gas Properties
In addition to the
requirements of ORS 520.095(1), OAR 632-010-0002 through 632-010-0240 and any other
applicable statutes, orders, or rules, wells drilled for the purpose of storing
natural gas in an underground reservoir must be drilled in a manner that protects
the underground reservoir against contamination and against waste of natural gas.
(1) Application
and Approval: After applying for and receiving approval, the permittee of any
well or proposed well may inject gas under pressure into the formation containing
water, oil or gas for the purpose of increasing production of oil or gas from the
reservoir or for storing natural gas.
(2) Casing
and Cement: Wells used for the injection of gas into the producing formation must
be cased with sound casing so as not to permit leakage, and the casing must be cemented
in a manner such that damage will not be caused to oil, gas, or freshwater resources.
All injection of gas must be through tubing with a casing packer set at the lower
end above the zone of injection, and the annular space between tubing and casing
must be monitored to be sure the packer is holding. The requirement for a casing
packer may be waived by the department for temporary test injection into a depleted
or partially depleted gas pool when an existing well is utilized as the temporary
injection well. Prior to temporary injection, the casing must be tested for mechanical
integrity to verify that there are no leaks in the casing. The department must be
notified of all mechanical integrity tests.
(3) Application,
Contents, Notice, Objection, Hearing, and Approval:
(a) No gas
may be injected into a well until approved by the department pursuant to application
and notice as herein required;
(b) A written
request for gas injection of oil and gas properties must be submitted to the department
and include the following:
(A) The location
of the injection well;
(B) The location
and depth of all oil and gas wells and the names of mineral rights owners within
a one-half mile radius of the injection well;
(C) The name,
description, and depth of the formations from which wells are producing or have
produced;
(D) The name,
description, and depth of the formations to be injected;
(E) The depths
of each formation into which gas is to be injected;
(F) The elevations
of the top of the oil- or gas-bearing formation in the injection well and the wells
producing from the same formation within one-half mile of the injection well;
(G) The log
of the injection well, or similar available information;
(H) Description
of the injection well casing;
(I) The estimated
amounts to be injected daily and the proposed injection pressure;
(J) An engineering
and geological study of the proposed injection site including:
(i) Characteristics
of reservoir and caprock, including areal extent, thickness, and lithology;
(ii) Remaining
gas or oil reserves of storage zones, including calculations, if applicable;
(iii) If
an aquifer is to be injected, known water wells, aquifer extent, thickness, and
water quality; and
(iv) Proposed
use of monitor wells for the project;
(K) The names
and addresses of the permittees; and
(L) Other
information the department may require to ascertain whether the gas injection plan
meets the requirements of law and does not pose a significant risk to human health
or the environment.
(c) Applications
may be made to include the use of more than one injection well on the same spacing
unit or on more than one spacing unit; and
(d) Applications
must be executed by all permittees who are to participate in the proposed gas injection
plan.
(4) Notice
of Commencement and Discontinuance of Gas Injection.
(a) The permittee
must notify the department at least 10 days prior to the commencement of gas injection
operations.
(b) Within
10 days after the discontinuance of gas injection operations, the permittee must
notify the department of the date of discontinuance and the reasons for the discontinuance.
(c) Before
any injection well is decommissioned, the permittee must submit an application to
the department per OAR 632-010-0198.
(d) The above
notification requirements do not apply to a gas storage facility except for the
initial injection and filling of the reservoir and for the decommission of the storage
reservoir.
(5) Records:
The permittee must keep the following records and make them available to the department:
(a) The amount
of gas injected into the injection wells;
(b) The amount
of gas produced;
(c) The amount
of oil produced from leases affected by the gas injection; and
(d) The well-head
injection pressures.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1, f. 1-27-54; GMI 1-1979, f. & ef. 1-25-79; GMI 1-1982, f. & ef. 6-25-82;
GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995,
f. & cert. ef. 3-10-95; GMI 2-1996, f. & cert. ef. 7-10-96; DGMI 1-2013,
f. & cert. ef. 3-21-13
632-010-0198
Abandonment,
Unlawful Abandonment, Suspension, Well Plugging
(1) Proper completion
and decommission require adequate protection of the environment and of aesthetic
qualities of the surface in the area of operation. (2) A well is properly completed
for the purposes of this chapter when the permittee demonstrates to the satisfaction
of the department that the well is capable of effective production or reinjection
and appropriate equipment exists for flow testing and monitoring temperature, pressure
or other subsurface conditions.
(3) A well
is considered properly plugged and decommissioned, for the purposes of this chapter,
when the conditions of ORS 520.005 to 520.991 and these rules are fulfilled and
the person has shown to the satisfaction of the department that all proper steps
have been taken to protect groundwater and surface water from contamination resulting
from the drilling or drilling related activities and to prevent the commingling
of fluids between zones or to surface.
(4) All holes
must be plugged and all related disturbance must be reclaimed in accordance with
these rules as soon as practical. A hole may not be left unplugged for longer
than 30 days from the completion of drilling operations and prior to completion
of the well without prior written approval from the department.
(5) Suspension:
The department may authorize a permittee to suspend operations or remove equipment
from a well for the period stated in the department’s written authorization,
upon receipt of a written request from the permittee showing good cause. The period
of suspension may be extended by the department, upon written request made before
expiration of the previously authorized suspension, accompanied by a statement by
the permittee showing good cause.
(6) Decommission:
Before any work is commenced to decommission a well drilled for oil or gas, the
permittee must give notice to the department of the intention to decommission such
well. If verbal notice is given but plugging is not planned within 10 days, written
notice must also be given within 10 days. The notice must be given on forms supplied
by the department and must contain the present condition of the well, proposed work,
and such other information as reasonably may be required by the department.
(7) Unlawful
Abandonment.
(a) After
operations on or at a well have been suspended with the approval of the department
pursuant to section (2) of this rule, if operations are not resumed within 30 days
from the date specified in the suspension approval, the well is considered unlawfully
abandoned unless the permittee has obtained a written extension from the department.
Written application showing good cause is required for the extension to be considered.
(b) If a
permittee has not paid the annual permit renewal fee, or any other fees owed, within
60 days after the anniversary date, the well is considered out of compliance, and
the permittee is subject to enforcement for violation of these rules and the department
may issue an order requiring the permittee to decommission the well.
(c) If a
well is left idle for a period of 30 consecutive days without a written request
for suspended status, the well is considered unlawfully abandoned.
(d) Upon
any unlawful abandonment as defined in these rules, notice will be sent to the permittee
and to the permittee's surety informing them the department has determined the well
unlawfully abandoned.
(e) Any
well unlawfully abandoned may be plugged, suspended, or otherwise repaired by the
department using the bond or other financial security, and if the bond or other
financial security is not sufficient, the department may bring an action or proceeding
as authorized by ORS 520.175.
(8) Plugging
Methods and Procedure: The methods and procedure for plugging a well are as follows:
(a) Producing
strata and strata having fluid at greater than hydrostatic pressure must be plugged
with cement from at least 50 feet below the top of each fluid-bearing zone to at
least 50 feet above the top of each zone;
(b) A cement
plug not less than 100 feet in length must be placed across the base of the freshwater-bearing
strata in an uncased hole;
(c) When
there is an open hole below the base of any casing, a cement plug not less than
100 feet in length must be placed to extend at least 50 feet above and at least
50 feet below the base of the casing; the department may require a pressure test
on the casing shoe plug to document that an adequate seal was achieved.
(d) The top
of all casing strings must be cut off at least 4 feet below ground surface, and
casing and all annuli must be plugged with cement to a depth of at least 10 feet;
(e) The permittee
will have the following options as to the method for placing cement in the hole:
(A) Dump
bailer;
(B) Pump
through tubing or drill pipe; or
(C) Other
method approved by the department.
(f) The interval
between plugs must be filled with an approved heavy mud-laden fluid.
(9) Reclamation
of surface lands affected by these operations is intended to return the surface
to pre-exploration condition and/or beneficial use that is compatible with the local
land use designation for the parcel(s).
(10) Affidavit
on completion: Within 60 days after a well is plugged, the permittee must file a
written statement with the department certifying that the well was properly plugged
and decommissioned.
(11) Wells
Used for Fresh Water:
(a) When
an oil or gas well is proposed to be decommissioned and may safely be used as a
freshwater well and such use is desired by the landowner, the well need not be filled
above the required sealing plug set below fresh water, provided authorization is
obtained from the Oregon Water Resources Department;
(b) Application
for leaving a well partially unplugged as a freshwater well must be submitted to
the department by the landowner, together with evidence of a permit and security
from the Oregon Water Resources Department or its statement that neither a permit
nor a bond is required; and
(c) The permittee
must leave a freshwater well in a condition approved by the department.
(12) The
surety furnished by permittee may not be released until all procedures required
by these rules have been completed and the department has authorized such release.
(13) The
affected surface lands must be restored to a pre-exploration and/or beneficial use
acceptable to the department, after consultation with the surface owner. Reclamation
activities may include, but are not limited to replanting or reseeding of affected
land for return to secondary beneficial use that is compatible with the land-use
designation.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1, f. 1-27-54; GMI 3, f. 4-3-56; GMI 1-1982, f. & ef. 6-25-82; GMI 1-1985(Temp),
f. & ef. 6-7-85; GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert.
ef. 12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95; DGMI 1-2013, f. & cert.
ef. 3-21-13
632-010-0205
Drilling
Surety Bond
(1)(a) Every person
who engages in the drilling, redrilling, or reworking of any well or disposal well
must file and maintain with the department, on a form provided by the department
a bond or alternative form of financial security in the sum of $25,000 for each
well drilled, redrilled, deepened, or reworked to a depth less than 10,000 feet,
or $50,000 for each well to a depth greater than 10,000 feet. The security must
be filed with the department prior to the approval of an application to drill, redrill,
deepen, or rework as required in OAR 632-010-0010. A security may be submitted individually
for each well, or a blanket security may be filed as described in (b) below.
(b) In multi-well
operations, a blanket bond or alternative form of security in the minimum amount
of $150,000 may be filed in lieu of individual bonds or securities. The blanket
amount must be computed as the sum of the applicable individual bond or security
amounts required for each well. The department may exclude the following wells from
the blanket bond or security computation:
(A) Any well
that has a gross annual wellhead production in dollars during the past twelve months
that is greater than the amount of the required individual well bond. It is the
responsibility of the well permittee to file for exclusions annually prior to the
permit anniversary date.
(c) The
bond or security must be executed by the permittee, as principal, and by a company
authorized to do business as a surety insurer in the State of Oregon, as surety,
and be conditioned upon the faithful compliance by the principal with the statutes,
rules, and orders of the department and the board.
(2) Any bond
or security submitted as required by this section may, with the consent of the department,
be terminated and cancelled and the surety relieved of all obligations thereunder.
However, the department will not consent to termination and cancellation of any
bond until the well or wells covered by such bond have been properly plugged and
decommissioned including site reclamation, with the approval of the department,
or another valid bond has been submitted and approved.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1-1979, f. & ef. 1-25-79; GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f.
& cert. ef. 12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95; GMI 3-1997, f.
& cert. ef. 12-3-97; DGMI 2-1999, f. & cert. ef. 8-30-99; DGMI 1-2013, f.
& cert. ef. 3-21-13
632-010-0210
Disposal
of Solid and Liquid Wastes
(1)(a) Permit stipulations
by the Oregon Department of Environmental Quality regarding disposal of solid and
liquid wastes generated by drilling, redrilling, deepening, or reworking operations
are deemed to be a requirement of every permit issued under OAR 632-010-0010.
(b) All wells
used for disposal of solid and liquid wastes must be equipped with tubing and packers
and be tested for mechanical integrity at least once every five years to determine
that there are no leaks in the casing, tubing, or packers, and that there is no
fluid movement into an underground source of water, other than that from which the
fluid was produced, unless otherwise approved by the department. Acceptable tests
include pressuring the tubing and casing annuli to demonstrate the integrity of
the casing, tubing, and packers. Tracer surveys, noise logs, temperature logs, spinner
surveys, or other methods approved by the department may be used to detect water
movement adjacent to the wellbore. The department must be notified of all mechanical
integrity tests, and the results submitted as required by OAR 632-010-0017.
(2) Once
field development is initiated, a separate permit is required from the Oregon Department
of Environmental Quality for disposal of liquid and solid wastes.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1-1979, f. & ef. 1-25-79; GMI 4-1985, f. & ef. 11-20-85; GMI 2-1995, f.
& cert. ef. 3-10-95; DGMI 1-2013, f. & cert. ef. 3-21-13
632-010-0220
Measurement
of Oil
The volume of production
of oil must be computed in terms of barrels of clean oil on the basis of properly
calibrated meter measurements or tank measurement of oil level differences made
and recorded to the nearest quarter inch, using 100 percent tank capacity tables,
subject to the following corrections:
(1) Correction
for Impurities: The percentage of impurities (water, sand, and other foreign substances
not constituting a natural component part of oil) must be determined to the satisfaction
of the department, and the observed gross volume of oil must be corrected to exclude
the entire volume of such impurities.
(2) Temperature
Correction: The observed volume of oil corrected for impurities must be further
corrected to the standard volume at 15.55 degrees Centigrade (60 degrees Fahrenheit),
in accordance with industry standards or any revisions thereof approved by the department.
(3) Gravity
Determination: The gravity of oil at 15.55 degrees Centigrade (60 degrees Fahrenheit)
must be determined in accordance with A.S.T.M. standards or any revisions thereof
and any supplements thereto or any close approximation thereof approved by the department.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
1-1979, f. & ef. 1-25-79; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995,
f. & cert. ef. 3-10-95; DGMI 1-2013, f. & cert. ef. 3-21-13
Special Rules,
Mist Gas Field
632-010-0225
Spacing Plan
(1) For purposes
of this section, the Mist Gas Field refers to the following area:
(a) Sections
1 through 18, 20 through 29, 32 through 36 of T. 5 N., R. 4 W.;
(b) Sections
1, 2, 11, 12, of T. 5 N., R. 5 W.;
(c) Sections
3 through 10, 14 through 23, 25 through 36 of T. 6 N., R. 4 W.;
(d) Sections
1 through 36 of T. 6 N., R. 5 W.;
(e) Section
31 of T. 7 N., R. 4 W.; and
(f) Sections
13 through 36 of T. 7 N., R. 5 W., W.M.
(2) The minimum
spacing for gas wells in the Mist Field is 160 acres when the top of the producing
zone is less than 7,000 feet in vertical depth.
(3) The minimum
spacing for gas wells in the Mist Field is 640 acres when the top of the producing
zone is 7,000 feet or more in vertical depth.
(4) The spacing
units are based upon the federal land grid of sections and quarter sections, or
projected extensions of the grid if the affected lands are not surveyed.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
2-1980, f. 2-29-80, ef. 3-1-80; GMI 2-1983, f. & ef. 12-8-83; GMI 4-1985, f.
& ef. 11-20-85; DGMI 2-1999, f. & cert. ef. 8-30-99; DGMI 1-2013, f. &
cert. ef. 3-21-13
632-010-0230
Location
of Wells
The completion location
of each permitted well to be drilled on any spacing unit is the location of the
well at the top of the producing horizon. For gas wells, the completion location
of the well may not be located nearer than 250 feet from the unit boundary and 500
feet from the nearest producing well from the same pool.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
2-1980, f. 2-29-80, ef. 3-1-80; GMI 4-1985, f. & ef. 11-20-85; DGMI 1-2013,
f. & cert. ef. 3-21-13
632-010-0235
Exceptions
The department may
grant exceptions to OAR 632-010-0225 and 632-010-0230 after holding a hearing, based
on the geology, productivity, topography, enhancement requirements, or environmental
protection.
Stat. Auth.: ORS
520
Stats. Implemented:
ORS 520.095
Hist.: GMI
2-1980, f. 2-29-80, ef. 3-1-80; GMI 4-1985, f. & ef. 11-20-85; GMI 2-1995, f.
& cert. ef. 3-10-95; DGMI 1-2013, f. & cert. ef. 3-21-13
The official copy of an Oregon Administrative Rule is
contained in the Administrative Order filed at the Archives Division,
800 Summer St. NE, Salem, Oregon 97310. Any discrepancies with the
published version are satisfied in favor of the Administrative Order.
The Oregon Administrative Rules and the Oregon Bulletin are
copyrighted by the Oregon Secretary of State. Terms
and Conditions of Use
