section .2200 – operation and production
15A NCAC 05H .2201 OPERATION AND
PRODUCTION REQUIREMENTS FOR OIL OR GAS WELLS
(a) All oil or gas wells shall comply with API Recommended Practice
74, "Recommended Practice for Occupational Safety for Onshore Oil and Gas
Production Operation," which is incorporated by reference, including
subsequent amendments and editions. This document may be viewed online for no
charge at http://publications.api.org/.
(b) All production equipment shall be maintained to comply
with API Recommended Practice 51R "Environmental Protection for Onshore
Oil and Gas Production Operations and Leases." Recommended Practice 51R
may be viewed online for no charge at http://publications.api.org/.
(c) All natural gas compressor stations shall be contained
within a baffled building in accordance with G.S. 113-395.1.
(d) The permittee shall report monthly production data from
all producing oil or gas wells, wells capable of producing oil or gas, and all
fluids produced during any phase of operation of the oil or gas well to the
Department in accordance with Rule .0201 on Form 28 – Monthly Production Report
within 60 calendar days from the end of each month. The Form shall include the
following information:
(1) the permittee's name, address, telephone
number, fax number, and email address;
(2) the county and nearest city or town where
the oil or gas well is located;
(3) the property street address, or nearest
address to the ingress and egress point leading from a public road to the well
pad;
(4) the API number, the lease name, and the oil
or gas well name and number;
(5) the month and year of production;
(6) the number of days the oil or gas well was
producing for the reporting period;
(7) the oil or gas well status;
(8) the quantities of oil and production fluids
posted in barrels; and
(9) the quantities of gas posted in units of
thousand cubic feet.
(e) All meters shall be calibrated at least annually and
shall comply with Chapters 14, 21, and 22 of the API "Manual of Petroleum
Measurement Standards," which is incorporated by reference, including
subsequent amendments and editions. These documents, published by API, may be
viewed online for no charge at http://publications.api.org/.
(f) All meters, valves, and gauges shall be maintained
pursuant to the manufacture's specifications and remain accessible to the
Department.
(g) The permittee shall notify the Department in accordance
with Rule .0201 of this Subchapter at least 72 hours via telephone or email
prior to meter calibration. The permittee shall submit Form 11 – Required
Notifications to the Department, by mail, email or fax within five calendar
days of the telephone or email notice and shall include the following
information:
(1) the permittee's name, address, telephone
number, fax number, and email address;
(2) the county and nearest city or town where
the oil or gas well is located;
(3) the property street address, or nearest
address to the ingress and egress point leading from a public road to the well
pad;
(4) the API number, the lease name, and the oil
or gas well name and number; and
(5) the scheduled date and approximate time for
the meter testing.
(h) The permittee shall retain calibration records for five
years in accordance with Rule .0202 of this Subchapter.
(i) The permittee shall adjust, repair, or replace any
meter that fails an annual meter calibration test with a calibrated meter.
Test results that exceed two percent of the manufacturer's specifications shall
constitute a failure of the meter calibration test. The permittee shall notify
the Department within 24 hours of replacing a meter via mail or email and shall
retain records related to replacement for a period of five years.
(j) The permittee shall inspect daily each producing oil or
gas well for the first 30 calendar days following commencement of production
and monthly thereafter. The permittee shall report on the daily inspections
results within 30 calendar days of the final daily inspection on Form 29 – Well
Site Inspection Report.
(k) The permittee shall submit a monthly inspection report
to the Department using Form 29 – Well Site Inspection Report within 30
calendar days of the inspection.
(l) The Form 29 – Well Site Inspection Report shall include
the following information:
(1) the permittee's name, address, telephone
number, fax number, and email address;
(2) the county and nearest city or town where
the oil or gas well is located;
(3) the property street address, or nearest address
to the ingress and egress point leading from a public road to the well pad;
(4) the API number, the lease name, and the oil
or gas well name and number;
(5) the presence of corrosion or equipment
deterioration on any production equipment;
(6) any indication or observation of a
hydrocarbon release;
(7) the condition of the wellhead, tanks,
separators, and all other production equipment;
(8) the condition of the secondary containment
system for all tanks and separators;
(9) certification that activated charcoal
filters, low pressure relief valves, hatch lids, and lightning arrestors are
present and functional for all tanks; and
(10) any pressure measurements taken at the
wellhead.
(m) The Department may require the permittee to perform
diagnostic testing on the oil or gas well or production equipment in order to determine
whether a potential mechanical deficiency exists and the best method of repair
if deficiencies or violations are noted by the permittee on the Form 29 – Well
Site Inspection Report.
(n) The permittee shall notify the Department via telephone
or email of any annular pressures in excess of 80 percent of the API rated
minimum internal yield pressure rating within 24 hours after discovery.
(o) All shut-in oil or gas wells shall pass an annual
mechanical integrity test. Oil or gas wells that had surface equipment removed
or have become incapable of production shall pass a mechanical integrity test
within 30 calendar days of the cessation of production. Oil or gas wells that
fail a mechanical integrity test shall be repaired or plugged and abandoned
within six months of failing the test. Mechanical integrity testing shall be
conducted in accordance with the following procedure:
(1) isolate the wellbore with a mechanical
bridge plug, set at 100 feet or less above the production packer or the highest
perforations, if the production tubing has been removed;
(2) pressure test the production tubing, or
casing if the tubing has been removed, with inert or nonreactive liquid or gas
at a minimum of 300 pounds per square inch (psi) surface pressure or 110
percent of the shut in tubing pressure, whichever is greater; and
(3) maintain a minimum of 300 psi surface
pressure for at least 15 minutes without a pressure differential of more than
10 percent.
(p) The permittee shall notify the Department using Form 11
– Required Notifications to the Department, not less than 10 calendar days
prior to initiating a mechanical integrity test by mail, email, or fax. The
notification shall include the following information:
(1) the permittee's name, address, telephone
number, fax number, and email address;
(2) the county and nearest city or town where
the oil or gas well is located;
(3) the property street address, or nearest
address to the ingress and point leading from a public road to the well pad;
(4) the API number, the lease name, and the oil
or gas well name and number; and
(5) the scheduled date and approximate time the
test will be performed.
(q) Mechanical integrity test results shall be submitted to
the Department using Form 16 – Mechanical Integrity Test Results, within 30
calendar days after completing the test and shall include the following
information:
(1) the permittee's name, address, telephone
number, fax number, and email address;
(2) the county and nearest city or town where
the oil or gas well is located;
(3) the property street address, or nearest
address to the ingress and point leading from a public road to the well pad;
(4) the API number, the lease name, and the oil
or gas well name and number;
(5) the purpose or reason for testing and
identify if tubing or casing is being tested;
(6) identify the depth of producing zone and
perforated intervals;
(7) the tubing and casing diameter and depth;
(8) a description of the pressure test data including
pressure charts showing pressure:
(A) prior to testing;
(B) at the commencement of testing; and
(C) during testing;
(9) be signed by the service company or
contractor conducting the pressure test to attest that all tests and results
comply with the standards set in this Rule.
(r) The permittee shall submit Form 2 – Oil or Gas Well
Permit Application to the Department for the recompletion work required for the
oil or gas well to be placed back into production.
History Note: Authority G.S. 113-391(a)(5)c;
113-391(a)(5)i; 113-391(a)(5)k;
Eff. March 17, 2015.
