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 |  | | << Back to Wellhead | | Commission proposes significant rule changes March 2010 | |
| By: Angie Burckhalter, Vice President of Regulatory Af The Oklahoma Corporation Commission (OCC) is proposing a number of technical and administrative changes to its rules. The following information highlights changes to the Oil and Gas Conservation rules in Chapter 10 and the Rules of Practice in Chapter 5.
In regards to OCC’s Rules of Practice found in Chapter 5, OCC proposes to:
• Add new language to OAC 165:5-7-6 requiring an operator to obtain written consent from 50 percent of the ownership of the mineral interests in the existing drilling and spacing unit where the proposed overlaying of the horizontal well unit does not encompass the existing producing drilling and spacing unit.
• Add new oil and gas fees for commercial recycling facility applications ($1,000), emergency applications on the conservation and other pollution dockets ($100), the filing of tax exemption applicationa ($100) and an annual operator fee based on the number of wells for which the operator is responsible.
• Revoke OAC 165:5-7-25 requiring an order to place wells on a vacuum and move the requirements to Chapter 10 that establishes a permitting process.
• Change the pooling election from 15 to 20 days under OAC 165:5-15-3.
• Revoke the requirement to have an interim order for horizontal well drilling and spacing under OAC 165:5-15-8 as this issue is addressed in other parts of OCC’s proposed rules.
• Revoke OAC 165:5-15-9 that terminates a horizontal well unit 90 days after the date of the last producing well in the unit is plugged and abandoned as this issue is addressed in other parts of OCC’s proposed rules.
In regards to oil and gas rules found in Chapter 10, OCC is proposing to:
• Add a procedure under OAC 165:10-1-10 to determine if applicants with unsatisfactory compliance histories should be authorized to operate in Oklahoma.
• Revise OAC 165:10-3-10 to include references to existing OCC rules related to hydraulic fracturing.
• Update OAC 165:10-3-16 regarding operations in hydrogen sulfide areas that include new requirements for public areas, pressure relief safety valves, and flare and venting systems to prevent the release of hydrogen sulfide gas.
• Amend OAC 165:10-3-28 concerning horizontal drilling and spacing requirements that adds new definitions, verification of the completion interval, legal locations for wells in unspaced and spaced common sources of supplies, legal locations in standard horizontal well units and non-standard horizontal well units, alternate well location requirements, new Special Area Rules in Subchapter 29 to add new language concerning horizontal drilling in certain counties of the State, and changes to Appendix C regarding allowables for horizontal oil wells.
• Modify the procedure for obtaining authorization to use vacuums on wells under OAC 10-3-31 that will make it an administrative process requiring a permit instead of an order;
• Amend OAC 165:10-7-16 to establish new requirements for flow-back water pits that establishes surety, permitting, construction, operation, sampling, and closure requirements for any non-commercial pit in excess of 50,000 barrels used for the temporary storage of hydraulic fracturing flow back water located on or off site of the drilling location.
• Update requirements regarding noncommercial disposal or enhanced recovery well pits used for temporary storage of saltwater, including approval of such pits, monitor well and fencing requirements and laboratory certification (OAC 165:10-7-20);
• Revoke the drilling waste recycling/reclaiming facilities requirements in OAC 165:10-8-25 through OAC 165:10-8-35 and move to Subchapter 9 (Commercial Disposal Facilities), and expand the requirements to make them similar to other commercial disposal facilities.
• Amend OAC 165:10-9-1 related to commercial pit requirements to update monitoring well, fencing, reporting, laboratory certifications, and operation requirements, and establish a procedure for determining whether applicants with unsatisfactory compliance histories should be authorized to operate commercial pits.
• Update commercial soil farming requirements (OAC 165:10-9-2) to limit areas where soil farming is conducted, modify monitor well, fencing, laboratory certification, and reporting requirements, and establish a procedure for determining whether applicants with unsatisfactory compliance histories should be authorized to conduct commercial soil farming operations.
• Update commercial disposal well surface facility requirements (OAC 165:10-9-3) including permitting, monitor well, fencing, site security, laboratory certification requirements, and establish a procedure for determining whether applicants with unsatisfactory compliance histories should be authorized to conduct commercial soil farming operations.
• Add a new OAC 165:10-9-4 (moved from Subchapter 8) to establish requirements for commercial recycling facilities.
• update the tax exemptions provisions under Subchapter 21 in accordance with 68 O.S. §1001 and incorporate the time extensions from Senate Bill 313 passed by the legislature in 2009.
Comments on the proposed rules in Chapter 10 are due to OCC by close of business on March 16, and the hearing is scheduled for Tuesday, March 23. Comments on the proposed rules in Chapter 5 are due to OCC by close of business on March 29, and the hearing is scheduled for March 30. For more information or a copy of the proposed rules, go to www.occeweb.com/Divisions/GC/proprule.htm.
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