AIPG-TX

The Railroad Commission of Texas (Commission) proposes amendments to §3.53, relating to Annual Well Tests and Well Status Reports Required. The amendments would adjust the testing requirements for oil wells to minimize the frequency of such tests, thereby reducing the administrative burden for those wells and associated costs to industry. The Commission also proposes amendments to §3.52, relating to Oil Well Allowable Production, to reflect the changes in §3.53.

At its open meeting on April 24, 2018, the Railroad Commission (RRC) proposed amendments to §§3.52 and 3.53 regarding testing requirements for oil wells. The amendments to §3.53 would allow operators to elect not to perform or file a production capability test for a well after the initial test has been filed except in certain circumstances. If the operator elects not to perform such a test, then the RRC would use the results of the most recent test or optional allocation on file with the RRC. Under the proposed amendments, operators would still be required to file the Form W-10 annually to report the status of each well. The proposed amendments to §3.52 would remove references to annual tests to reflect the proposed amendments to §3.53. For more information go to:  http://www.rrc.texas.gov/media/45028/prop-amend-3-52-and-3-53-well-testing-sig-042418.pdf

The Railroad Commission of Texas (RRC) adopts amendments to §§3.5, 3.31, 3.38, 3.40, 3.45, 3.51, 3.52 and 3.86, relating to Application To Drill, Deepen, Reenter, or Plug Back; Gas Reservoirs and Gas Well Allowable; Well Densities; Assignment of Acreage to Pooled Development and Proration Units; Oil Allowables; Oil Potential Test Forms Required; Oil Well Allowable Production; and Horizontal Drainhole Wells, respectively. Sections 3.5, 3.31, 3.38, 3.40, 3.45, 3.51 and 3.52 are adopted without changes, and §3.86 is adopted with changes from the proposed text as published in the November 6, 2015, issue of the Texas Register (40 TexReg 7766).

The RRC adopts the amendments to establish a procedure for designating certain fields as unconventional fracture treated fields (“UFT fields”). A UFT field is a field in which horizontal drilling and hydraulic fracturing must be used in order to recover resources from all or part of the field and which is developed using either vertical or horizontal drilling techniques. This designation includes shale formations, such as the Eagle Ford and Barnett Shale, in which the drainage of a wellbore is based upon the area reached by the hydraulic fracturing treatments rather than conventional flow patterns. The substantive amendments to incorporate this concept are adopted in §3.86(i) – (l), with supporting and conforming amendments proposed in the other sections.