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PSA WELLS, ALLOCATION WELLS, PSA WELLS, ALLOCATION WELLS,

PSA WELLS, ALLOCATION WELLS, - PowerPoint Presentation

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PSA WELLS, ALLOCATION WELLS, - PPT Presentation

STACKED LATERALS AND USE OF FORM P16 DATA SHEET PRESENTED BY JOE STASULLI amp LORENZO GARZA AUGUST 2017 1 PRESENTATION OVERVIEW How to qualify for Stacked Lateral status Requirements for PSA and Allocation wells ID: 752301

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Slide1

PSA WELLS, ALLOCATION WELLS,

STACKED LATERALS AND USE OF FORMP-16 DATA SHEETPRESENTED BY JOE STASULLI & LORENZO GARZAAUGUST 2017

1Slide2

PRESENTATION OVERVIEW

How to qualify for Stacked Lateral statusRequirements for PSA and Allocation wells

How to use the P-16 data sheet

Filing completions for these types of applications

2Slide3

PSA WELLS, ALLOCATION WELLS AND STACKED LATERALS

3Slide4

STACKED LATERALSStacked Laterals- how to qualify2 or more horizontal drainhole wells within lease/pooled unit in the correlative intervalHorizontal drainholes are drilled from different surface locations The spacing parameters to qualify for stacked lateral status will be determined by your field rules or by statewide rules

4Slide5

STACKED LATERALSStacked Laterals- how to qualify cont.Each surface location must be permitted separately and assigned its own API numberPlat must clearly show all wellbores attempting to qualify for Stacked Lateral status within the box as described in the ruleTo be considered a “regular location” each well must comply to any minimum lease or between well spacing rules

5Slide6

STACKED LATERALSStacked Laterals why all the fuss? For each well that qualifies as a Stacked Lateral well your overall well count will not increase when the RRC tests your lease for density exceptions Remember that the wells must be completed in the same regulatory field and be of the same well type to qualify as a stacked lateral

6Slide7

STACKED LATERALSStacked Laterals potential problem?The only instance in which a PSA/Allocation can have the same unique name is if it is filed as a stacked lateral and completed as an oil wellIf your well, when completed, does not remain within the established parameters for stacked lateral qualification an amended drilling permit will be requ

7Slide8

STACKED LATERALS- DIAGRAM

8Slide9

STACKED LATERALS- DIAGRAM

9Slide10

FORM P-16 AND STACKED LATERALS

Example P-16 on standard lease for stacked lateral

10Slide11

FORM P-16 AND STACKED LATERALS

Example P-16 on a Allocation stacked lateral

11Slide12

PRODUCTION SHARING AGREEMENT WELLS

12Slide13

PRODUCTION SHARING AGREEMENT WELLSPRODUCTION SHARING AGREEMENTSSupporting Documentation:Form P-16 sections V and VI filled outStatement to include % of participation of all tracts contributing acreagePlat showing the external boundary of all tracts contributing acreage to the proposed well

13Slide14

FORM P-16 AND PRODUCTION SHARING AGREEMENT WELLS

PRODUCTION SHARING AGREEMENTSSupporting Documentation: P-16 Data Sheet14Slide15

FORM P-16 AND PRODUCTION SHARING AGREEMENT WELLS

P-16 Data Sheet

Question for you

: What is the primary function of the Drilling Permit section when processing a W-1 drilling permit application?

15Slide16

FORM P-16 AND PRODUCTION SHARING AGREEMENT WELLSP-16 Data Sheet

16Slide17

FORM P-16 AND PRODUCTION SHARING AGREEMENT WELLS

P-16 Data Sheet

Section V. replaces the PSA-12 form that would be required with a PSA or Allocation permit

17Slide18

DRILLING PERMITS AND ONLINE FILING - ADVANCED

18Slide19

FORM P-16 AND PRODUCTION SHARING AGREEMENT WELLSP-16 Data Sheet

Section VI. replaces the acreage allocation worksheet that would be required with a PSA or Allocation permit

19Slide20

ATTACHMENTS

20Slide21

ALLOCATION WELLS

21Slide22

ALLOCATION WELLSWhat is the difference between a “PSA” well and an “Allocation” well?

Agreements in place prior to submission of your drilling permit application or not.

2. What it doesn’t allow you to do is incorporate tracts into your

“Allocation” unit that the wellbore does not traverse.

22Slide23

EXCEPTIONS FOR PSA AND ALLOCATION WELLSPSA or ALLOCATION WELLSSWR Exceptions: Lease linePSA and Allocation well applications will always require an exceptionBetween WellNormal notification procedures will be followed Density ExceptionUnless specified in the field rules normal notification and data requirements will be followed

23Slide24

QUESTION FOR YOUPSA or ALLOCATION WELLS -Example

Can this well be filed as an Allocation well?

24Slide25

DON’T FORGETThings to RememberThe following will be important as the answers may determine how you fill out your P-16 data sheet.Verify what kind of spacing requirements are in place for stacked laterals in your field. Does your wellbore qualifyKnow primary difference between PSA and Allocation Well permit

25Slide26

DON’T FORGETThings to Remember- cont.When using the P-16 data sheet remember that Section VI must reflect current proration schedule acreage assignments. If multiple operators involved then waiver must be attached for proration and exception resolution.

26Slide27

CONTACT INFORMATION

For further questions concerning Drilling Permits please contact:

Lorenzo Garza

Phone: 512-463-2184

Email:

Lorenzo.Garza@rrc.state.gov

Valerie Atkins

Phone: 512-463-6979

Email:

Valerie.Atkins@rrc.state.gov

27Slide28

NOW PRESENTING

Now Presenting Mr. Joe Stasulli28Slide29

PSA AND ALLOCATION WELL PROCEDURES

Operator Procedures for PSA and Allocation Wells29Slide30

PSA WELLS VS. ALLOCATION WELLSWhat is the difference between a “PSA” well and an “Allocation” well?

Agreements in place prior to submission of your drilling permit application or not.

2. What it doesn’t allow you to do is incorporate tracts into your

“Allocation” unit that the wellbore does not traverse.

30Slide31

WELL COMPLIANCE PROCEDURES FOR PSA/ALLOCATION WELLS

Supporting Documentation:Plat showing the external boundary of all tracts contributing acreage to the proposed wellAccurately filled out P-16 for the completed well with the acreage being assigned from each contributing tract

31Slide32

FORM P-16 AND PSA/ALLOCATION WELLS

P-16 DATA SHEET- Required for all horizontal wellsUse the P-16 Data Sheet to replace these forms and documents: 1) Form PSA-12 2) Proration Acreage List 3) Form P-15

32Slide33

FORM P-16 AND PSA/ALLOCATION WELLS

P-16 for PSA/Allocation:

33Slide34

FORM P-16 AND PSA/ALLOCATION WELLS

UTILIZING THE REMARKS SECTION

34Slide35

FORM P-16 AND PSA/ALLOCATION WELLS

WHERE IS THE ACREAGE COMING FROM?

35Slide36

FORM P-16 AND PSA/ALLOCATION WELLS

GIVE US MORE INFORMATION36Slide37

FORM P-16 USED AS AN ACREAGE LIST

P-16 FOR PRORATION ACREAGE LIST (only page 1 required)

37Slide38

FORM P-16 USED AS AN ACREAGE LIST

ONLY WELLS ALREADY COMPLETED PLUS THE WELL YOU INTEND TO ADD SHOULD BE SHOWN

38Slide39

FORM P-16 USE WITH MULTIPLE OPERATORS

P-16 FOR MORE THAN ONE OPERATOR ON THE SAME LEASE (only page 1 required)

39Slide40

FORM P-16 USE WITH MULTIPLE OPERATORS

COMBINED TOTAL ACREAGE ASSIGNED TO ALL WELLS FROM ANY OPERATOR CANNOT EXCEED YOUR BASE LEASE/UNIT

40Slide41

WHAT TO REMEMBER ABOUT THE FORM P-16

TIPSRead the instructions found in our forms library and the supplemental handouts.For PSA or Allocation all combined acres should be reported in Section II.If using the P-16 data sheet remember that Section VI must reflect current proration schedule acreage assignments and the acres being designated to the PSA/Allocation well. Proration acres will be updated based of information supplied on Section III and VI.

41Slide42

WHAT TO REMEMBER ABOUT THE FORM P-16

TIPSProperly answer Y/N to SWR 38 Exception.Show only completed wells, Well Compliance need not be informed of proposed locations. Allocation wells will receive unique RRC ID numbers unless they are part of an oil “Stacked Lateral Allocation” group.If wellbore profile changes, the Drilling permit will need to be amended. EX. Allocation at time of permitting, PSA at time of completion.

42Slide43

STACKED LATERAL PROCEDURES

Operator Procedures for Stacked Laterals43Slide44

STACKED LATERALS THE FIRST LATERAL:The first well of a stacked lateral is set up and processed in the same manner as any regular producing well. SL is NOT required to be part of the lease name.All of the standard required documentation should be filed for this well - drilling permit, completion, and associated forms.

44Slide45

STACKED LATERALS

THE SECOND LATERAL:All of the standard required documentation should be filed for this well - drilling permit, completion, and associated formsThe letters “SL” (Stacked Lateral) should be included in the well number if feasibleThe completion remarks section should reference that this is a “Stacked Lateral”

45Slide46

STACKED LATERALS

SUBSEQUENT LATERALS:Any additional lateral wells (3rd, 4th) must submit the standard required documentation - drilling permit, completion, and associated formsThe letters “SL” (Stacked Lateral) should be included in the well number if feasibleThe completion remarks section should reference that this is a “Stacked Lateral”

46Slide47

REPORTING TESTS AND PRODUCTION FOR STACKED LATERALS

ALLOWABLES & PRODUCTION REPORTS:The Well Status report (G-10/W-10) should include a combined test for all current producing laterals. The test should be filed using the reporting RRC ID number. Do NOT file a test for non-reporting ID numbers.Production from all stacked laterals should be combined and filed under one Production Report using the reporting RRC ID number.

47Slide48

CONTACT US

For immediate assistance please call the Well Compliance (Proration) main phone number. 512-463-6975 512-463-6955 prorationunit@rrc.texas.gov www.rrc.texas.gov P.O. Box 12967, Austin, Texas 78711-2967

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