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
Download Presentation The PPT/PDF document "PSA WELLS, ALLOCATION WELLS," is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
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
48