State Oregon Regulations CHAP 632 DEPARTMENT OF GEOLOGY AND MINERAL INDUSTRIES DIVISION 10 OIL AND GAS RULES The Oregon Administrative Rules contain OARs filed through July 14, 2006 DEPARTMENT OF GEOLOGY AND MINERAL INDUSTRIES DIVISION 10 OIL AND GAS RULES 632-010-0002 General Rules These general rules apply to all lands within the jurisdiction of the State of Oregon unless otherwise specifically stated. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54; GMI 1-1982, f. & ef. 6-25-82; GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95 632-010-0004 Supremacy of Special Rules The board may issue special rules, including field rules. These special rules supersede general rules which conflict with them. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54; GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef. 12-5-90 632-010-0006 Secretary to the Board The State Geologist shall act as secretary to the board. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54; GMI 4-1985, f. & ef. 11-20-85 632-010-0008 Definitions As used in OAR 632-010-0010 through 632-010-0240, unless the context requires otherwise: (1) "Abandonment" means the condition of a well when it is permanently plugged and the site restored according to these rules with the approval of the department. (2) "Allowable Quantity" means the amount of natural gas or oil allowed by order of the board to be produced within a stated period. (3) "Atmospheric Pressure" means the pressure of air at sea level, equivalent to about 14.73 pounds per square inch absolute. (4) "Barometric Pressure" means the pressure or weight of air determined by the use of a barometer at a given point. (5) "Barrel" means 42 U.S. gallons of oil at a temperature of 15.55 degrees Centigrade (60 degrees Fahrenheit), with deductions for the full percent of basic sediment, water and other impurities present, ascertained by centrifugal or other recognized and customary test. (6) "Blow-Out" means an uncontrolled escape of oil, natural gas, or water as a flow from a well. (7) "Blow-Out Preventer" means a heavy casing-head control of special gates or rams which will seal the annular space between drill pipe or tubing and casing or which completely closes off the top of the inner casing string. (8) "Board" means the Governing Board of the State Department of Geology and Mineral Industries. (9) "Bottom Hole Pressure" means the pressure in pounds per square inch at or near the bottom of an oil or gas well determined at the face of the producing horizon by means of a pressure recording instrument, adopted and recognized by the oil and gas industry, and corrected to the sea level elevation. (10) "Casing Pressure" means the pressure in the annular space between the tubing and casing measured at the wellhead. (11) "Casing-Head Gas" means any gas or vapor, or both gas and vapor, indigenous to an oil stratum and produced from such stratum with oil. (12) "Combination Well" means a well productive of both oil and gas in commercial quantities from the same pool and which has sufficient natural pressure to cause gas to enter a pipeline carrying more than atmospheric pressure. (13) "Completion" mean that a well is in such condition that it is capable of producing oil and/or gas. (14) "Condensate" means hydrocarbons existing in the gaseous state in the reservoir, at original reservoir conditions, but condensing to a liquid at pressures or temperatures below those of the reservoir. (15) "Connate Water" means the water which was present with the deposition of solid sediments in an oil or gas reservoir and which has not, during the oil accumulation, been displaced. (16) "Correlative Rights" means that each owner or producer in a pool is privileged to produce therefrom only in such manner or amount as not to injure the reservoir to the detriment of others or to take an undue proportion of the oil or gas obtainable therefrom, or to cause net drainage between spacing units. (17) "Cubic Foot of Gas" means the volume of gas expressed in cubic feet computed at standard pressure base of 14.73 pounds per square inch absolute and a standard temperature base of 60 degrees Fahrenheit. (18) "Day" means a period of twenty-four consecutive hours from 7 a.m. one day to 7 a.m. the following day. (19) "Development" means any work performed to bring about production of oil and/or gas. (20) "Developed Area or Developed Unit" means a unit as defined in ORS 520.005(12) having a well completed thereon which is capable of producing oil or gas in paying quantities; however, in the event the board finds, that a part of any unit is nonproductive, then the developed area of the unit shall include only that part so found to be productive. (21) "Differential Pressure" means in the case of wellhead measurement, the difference between the tubing pressure and the casing pressure; in the case of an orifice meter, the pressure difference between the upstream and the downstream sides of the orifice, a pressure difference measured with a differential gauge or with a manometer (U tube). (22) "Disposal Well" means any well used for the purpose of disposing produced salt water and produced oil field waste. (23) "Drilling Unit" means the acreage dedicated to a well before field limits and spacing rules are established by the board. (24) "Edge Water" means water that holds the oil or gas, or both oil and gas, in a higher structural position usually encroaching on a pool as the oil or gas is recovered. (25) "Fair Share" means that part of recoverable oil and/or gas in a developed area of a pool proportional by area to the recoverable oil and/or gas in the entire developed area of the pool, insofar as these amounts can be practically ascertained. (26) "Field" means the general area underlaid by one or more pools. (27) "Gas" means all natural gas and all other fluid hydrocarbons not defined as oil in section (44) of this rule, including condensate originally in the gaseous phase in the reservoir. (28) "Gas Allowable" means the amount of natural gas authorized to be produced by order of the Board. (29) "Gas-Oil Ratio" means the relation of the gas in cubic feet to the production of oil in barrels as accepted by pipelines. (30) "Gas Repressuring" means the introduction of gaseous substances into a pool by artificial means in order to replenish, replace, or increase the reservoir energy. (31) "Gas Well" means: (a) A well which produces natural gas only; (b) That part of a well where the gas producing stratum has been successfully cased off from the oil so that the gas and oil are produced through separate casing or tubing; (c) Any well capable of producing gas in commercial quantities; or (d) A well producing from a reservoir containing no liquid hydrocarbons. (32) "Idle Well" means an inactive well which has not been completed, suspended, or abandoned with approval of the State Geologist. (33) "Illegal Gas" means gas which has been produced within the state from any well or wells in excess of the amount allowed by any rule, regulation, or order of the board. (34) "Illegal Oil" means oil which has been produced within the state from any well in excess of the amount allowed by any rule, or order of the board. (35) "Illegal Product" means any product of oil or gas, any part of which was processed or derived, in whole or in part, from illegal oil or illegal gas or from any product thereof. (36) "Indices of Productive Value" means the factors to be considered in ascertaining the productivity of all property in a pool for the purpose of fixing the allowable production. These indices can mean, at the discretion of the board, potential acreage, gas-oil ratios, static reservoir pressures, flowing pressures, fluid level drawdowns, the well or wells, or any other pertinent factors. (37) "Lease" means the exclusive right to explore for, drill for, and produce petroleum, natural gas, and associated hydrocarbons. (38) "Lessee" means a person who becomes a mineral rights owner by leasing mineral rights from a mineral rights owner. (39) "Mineral Rights Owner" means the person who has the exclusive right to lease or grant rights for mineral exploration and includes owners of unleased mineral rights and lessees of mineral rights. (40) "Mud-Laden Fluid" means any approved mixture of fluid and clay or other material as the term is commonly used in the industry which will effectively seal the formation to which it is applied. (41) "Net Drainage" means the drainage or migration of oil or gas within the reservoir which is not equalized by counter-drainage. (42) "Nomination" means the statement made by a purchaser as to the amount of oil or gas he is willing to purchase for a given period. (43) "Oil" means crude petroleum oil and all other hydrocarbons, regardless of gravity, which are produced in liquid form by ordinary production methods, but does not include liquid hydrocarbons that were originally in a gaseous phase in the reservoir. (44) "Oil Allowable" means the amount of oil authorized to be produced by order of the board. (45) "Oil Well" means any well not a gas well capable of producing oil or condensate in paying quantities. (46) "Operator" means any person who has the right to drill a well, or who is in charge of the development of a lease or the operation of a producing well. (47) "Overage, Overproduction" means the oil or gas produced in excess of the allowable fixed by the board. (48) "Period Allowable" means the period as designated by the State Geologist in which an allowable quantity may be produced. (49) "Person" means any natural person, partnership, corporation, association, receiver, trustee, guardian, fiduciary, executor, administrator, representative of any kind, or the State of Oregon and its political subdivisions, boards, agencies, or commissions. (50) "Pipeline Oil" means oil free from water and basic sediment to the degree that it is acceptable for pipeline transportation and refinery use. (51) "Pool" means an underground reservoir containing a common accumulation of oil and/or natural gas. A zone of a structure which is completely separated from any other zone in the same structure is a pool. (52) "Potential" means the computed daily ability of a well to produce oil and/or natural gas as determined by a test made in conformity with rules prescribed by the Board. (53) "Pressure Maintenance" means: (a) The re-introduction, in the early stages of field development, of gas or fluid produced from an oil or gas well to maintain the pressure of the reservoir; (b) The introduction of gas or fluid for the same purpose but obtained from an outside source. (54) "Producer" means the owner of one or more wells capable of producing oil or gas or both. (55) "Product" means any commodity made from oil or gas, and shall include refined crude oil, crude tops, topped crude, processed crude petroleum, residue from crude petroleum, cracking stock, uncracked fuel oil, fuel oil, treated crude oil, residuum, gas oil, casing-head gasoline, natural gas, gasoline, kerosene, benzene, wash oil, waste oil, blended gasoline, lubricating oil, blends or mixtures of oil with one or more liquid products or by-products derived from oil or gas, and blends or mixtures of two or more liquid products or by-products from oil or gas. (56) "Proved Oil or Gas Land" means the area which has been shown by development or geological information to be such that additional wells drilled thereon are reasonably certain to be commercially productive of oil or gas, or both. (57) "Purchaser" means any person who directly or indirectly purchases, transports, takes, or otherwise removes production to his account from a well, wells, or pool. (58) "Run" means oil or gas piped from one place to another. (59) "Separator" means an apparatus for separating oil, gas, water, etc., with efficiency as it is produced. (60) "Service Well" means any well drilled to be used for the purpose of underground natural gas storage or to monitor such underground storage. (61) "Shortage or Underage" means the amount of production less than the allowable. (62) "Sour Gas" means gas which contains hydrogen sulfide, sulphur, or other deleterious substances, in sufficient quantities to render it unfit for domestic consumption. (63) "Spacing Unit" means the acreage dedicated by the board to a well after field limits and rules are established. (64) "Spud" means the beginning of actual drilling in the ground. (65) "State Geologist" means the chief administrator of the State Department of Geology and Mineral Industries. (66) "Storage" means produced oil, gas, or both confined in tanks, reservoirs, or containers. (67) "Stratigraphic Test Hole" means a hole less than 500 feet deep and drilled for stratigraphic or geologic data only and not for production under any foreseeable conditions as determined by the State Geologist. (68) "Survey" means all tests made for the purpose of obtaining information concerning the productive possibility of any geological formation and shall include electrical and directional surveys. (69) "Suspension" means the status of a well that is not in an abandoned or completed condition when it has been safely left unattended, with the approval of the State Geologist, for a period of 30 days or more. (70) "Underground Storage" means underground reservoirs either natural or artificial or both which are suitable for storage of natural gas, produced petroleum, and petroleum products. The term may also mean the produced natural gas, petroleum, and petroleum products confined in underground reservoirs. (71) "Unlawful Abandonment" means the condition of: (a) An idle well from which drilling equipment has been removed; (b) An idle well with drilling equipment present but no activity for 30 consecutive days; or (c) Any suspended well whose period of approved suspension has expired and an additional 30 days has elapsed. (72) "Waste" in addition to its ordinary meaning, means "physical waste" as that term is generally understood in the petroleum industry. It includes: (a) Underground waste and the inefficient, excessive, or improper use or dissipation of reservoir energy, including gas energy and water drive, of any pool; and the locating, spacing, drilling, equipping, operating, or producing of any oil well or gas well in a manner which results or tends to result in reducing the quantity of oil or gas ultimately recoverable from any pool; (b) Surface waste and the inefficient storing of oil and the locating, spacing, drilling, equipping, operating, or producing of oil wells or gas wells in a manner causing or tending to cause unnecessary or excessive surface loss or destruction of oil or gas. (73) "Well" means a hole drilled in search of oil or gas, but shall not include core test holes, stratigraphic test holes, seismic test wells or wells drilled for information purposes only as distinguished from wells drilled for the purpose of producing oil or gas, if found. (74) "Wellhead" means equipment consisting of control valves installed at the surface of the well. (75) "Well Log" means the written record progressively describing the strata, water, oil or gas encountered in drilling a well with such additional information as to give volumes, pressure, rate of fill-up, water depths, caving strata, casing record, etc., as is recorded in normal procedure of drilling, also to include all electrical and mechanical surveys performed in the well bore. (76) "Wildcat Well" means a drilling or producing well in an unproved area. NOTE: Additional definitions may be found in ORS 520.005 and 520.015. Stat.Auth.: ORS Ch. 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54; GMI 2, f. 6-20-55; GMI 1-1979, f. & ef. 1-25-79; GMI 1-1982, f. & ef. 6-25-82; GMI 1-1985(Temp) f. & ef. 6-7-85; GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95; GMI 3-1997, f. & cert. ef. 12-3-97 632-010-0010 Application and Permit to Drill, Redrill, Deepen, Alter Casing, or Rework (1) No person proposing to drill, redrill, deepen, alter casing, or rework any well, service well or disposal well shall commence the drilling, redrilling, deepening, altering of casing, or reworking until the person has applied to the State Geologist upon a form prescribed by the State Geologist for a permit to operate the well, paid to the department a nonrefundable fee of $250 for each such well, posted a bond or other financial security required pursuant to OAR 632-010-0205 and obtained the permit to drill, redrill, deepen, or rework the well pursuant to section (3) of this rule. The $250 fee may be waived by the State Geologist if operations to redrill, deepen, alter casing, or rework are a continuation of other operations. (2) The application for a permit shall include: (a) The location of the well; (b) The name and address of the surface owner, operator, and any other person responsible for the conduct of the drilling operations; (c) The elevation of the well above sea level; (d) Casing and cementing programs giving details of casing sizes, casing grade, hole diameters, and volume of cement to be used; (e) Geologic objectives for wells proposed for known producing areas, proposed depth in all cases; (f) Documentation of the ownership of mineral rights or a mineral rights lease on the property to be drilled, or the right or obligation, under the terms of an existing contract, to drill a well. (3) The permit will be revoked if the applicable rights in subsection (2)(f) of this rule, cease to exist prior to commencement of drilling operations. (4) If a completed application has not been received by one year from the date of the receipt of the initial application, it will be automatically returned to the applicant. (5) The applicant must be registered with the Secretary of State if registration is required by the laws of the State Of Oregon. (6)(a) The State Geologist shall circulate each application for a permit to drill for technical review to appropriate state agencies and the governing body of the county or city in which the well will be located. The agencies and governing body have twenty (20) days from the date of application in which to comment; (b) The State Geologist may approve immediately without circulating for technical review an application for a permit to redrill, deepen, or rework if operations are an uninterrupted continuance of previous operations, provided conditions of OAR 632-010-0142(3) are met. (7)(a) If upon receipt of the application the State Geologist or his agent determines that the method of drilling and the equipment to be used by the applicant in drilling the well comply with applicable laws and rules, the State Geologist shall issue the permit within 30 days. The State Geologist may refuse to issue or may revoke a permit if he determines that the method of drilling or the equipment to be used or being used in drilling the well does not comply with the applicable laws or rules. The application for permit shall be denied if the applicant has an unlawfully abandoned well or wells in the state. A permit may also be denied if the operator has not submitted all overdue records or samples from a previous well. A permit may also be denied to any applicant that has or has had a business relationship with an operator that has an unlawfully abandoned well or has not submitted overdue records or samples; (b) If the State Geologist refuses to issue a permit, notification shall be sent to the applicant in writing within 30 days from the date of application and provide the reason for denying the permit. Any person adversely affected by a ruling of the State Geologist may within 30 days of such ruling appeal to the board. (8) When issuing the permit, the State Geologist shall inform the applicant that: (a) Issuance of the permit is not a finding of compliance with the Statewide Planning Goals (ORS 197.225) or compatibility with the acknowledged comprehensive plan and land use regulations; and (b) The applicant must receive land use approval from the affected local government supported by written findings as provided in OAR 632-001-0015 before the use can commence. (9) The State Geologist or representative may temporarily suspend operations if they are not in compliance with applicable laws or rules of this chapter, or departmental orders. (10) The State Geologist may revoke a permit for noncompliance with applicable statutes, rules, orders, and permits conditions. (11) Drilling, redrilling, deepening, altering or casing, or reworking operations must commence within one year from the date of issuance of the permit or such permit shall become invalid. The permit may be extended by the State Geologist for a maximum of one additional year upon receipt of written request from the permittee, before the expiration date, giving reasons acceptable to the State Geologist for an extension. The request shall be accompanied by a nonrefundable fee paid to the department of $250. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 2, f. 6-20-55; GMI 1-1978(Temp), f. 5-26-78, ef. 7-1-78; GMI 1-1979, f. & ef. 1-25-79; GMI 3-1980, f. 2-29-80, ef. 3-1-80; GMI 1-1981, f. & ef. 2-26-81; GMI 1-1982, f. & ef. 6-25-82; GMI 1-1985(Temp), f. & ef. 6-7-85; GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 1-1991, f. 9-5-91, cert. ef. 9-6-91; GMI 2-1995, f. & cert. ef. 3-10-95; GMI 3-1997, f. & cert. ef. 12-3-97; DGMI 2-1999, f. & cert. ef. 8-30-99 632-010-0011 Active Permits The permittee shall provide an annual nonrefundable fee paid to the department of $500 on or before the anniversary of the issuance date of each active permit issued by the State Geologist. As a courtesy the department may notify the permittee with a notice prior to the anniversary date. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1-1991, f. 9-5-91, cert. ef. 9-6-91; GMI 2-1995, f. & cert. ef. 3-10-95 632-010-0012 Changes to Drilling Permits Proposed changes or amendments to a drilling permit shall be approved by the State Geologist prior to taking effect: (1) Changes involving depth, casing, or location within the same drilling or spacing unit, shall be submitted on a form provided by the State Geologist. No additional fee is required. (2) A change of location to a different drilling or spacing unit requires a new application and fee, and may constitute a significant modification for land use purposes. (3) Changing operators requires written notification to the Department signed by the original permittee and the new permittee, a new bond, and a new organization report. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 2, f. 6-20-55; GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef. 12-5-90 632-010-0014 Drilling Practices (1) Pits for Drill Cuttings: There shall be provided at every well site before the actual drilling has been started, one or more pits (sumps) of approved design and size for holding the drill cuttings and fluid removed from the well. (2) Casing and Sealing Off Formations: (a) Surface casing: (A) The department shall determine that surface casing used in all wells shall be of suitable size, grade, and wall thickness; (B) In areas where pressure and formation are unknown, sufficient surface casing shall be run to reach a depth below all known potable fresh water levels; (C) In areas where subsurface conditions have been established by drilling experience, sufficient surface casing shall be run to reach a depth below all potable fresh water levels; (D) The depths referred to in paragraphs (B) and (C) of this subsection shall be least ten percent of the proposed next casing point or total depth, unless otherwise approved by the department; (E) Surface casing shall be cemented by the pump and plug or displacement method with sufficient cement to circulate to the surface; (F) Cement shall be allowed to set a minimum of 12 hours before drilling the plug. (b) Other casing: Each fluid bearing zone above the producing horizon in oil and gas wells shall be cased and sealed off to prevent effectively the migration of formation fluids to other zones. Such casing and sealing off shall be effected and tested in such manner and by such methods and means as may be prescribed by the State Geologist or representative. (3) At any time of drilling any well by rotary method, the operator shall continuously maintain in the hole, from top to bottom, good mud-laden fluid in accordance with recognized safe practice. Other drilling fluids may be approved by the department if permission is applied for in advance by the operator. (4) Well-Head Equipment: (a) In drilling in areas where high pressures are likely to exist, all proper and necessary precautions shall be taken for keeping the well under control, including the use of blow-out preventers and high pressure fittings attached to casing strings properly anchored and cemented; (b) Unless otherwise approved by the department, the blow-out prevention equipment shall include a minimum of: (A) A hydraulically operated accumulator; (B) An expansion type preventer; (C) A double ram preventer; (D) A drilling spool with side outlets or equivalent; (E) A fillup line; (F) A kill line equipped with at least two valves, one of which shall be a check valve; (G) A blowdown line equipped with a pressure gauge and at least two valves, one of which shall be adjustable. The blowdown line shall be securely anchored; (H) A pit horn; (I) An inside preventer, a device to prevent flow up the drill pipe. (c) The department shall determine the minimum working pressure required of blow-out preventers; (d) Blow-out preventer tests: (A) Prior to drilling out the casing shoe after cementing casing, all casing strings shall be pressure tested to 1.5 psi per foot of casing, unless otherwise permitted by the department. Such tests shall not exceed the rated working pressure of the casing or the blow-out preventer stack assembly working pressure, whichever is less; (B) Blow-out preventer equipment shall also be tested before drilling out the shoe of each casing string. Ram type preventers and auxiliary equipment shall be tested to a minimum of 1,000 psi or to 1.5 psi per foot of casing, or to the working pressure of the casing or assembly, whichever is less, unless otherwise permitted by the department. Expansion type preventers shall be tested to 70 percent of the above pressure testing requirements. Higher pressures, using a test plug in the casing head, may be required by the department on a case by case basis; (C) The blow-out prevention equipment shall be pressure tested: when installed, prior to drilling out casing shoes, and following repairs or reassembly of the preventers that require disconnecting a pressure seal in the assembly; (D) During drilling operations, blow-out prevention equipment shall be actuated to test proper functioning once each trip or once each week, whichever is more frequent; (E) All flange bolts shall be inspected at least weekly and retightened as necessary during drilling operations. The auxiliary control systems shall be maintained in working order and be inspected daily to check the mechanical condition and effectiveness and to insure personnel acquaintance with their operation. A blow-out prevention practice drill shall be conducted weekly for each drilling crew, and be recorded on the driller's log. (5) Inclination Surveys: (a) Unless exempted by the department, inclination surveys to determine the angle of the hole from the vertical shall be performed in all wells before completion to production at a depth greater than 1,500 feet. The surveys must be taken at 500 foot intervals or at the nearest drill bit change, but not to exceed 1,000 feet apart. These surveys may be made during the course of drilling or after the well has reached total depth. Directional surveys may be filed in place of inclination surveys, and computations from dipmeter surveys may also be used. Such computations must be filed with the department; (b) The department may for good cause require an operator to perform a directional survey to determine the location of the borehole at various intervals. (6) Deepening: Every person, owner, or producer who desires to deepen a well to a depth below that to which it was originally permitted shall file a written application to deepen. The application shall set forth in detail the present condition of the well, including the complete casing record, and the proposed work including the plan for sealing off any oil, gas, brine, or fresh-water strata to be found or expected to be found in the deepening, and the new proposed total depth. If the method set forth is satisfactory and the person, owner, or producer is not in violation of the law or the orders or rules of the board, the department may issue a deepening permit. The actual deepening shall not be started until the deepening permit has been posted at the well location. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54; GMI 1-1979, f. & ef. 1-25-79; GMI 1-1982, f. & ef. 6-25-82; GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95 632-010-0015 Abandonment of Radioactive Source (1) When a radioactive source is lodged downhole in a well recovery efforts must be made. If unsuccessful, operations shall immediately be discontinued and the operator shall notify the department. (2) Abandonment Procedures: (a) Sources abandoned except as stipulated in subsection (b) of this section, shall be covered with a minimum 100 foot cement plug on top of which a whipstock shoe or other mechanical device of equal effectiveness shall be set. If the hole is later sidetracked above the source, the sidetracked hole shall be controlled to assure that it is at least 15 feet away from the source; (b) Sources abandoned behind a casing string above total depth shall, upon abandonment of the well, have a minimum 100 foot cement plug set opposite the source, extending at least 50 feet above and 50 feet below the source. (3) After a well containing an abandoned radioactive source has been abandoned, re-entry shall be permitted only with the understanding that drilling shall not disturb the cement plug, and any sidetracked hole shall not be closer to the source than 15 feet. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95 632-010-0016 Enclosure and Identification of Wells and Tanks (1) Every well producing oil or gas, every suspended well, and every injection well shall be identified by the operator by a sign posted in a conspicuous place near the well and containing the following information: name of operator, name of lease, well number, section, township and range, and a 24-hour emergency telephone number. (2) Every tank or other oil measuring device shall be identified by a sign posted in a conspicuous place near the tank or device and containing the following information: name of operator, lease, section, township and range, and a 24-hour emergency telephone number. (3) The department may require that a well producing oil or gas, suspended well capable of producing oil or gas, and injection well shall be fenced or walled to a minimum height of six feet. Such an enclosure shall be kept locked to protect life and property, and identification signs described in sections (1) and (2) of this rule shall be prominently displayed. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54; GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95 632-010-0017 Well Records (Logs) (1) During the drilling, redrilling, deepening, or reworking of every well, except seismic, core, or other shallow wells drilled solely for geological data, the operator or other person responsible for the conduct of drilling operations, shall keep at the well a detailed and accurate record of the well, which shall be accessible to the State Geologist or representative. The well record shall progressively describe the strata, water, oil, and/or gas encountered. Additional required information includes pressures, test results, caving strata, casing record, perforating, chemical treatment, and other pertinent information as are usually recorded in the normal procedure of drilling. This shall also include, if available, formation water chemistry analysis and hydrocarbon analysis including BTU content. These records shall include the exact surface location of the well. A copy of the records shall be furnished to the State Geologist upon a form prescribed by the State Geologist within 20 days after the completion, suspension, or abandonment of any well whichever date comes first. (2) All well logging shall also be recorded and digital copies, if available, and prints furnished the State Geologist within twenty (20) days after completion, suspension, or abandonment whichever date comes first. A complete set of cuttings, washed and dried, and samples of cores, if taken, correctly labeled and identified as to depth, shall be filed with the State Geologist within 20 days after completion, suspension, or abandonment of every such well. (3) Well logs, electric logs, cuttings, and cores shall be kept confidential by the State for a period of two years from the completion, suspension, or abandonment of the well: (a) This period of time may be extended by the State Geologist for the protection of the economic interests of the operator of the well upon written application by the operator showing good cause in the opinion of the State Geologist at least 30 days before the expiration of confidentiality. The application shall give a proposed length of extension and reasons for such extension; (b) An operator may authorize the State Geologist to release records before the end of the two-year confidentiality period by providing such release in writing from an officer of the company or its attorney-in-fact. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 1-1991, f. 9-5-91, cert. ef. 9-6-91; DGMI 2-1999, f. & cert. ef. 8-30-99 632-010-0018 Organization Reports Every person acting as principal, agent for another, or independently engaged in drilling for, producing, or storing oil or gas in Oregon shall immediately file with the State Geologist an organization report on a form provided by the State Geologist. A supplementary report shall be filed immediately after any change occurs as to the facts stated in the original report. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 2, f. 6-20-55; GMI 4-1985, f. & ef. 11-20-85 632-010-0020 Surface Equipment Meter fittings of adequate size to measure the gas efficiency for the purpose of obtaining gas-oil ratios shall be installed on the gas vent-line of every separator. Well-head equipment shall be installed and maintained in good operating condition so that static bottom hole pressure may be obtained at any time by the duly authorized agents of the board or the State Geologist. Valves shall be installed so that pressures can be readily obtained on both casing and tubing. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54; GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95 632-010-0128 Boiler or Light Plant No open flame or source of sparks shall be placed nearer than 100 feet to any producing well or hydrocarbon storage. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54; GMI 2-1995, f. & cert. ef. 3-10-95 632-010-0130 Rubbish or Debris Any rubbish or debris that might constitute a fire hazard shall be removed to a distance of at least 150 feet from the vicinity of wells, tanks, and pump stations. All waste shall be disposed of in such manner as to avoid creating a fire hazard or polluting streams and freshwater strata and in compliance with Oregon law, including any necessary permits. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54; GMI 1-1982, f. & ef. 6-25-82; GMI 6-1990, f. & cert. ef. 12-5-90 632-010-0132 Tubing All wells shall be equipped with tubing. Production shall be exclusively through tubing, unless otherwise approved by the department. The bottom of tubing on flowing wells shall not be higher than 100 feet above the top of the producing horizon or as otherwise approved by the department. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54; GMI 1-1979, f. & ef. 1-25-79; GMI 1-1981, f. & ef. 2-26-81; GMI 2-1995, f. & cert. ef. 3-10-95 632-010-0134 Chokes All free-flowing wells shall be equipped with chokes or beans adequate to control the flow thereof. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54; GMI 6-1990, f. & cert. ef. 12-5-90 632-010-0136 Separators All wells flowing oil and gas shall be produced through an oil and gas separator. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54; GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef. 12-5-90 632-010-0138 Fire Walls Every permanent oil or condensate tank, or battery of tanks, shall be surrounded by a dike or fire wall with a capacity of one and one-half times that of the tank or battery of tanks. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95 632-010-0140 Reserve Pits or Sumps Materials and fluids or any fluid necessary to the drilling, production, or other operations by the permittee shall be discharged or placed in pits and sumps approved by the department and the State Department of Environmental Quality. The operator shall provide pits, sumps, or tanks of adequate capacity and design to retain all materials. In no event shall the contents of a pit or sump be allowed to: (1) Contaminate streams, artificial canals or waterways, groundwaters, lakes, or rivers. (2) Adversely affect the environment, including but not limited to, persons, plants, fish, and wildlife and their populations. (3) When no longer needed and within one year of completion, suspension of abandonment, fluid in pits and sumps shall be disposed of in a manner approved by the Department of Environmental Quality and the sumps filled and covered and the premises reclaimed. The restoration need not be done if arrangements are made with the surface owner to leave the site suitable for beneficial subsequent use. The permittee shall notify the department to inspect the site reclamation Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54; GMI 1-1979, f. & ef. 1-25-79; GMI 1-1982, f. & ef. 6-25-82; GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95 632-010-0142 Directional Drilling (1) Any well which is intentionally deviated from the vertical shall be surveyed at intervals of at least 250 feet to determine the location of the borehole at those intervals. Deviation from the vertical is permitted without special permission for short distances, to straighten the hole, sidetrack junk, or correct other mechanical difficulties. (2) Except for the purpose of straightening the hole, sidetracking junk, or correcting mechanical difficulties as provided in this rule, no well shall be intentionally deviated from the vertical unless the operator thereof shall first file application and obtain a permit from the state Geologist: (a) Prior to drilling, an application to deviate a well may be approved as part of the drilling permit; (b) If drilling is in progress, the operator must notify the State Geologist immediately of the deviation of the hole or his intention to deviate the hole. When an operator follows this procedure, he must file an application as soon as practicable and obtain a permit. The application shall be made in such form as provided below and shall include or have attached to it: (A) Surface location in terms of distances from lease and section boundaries. Plan coordinates of top of producing interval and bottom of hole from surface location; (B) Reason for deviation; (C) If the proposed or final location of the producing interval of the directionally deviated well is not in compliance with the spacing or other rules applicable to the reservoir: (i) List of affected mineral rights owners or evidence that the applicant is the only affected mineral rights owner. For the purposes of this rule affected mineral rights owners are the mineral rights owners in adjoining or cornering drilling or spacing units toward which the well is to be deviated; (ii) Neat and accurate plat of the lease and of all affected leases showing the names of all affected mineral rights owners and the surface and proposed producing interval locations of the well. The plat shall be drawn to a scale which will allow easy observation of all pertinent data. (3)(a) The State Geologist shall notify all affected mineral rights owners in drilling or spacing units toward which the well is being directionally drilled of the proposed deviation before approving an application. Approval of the application to deviate shall be granted or denied at the discretion of the State Geologist. Affected mineral rights owners may request a hearing to consider the application. If any such mineral rights owner requests a hearing in writing within 20 days of receipt of notice it shall be held without undue delay by the Governing Board or its designated representative. If no request for a hearing is made in writing within 20 days of receipt of notice the State Geologist may approve the application; (b) If the applicant is the only affected mineral rights owner or has leased the right to drill from the only affected mineral rights owner or has obtained a waiver from the affected mineral rights owner and the State Geologist does not object to the application, the State Geologist may approve it immediately. (c) If the well is being directionally drilled as part of a continuous drilling operation, the State Geologist may permit deviation of the well without providing a 20-day notice to all affected mineral rights owners in spacing units towards which the well is being directionally drilled. If the well is completed in a set-back location, affected mineral rights owners will be notified in writing and a public hearing will be held, if requested. (4) Upon completion, suspension or abandonment of the well, whichever comes first, the permittee shall file a complete directional survey of the well obtained by approved well surveying methods with the State Geologist together with other regularly required reports. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54; GMI 1-1979, f. & ef. 1-25-79; GMI 3-1980, f. 2-29-80, ef. 3-1-80; GMI 1-1982, f. & ef. 6-25-82; GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef. 12-5-90; DGMI 2-1999, f. & cert. ef. 8-30-99 632-010-0144 Report of Perforating or Well Stimulation Treatment Within 60 days after either the perforating or well stimulation treatment of a well, the permittee shall file a report with the department, describing perforation and stimulation procedures used and the results obtained. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54; GMI 1-1979, f. & ef. 1-25-79; GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95 632-010-0146 Vacuum Pumps Prohibited The use of vacuum pumps or other devices for the purpose of putting a vacuum on any gas- or oil-bearing stratum is prohibited, unless, upon application and hearing, and for good cause shown, the Board shall permit the use of vacuum pumps. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54; GMI 1-1982, f. & ef. 6-25-82 632-010-0148 Production Practice Naturally flowing wells shall be produced at a continuous uniform rate as far as is practical, in keeping with the current allowable, unless the board specifically permits stop-cocking to reduce the gas-oil ratio. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54; GMI 2-1995, f. & cert. ef. 3-10-95 632-010-0150 Removal Of Casing No person shall remove a casing, or any portion thereof, from any well without first giving advance notice and obtaining approval in writing from the department. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54; GMI 1-1979, f. & ef. 1-25-79; GMI 4-1985, f. & ef. 11-20-85; GMI 2-1995, f. & cert. ef. 3-10-95 632-010-0151 Notification of Fire, Breaks, Leaks, or Blow-Outs (1) All persons controlling or operating any oil and gas wells, or receiving tanks, storage tanks, or receiving and storage receptacles into which crude oil is produced, received, or stored, shall immediately notify the department giving full details concerning all fires which occur at such oil or gas wells or tanks or receptacles on their property, and shall immediately report any breaks in tanks or receptacles and pipelines from which oil or gas is escaping or has escaped. (2) In all such reports of fires, breaks, leaks, or escapes, or other accidents of this nature, the location of the well, tank receptacle, or line break shall be given by Section, Township, Range, and property so that the exact location thereof can be readily located on the ground. Such report shall likewise specify what steps have been taken or are in progress to remedy the situation reported and shall detail the quantity of oil or gas lost, destroyed, or permitted to escape. (3) In case any tank or receptacle is permitted to run over, the escape thus occurring shall be reported as in the case of a leak. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54; GMI 1-1982, f. & ef. 6-25-82 ; GMI 2-1995, f. & cert. ef. 3-10-95 632-010-0152 Multiple Completion of Wells No well shall be permitted to produce either oil or gas from different strata through the same tubing without approval of the department. The approval of the department will require evidence of adequate and complete separation as ascertained by pressure or circulated tests conducted at the time the packers are set. Subsequently, if packer leakage is suspected the department may require the operator to provide proof of adequate and complete separation of the pools involved in the completion or make a packer leakage test. The operator shall give notification to the department so that the department may witness the actual operation of multiple completion of a well or witness any packer leakage test. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54; GMI 1-1979, f. & ef. 1-25-79; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95 632-010-0154 Determining and Naming Fields and Pools (1) Field names and boundaries may be determined by the board after establishment of evidence acceptable to the Board that geologic, geographic or other conditions warrant the assignment of a new field designation. (2) Wells shall be classified as to the pool from which they produce and pools may be named by the State Geologist. (3) Operators making new field or pool discoveries may recommend names to the State Geologist. (4) If any person is dissatisfied with a new field designation, or a well or pool classification or determination, that person may request a reconsideration by the board of that designation, classification, or determination. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54; GMI 1-1982, f. & ef. 6-25-82; GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95 632-010-0156 Spacing Units, Notification (1) Immediately upon the discovery of any pool or at any time after the effective date of this rule, the board may prescribe spacing units for each pool and specify the size, shape, and location thereof and establish field limits and Special Rules (2) Before establishing spacing units, field limits and Special Rules, the board shall schedule and hold a hearing. Notification for such a hearing shall be provided to mineral owners in the area surrounding the discovery well according to the following: (a) In areas of the state with surveyed sections, and where the top of the productive interval in the well is at a depth of less than 7,000 feet below the surface, the department shall notify mineral owners in the 160 acre quarter section in which the well is located. If the top of the productive interval is located within 250 feet from any 160 acre quarter section line, the department shall notify mineral owners in the affected adjacent quarter sections; (b) In the areas of the state with surveyed sections, and where the top of the productive interval in the well is at a depth of 7,000 feet or greater below the surface, the department shall notify mineral owners in the 160 acre quarter section in which the well is located and in the eight surrounding quarter sections; (c) In those parts of the state that are without surveyed sections, the department shall notify mineral owners located within the boundary of a superimposed 640 acre section with the well being centered in the section. Such superimposed section shall be oriented north-south. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54; GMI 4-1985, f. & ef. 11-20-85; GMI 2-1995, f. & cert. ef. 3-10-95 632-010-0157 Exceptions to Special Rules (1) The board may grant exception to Special Rules after holding a hearing when necessary on the basis of geology, productivity, topography, or environmental protection. (2) Before granting an exception for a well proposed within the set-back distance set forth in a Special Rule, the department shall notify mineral owners in the spacing unit where the well is proposed to be drilled and in the adjacent spacing unit(s) within the set-back distance. Any such mineral owner may request a hearing by the board to consider the application. If no request for a hearing is made in writing within twenty (20) days of sending of notice, the department may issue a permit for the proposed well. If the applicant is the only mineral owner in the adjacent spacing units or has leased the right to drill from the mineral owner(s) in the adjacent spacing units and has obtained a waiver in writing from these mineral owners to allow the drilling, the department may approve the application immediately. (3) If any such mineral rights owner requests a hearing, it shall be held within 30 days of receipt of request, provided the request is made within 20 day period specified in section (2) of this rule. Any order by the State Geologist or board granting an exception to Special Rules under this rule shall include provisions to prevent the production from the proposed well in excess of its just and equitable share of oil and/or gas in the the pool. (4) If a permittee proposes to change the proposed location of a well such that it will not comply with the set-back distances in a Special Rule, an exception necessary for the permit to remain valid may be granted according to the process above. (5) Whenever a uniform spacing plan has been prescribed for any pool, exceptions may be permitted if the board finds, after notice and hearing, that conditions within the pool are such that the Special Rules would be impracticable. Stat. Auth.: ORS 516.090, ORS 520.095, ORS 522.019, ORS 522.305, ORS 522.405, ORS 522.434 & ORS 522.545 Stats. Implemented: ORS 520.095 Hist.: GMI 2-1995, f. & cert. ef. 3-10-95 632-010-0159 Underground Reservoirs for Natural Gas Storage Rules providing for well spacing and proration of gas shall not apply to gas storage wells, injection wells or monitor wells. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 3-1980, f. 2-29-80, ef. 3-1-80 632-010-0161 Compulsory Integration Orders (1) Definitions. For purposes of this rule: (a) "Costs" include: (A) "Drilling costs" means all reasonable costs and expenses of drilling, redrilling, reworking, deepening, plugging back, testing and completing the well; and (B) "Production costs" means all reasonable on-site costs and expenses of production and production equipment for the well including wellhead, but not pipeline costs and not overhead. (b) "Constructive agreement". See definition of participating owner below; (c) "Participating owner" means each owner in the spacing unit who prior to commencement of drilling operations entered into a written agreement with the operator to share costs, production and entitlements as provided in subsection (6)(c) of this rule. However, where no such agreement has been reached, an owner who, prior to drilling tendered the operator a written agreement to pay not less than the owners pro rata share of costs attributable to his interest, as computed in section (2) of this rule, in the spacing unit in exchange for a share of production and entitlements as provided in subsection (6)(c) of this rule, shall be considered to be a participating owner and to have entered into a constructive agreement to that effect. (2) Timing. In the absence of a voluntary integration agreement for the entire spacing unit, the board shall enter an order integrating all mineral rights ownership interests in a spacing unit pursuant to ORS 520.220(2), at any time following the entry of an order establishing the spacing unit for a pool pursuant to ORS 520.210. (3) Determination of Interests. A compulsory integration order shall determine the interest of each mineral rights owner in the spacing unit by dividing: (a) The number of surface acres subject to such owner's mineral rights located in the spacing unit by; (b) The total number of surface acres in the spacing unit. (4) Content. The compulsory integration order shall provide for the drilling, if necessary, and operation of the well on the spacing unit, for the sharing of production, and for the payment of costs. (5) Effective Date. The compulsory integration order shall be effective as of the date of initial production unless the Board establishes another date. (6) Allocation of Costs and Earnings: (a) The compulsory integration order shall provide that the operator and participating owners shall be treated as an entity. The operator-participating owners' entity shall be entitled to share production and pay costs, both in proportion to the total interest, as computed under section (2) of this rule, of the operator-participating owners' entity in the spacing unit. The express and constructive agreements between the operator and participating owner(s) shall control the allocations of production and costs attributable to the operator-participating owners' entity; (b) The compulsory integration order shall provide that each non-participating owner shall be entitled to a full share in production in proportion to his interest in the spacing unit subject to his royalty obligations, if any, and subsection (c) of this section; (c) In addition to the above, the compulsory integration order shall provide that the operator-participating owners' entity first shall receive from each non-participating owner's share of production an entitlement in the amount of: (A) Three hundred percent as a maximum of the amount of drilling costs attributable (pro rata on the basis of interests, as computed under section (2) of this rule) to the non-participating owner's interest; and (B) Three hundred percent as a maximum of production costs attributable to the non-participating owner's interest on the same basis. Each such entitlement shall be allocated between the members of the operator-participating owners' entity according to their actual and constructive agreements. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 3-1982, f. & ef. 8-16-82; GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95 632-010-0162 Illegal Production No purchaser, producer, operator, or any other person shall produce any crude oil, natural gas, or waste oil from any spacing unit or pool in this state except in accordance with the rules, regulations, and orders of the board. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54; GMI 2-1995, f. & cert. ef. 3-10-95 632-010-0163 Limitation of Production In the absence of unitization, whenever the board, after notice and hearing, finds that waste as defined in ORS 520.015, is occurring or is imminent in any oil or gas field or pool and that the production of oil or gas from such field or pool should be limited to prevent waste, then the board shall issue an order limiting production from such field or pool and specify rules applicable thereto for the allocation or distribution of allowable production therefrom as provided for in ORS 520.005(11) and 520.015. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 3-1980, f. 2-29-80, ef. 3-1-80; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95 632-010-0164 Commingling of Production Prohibited The production from one pool shall not be commingled with that from another pool in the same well before delivery to a purchaser, unless otherwise approved by the board. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95 632-010-0165 Allocation of Gas Pursuant to Special Pool Rules Whenever the full production from any pool producing natural gas is in excess of the market demand for gas from that pool, any operator or interest owner pursuant to ORS 520.115 may petition the board for a hearing and an order establishing a method of determining the market demand from the pool and of distributing that demand among the wells producing therefrom. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 3-1980, f. 2-29-80, ef. 3-1-80; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95 632-010-0166 Reports by Purchasers and Producers (1) Purchasers: Each purchaser or taker of any oil or gas from any well, lease, or pool shall on or before the last day of each month succeeding the month in which the purchasing or taking occurs, file with the department on a form furnished by the department or other form acceptable to the department, a signed statement of all oil or gas purchased, or taken from any such well, lease, or pool during the preceding month. (2) Producers: The producer or operator of each and every well or spacing unit shall on or before the last day of each month succeeding the month in which the production occurs file with the department on a form furnished by the department, or other form acceptable to the department a signed statement by an officer of the producer-corporation or operator, showing the amount of production made by each well. (3) If the purchaser and the producer are the same, only one statement need be submitted. (4) Information submitted in accordance with sections (1), (2), and (3) of this rule shall not be confidential. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54; GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95; DGMI 2-1999, f. & cert. ef. 8-30-99 632-010-0167 Maximum Efficient Rate Hearings The board on its own motion may, or at the request of any interested party shall, hold a hearing to determine the maximum efficient rate at which any pool in the state can produce oil and gas without waste. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 3-1980, f. 2-29-80, ef. 3-1-80; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95 632-010-0168 Use of Earthen Reservoirs Oil shall not be stored or retained in earthen reservoirs or in open receptacles. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54 632-010-0169 Natural Gas Policy Act Determination Procedures (1) The operator shall initiate all category determinations under the Natural Gas Policy Act of 1978 by filing with the State Geologist single legible copies of the documentation described below. A co-lessee may initiate such a determination if the operator refuses to take action upon written request of the operator or State Geologist: (a) For new onshore reservoirs, an application under Section 102(c)(1)(C) of the Natural Gas Policy Act of 1978 shall be accompanied by: (A) A completed Federal Energy Regulatory Commission Form 121; (B) A completed application for permit to drill; (C) Geological information sufficient to support a determination that the reservoir is a new onshore reservoir including all well logs, results of well potential tests, geologic maps and cross-sections showing the extent of the reservoir as known at the time of application, gas analyses, well completion reports, and directional drilling surveys if performed; (D) If a board order or rule designates a new reservoir or grants new field status to a reservoir in which a well is completed, the applicant may reference such order or rule in lieu of paragraph (C) of this subsection; (E) Well summary report (completion report); (F) Monthly production reports, if there has been production; (G) A statement by the operator under oath: (i) That he has made, or has caused to be made pursuant to his instructions, a diligent search of all records (including but not limited to production, state severance tax, and royalty payment records) which are reasonably available and contain information relevant to the determination of eligibility describing the search made, the records reviewed, the location of such records, and any records which he believes may contain information relevant to the determination but which he has determined are not reasonably available to him; (ii) That on the basis of the results of this search and examination, he has concluded that to the best of his information, knowledge, and belief, the natural gas to be produced and for which he seeks determination is from a new onshore reservoir; (iii) That he has no knowledge of any other information not described in the application which is inconsistent with his conclusion; and (iv) The applicant, in his statement under oath, shall also answer, to the best of his information, knowledge and belief, and on the basis of the results of his search and examination, the following questions: (I) Was natural gas produced in commercial quantities from the reservoir prior to April 20, 1977? (II) Was the reservoir penetrated before April 20, 1977, by an old well from which natural gas or crude oil was produced in commercial quantities from any reservoir? (III) If the question in sub-subparagraph (II) of this subparagraph is answered in the affirmative, could natural gas have been produced in commercial quantities from the reservoir before April 20, 1977? (IV) If the natural gas is to be produced through an old well, were suitable facilities for the production and delivery to a pipeline of such natural gas in existence on April 20, 1977? (b) For new natural gas, an application under section 102(c)(1)(B) of the Natural Gas Policy Act of 1978 shall be accompanied by: (A) A completed Federal Energy Regulatory Commission Form 121; (B) A completed application for permit to drill; (C) Well summary reports (completion reports) and logs on the subject well; (D) Monthly production reports, if there has been production; (E) A statement by the applicant, under oath: (i) That he has made or has caused to be made pursuant to his instructions, a diligent search of all records (including but not limited to production, state severance tax, and royalty payment records) which are reasonably available and contain information relevant to the determination of eligibility; describing the search made, the records reviewed, the location of such records, and a description of any records which he believes may contain information relevant to the determination but which he has determined are not reasonably available to him; (ii) That on the basis of the results of this search and examination, he has concluded that to the best of his information, knowledge and belief, there is no marker well within a two and one-half (2.5) mile radius of the well for which he seeks a determination which has a completion location less than 1,000 feet above the completion location of the new well; and (iii) That he has no knowledge of any information not described in the application which is inconsistent with his conclusion. (c) For new onshore production wells an application under Section 103 of the Natural Gas Policy Act of 1978 shall be accompanied by: (A) A completed Federal Energy Regulatory Commission Form 121; (B) A completed application for permit to drill; (C) A plat map showing the location of the subject well. If the subject well is within a spacing unit, the map shall also show the boundaries of the unit and any existing wells in the unit; (D) Well summary report (completion report) and logs on the subject well and directional surveys, if performed; (E) A statement by the applicant, under oath: (i) That the surface drilling of the well for which he seeks a determination was begun on or after February 19, 1977; (ii) That the well satisfies any applicable federal and state well spacing requirements; (iii) That, except as provided in paragraph (F) of this subsection, the well is not within a spacing unit: (I) That was in existence at the time the surface drilling of the well began; (II) That was applicable to the reservoir from which such natural gas is produced; and (III) That was applied to any other well that either produced natural gas in commercial quantities or the surface drilling of which was begun before February 19, 1977, and was thereafter capable of producing natural gas in commercial quantities. (iv) That on the basis of the documents submitted in the application, the applicant has concluded that to the best of his information, knowledge, and belief, the natural gas for which he seeks a determination is produced from a new onshore production well; and (v) That the applicant has no knowledge of any information not described in the application which is inconsistent with his conclusion. (F) If the applicant is seeking a determination with respect to a new well to be drilled into an existing spacing unit, the applicant must file all items required in paragraphs (A) through (E) of this subsection, except for the portion of the oath statement described in subparagraph (E)(iii) of this subsection and demonstrate by appropriate geological evidence that the new well is necessary to effectively and efficiently drain a portion of the reservoir covered by the spacing unit which cannot be effectively and efficiently drained by any existing well within the spacing unit. (d) For stripper wells an application under section 108 of the Natural Gas Policy Act of 1978 shall be accompanied by: (A) A completed Federal Energy Regulatory Commission Form 121; (B) A completed application for permit to drill; (C) A plat map showing the location of the subject well; (D) Well summary report (completion report); (E) Monthly production reports; (F) Copies of all lithologic, electric, gamma, and other logs, drill test results and directional surveys, if performed; (G) Name and address of operator and parties to purchase contracts; (H) For cases of increased production resulting from enhanced recovery techniques, a description of the processes and equipment used for such recovery and the dates such processes or equipment were installed and used; (I) For cases of seasonally affected production, a description of the nature of the fluctuations and the data used to determine the seasonal variation; (J) A statement by the applicant, under oath, that to the best of his information, knowledge and belief, the information supplied and conclusions drawn are true and that the operator has no knowledge of any information not contained or described in the application which is inconsistent with any of his conclusions. (2) The applicant shall, at the time of filing for a category determination, notify, by certified mail the purchasers and all working interest owners of such filing, and mail a list of the parties notified to the State Geologist. If more than one category determination is being requested for a single well, separate applications for each determination must be filed. The application, upon filing, shall be given a date. (3) Applications containing logs which are confidential under the provisions of ORS 520.095(2) shall be kept confidential by the State Geologist. (4) The State Geologist will review uncontested applications. (5) Any person desiring to protest the granting of a determination shall send, within 15 days after receiving notification from the applicant, a written protest to the State Geologist and applicant by certified mail. The protest shall be supported by documentation in the same manner as the documentation submitted by the applicant. Contested applications will be referred to public hearings. The board will review the record of the hearing and issue a category determination at its regularly scheduled meeting. (6) The State Geologist shall give written notice of the category determination to the Federal Energy Regulatory Commission and any protestant within 15 days after the Board determination. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 3-1980, f. 2-29-80, ef. 3-1-80; GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95 632-010-0170 Reservoir Surveys By order of the board, periodic surveys may be made of the reservoirs in the state containing oil and/or gas. These surveys will be thorough and complete and shall be made under the supervision of the department. The condition of the reservoirs containing oil and/or gas and the practices and methods employed by the operators shall be investigated. Such investigation shall include but not be limited to: the volume and source of crude oil and natural gas; the reservoir pressure of the reservoir as an average; the areas of regional or differential pressure; stabilized gas-oil ratios; and the producing characteristics of the field as a whole and the individual wells within the field. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95 632-010-0172 Operators to Assist in Reservoir Surveys All operators of oil and/or gas wells are required to authorize surveys and to assist the representatives of the board and the State Geologist in making any and all tests including bottom hole pressure and gas-oil ratio determinations, required by the Board or State Geologist on any or all of such operators' wells. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54; GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95 632-010-0174 Measurement of Potential Open-Flow of Gas Wells The operator shall determine the potential open-flow of a gas well by U.S. Bureau of Mines back pressure method, or by other approved methods. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54; GMI 6-1990, f. & cert. ef. 12-5-90 632-010-0176 Supervision of Open-Flow and Pressure Tests All tests made in determining the potential flow and shut-in well-head or bottom hole pressure of a gas well shall be monitored by the department to assure that: (1) Initial flow to the surface shall be accomplished during daylight hours. (2) Gas shall be flared during tests when feasible. (3) Proper safety precautions shall be taken to prevent fire or explosion during tests. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54; GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95 632-010-0178 Duration of Tests The operator shall test for open-flow and pressure of completed gas wells shall be made at such intervals and shall continue for such time as may be necessary to effect accurate determination. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54; GMI 1-1979, f. & ef. 1-25-79; GMI 6-1990, f. & cert. ef. 12-5-90 632-010-0182 Gas to be Metered (1) Meters: All gas sold by a producer or sold shall be metered with an approved meter of sufficient capacity, provided that gas may be metered from a lease or unitized property as a whole, if it is shown that ratable taking can be maintained. Meters shall not be required for gas produced and used on the lease for development purposes and lease operations. (2) Meter Charts and Records: Purchasers shall keep meter charts and gas purchased records in a permanent file, for a period of at least two years, and such information shall be made available to the department. (3) Bypasses: Bypasses shall not be connected around meters or points where custody of the fluid is transferred in such manner as to permit the improper taking of gas. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54; GMI 1-1982, f. & ef. 6-25-82; GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95 632-010-0184 Direct Well Pressure Where gas release to the atmosphere is involved the use of direct well pressure to operate any machinery is prohibited. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95 632-010-0186 Gas-Oil Ratio No well shall be permitted to produce gas in excess of the maximum ratio determined for a pool unless all gas produced in excess thereof is returned to the pool from which it was produced. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54 632-010-0188 Gas-Oil Ratio Surveys and Reports Gas-oil ratios and surveys shall be taken in the manner prescribed by the Board for individual fields where gas-oil ratio limits have been fixed and in accordance with the rules prescribed for each individual pool: (1) Flowing Wells Intermittently (Stop-Cocked) Produced: In computing the operating gas-oil ratio, the total volume of gas and the total barrels of oil that are produced in order to obtain the daily oil allowable must be used regardless of the flowing time in the 24-hour period. (2) Gas Lift or Jet Wells: The total volume of gas to be used in computing the operating gas-oil ratio, is the total output volume minus the total input volume. (3) Pumping Wells: Gas withdrawn from the casing in an attempt to maintain a fluid seal, or for any other reason, must be added to the gas produced through tubing in computing the gas-oil ratio. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54; GMI 1-1982, f. & ef. 6-25-82; GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef. 12-5-90 632-010-0190 Gas Utilization (1) No hydrocarbon gas shall be permitted to escape to the atmosphere except for short periods during testing or flowing wells during workovers or repairs when such escape has been authorized by the department. (2) Flaring of produced gas shall not be permitted except by order of the board. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54; GMI 1-1979, f. & ef. 1-25-79; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95 632-010-0192 Disposal of Brine or Salt Water In addition to the requirements of ORS 520.095(1) and in addition to applicable rules of the Department of Environmental Quality and the Water Resources Department, the following conditions shall control the disposal of brine or salt water liquids, and any other means or methods of disposal which may be permitted: (1) Disposal in Pits: (a) Brine or salt water may be disposed of by evaporation when impounded in excavated earthen pits, only when such pits are lined with impervious material and a Water Pollution Control Facilities permit has been obtained from the Department of Environmental Quality; (b) Impounding of brine or salt water in earthen pits that are porous is prohibited. Earthen pits used for impounding brine or salt water shall be so constructed and maintained as to prevent the escape of fluid; (c) The department shall have authority to condemn any pit which does not properly impound such water and order the disposal of such water into an underground formation, or by other authorized method; (d) The level of brine or salt water in earthen pits shall at no time be permitted to rise above the lowest point of the ground surface level. All pits shall have a continuous embankment surrounding them sufficiently above the level of the surface to prevent surface water from running into the pit. Such embankment shall not be used to impound brine or salt water; (e) At no time shall brine or salt water impounded in earthen pits be allowed to escape onto adjacent land or into waters of the state. (2) Disposal by Injection: Salt water may also be disposed of by injection into the strata from which produced or into other proved salt water bearing strata. (3) Ocean discharge of salt water may be permitted if water quality is acceptable and if such discharge is approved by the State Department of Environmental Quality through issuance of a National Pollutant Discharge Elimination System waste discharge permit. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54; GMI 1-1979, f. & ef. 1-25-79; GMI 1-1982, f. & ef. 6-25-82; GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95 632-010-0194 Water Injection and Water Flooding of Oil and Gas Properties (1) Application and Approval: The operator of any well may inject water under pressure into the formation containing oil or gas for the purpose of obtaining oil or gas from the reservoir, upon application to and approval by the State Geologist. No water injection or water flooding program shall be instituted until it has been authorized by the State Geologist. (2) Casing and Cement: Wells used for the injection of water into the producing formation or repressuring wells shall be cased with sound casing so as not to permit leakage and the casing cemented in such manner that damage will not be caused to oil, gas, or freshwater resources. (3) Application, Contents, Notice, Objection, Hearing, and Approval: (a) An application for use of water injection shall be verified and filed with the State Geologist and shall include: (A) The location of the injection well; (B) The location of all oil and gas wells, including abandoned and drilling wells and dry holes, and the names of mineral rights owners within one-half mile of the injection well; (C) The formations from which wells are producing or have produced; (D) The name, description, and depth of the formations to be injected; (E) The elevations of the top of the oil- or gas-bearing formation in the injection well and the wells producing from the same formation within one-half mile radius of the injection well; (F) The log of the injection well or similar available information; (G) Description of the injection well casing; (H) Description of the liquid, stating the kind, where obtained, and the estimated amounts to be injected daily; (I) The names and addresses of the operators; (J) Such other information as the State Geologist may require to ascertain whether the injection or flooding may be safely and legally made. (b) Applications may be made to include the use of more than one injection well on the same spacing unit, or on more than one spacing unit; (c) Applications shall be executed by all operators who are to participate in the proposed water injection or water flooding plan. (4) Notice of Commencement and Discontinuance of Water Injection or Water Flooding Operations: (a) Immediately upon the commencement of water injection or water flooding operations, the applicant shall notify the State Geologist stating the date of commencement; (b) Within ten days after the discontinuance of water injection or water flooding operations, the applicant or the one in charge thereof shall notify the State Geologist of the date of such discontinuance and the reasons therefor; (c) Before any injection well shall be abandoned, application shall be made to the State Geologist, and the same procedure shall be followed in the plugging of such well as provided for the plugging of oil and gas wells. See OAR 632-010-0198. (5) Records. The operator of a water injection project shall keep an accurate record of: (a) The amount of water injected into the injection wells; (b) The total amount of water produced; and (c) The total amount of oil or gas produced from the area flooded. The information in subsections (a) - (c) of this section shall be made available to the State Geologist. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54; GMI 1-1982, f. & ef. 6-25-82; GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef. 12-5-90 632-010-0196 Gas Injection of Oil and Gas Properties In addition to the requirements of ORS 520.095(1), OAR 632-010-0002 through 632-010-0240 and any other applicable statutes, orders or rules, wells drilled for the purpose of storing natural gas in an underground reservoir shall be drilled in such manner as shall protect the underground reservoir against pollution and against waste of natural gas. (1) Application and Approval: Upon application to and approval by the State Geologist, the operator of any well or proposed well may inject gas under pressure into the formation containing water, oil or gas for the purpose of increasing production of oil or gas from the reservoir or for storing natural gas. (2) Casing and Cement: Wells used for the injection of gas into the producing formation shall be cased with sound casing so as not to permit leakage and the casing shall be cemented in a manner that damage will not be caused to oil, gas, or freshwater resources. All injection of gas shall be through tubing with a casing packer set at the lower end above the zone of injection and the annular space between tubing and casing shall be monitored to be sure the packer is holding. The requirement for a casing packer may be waived by the Department for temporary test injection into a depleted or partially depleted gas pool when an existing well is utilized as the temporary injection well. Prior to temporary injection, the casing shall be tested for mechanical integrity to determine there is no leak in the casing. The Department shall be notified to witness mechanical integrity tests. (3) Application, Contents, Notice, Objection, Hearing, and Approval: (a) No gas shall be injected into a well until approved by the State Geologist pursuant to application and notice as herein required; (b) An application for gas injection of oil and gas properties shall be filed with the State Geologist in the form of a letter with supporting data including: (A) The location of the injection well; (B) The location and depth of all oil and gas wells, including abandoned and drilling wells and dry holes, and the names of mineral rights owners within a one-half .5 mile radius of the injection well; (C) The formations from which wells are producing or have produced; (D) The name, description, and depth of the formations to be injected; (E) The depths of each formation into which gas is to be injected; (F) The elevations of the top of the oil- or gas-bearing formation in the injection well and the wells producing from the same formation within one-half mile of the injection well; (G) The log of the injection well, or similar available information; (H) Description of the injection well casing; (I) The estimated amounts to be injected daily and the proposed injection pressure; (J) An engineering and geological study of the proposed injection site including: (i) Characteristics of reservoir and caprock, including areal extent, thickness, and lithology; (ii) Remaining gas or oil reserves of storage zones, including calculations, if applicable; (iii) If an aquifier is to be injected, known water wells, aquifier extent, thickness, and water quality; and (iv) Proposed use of monitor wells for the project. (K) The names and addresses of the operators; (L) Such other information as the State Geologist may require to ascertain whether the gas injection plan meets the requirements of law and safety. (c) Applications may be made to include the use of more than one injection well on the same spacing unit or on more than one spacing unit; (d) Applications shall be executed by all operators who are to participate in the proposed gas injection plan. (4) Notice of Commencement and Discontinuance of Gas Injection: (a) At least ten (10) days prior to commencement of gas injection operations, the applicant shall notify the State Geologist stating the date of commencement; (b) Within ten (10) days after the discontinuance of gas injection operations, the applicant or the one in charge of the operations shall notify the State Geologist of the date of discontinuance and the reasons therefor; (c) Before any injection well shall be abandoned, application shall be made to the State Geologist and the same procedure shall be followed in the plugging of such well as provided for the plugging of oil and gas wells. See OAR 632-010-0198; (d) The above notification requirements shall not apply to a gas storage facility except for the initial injection and filling of the reservoir and for the abandonment of the storage reservoir. (5) Records: The operator of the gas injection project shall keep an accurate record of: (a) The amount of gas injected into the injection wells; (b) The amount of gas produced; (c) The amount of oil produced from leases affected by the gas injection; and (d) The well-head injection pressures. The information in subsections (a) - (d) of this section shall be made available to the State Geologist or representative. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54; GMI 1-1979, f. & ef. 1-25-79; GMI 1-1982, f. & ef. 6-25-82; GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95; GMI 2-1996, f. & cert. ef. 7-10-96 632-010-0198 Abandonment, Unlawful Abandonment, Suspension, Well Plugging (1) Oil, Gas, and Water to be Protected: Before any oil and/or gas well shall be suspended or abandoned, the operator shall use such means, methods, and procedure necessary to prevent water from entering any oil- or gas-bearing formation, and to protect any underground or surface water that is suitable for domestic or irrigation purposes from waste, downward drainage, harmful infiltration and addition of deleterious substances. (2) Suspension: The department may authorize a permittee to suspend operations or remove equipment from a well for the period stated in the department written authorization, upon receipt of a written application from the permittee showing good cause. The period of suspension may be extended by the department, upon written application made before expiration of the previously authorized suspension, accompanied by a written statement of the permittee showing good cause for such extension. (3) Abandonment: Before any work is commenced to abandon any well drilled for oil and/or gas, the permittee shall give written or verbal notice to the department of his intention to abandon such well. If verbal notice is given but plugging is not planned within ten days, written notice must also be given within ten days. The notice shall be upon forms supplied by the department and shall contain the present condition of the well, proposed work, and such other information as reasonably may be required by the department. (4) Unlawful Abandonment: (a) After operations on or at a well have been suspended with the approval of the department pursuant to section (2) of this rule, if operations are not resumed within thirty (30) days from the date specified in such approval of suspension, the well is unlawfully abandoned unless the permittee has obtained from the department in writing an extension of time of such suspension. Written application showing good cause is required for the extension to be considered; (b) If a well is left idle for a period of thirty (30) consecutive days without a written request for suspended status and approved downhole plugs in place, the well is unlawfully abandoned; (c) Upon any unlawful abandonment as defined in these rules, written notice thereof shall be sent by certified mail both to such permittee at his last known address in the records of the department and to the permittee's surety. The department may then proceed against the permittee and the permittee's surety; (d) All wells unlawfully abandoned as provided in this section shall be plugged, suspended, or otherwise repaired by the department as required by law and by these rules, using the surety bond, if sufficient. The department may recover its expenses in suspending, repairing, plugging, and site reclamation from the proceeds of the bond. (5) Plugging Methods and Procedure: The methods and procedure for plugging a well shall be as follows: (a) Producing strata and strata having fluid at greater than hydrostatic pressure shall be plugged with cement from at least 50 feet below the top of the fluid-bearing zone to at least 50 feet above the top of the zone; (b) A cement plug not less than 100 feet in length shall be placed across the base of the freshwater-bearing strata in an uncased hole; (c) When there is open hole below the base of any casing, a cement plug not less than 100 feet in length shall be placed to extend at least 50 feet above and 50 feet below the base of the casing; (d) The top of all casing strings shall be cut off at least four (4) feet below ground surface, and casing and all annuli shall be plugged with cement to a depth of at least ten (10) feet; (e) The operator shall have the option as to the method of placing cement in the hole by: (A) Dump bailer; (B) Pump through tubing or drill pipe; (C) Other method approved by the department. (f) The interval between plugs shall be filled with an approved heavy mud-laden fluid. (6) The operator shall remove all gravel and debris from the site, shall backfill sumps, and shall restore the site, including revegetation. (7) Affidavit on completion: Within 60 days after the plugging of any well, the operator shall file a written statement with the department setting forth in detail the method used in plugging the well. (8) Wells Used for Fresh Water: (a) When the drilled well to be plugged may safely be used as a freshwater well and such use is desired by the landowner, the well need not be filled above the required sealing plug set below fresh water; provided, however, authorization for use of any such well shall be obtained from the Director of the Water Resources Department; (b) Application for leaving the well partially unplugged as a freshwater well shall be made to the department by the landowner in writing, together with evidence of a permit and bond from the Director of the Water Resources Department or that officer's statement that neither a permit nor a bond is required; (c) The operator shall leave the freshwater well in a condition approved by the department. (9) The bond furnished by permittee shall not be released until all procedures required by these rules have been completed and the department in writing has authorized such release. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1, f. 1-27-54; GMI 3, f. 4-3-56; GMI 1-1982, f. & ef. 6-25-82; GMI 1-1985(Temp), f. & ef. 6-7-85; GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95 632-010-0205 Drilling Bond (1)(a) Every person who engages in the drilling, redrilling, or reworking of any well, service well or disposal well shall file with the State Geologist on a form provided by the State Geologist a surety bond in the sum of $10,000 for each well drilled, redrilled, deepened, or reworked to a depth less than 2,000 feet, $15,000 for each well to a depth of 2,000 to 5,000 feet, or $25,000 for each well to a depth greater than 5,000 feet. The bond shall be filed with the State Geologist at the time of the filing of the notice of intention to drill, redrill, deepen, or rework as required in OAR 632-010-0010. Bonds may be submitted individually for each well or a blanket bond may be filed as described in (b) below. (b) In multi-well operations, a blanket bond in the minimum amount of $100,000 may be filed in lieu of individual bonds. The blanket bond amount shall be computed as the sum of the applicable individual bond amounts required for each well, reduced by bond amounts on wells that are granted exclusion from the computation. The State Geologist may exclude the following wells from the blanket bond computation: (A) Wells that have a gross annual wellhead production in dollars during the past twelve months that is greater than the amount of the required individual well bond; or (B) Wells that have been used as disposal or service wells in the past twelve months. It is the responsibility of the well operator to file for exclusions annually prior to the permit anniversary date. (c) The bond shall be executed by the operator, as principal, and by a company authorized to do business as a surety insurer in the State of Oregon, as surety, and shall be conditioned upon the faithful compliance by the principal with the statutes, rules, and orders of the Department of Geology and Mineral Industries and the board. The department, in its discretion, may accept an irrevocable letter of credit or other form of financial security in lieu of a bond. (2) Any bond submitted as required by this section may, with the consent of the State Geologist, be terminated and cancelled and the surety relieved of all obligations thereunder. However, the State Geologist shall not consent to termination and cancellation of any bond until the well or wells covered by such bond have been properly abandoned including site reclamation, with the approval of the State Geologist, or another valid bond has been submitted and approved. (3) For those applications concerning oil and gas wells on federal lands, the State Geologist may, in order to avoid unnecessary duplication, waive the requirements of sections (1) and (2) of this rule if the applicant submits suitable proof of compliance with federal bond requirements, and if State regulatory concerns are addressed to the satisfaction of the State Geologist in the use and release of the Federal Bond. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1-1979, f. & ef. 1-25-79; GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95; GMI 3-1997, f. & cert. ef. 12-3-97; DGMI 2-1999, f. & cert. ef. 8-30-99 632-010-0210 Disposal of Solid and Liquid Wastes (1)(a) Permit stipulations by the State Department of Environmental Quality regarding disposal of solid and liquid wastes generated by drilling, redrilling, deepening, or reworking operations shall be made a part of every permit issued under OAR 632-010-0010. (b) All wells used for disposal of solid and liquid wastes shall be equipped with tubing and packers and shall be tested for mechanical integrity at least every five years to determine that there is no leak in the casing, tubing or packer, and that there is no fluid movement into an underground source of water, other than that from which the fluid was produced, unless otherwise approved by the department. Acceptable tests include pressuring tubing and casing annuli to demonstrate integrity of casing, tubing, and packer. Tracer surveys, noise logs, temperature logs, spinner surveys, or other methods approved by the department may be used to detect water movement adjacent to the wellbore. The department shall be notified to witness mechanical integrity tests, and result shall be submitted as required by OAR 632-010-0017. (2) Once field development is initiated a separate permit is required from the State Department of Environmental Quality for disposal of liquid and solid wastes. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1-1979, f. & ef. 1-25-79; GMI 4-1985, f. & ef. 11-20-85; GMI 2-1995, f. & cert. ef. 3-10-95 632-010-0220 Measurement of Oil The volume of production of oil shall be computed in terms of barrels of clean oil on the basis of properly calibrated meter measurements or tank measurement of oil level differences made and recorded to the nearest quarter inch, using 100 percent tank capacity tables, subject to the following corrections: (1) Correction for Impurities: The percentage of impurities (water, sand, and other foreign substances not constituting a natural component part of oil) shall be determined to the satisfaction of the department, and the observed gross volume of oil shall be corrected to exclude the entire volume of such impurities. (2) Temperature Correction: The observed volume of oil corrected for impurities shall be further corrected to the standard volume at 60 degrees F. in accordance with A.S.T.M. Standards or any revisions thereof approved by the department. (3) Gravity Determination: The gravity of oil at 60 degrees F. shall be determined in accordance with A.S.T.M. Standards or any revisions thereof and any supplements thereto or any close approximation thereof approved by the department. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 1-1979, f. & ef. 1-25-79; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95 Special Rules, Mist Gas Field 632-010-0225 Spacing Plan (1) For purposes of this section, the Mist Gas Field shall refer to the following area: sections 1 through 18, 20 through 29, 32 through 36 of T. 5 N., R. 4 W., sections 1, 2, 11, 12, of T. 5 N., R. 5 W., sections 3 through 10, 14 through 23, 25 through 36 of T. 6 N., R. 4 W., sections 1 through 36 of T. 6 N., R. 5 W., section 31 of T. 7 N., R. 4 W., and sections 13 through 36 of T. 7 N., R. 5 W., W.M. (2) The minimum spacing for gas wells in the Mist Field shall be 160 acres when the top of the producing zone is less than 7,000 feet in vertical depth. (3) The minimum spacing for gas wells in the Mist Field shall be 640 acres when the top of the producing zone is 7,000 feet or more in vertical depth. (4) The spacing units are based upon the federal land grid of sections and quarter sections, or projected extensions of the grid if the affected lands are not surveyed. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 2-1980, f. 2-29-80, ef. 3-1-80; GMI 2-1983, f. & ef. 12-8-83; GMI 4-1985, f. & ef. 11-20-85; DGMI 2-1999, f. & cert. ef. 8-30-99 632-010-0230 Location of Wells The completion location of each well permitted to be drilled on any spacing unit shall be the location of the well at the top of the producing horizon. For gas wells the completion location of the well shall not be located nearer than 250 feet from the unit boundary and 500 feet from the nearest producing well from the same pool. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 2-1980, f. 2-29-80, ef. 3-1-80; GMI 4-1985, f. & ef. 11-20-85 632-010-0235 Exceptions The board may grant exceptions to the above field rules after holding a hearing when necessary on the basis of geology, productivity, topography, enhancement requirements, or environmental protection. Stat. Auth.: ORS 520 Stats. Implemented: ORS 520.095 Hist.: GMI 2-1980, f. 2-29-80, ef. 3-1-80; GMI 4-1985, f. & ef. 11-20-85; GMI 2-1995, f. & cert. ef. 3-10-95 -------------------------------------------------------------------------------- The official copy of an Oregon Administrative Rule is contained in the Administrative Order filed at the Archives Division, 800 Summer St. NE, Salem, Oregon 97310. 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