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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 statethat 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. (continued)