Transcript Drilling Permits and Well Compliance– Advanced

RAILROAD COMMISSION OF TEXAS
PSA Wells, Allocation Wells and Stacked Laterals
Permitting and Completion
Lorenzo Garza & Joe Stasulli
Presentation Overview
• How to qualify for Stacked Lateral status
• Requirements for PSA and Allocation
wells
• Filing completions for these types of
applications
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Drilling Permits and Well Compliance– Advanced
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Drilling Permits and Well Compliance– Advanced
Stacked Laterals- how to qualify
• 2 or more horizontal drainhole wells within
lease/pooled unit in the correlative interval.
• Horizontal drainholes are drilled from different
surface locations.
• The first well drilled establishes the parameters
that the subsequent wells will be tested against.
Make sure your field rules allow for Stacked Laterals
and if so what well spacing is required.
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Drilling Permits and Well Compliance– Advanced
Stacked Laterals- how to qualify cont.
• Each surface location must be permitted separately
and assigned its own API number.
• Plat must clearly show all wellbores attempting to
qualify for Stacked Lateral status.
• To be considered a “regular location” each well
must comply to any minimum lease or between well
spacing rules
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Drilling Permits and Well Compliance– Advanced
Stacked Laterals why all the fuss?
• For each well that qualifies as a Stacked Lateral
well your overall well count will not increase
when the RRC tests your lease for density
exceptions.
• Remember that the wells must be completed in
the same regulatory field to qualify as a stacked
lateral.
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Drilling Permits and Well Compliance– Advanced
Stacked Laterals potential problem?
• If your well, when completed, does not remain
within the established parameters of the “record
well” then you will be required to amend the
permit to reflect its new status and count this well
against your total well count. If you exceed
density then an exception to SWR 38 will be
needed.
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Drilling Permits and Well Compliance– Advanced
PRODUCTION SHARING AGREEMENTS
Supporting Documentation:
• Authorization letter to include % of participation
• PSA-12 form showing acreage to be assigned to
proposed well
• Plat showing the external boundary of all tracts
contributing acreage to the proposed well
• Well allocation worksheet
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Drilling Permits and Well Compliance– Advanced
PRODUCTION SHARING AGREEMENTS
Supporting Documentation:
Authorization letter
• Contractual right to develop all proposed tracts
• To be approved administratively minimum of 65% of mineral
and working interest owners must be signed to agreement
• If less than 65% sign-up then request to set up application for
hearing
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PSA/ALLOCATION AUTHORITY LETTER
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Drilling Permits and Well Compliance– Advanced
PRODUCTION SHARING AGREEMENTS
Supporting Documentation:
PSA-12 and Plat
• PSA-12 form filled out showing all tracts and acreage involved
• Plat that shows the entire boundary of all contributing tracts
• All supporting lease/unit line calls should be to exterior
boundary of the contributing tracts
• Any un-leased tracts within contributing tracts should be
identified
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Drilling Permits and Online Filing - Advanced
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Drilling Permits and Well Compliance– Advanced
PRODUCTION SHARING AGREEMENTS
Supporting Documentation:
Acreage allocation work sheet
• Breakdown of activity for each contributing lease/pooled unit
• If any contributing lease/pooled unit is over assigned then a
statement as to how the deficiency will be resolved
• If SWR 38 density exception is required then application must
follow procedures set forth in the rule
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W-1 ACREAGE ALLOCATION WORK SHEET
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Drilling Permits and Well Compliance– Advanced
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Drilling Permits and Well Compliance– Advanced
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Drilling Permits and Well Compliance– Advanced
What is the difference between a “PSA” well
and an “Allocation” well?
1. On tracts that you have a valid lease in place an “Allocation”
well permit will allow you to get a drilling permit application
without the qualifier that you have to provide for a “PSA” well
that 65% of both mineral and working interest owners have
signed an agreement as to how production proceeds will be
divided.
2. What it doesn’t allow you to do is incorporate tracts into your
“Allocation” unit that the wellbore does not traverse.
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Drilling Permits and Well Compliance– Advanced
PSA or ALLOCATION WELLS
SWR Exceptions:
Lease line
• Allocation well application will always require an exception
• PSA application will require an exception if there is less than
100% participation
Between Well
• Normal notification procedures will be followed
Density Exception
• Unless specified in the field rules normal notification and data
requirements will be followed
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Drilling Permits and Well Compliance– Advanced
PSA or ALLOCATION WELLS -Example
TRACT A
TRACT B
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Drilling Permits and Well Compliance– Advanced
PSA or ALLOCATION WELLS -Example
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Drilling Permits and Well Compliance– Advanced
PSA or ALLOCATION WELLS -Example
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Drilling Permits and Well Compliance– Advanced
PSA or ALLOCATION WELLS -Example
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Drilling Permits and Well Compliance– Advanced
PSA or ALLOCATION WELLS -Example
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Drilling Permits and Well Compliance– Advanced
PSA or ALLOCATION WELLS -Example
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Drilling Permits and Well Compliance– Advanced
PSA or ALLOCATION WELLS -Example
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Drilling Permits and Well Compliance– Advanced
Would you like to make your life a little
easier and help decrease the processing
time of both your drilling permits and
completions?
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Drilling Permits and Well Compliance– Advanced
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Contact Information
For further questions concerning Drilling
Permits please contact:
Lorenzo Garza
Phone: 512-463-2184
Email: [email protected]
Valerie Atkins
Phone: 512-463-6979
Email: [email protected]
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Drilling Permits and Well Compliance– Advanced
Now Presenting Mr. Joe Stasulli
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Railroad Commission of Texas
Operator Procedures for PSA and Allocation Wells
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Drilling Permits and Well Compliance– Advanced
Completion Report (G1/W2) must include:
• (SA) does not need to be included in the lease name.
• Sharing Agreement information must be referenced in the
G1/W2 remarks.
• Detailed Sharing Agreement information must be attached
to the completion packet.
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Railroad Commission of Texas
Operator Procedures for Stacked Laterals
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Drilling Permits and Well Compliance– Advanced
• The first well of a stacked lateral is set up and
processed in the same manner as any regular
producing well.
• All the standard information should be filed
for this well, drilling permit, completion, and
associated forms.
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Drilling Permits and Well Compliance– Advanced
• Any additional lateral wells (2nd, 3rd, 4th) must have an
approved drilling permit and completions filed.
• The letters SL (Stacked Lateral) should NOT be included in
the well number if feasible.
• The drilling permit (W-1) and completion (G-1/W-2) remarks
should reference that this is a stacked lateral and report all
Railroad Commission identification numbers associated with
all wells that are part of the stacked lateral. Use the drilling
permit numbers if an RRC ID has not been assigned.
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