Ala. Admin. Code r. 400-1-2-.01

Current through Register Vol. 43, No. 1, October 31, 2024

Section 400-1-2-.01 - Well Permit

(1)Activities Requiring Permits. The following activities require permits:

(a) Drilling of any well in search of oil or gas;

(b) Drilling a Class II injection well or converting any well to a Class II injection well for enhanced recovery or for the disposal of salt water and other wastes produced in association with oil or gas operations;

(c) Drilling or converting any well for the development of reservoirs or solution-mined cavities for the underground storage of liquid or gaseous hydrocarbons; or

(d) Reentry of a plugged and abandoned well.

(2)Permit Requirements. Prior to initiating any of the activities identified in section (1) above, an application on either Form OGB-1, OGB-1A, or OGB-1B, whichever is appropriate, shall be filed with and approval obtained from the Supervisor or the Board. If applicable, applicants should also refer to Rule 400-4-1-.01, et seq. relating to Rules and Regulations Governing Class II Underground Injection Control Operations, Rule 400-5-1-.01, et seq. relating to Rules and Regulations Governing Underground Storage of Gas in Reservoirs, or Rule 400-6-1-.01, et seq. relating to Rules and Regulations Governing Underground Storage of Gas in Solution-Mined Cavities. Such applications shall be accompanied by:

(a) A check or bank draft in the sum of three hundred dollars ($300.00) payable to the State Treasurer, State of Alabama, which sum is fixed as the fee for the approval of a permit to drill. No permit fee is required if the application is submitted for the purpose of obtaining approval to convert or deepen a well;

(b) A plat, in triplicate, prepared by a licensed landsurvey or showing the entire section and the surface and bottom-hole locations of the proposed well within said section. The plat shall be drawn to the scale of one (1) inch equals one thousand (1,000) feet, unless otherwise stipulated by the Supervisor. The plat shall show the direction of north, and the latitude and longitude in decimal degrees to five (5) significant digits and state plane coordinates of the proposed well. The plat shall show the distances of the proposed well to the nearest unit boundaries and section lines and from the nearest well in the same section completed in or drilling to the same reservoir. The plat shall also show the location and status of all other wells that have been drilled in said section. For the purpose of designating the spacing unit in which the proposed well is to be drilled, the boundaries of such unit shall be shown. If an alternate unit is designated on the permit application, then said unit shall be shown on the plat;

(c) An Affidavit of Ownership or Control on Form OGB-2, whereby the applicant verifies that he owns or has control of one hundred percent (100%) of the drilling rights with respect to the oil and gas in and under the land comprising the spacing unit, or an Affidavit of Ownership or Control, Underground Injection Control on Form OGB-2C, whereby the applicant verifies that he owns or has control of one hundred percent (100%) of the interests having rights to conduct Class II well operations in and under the land on which the well is located, or an Affidavit of Ownership or Control, Natural Gas Storage Operations on Form OGB-2D, whereby the applicant verifies that he owns or has control of one hundred percent (100%) of the interests having rights to conduct Natural Gas Storage Operations, whichever is applicable;

(d) A bond on Form OGB-3 (single Well) or OGB-4 (blanket), required by Rule 400-1-2-.03 relating to Bond, unless such requirement has been previously satisfied. If two or more persons are designated on the application as operators then each such person shall file a separate or joint bond if an appropriate bond is not already on file;

(e) An organization report on Form OGB-5, as prescribed in Rule 400-1-2-.04, unless such requirement has been previously satisfied. If two or more persons are shown as operator on the application, then each person shall file a separate organization report or have an organization report on file;

(f) Illustrations or narrative material that may be necessary for the Supervisor to clearly understand all details of the proposed operation; and

(g) Additional information as deemed necessary may be requested by the Supervisor.

(3)Deepening. Prior to deepening a well below its permitted depth, an operator shall obtain approval of the Supervisor and, thereafter, such person shall immediately file Form OGB-1, OGB-1A or OGB-1B, whichever is appropriate. There is no fee required for a permit to deepen a well previously drilled or being drilled under a permit issued by the Supervisor.

(4)Directional Drilling.

(a) All wells must be drilled with due diligence to maintain a reasonably vertical well bore; however, upon application by an operator to drill a well that is to be intentionally deviated and directionally controlled, a permit maybe issued by the Supervisor, provided that the proposed location of the bottom hole in the deviated well at the depth of the proposed producing zone is in compliance with the applicable spacing rules. The application for a permit to directionally drill shall be made in the manner prescribed above using Form OGB-1B, and the survey plat must show the proposed bottom hole location in addition to the surface location of the well.

(b) If an operator desires to directionally drill or sidetrack a permitted well, such operator, prior to initiating, any activities shall file with the Supervisor Form OGB-1B and a plat showing the surface location and the proposed bottom hole location of the directionally drilled or sidetracked well.

(c) In the event an operator, in good faith, proceeds with the drilling of a well and thereafter, decides to directionally drill or sidetrack the well, such operator shallobtain prior approval of the Supervisor and, thereafter, shall immediately file with the Supervisor Form OGB-1B and a plat showing the surface location and the proposed bottom hole location of the directionally drilled or sidetracked well.

(d) If an operator desires to deviate a well so as to straighten the wellbore or to drill around an obstruction in the wellbore, such operator shall first obtain approval of the Supervisor and shall file a written report to the Supervisor within thirty (30) days from the completion of said deviation setting forth the facts of the operation.

(5)Permit Approval Procedures. Applications for permits to drill, deepen, convert, or reenter that do not comply with onshore rules or applicable special field rules shall be approved or rejected by the Board, after due notice and hearing. Applications in compliance with onshore rules or applicable special field rules may be approved by the Supervisor. Drilling, deepening, converting or reentering shall not begin until such permit is issued.

(6)Expiration of a Permit. A permit shall expire six (6) months from the date of issuance if the permitted well has not been spudded.

Ala. Admin. Code r. 400-1-2-.01

Filed September 30, 1982. Amended: Filed August 7, 1984; September 6, 1985; January 6, 1988; January 17, 1989. Repealed and New Rule: Filed April 11, 2000; effective May 16, 2000. Amended: Filed July 6, 2010; effective August 10, 2010.

Author: Marvin Rogers

Statutory Authority:Code of Ala. 1975, §§ 9-17-1, etseq.