Ariz. Admin. Code § 12-7-137

Current through Register Vol. 30, No. 50, December 13, 2024

Section R12-7-137 - Commingling of Production from Pools

A. Unless authorized by the Commission, each pool shall be produced as a single common reservoir, with the wells completed, cased, maintained, and operated as the producing media for that pool. Oil production from each pool shall at all times be segregated into separate, identified tanks. The commingling of production from different pools is prohibited, unless authorized by order of the Commission after notice and hearing.

B. The Commission may approve commingling of production upon demonstration by the applicant that such commingling shall not cause waste of reservoir energy or diminish recovery of the resource. Application for approval of commingling shall include the following:

1. Electric or porosity log with tops and bottoms of formations or producing zones and perforated intervals shown and marked;

2. Diagrammatic sketch of the proposed well structure, including make, type and setting depths of packers;

3. The reservoir pressure for each zone or formation pro posed for commingling, the specific gravity and BTU content of the gas if the zone produces gas, and the API gravity and gas-oil ratio of the oil if the zone produces oil;

4. Plat showing the location of the well and all offset wells, and a list of the names and addresses of operators of all leases offsetting the acreage dedicated to the applicant's well;

5. Waiver consenting to the proposed commingling from each offset operator, or in lieu thereof, copies of letters requesting such waiver; and

6. Proof of mailing of notice of application for commingling to all offset operators.

C. The first application for commingling of pools in a field shall be approved by the Commission only after notice and hearing. Subsequent applications, completed as required in subsection (B), for commingling of the same zones in the same field may be approved administratively if, after a 15-day holding period, there are no protests from offsetting operators.

Ariz. Admin. Code § R12-7-137

Former Rule 303; Amended effective September 29, 1982 (Supp. 82-5). Amended effective February 23, 1993 (Supp. 93-1).