Md. Code Regs. 26.19.01.10

Current through Register Vol. 51, No. 19, September 20, 2024

Section 26.19.01.10 - Drilling and Operating Requirements and Permit Conditions

A. The permit shall contain an effective date and an expiration date, and shall be valid for a period not to exceed 5 years.

B. The permit shall be renewed by the Department upon written application by the permittee not less than 2 weeks before expiration unless:

(1) The information required by this regulation is not submitted;

(2) Any of the reasons for denial listed in Environment Article, § 14-109(b)(6), Annotated Code of Maryland, apply.

C. The permit shall require that the well site be posted with a sign:

(1) Having letters at least 1 inch high;

(2) Indicating the name of the permittee, the name of the lessor or landowner, and the Department and American Petroleum Institute well identification numbers;

(3) Indicating phone numbers for the permittee and regulatory agencies required to be contacted in the event of an emergency at the site;

(4) Posted in a prominent place as directed by the Department; and

(5) Kept in good condition.

D. A copy of the drilling and operating permit, including any special provisions, shall be maintained at the well site from the time work begins until drilling and reclamation operations are completed.

E. Wells shall be drilled with rotary tools unless special approval to drill by cable tool is obtained in writing from the Department.

F. Drilling liquid may be required when there is insufficient geological data to safely drill with air as the circulating medium.

G. The drilling liquid used shall be conditioned and tested daily to assure it is capable of:

(1) Sealing off each oil, gas, salt water, or fresh water zone to be encountered; and

(2) Exerting pressure in excess of those anticipated by the operator in any formation to be penetrated.

H. Except in emergency situations, additives to drilling liquids are not permitted without approval of the Department.

I. When air is permitted as the circulating medium, sufficient liquid shall be available at the site at all times to kill any flow from the well.

J. Pits or tanks shall be used to contain or condition liquids used in drilling or killing the well and shall be designed and constructed to:

(1) Have sufficient capacity to contain all liquid and solid substances used or produced during drilling, completing, and plugging the well, and to provide for containment of emergency overflow;

(2) Have at least 2 feet of freeboard at all times;

(3) Be at least 1 foot above the ground water table;

(4) Be impermeable;

(5) Allow no liquid or solid discharge of any kind into the waters of the State;

(6) Provide for diverting surface runoff from pits.

K. Dikes associated with pits shall be:

(1) Constructed of compacted material, free of trees and other organic material, and essentially free of rocks or any other material which could affect their structural integrity;

(2) Maintained with a slope that shall preserve their structural integrity;

(3) Constructed and maintained in accordance with the current Maryland Standards and Specifications for Soil Erosion and Sediment Control, which is incorporated by reference in COMAR 26.17.01.11 a.

L. Pits may not be used for the retention or disposal of trash or garbage not associated with drilling fluids.

M. The permit shall specify that the Department has the authority to visit and inspect the permitted operation.

N. The permit shall specify that it is the permittee's responsibility to prove the accuracy of the oil and gas meters.

O. When actual drilling begins, the permittee shall:

(1) Notify the Department at least 72 hours before beginning;

(2) Collect samples of drill cuttings for the Department's use as directed in the drilling and operating permit;

(3) Conduct an electrical induction and gamma ray log to determine depth of fresh water zones;

(4) Run and permanently cement a string of surface casing in the hole to a depth which is at least 100 feet below the deepest known strata bearing fresh water, or the deepest known workable coal, whichever is deeper.

P. The surface casing cement shall be:

(1) Circulated in the annular space outside the casing in a volume required to return to the surface to completely fill the annular space unless otherwise approved by the Department;

(2) American Petroleum Institute Class A ordinary portland cement with not more than 3 percent calcium chloride and no other additives, unless the Department approves a different cement type in advance; and

(3) Allowed to set at static balance or under pressure for a minimum of 12 hours before drilling the plug.

Q. Blowout prevention equipment shall be:

(1) Installed before drilling the plug on the surface casing;

(2) Tested to a pressure in excess of that which may be expected at the production casing point before:

(a) Drilling the plug on the surface casing; and

(b) Penetrating the target formation; and

(3) Tested on a weekly basis according to standard operating practice.

R. The permittee shall maintain, at the site, a driller's log book that includes a:

(1) Record of each pressure test and each mechanical test of:

(a) Casings;

(b) Blowout preventers;

(c) Surface connections;

(d) Fittings; and

(e) Auxiliary wellhead equipment; and

(2) Daily record of:

(a) Footage drilled;

(b) Hole size; and

(c) Accidents.

S. If other strings of casing, in addition to surface casing, are run in the hole, they shall be:

(1) Of a type and weight sufficient for the depth and pressure expected;

(2) Cemented with sufficient cement circulated in the annular space to provide an effective seal above any producing zone;

(3) Properly pressure tested;

(4) Allowed to set a minimum of 12 hours before operations continue.

T. When a drilling and operating permit authorizes directional drilling, a complete angular deviation and directional survey of the well shall be made to determine the exact course of the directionally drilled hole following the completion of drilling, and before setting the final string of casing.

U. In anticipation of vertical hole deviation, the permittee shall:

(1) Select a surface location that provides a reasonable allowance for the bottom hole location to meet the minimum spacing requirements in Regulation .09 of this chapter;

(2) Estimate the probable direction and extent of the deviation when making application for a drilling and operating permit;

(3) Make periodic surveys to determine amount and direction of deviation during drilling to verify the accuracy of the estimate, with the results of the deviation surveys included in the weekly depth report to the Department.

V. Within 30 days after the drilling, stimulating, and testing of a well are completed, a completion report of the well shall be submitted to the Department. Except for confidential geological and geophysical information protected under State Government Article, § 10-617, Annotated Code of Maryland, information contained in the completion report and accompanying documents shall be available to the public. The report shall be on a form furnished by the Department and shall include:

(1) Depth at which any fresh water inflow was encountered;

(2) Lithology of penetrated strata, including color;

(3) Total depth of the well;

(4) A record of all commercial and noncommercial oil and gas encountered, including depths, tests, and measurements;

(5) A record of all salt-water inflows;

(6) A record of all casing used, including:

(a) Size, weight, amount, and depth set;

(b) Amount of cement used on each casing string;

(c) Amount of casing recovered from the hole if the well was abandoned;

(7) Generalized core descriptions, including:

(a) The type and depth of sample;

(b) Indications of oil, water, or gas;

(c) Estimates of porosity and permeability; and

(d) Percent recovery;

(8) Existing data on perforating, stimulating, and testing, including open-flow tests and shut-in pressures;

(9) Existing data on bridge plugs set, make and type of plug, depth plug was set, whether plug was left in place or removed, and details of the plug-back operation below the bridge;

(10) A copy of all electric, radiation, sonic, caliper, directional, and any other type of logs run in the well; and

(11) The date on which verbal approval was obtained from the Department to plug the hole as a dry hole in a continuous progression from drilling or reworking.

W. Land farming of cuttings shall be permitted only on approval from the Department and shall require:

(1) Soils analysis before site preparation;

(2) Cuttings analysis as directed by the Department; and

(3) Post land farming soils analysis.

X. A completed oil and gas well shall be:

(1) Equipped with wellhead controls adequate to control the flow; and

(2) Secured to prevent unauthorized access.

Y. The permittee shall file, on a form provided by the Department, a monthly report of oil and gas production from each well with the Department before the end of the succeeding month, regardless of the status of the well.

Z. The Department may modify requirements of a drilling and operating permit or include special provisions or conditions in the permit for environmental, safety, and other sufficient reasons.

Md. Code Regs. 26.19.01.10

Regulation .10 amended effective February 15, 1993 (20:3 Md. R. 258)