055-3 Wyo. Code R. § 3-34

Current through April 27, 2019

Section 3-34 - Surface Commingling of Production or Multiple Zone Completion or Commingling in One Wellbore

(a) Except as provided in subsection (c) of this section, the multiple zone completion of a well and the production of oil or gas from more than one pool from one well without segregation of such production are permitted only upon order of the Commission, or approval of the Supervisor, pursuant to an application filed in accordance with the Rules of Practice and Procedure, Chapter 5.

(b) The application shall set forth:

• (i) The manner and method of completion proposed, including a diagrammatic sketch of the mechanical installation for a multiple zone completion;

• (ii) The names of all Owners within one-half (1/2) mile of the well or wells in which the multiple zone completion is to be attempted or in which the production is to be commingled; and,

• (iii) A plat showing the location of all wells on the applicant's lease and all offset wells on direct and diagonally offsetting leases which have been or may be capable of being completed in the same pool or pools.

(c) Except as indicated below, the multiple zone completions and recompletions within wells producing gas and associated hydrocarbons from coal zones of the Fort Union Formation in the Powder River Basin shall be permitted at the discretion of the Supervisor without order of the Commission, upon the filing and approval of Form 4, Sundry Notice of Intent, after the well has been drilled, completed, or recompleted. Such Form 4 notice shall indicate the coal zones in which production is to be commingled. This subsection (c) shall not apply:

• (i) When the coal zones to be commingled do not have common ownership both as to working interests and royalty interests;

• (ii) When the well is not located on an eighty (80) acre drilling and spacing unit established by order or rule for the production of gas and associated hydrocarbons from the Fort Union Formation coal zones or on a federal exploratory unit in which Fort Union Formation coal zones are unitized.

  The sundry notice shall identify the eighty (80) acre drilling and spacing unit, including the order or rule under which it was established or shall identify the federal exploratory unit, as applicable.

(d) The Supervisor may require such tests as deemed necessary to determine the effectiveness of the segregation of the different productive zones in a multiple zone completion.

(e) The production from each well must be measured by meters, gauge or by some other method the Commission has approved after notice and opportunity for hearing. An Owner/Operator may not, prior to metering or measurement as required under Chapter 3, Section 13(a), 30(a) or 31(a), commingle production from two or more oil or gas wells with diverse working interest or royalty interest ownership, specifically excluding overriding royalty interests, without prior approval of the Commission after notice and opportunity for hearing. Notice must be provided to working interest and royalty interest owners.

(f) If commingled wells have common working interest and royalty interest ownership, specifically excluding overriding royalty interests, the production from each well need not be measured at the wellhead if the Owner/Operator of the wells demonstrates to the Supervisor that the production from each well can be accurately determined at reasonable intervals by other means.

055-3 Wyo. Code R. § 3-34

Amended, Eff. 6/3/2015.

Amended, Eff. 1/19/2016.

Amended, Eff. 4/1/2016.