Subject 391-3-13 OIL AND GAS AND DEEP DRILLING
The purpose of these rules is to establish the administration
and enforcement procedures of the Georgia Oil and Gas and Deep Drilling Act of
1975, as amended, and to carry out the purposes and requirements of the Act.
These rules are promulgated in order to:
| (a) |
Protect the health, safety and welfare of
the citizens of Georgia by requiring that adequate protection of underground
fresh water supplies be assured in any drilling operation which may penetrate
through any strata which contain fresh water; |
| (b) |
Protect environmentally sensitive
areas; |
| (c) |
Encourage oil and gas
exploration to identify new sources of energy. |
All terms used in these rules shall be interpreted in
accordance with the definitions as set forth in the Georgia Oil and Gas and
Deep Drilling Act of 1975, as amended, the Hand-Book of Oil Industry
Terms and Phrases (R.D. Langenkamp, The Petroleum Publishing Company,
Second Edition, 1977), and as otherwise herein defined:
| (a) |
"Abandonment" means, for purposes of
compliance with requirements herein, that a well has not been used for six (6)
consecutive months and cannot be operated, whether because it was drilled as a
dry hole or has ceased to produce, or that operations have not been conducted
thereon. "Shut-in" wells, shall not be considered to be abandoned.
"Abandonment" shall not be construed to require the plugging of a well that has
been approved by the Department for future utilization. |
| (b) |
"Act" means the Oil and Gas and Deep
Drilling Act of 1975, as amended. |
| (c) |
"Blow-out" means any uncontrolled escape
of oil, gas or other fluid from any formation. |
| (d) |
"Blow-out preventer" means a well control
assembly that may be closed around the drill pipe or that completely closes the
top of the casing if the drill pipe is withdrawn. |
| (e) |
"Board" means the Board of Natural
Resources. |
| (f) |
"Circulation" means
the passing of fluid (typically drilling mud) down through the drill stem and
up to the surface in the process of rotary drilling or down the casing and up
to the surface in the setting of casing. |
| (g) |
"Common source of supply" means the
reservoir strata or pool separated from any other reservoir strata or pool that
contain, or from competent evidence appears to contain, a common accumulation
of oil or gas or both. |
| (h) |
"Completion" means development of a well in an attempt to produce oil and/or
gas or final placement of cement plugs in a nonproducing well, whichever occurs
last [refer also to "Well Completion Report" subsection (ii) below]. Completion
is the last act as determined by the Director on a well which result in such
well being capable of producing oil and/or gas through permanent well head
equipment after production tubing has been run, or final placement to cement
plug(s) in a nonproducing well. |
| (i) |
"Condensate" means the liquid hydrocarbons produced by the condensation of
natural gas, either after it leaves the reservoir or while it remains in the
reservoir. |
| (j) |
"Conservation" means
conserving, preserving, guarding, or protecting the oil and gas resources of
the State by obtaining the maximum efficiency with a maximum efficiency with a
minimum waste in the production, transportation, processing, refining,
treating, and marketing of the unrenewable oil and gas resources of the
State. |
| (k) |
"Department" means the
Department of Natural Resources. |
| (l) |
"Director" means the Director of the
Environmental Protection Division. |
| (m) |
"Drilling" means the boring of a hole in
the earth by mechanical means and all associated activities, including but not
limited to: casing, perforating, plugging, cementing and capping. |
| (n) |
"Drill site" means the exact location of
the well bore. |
| (o) |
"Drill site
tract" means the land area devoted to the well, mud pits, and other ancillary
operations. |
| (p) |
"Environmentally
sensitive area of the Coastal Zone" means that area of the coastal zone where
salt water-bearing strata overlie the fresh water aquifer system. |
| (q) |
"Field" means the general area which is
underlaid or appears to be underlaid by at least one pool. "Field" shall
include the underground reservoir or reservoirs containing crude petroleum oil
or natural gas, or both. The words "field" and "pool" mean the same thing when
only one underground reservoir is involved; however, "field," unlike "pool" may
relate to two or more pools. |
| (r) |
"Gas" means all natural gas, including casinghead gas, and all other produced
hydrocarbons not defined as oil in subsection (w) below, or condensate as
defined in subsection (i) above. |
| (s) |
"Illegal mineral" means any mineral,
including oil or gas, which has been produced within the State of Georgia in
violation of the Act or any rule or regulation adopted and promulgated hereto
or any other issued hereunder. |
| (t) |
"Illegal product" means any product of oil, gas or other mineral, any part of
which was processed or derived, in whole or in part, from any illegal
mineral. |
| (u) |
"Mineral" means any
naturally occurring substance found in the earth which has commercial value and
includes oil and gas as defined herein, but does not include fresh
water. |
| (v) |
"Mineral product" means
any commodity made from any mineral. |
| (w) |
"Oil" means crude petroleum oil and other
hydrocarbons, regardless of gravity, which are produced at the well in liquid
form by ordinary production methods and which are not the result of
condensation of gas after it leaves the reservoir. |
| (x) |
"Owner" means the person who has the
right to drill into and produce from any pool and to appropriate the production
either for himself and another, or himself and others. |
| (y) |
"Operator" means any person who is in
charge of the development of a lease, the drilling of a well, or the operation
of a producing well, and in addition, for the purpose of assigning
responsibility, may also be the person indicated as operator by the most
current records of the Department. |
| (z) |
"Person" means any natural person,
corporation, joint venture, association, partnership, receiver, trustee,
guardian, executor, administrator, fiduciary or representative of any kind, all
agencies or instrumentalities of the State, and all county or municipal
governments or any authority. |
| (aa) |
"Pool" means an underground reservoir containing a common accumulation of crude
petroleum oil or natural gas, or both. Each zone of a general structure which
is completely separated from any other zone in the structure is covered by the
term "pool" as used herein. |
| (bb) |
"Producer" means the owner of a well or wells capable of producing oil or gas,
or both. |
| (cc) |
"Re-enter" means to
bring a rig back onto a boring after having moved off location in order to
re-establish contact with the borehole. "Re-enter" shall not be construed to
mean bringing a rig back onto a location simply to facilitate downhole
geophysical logging; rather "re-enter" applies when "completion" or "drilling"
operations as defined in subsection (h) and (m) above are performed. |
| (dd) |
"Shut-in" means a well where the
wellhead valves are closed thereby shutting off production. A "shut-in" well is
capable of producing either oil or gas. |
| (ee) |
"State" means the State of
Georgia. |
| (ff) |
"Tender" means a
permit or certificate of clearance for transportation of minerals, including
oil and gas, or mineral products produced under the provision of the Act or
these Rules and Regulations, approved and issued or registered under the
authority of the Board. |
| (gg) |
"Waste" in addition to its ordinary meaning, means "physical waste" as that
term is generally understood in the oil and gas industry, and it shall include,
but not limited to:
| 1. |
The inefficient,
excessive or improper use or dissipation of reservoir energy; and the locating,
spacing, drilling, equipping, operating, or producing of any oil or gas well or
wells in a manner which results; or tends to result, in a reduction in the
quantity of oil or gas ultimately to be recovered from any pool in this
State; |
| 2. |
The inefficient storing
of oil; and the locating, spacing, drilling, equipping, operating or producing
of any oil or gas well or wells in a manner causing, or tending to cause,
unnecessary or excessive surface loss or destruction of oil or gas; |
| 3. |
Abuse of the correlative rights and
opportunities of each owner of gas or oil in a common reservoir due to
nonuniform, disproportionate and unratable withdrawals causing undue drainage
between tracts of land; |
| 4. |
The
production of oil or gas in such a manner as to cause unnecessary water
channeling or zoning; |
| 5. |
The
operation of any oil well or wells with an inefficient gas-oil ratio; |
| 6. |
The drowning with water of any stratum of
part thereof capable of producing gas or oil, except where approval of such a
project has been granted by the Director; |
| 7. |
Underground waste, however caused and
whether or not defined as the same relates to any activity regulated by the
provisions of these Rules; |
| 8. |
The
creation of unnecessary fire hazards as the same relates to any activity
regulated by the provisions of these Rules; |
| 9. |
The escape into the open air, from a well
producing both oil and gas, of gas in excess of the amount which is necessary
in the efficient drilling or operation of the well; |
| 10. |
Permitting gas produced from a gas well
to escape into the air, except for testing purposes. |
|
| (hh) |
"Well" means any boring drilled in or
constructed in the search for and/or the production of oil, gas, or other
minerals, or water. "Well" also means any boring drilled or constructed for the
following purposes:
| 1. |
For the exploration or
production of any minerals other than oil or gas where such boring exceeds a
depth of 1800 feet; |
| 2. |
For the
exploration or production of any mineral located in the "environmentally
sensitive area of the Coastal Zone" when such well is drilled to a depth
sufficient to penetrate the fresh water aquifer system; |
| 3. |
For the exploration of underground storage
or injection of foreign material in an underground reservoir; |
| 4. |
For the underground disposal of waste
material; |
| 5. |
For the exploration or
production of fresh water when such well exceeds a depth of 1800
feet; |
| 6. |
For the exploration or
production of brine or saltwater. |
|
| (ii) |
"Well Completion Report" means a form
prescribed by the Department with accompanying illustrations and narrative
providing descriptive as-constructed well information. The "well completion
report" generally consists of all well records including well logs, test
locations and intervals, sampling locations and intervals, test results, casing
installed, plugs installed, perforated intervals and other descriptive
information. |
| (jj) |
Words other than
those defined in (a)-(ii) above are given their usual customary and accepted
meaning; all words of a technical nature or a nature peculiar to the oil and
gas industry are given that meaning defined in the Handbook of Oil
Industry Terms and Phrases or that which is generally accepted within
the oil and gas industry. |
The Board of Natural Resources delegates to the Department
the administrative duties created under the Act and designates the Director of
the Environmental Protection Division as the appropriate official to administer
and enforce these Rules and Regulations.
| (1) |
Before any well is drilled or re-entered,
the person desiring to drill or re-enter the same shall submit to the
Department the following items:
| (a) |
A
properly completed "Application for Permit to Drill" on application forms
obtained from the Department. |
| (b) |
A
fee of $25 for each application submitted. |
| (c) |
A plat and an index map (see 8. below)
showing the location of the proposed well which conforms to the following
specifications:
| 1. |
The scale of the plat
shall be indicated graphically and shall not be less than one (1) inch equals
one thousand (1,000) feet. The size of the sheet upon which the plat is drawn
shall not exceed twenty-four (24) inches by twenty-four (24) inches. |
| 2. |
A labeled vector indicating either true,
grid, or magnetic north. |
| 3. |
The
surface elevation of the drill site (well location) shall be
established. |
| 4. |
The plat shall
accurately show the distance to the two closest lease lines and/or property
lines and/or drilling unit boundaries from the proposed well location. Where
appropriate, the plat shall show the military district, block number and tract
or unit identity. |
| 5. |
The plat shall
be constructed by a surveyor registered by the State of Georgia or by a
professional engineer registered by the State of Georgia. |
| 6. |
The plat shall contain a signed statement
or certification by the surveyor or registered professional engineer that all
measurements are accurate as shown on the plat. |
| 7. |
The plat shall show the amount of acreage
assigned to the drilling unit and the drill site tract. |
| 8. |
The index map shall show all federal,
state, county, and municipal highways and roads and all railroads within a
radius of one (1) mile of the proposed well location; and all buildings,
prominent landmarks within one thousand (1,000) feet of the proposed well
location. In addition, sufficient information shall be provided so that the
location of the proposed well can be plotted to within plus or minus one
hundred (± 100) feet on a standard U.S. Geological Survey quadrangle
map. The appropriate U.S. Geological Survey quadrangle map with the well site
location indicated within plus or minus one hundred (± 100) feet may be
substituted for a hand drafted index map. |
| 9. |
If conditions require that two or more
attempts are necessary in order to satisfactorily drill and/or construct the
well, the location of each attempt shall be indicated on updated plats
submitted to the Department. |
|
| (d) |
A properly completed "Affidavit of
Ownership or Control" on an application form obtained from the
Department. |
| (e) |
A properly
completed "Organization Report" on an application form obtained from the
Department as specified in (7) of this section. |
| (f) |
Illustrations and narrative material of
the proposed operation. The illustrations and narrative should describe the
following:
| 2. |
Casing and cementing program. |
| 3. |
Procedures to prevent blow-outs, caving,
and seepage. |
| 4. |
Procedures to
prevent fires, waste, H2S containment and
spillage. |
| 5. |
Sampling and logging
program. |
| 6. |
Reclamation program for
mud-pits, sumps, reserve pits, and dikes. |
| 7. |
Disposal of drilling fluids. |
|
| (g) |
Procedures for hazard
mitigation identified in 3. and 4. above may be included by reference if the
operator has already provided such procedures to the Department. The Department
also may request such additional information as it deems necessary. |
| (h) |
A bond, or undertaking, in the amount
specified below in Table I for each proposed well, and filed on a properly
completed "Bonding Form" obtained from the Department. Such bond shall be
executed by the operator as principal, and by a surety approved to do business
in this State, and shall be payable to the State of Georgia Department of
Natural Resources. The bond shall be conditioned to secure the faithful
performance of all requirements of the Act, these Rules and Regulations and
permit conditions. (The correct legal name and address of the principal and the
surety shall be set forth on the bond, which shall be countersigned by the
Georgia agent of such surety, who shall also set forth the correct legal name
and address of such agent). In the event of a failure by the operator to fully
comply with the Act, Rules and Regulations or permit conditions, said bond
shall be forfeited and the Department shall expend the proceeds of the bond to
fulfill the operator's responsibilities so as to protect the State and its
citizens from any injury which may result from such failure. The bond shall
remain in effect for a period of two years after said well is plugged and
properly abandoned, two years after receipt by the Director of a properly
completed "Well Completion Report" as described in
391-3-13-.15, or two years from the
date of receipt of all data and reports required by these Rules,
whichever occurs last.
|
TABLE I
|
|
Permit Depth
|
Amount of Bond
|
|
Less than 2,000 feet
|
$10,000
|
|
2,000 to 3,000 feet
|
$20,000
|
|
3,000 to 6,000 feet
|
$30,000
|
|
Over 6,000 feet
|
$40,000
|
|
| (i) |
In the event the owner or operator wishes to keep the well open for additional
testing after drilling rig removal. The Director may require that an additional
bond in the amount of $10,000 be furnished, subject to the same terms and
conditions as the initial bond. Also, if the operator plans to drill multiple
wells and can demonstrate to the satisfaction of the Director that the operator
has adequate financial resources to cover all plugging and abandonment costs, a
blanket bond in the amount of $50,000 may be substituted. This blanket bond
shall be subject to the same terms and conditions as the aforementioned
individual well bond. The Director may require that the blanket bond not be
applicable for any well left open after rig removal. |
|
| (2) |
Any operator applying for a permit to
drill a directionally controlled well shall fulfill the prescribed requirements
of (1) of this section. In addition, the survey plat must show the proposed
bottom hole location and the surface location. In the event an operator, in
good faith, commences and proceeds with the drilling of a straight well and
thereafter decides to deviate the well directionally, he may do so by first
notifying the Director by telephone, secondly confirming in writing the fact
thereof, and thirdly complying with the provisions governing intentionally
deviated wells as hereinabove provided. |
| (3) |
The Director shall, within fifteen (15)
days after receipt of a properly completed application to drill or re-enter a
well, either issue or deny the permit. Drilling or re-entry shall not begin
until a permit is issued. Permits shall expire one (1) year from the date of
issuance if spudding operations in connection with the proposed well have not
begun. |
| (4) |
If the application and
supporting documentation is found satisfactory, a permit shall be issued by the
Director. The permit shall contain such terms and conditions the Director deems
necessary for the applicant to operate in accordance with the Act and these
Rules and Regulations. The permit shall become final unless a written request
by the applicant for a hearing is made within thirty (30) days of the issuance
of such permit. |
| (5) |
If an
application for a permit is denied by the Director, the applicant may request a
hearing, if such request is in writing and is made within thirty (30) days from
the date of the denial of the permit. |
| (6) |
Noncompliance with any provision of the
Act, these Rules and Regulations, or any permit condition shall be grounds for
the revocation, suspension or modification of any permit. |
| (7) |
Every person acting as an operator or
agent for an operator or independently engaged in the production of or drilling
for oil, condensate, or gas shall file with the Director an "Organization
Report," on forms obtained from the Department. The "Organization Report" shall
contain the following information: the name, telephone number post office
address of such person; the exact legal name under which such person or
businesses is being operated or conducted; the exact corporate name, if such is
incorporated, and the place of incorporation of such corporation; the business
or businesses in which the person is typically engaged; the names and post
office addresses of all other persons acting as trustee, together with the
names and post office addresses of the manager, agent, or executives thereof,
as well as the names and post office addresses of principal officers thereof.
When a business is conducted under an assumed name, as a partnership or a sole
a proprietorship, the "Organization Report" shall show the names and post
office addresses of all owners or partners in addition to the other information
herein required. Should any change occur as to facts stated in the filed report
prior to bond termination, a revised "Organization Report" shall be filed with
the Director within thirty (30) days of such change. |
| (8) |
An operator may request modification of
any permit condition. Such request must be in writing and properly documented.
The Director may grant such modification if he is satisfied that the request is
justified and if the modification will allow the operator to remain in
compliance with Act and these Rules and Regulations. |
| (9) |
Within ten (10) days after permit
approval, the operator shall give written notice to the land-owner or tenant
occupying the land of the operator's intent to drill and general
schedule. |
| (1) |
The spacing of wells in proven oil and/or
gas fields or in areas that Board may designate, shall be governed by special
rules for that particular field or area, adopted after due notice and public
hearing. |
| (2) |
Wells drilled in areas
not covered by special rules shall be drilled a minimum of 330 feet or other
distance, determined by the Director to provide an adequate safety buffer to
the public, from any lease boundary, property line, dwelling, place of public
gathering or producing oil or gas well. The applicant for a permit to drill
such a well shall demonstrate to the Director that the application has
available for assignment to said well, leases or acreage of area and size to
constitute a reasonable producing unit for such well. Oil wells drilled in
areas not covered by special rules shall be drilled on a drilling unit
consisting of forty (40) surface contiguous acres. The well shall be located
330 feet from the exterior boundary of the drilling unit and at least 660 feet
from the every other well drilling to or producing from, or for which a permit
shall have been granted to drill to the same pool. Gas wells drilled in areas
not covered by special rules shall be drilled on a drilling unit consisting of
one hundred sixty (160) surface contiguous acres. The well shall be located 660
feet from the exterior boundary of the drilling unit and at least 1867 feet
from every other well drilling to or producing from, or for which a permit
shall have been granted to drill to the same pool. |
After discovery of an oil and gas pool and for the prevention
of waste, to avoid the drilling of an excessive number of wells and to assure
the ultimate maximum recovery of gas or oil, the Director shall, after due
investigation and a hearing, establish drilling and/or operation units. The
director also, after investigation and a hearing, shall make such special
orders as will give to each producer the opportunity to use his just and
equitable share of the maximum reservoir energy of any pool.
Fields and pools shall be classified as to common sources of
supply from which they produce and such sources shall be determined and named
by the Director. In naming fields, reference shall be given to common usage and
geographic names. Separate pools within the same field shall be named according
to the producing formation.
In order to protect the health, safety, and welfare of the
citizens of Georgia and to protect fresh water supplies, the Department's
designated agents shall have access at all reasonable times to all well,
production and transportation records and shall be permitted to enter upon
private or public property to inspect such records and to inspect any and all
wells, storage facilities and pipelines. All operators of wells and drilling
rigs are required to permit and assist the agents of the Department in making
tests or inspections that may be reasonably required to determine compliance
with the Act and these Rules and Regulations.
| (1) |
Any person or persons wishing to become
the new operator of a well a wells must submit to the Director for his approval
a request for a change of operator accompanied by the following if not
previously filed:
| (a) |
A properly completed
and notorized "Affidavit of Ownership or Control" of said well or
wells. |
| (b) |
A properly completed
"Organization Report," on form obtained from the Department. |
| (c) |
A bond, or undertaking, in full and
complete compliance with section
391-3-13-.04(1)(g)
of these Rules, if such requirement has not been fulfilled
previously. |
| (d) |
A notorized letter
from the present operator requesting the Director to approve the applicant as
the new operator of such well. |
|
| (2) |
The request for Change of Operator will
be reviewed by the Director, who shall approve or deny the change within thirty
(30) days of receipt of the above items. If a change of operator is denied, the
application may request a hearing, if such request is in writing and made
within thirty (30) days of the denial of the permit. |
| (1) |
Identification
of wells. The operator of any well shall paint or stencil and post and keep
posted in a conspicuous place near the well, the name of the operator, the name
of the lease or property owner, the number of the well and the number of the
permit for the well. The identification shall be posted before spudding or
re-entry and shall remain posted until the well is properly plugged and the
location is restored to a condition satisfactory to the Director. In the event
of a change of operator, well name and number, a new sign reflecting the change
shall be posted. |
| (2) |
Notices of
activities. The Director shall be notified by telephone less than twenty-four
(24) hours (or other time-period acceptable to the Director) prior to
performing any one or more of the following activities:
| (c) |
electrical or geophysical
logging; |
| (e) |
removing drilling
rig; |
| (h) |
any other activity the
Director may designate. |
|
| (3) |
Prior notification to performing the
aforesaid activities shall be to allow the Director to send a duly authorized
representative to the location to witness the activity at the specified time,
if the Director deems necessary. |
| (4) |
Control of wells. The operator shall take
all necessary precautions to keep all wells under control at all times, shall
utilize only contractors or employees trained and competent to drill and
operate such wells, and shall utilize and maintain materials and high-pressure
fittings and equipment necessary to insure the safety of operating conditions
and procedures. The design of integrated casing, cementing, drilling mud and
blow-out prevention programs shall be based upon sound engineering principles
and must take into account the depths at which various fluid or mineral-bearing
formations are expected to be penetrated, the formation fractures gradients and
pressures expected to be encountered, and other pertinent geologic and
engineering data and information about the area. |
| (5) |
Notification of fire, leaks, or
blow-outs. The operator shall immediately notify the Director by phone giving
full details concerning all fires, leaks or blow-outs which occur at such
wells. Drillers shall take immediate action to control fires, leaks or
blow-outs as appropriate. |
| (6) |
Well
record. During the drilling of every well, the owner, operator, contractor,
driller, or other persons responsible for the conduct of drilling operations,
shall keep at the well a detailed and accurate record available to the
Department and its agents at all times. Pertinent information from such records
shall be recorded on a "Well Information Form" obtained from the Department.
The "Well Information Form" shall be furnished to the Director within
forty-five (45) days after removal of the rig from the well site and will
describe progressively the general lithology of strata, water and oil or gas
encountered as well as such additional information as to abnormal pressure,
zones of lost circulation, caving strata, casing record, and other information
as are usually recorded in the normal procedure of drilling. The "Well
Information Form" shall be held in confidence as described in Section
391-3-13-.10(9)
below. |
| (7) |
Electrical, Geophysical
and Other Logs.
| (a) |
A record of all
electrical, sonic, radioactivity, mud, and mechanical logging or surveying of
the well shall be maintained and two copies furnished to the Director within
forty-five (45) days after completion. Field prints of logs necessary to
determine fresh water-salt water interfaces and, if appropriate [refer to
391-3-13-.10 (11)(c) below],
integrity of cement to casing must be available to the Department's agent at
Oil well site. |
| (b) |
To assure the
protection of fresh water zones (paragraph (10) of this section), the
Department shall have the authority to require and/or perform geophysical
logging at any time during the drilling provided:
| 1. |
Hole conditions allow such
logging; |
| 2. |
The operator does not
intend or has not scheduled to perform spontaneous potential-resistivity type
logs of sufficient accuracy to identify the fresh water-salt water
interface. |
|
| (c) |
The
Department will not perform any logging where the operator has performed
logging adequate for identifying the fresh water-salt water interface. If the
Department performs the logging of any well, the owner or operator shall
prepare and provide full access to the well and assist the Department as
necessary until the logging is completed. If the owner of operator is requested
to conduct logging, such logging shall be at the owner or operator's expense.
Two copies of all geophysical logs obtained by the Department shall be supplied
to the owner of the well within (30) days. All geophysical logs obtained by the
Department shall be held in confidence as provided in paragraph (9) of this
section. |
|
| (8) |
Samples:
Each operator shall file with the Director a complete set of cuttings or cores
correctly labeled and identified as to depth, not later than thirty (30) days
for cuttings and ninety (90) days for core splits after completion of the well.
Cuttings shall be collected at 30 foot intervals from a depth of 500 feet to
the total depth drilled. Cuttings are not required for the uppermost 500 feet.
Missing intervals shall be noted and the reasons for the missing samples shall
be described. Side-wall cores need not be submitted as long as written
descriptions are filed within forty-five (45) days after completion of the
well. |
| (9) |
Confidentiality. All
samples, cuttings, cores, logs and well records shall be held in confidence by
the Department for a period of six (6) months from the time of well completion.
Extension of the confidential period may be granted by the Director for good
cause when documented by the operator. The confidentiality afforded by this
section shall in no way impair the right or ability of the Director to enforce
the provisions of the Act and these Rules and Regulations. |
| (10) |
Protection of fresh water. All fresh
water shall be confined to its respective strata and shall be adequately
protected. Special precautions identified in paragraphs (11), (12), (13), (14),
and (15) of this section and Sections
391-3-13-.12 and
391-3-13-.16 shall be taken in
drilling and abandoning of wells to guard against any loss of fresh water or
contamination of fresh water by oil, condensate, gas, salt-water, or other
contaminants. |
| (11) |
Mud pits, sumps,
reserve pits and dikes.
| (a) |
Before commencing
to drill, properly maintained mud pits, sumps, reserve pits or tanks of
sufficient size to receive and contain the maximum volume of drilling fluid
anticipated at the surface shall be constructed, and thereafter maintained, for
the reception of such materials. |
| (b) |
After a well is completed or abandoned,
all fluids, and recoverable slurry that remain in all pits, sumps, and tanks
shall be safely returned to the well on location, or removed and disposed of,
as approved by the Director. All mud pits, sumps, reserve pits and dikes shall
be backfilled with earth or graded and compacted in such a manner as to be
returned to a nearly natural state. |
|
| (12) |
Casing.
| (a) |
The operator shall case and cement all
wells with a sufficient number of strings of high-quality casing, without
leaks, in a manner necessary to:
| 1. |
prevent
release or fluids from any stratum through the well bore (directly or
indirectly) into the ground waters or onto the surface, except into pits or
tanks provided for this purpose; |
| 2. |
prevent communication between separate hydrocarbon bearing strata (except where
such strata have been approved for commingling) and between hydrocarbon and
water-bearing strata; |
| 3. |
prevent
contamination of fresh-water strata; |
| 4. |
support unconsolidated sediments;
and, |
| 5. |
otherwise provide a means
to control formation pressures and fluids. |
|
| (b) |
The operator shall install such casing
necessary to withstand collapse, bursting, tensility, and other stresses and
the casing shall be cemented in a manner which supports the casing. Safety
factors in casing program design shall be of sufficient magnitude to provide
optimum well control while drilling and to assure safe operations for the life
of the well. |
| (c) |
Determination of
proper casing-setting depths shall be based upon all geologic factors including
the presence or absence of hydrocarbons and fresh-water depths on a
well-for-well basis. |
| (d) |
Surface
casing shall be new or reconditioned pipe that, to the satisfaction of the
Director, has been tested, inspected and certified to verify a good usable
condition. Surface casing shall be set at a depth and cemented in a manner
necessary to protect all fresh-water aquifers and provide well control until
the next string of casing is set. Surface casing shall be cemented with a
volume sufficient to fill the annular space from the casing shoe to the
surface, plus 10 percent. Cement shall be added from the bottom upward. All
cement shall be allowed to set for 12 hours before the cement plug is drilled
or test initiated. If cement returns are not received at the surface or returns
are lost while circulating, remedial cementing at the surface will be done be
running a minimum of 100 feet of small diameter pipe in the annular space
bringing cement to the surface. Also if circulation is lost during cementing
operations, the Director may require that a temperature or cement bond log be
run to determine whether the casing is properly cemented. |
| (e) |
Production casing shall be set before
completing well for production, and such casing shall be new pipe or
reconditioned pipe that to the satisfaction of the Director has been tested,
inspected, and certified to verify good usable condition. It shall be cemented
in a manner necessary to cover or isolate all zones which contain hydrocarbons,
but in case, a calculated volume sufficient to fill the annular space at least
500 feet above the uppermost producible hydrocarbon zone must be used. After
the cement has set and before drilling the plug, the casing or a maximum test
of 1500 pounds per square inch. Whenever the pressure drops ten (10) percent in
thirty (30) minutes, the casing will be deemed inadaquate and shall be repaired
and retested until the requirements thereof are met. |
|
| (13) |
Blow-out prevention. Adequate blow-out
preventers and high pressure fittings for keeping the well control shall be
attached to properly anchored and cemented casing strings. The blow-out
preventers must meet the approval of the Director and shall be tested regularly
and the results recorded in the driller's log. Agents of the Department may
require that the blow-out preventers be tested at any reasonable time during
operations provided such testing does not result in creating a hazardous
condition. |
| (14) |
Control of
formation pressures. The operator shall continuously maintain in the hole, from
top to bottom, good drilling fluid of sufficient weight to control any
formation pressures which may be encountered. In the event of lost-circulation,
the operator will immediately notify the Director and make provisions to
restore circulation either by casing-off the affected zone, increasing mud
viscosity, or other techniques acceptable to the Director. The aforementioned
drilling fluid requirements shall in no way be construed to preclude other
drilling techniques. Air drilling, flame drilling, electric-arc drilling,
plasma jet drilling, laser beams, and erosion drilling are permitted, provided,
however, that the operator uses other appropriate methods approved by the
Director to control any pressures which may be encountered. |
| (15) |
Directional drilling. All wells must be
drilled with due diligence to maintain a reasonably vertical well bore;
however, a well may be intentionally deviated and directionally controlled,
provided that the location of the deviated well at total depth of the well is
in compliance with the applicable spacing rules and the requirements of section
(3) above are met. |
Wells should not be shot, perforated, chemically treated, or
fractured, until the Director is notified. Each well shall be treated, or
fractured in such manner as will not cause injury to the formation, or result
in water encroachment into any oil or gas formation. Necessary precautions
shall be taken to prevent injury to the casing. Routine chemical treatments for
corrosion control shall be excluded from this notice requirement. If chemical
treating, or fracturing results in irreparable injury to the well or to the oil
or gas information, the Director may issue emergency orders for the well to be
properly plugged and abandoned.
| (1) |
The owner or
operator may keep a well open for additional testing after removal of the
drilling rig, if the written approval of the Director is first obtained, and by
demonstrating to the satisfaction of the Director that (a) the open well is
constructed so as to assure that fresh water aquifers are protected from
intraformational migration of fluids through the bore hole and (b) that the
operator has adequate and readily available financial resources to plug the
well. |
| (2) |
The owner or operator of
any well shall be responsible for the plugging of any well after said well is
abandoned, utilizing the services of a well cementing contractor. Any well
declared abandoned by the Director shall be plugged within sixty (60) days by
the operator, or the surety bond will be forfeited to the Department. |
| (3) |
Before any work is commenced to plug any
well, the owner or operator thereof shall give 24-hours notice to the Director
of this intent. Upon notification, the Department may send duly authorized
representatives to the location at the time specified to witness the plugging
of such well. |
| (4) |
The methods and
procedure for plugging a well shall be as follows;
| (a) |
Each oil or gas producing formation shall
be sealed with a cement plug which extends not less than 100 feet above the
producing formations nor less than 100 feet below the producing formations. The
Director may allow a bridge plug with a minimum of 10 feet of cement on top to
be placed immediately above each perforated horizon in cased holes. |
| (b) |
A cement plug of appropriate ingredients
not less than 150 feet in length shall be placed at the base of all fresh water
bearing strata unless the strata are protected by properly cemented surface
casing. Where the natural contact between fresh and salt ground waters is
transitional the cement plug shall be such length to extend at least 50 feet
above and below the transition zone. |
| (c) |
A cement plug not less than 200 feet in
length shall be placed 100 feet above to 100 feet below the base of the surface
casing. This plug may be omitted if this interval is protected by smaller
diameter casing which has been properly grouted. |
| (d) |
A 50 foot plug shall be placed near the
surface of the ground in each hole to be plugged in such a manner as not to
interfere with soil cultivation. |
| (e) |
The interval between plugs shall be
filled with fluid weighing not less than nine and one-half (9.5) pounds per
gallon. |
| (f) |
Additional cement plugs
not specified above may required by the Director at other locations so as to
prevent the commingling of oil, gas, salt, water, and fresh water from one
formation to another. |
| (g) |
Other
plugging methods may be used provided written approval is obtained from the
Director. |
| (h) |
When a well be
plugged may be used safely as a fresh water well and such utilization is
desired by the land or surface owner, the well need not be filled above the
required sealing plug set at the base of fresh water, provided the land or
surface owner agrees in writing to the Director to take full responsibility for
the well. including correcting any plugging defects that result in the
migration of salty water or oil or gas through the well, and to comply fully
with all laws and rules and provided written approval is obtained from the
Director. |
| (j) |
When a well to be
plugged may be safely used as a ground water monitoring well by the Department,
the well need not be filled above the required sealing plug set at the base of
fresh water; provided the owner will permit the Department access to the well
for testing purposes. |
|
The Director shall notified before any drilling rig is
removed from any unplugged well, and permission must be granted by the Director
for such removal. The Director may stipulate special protective measures to be
taken before granting permission to remove a drilling rig, including but not
limited to, the temporary plugging of the well or requiring monthly inspections
of the well by an engineer or geologist registered to practice in Georgia. If,
in the judgment of the Director, the well poses a hazard to health of the
public or the environment, the Director may issue emergency orders for the well
to be properly plugged and abandoned.
| (1) |
Before any mineral well can be initially
tested for production the operator must notify the Director. The test may be
witnessed by a representative of the Director and the results filed with the
Director within forty-five (45) days such test. |
| (2) |
As described in Section
391-3-13-.11 wells shall not be
shot, perforated, chemically treated, or fractured until the Director is
notified. |
| (3) |
Before any oil or gas
well can be brought into production, the operator must apply to the Director
for permission to produce. Such application shall include, but not be limited
to, a description of the geologic characteristics of the reservoir and safety
precautions. The operator also shall describe whether the proposed production
will be oil or gas, how waste brines and gases will be disposed, how the oil or
gas will be transported from the wellhead, the nature and timing of proposed
production, and any additional information so that the Director may investigate
and hold hearings for the establishment of drilling and operations
units. |
A properly completed "Well Completion Report" shall be
submitted to the Director within forty-five (45) days of well completion. This
report shall include, but not limited to, information pertaining to the well
record, well logs, tests conducted, casing installed, plugs installed, and
other descriptive information that the Director may require. Such report shall
be signed by the operator or his representative, and the operator shall affirm
that all provided information is accurate. Within thirty (30) days of receipt
of an accurate and properly completed "Well Completion Report" the Director
shall notify the operator whether additional measures are necessary in order to
safety produce oil or gas or to finally abandon the well.
All spills of oil, petroleum products and salt-water shall be
reported and handled in accordance with the Georgia Water Quality Control Act,
the Georgia Oil and Gas and Deep Drilling Act of 1975, as amended, and any
other applicable federal, state, and municipal laws, ordinances and
regulations.
The administration and enforcement of these Rules and
Regulations shall be in accordance with the Act and the Georgia Administrative
Procedure act. Enforcement measures include, but are not limited to,
administrative orders, court orders, injunctive relief, and civil and criminal
penalties.
