§ 3162.3-4 Well abandonment. ( a ) The operator must promptly plug and abandon, in accordance with a plan first approved in writing or prescribed by the authorized officer, each newly completed or recompleted well in which oil or gas is not encountered in paying quantities or which, after being completed as a producing well, is demonstrated to the satisfaction of the authorized officer to be no longer capable of producing oil or gas in paying quantities, unless the authorized officer approves the use of the well as a service well for injection to recover additional oil or gas or for subsurface disposal of produced water. In the case of a newly drilled or recompleted well, the approval to abandon may be written or oral with written confirmation.
( b ) Completion of a well as plugged and abandoned may also include conditioning the well as a water supply source for lease operations or for use by the surface owner or appropriate Government Agency, when authorized by the authorized officer. All costs over and above the normal plugging and abandonment expense will be paid by the party accepting the water well.
( c ) Upon the removal of drilling or production equipment from the well site which is to be permanently abandoned, the surface of the lands disturbed in connection with the conduct of operations must be reclaimed in accordance with a plan first approved or prescribed by the authorized officer.
( d ) Operators of temporarily abandoned wells must: ( 1 ) Receive prior approval from the authorized officer for any well temporarily abandoned for more than 30 days. The authorized officer may authorize a delay in the permanent abandonment of a well for a period of up to 1 year. The operator must provide: ( i ) Adequate and detailed justification for the temporary abandonment;
( ii ) Verification of the mechanical integrity of the well; and
( iii ) Isolate the completed interval(s) prior to temporary abandonment.
( 2 ) Receive prior approval from the authorized officer for any additional delays to permanently abandon a well beyond 1 year. The authorized officer may authorize additional delays, none of which may exceed an additional 1-year period. Each request for additional delay must provide adequate and detailed justification for continued temporary abandonment.
( 3 ) Within 4 years of temporary abandonment of a well, complete one of the following actions: ( i ) Permanently abandon the well;
( ii ) Resume production in paying quantities or commence using the well for injection or disposal;
( iii ) Provide the authorized officer with a detailed plan and timeline for future beneficial use of the well. If the authorized officer determines that there is a legitimate future beneficial use for the well, the officer may allow the operator to delay permanent abandonment by 1 additional year. The authorized officer may grant additional delays in 1-year increments, provided that the operator confirms the future beneficial use of the well and is making verifiable progress on returning the well to a beneficial use.
( e ) Operators of shut-in wells must: ( 1 ) Notify the authorized officer of the well's shut-in status, if the well will be shut-in for 90 or more consecutive days, and provide the date the well was shut-in within 90 days of well shut-in;
( 2 ) Within 3 years of well shut-in, provide the authorized officer with verification of the mechanical integrity of the well and confirmation that the well remains capable of producing in paying quantities; and
( 3 ) Within 4 years of well shut-in, complete one of the following actions: ( i ) Permanently abandon the well;
( ii ) Resume production in paying quantities; or
( iii ) Provide the authorized officer with a detailed plan and timeline for future beneficial use of the well. If the authorized officer determines that there is a legitimate future beneficial use for the well, the officer may allow the operator to delay permanent abandonment by 1 year. The authorized officer may grant additional delays in 1-year increments, provided that the operator confirms the future beneficial use of the well and is making verifiable progress on returning the well to a beneficial use.
( f ) All wells that are temporarily abandoned or shut-in must have mechanical integrity verified as required in paragraphs (d)(1) and (e)(2) of this section and must ensure that mechanical integrity is verified every 3 years thereafter. The operator must submit the results of each verification of mechanical integrity to the authorized officer within 30 days of the mechanical integrity test.
[89 FR 30996, Apr. 23, 2024]