## Utah Administrative Code

The Utah Administrative Code is the body of all eff ective administrative rules as compiled and organized by the Division of Administr ative Rules (Subsection 63G

- 3

- 102 (5) ; see also Sections 63G

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- 701 and 702 ).

NOTE: For a list of rules that have been made effec tive since May 1, 2012, please see the codification segue page.
NOTE TO RULEFILING AGENCIES: Use the RTF version fo r submitting rule changes.

Download the RTF file


## Rule R649-3. Drilling and Operating Practices.
As in effect on May 1, 2012



### Table of Contents

 R649

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- 1. Bonding.

 R649

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- 2. Location And Siting of Vertical Wells and Statew ide Spacing for Horizontal Wells.

 R649

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- 3. Exception to Location and Siting of Wells.

 R649

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- 4. Permitting of Wells to be Drilled, Deepened or Plugged

- Back.

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- 5. Identification.

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- 6. Drilling Operations.

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- 7. Well Control.

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- 8. Casing Program.

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- 9. Protection of Upper Productive Strata.

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- 10. Tolerances for Vertical Drilling.

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- 11. Directional Drilling.

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- 12. Drilling Practices for Hydrogen Sulfide H2S Are as and Formations.

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- 13. Casing Tests.

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- 14. Fire Hazards on the Surface.

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- 15. Pollution and Surface Damage Control.

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- 16. Reserve Pits and Other On

- site Pits.

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- 17. Inspection.

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- 18. On

- site Predrill Evaluation.

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- 19. Well Testing.

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- 20. Gas Flaring or Venting.

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- 21. Well Completion and Filing of Well Logs.

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- 22. Completion Into Two or More Pools.

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- 23. Well Workover and Recompletion.

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- 24. Plugging and Abandonment of Wells.

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- 25. Underground Disposal of Drilling Fluids. 

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... R649

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- 26. Seismic Exploration.

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- 27. Multiple Mineral Development.

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- 28. Designated Potash Areas.

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- 29. Workable Coal Beds.

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- 30. Underground Mining Operations.

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- 31. Designated Oil Shale Areas.

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- 32. Reporting of Undesirable Events.

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- 33. Drilling Procedures in the Great Salt Lake.

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- 34. Well Site Restoration.

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- 35. Wildcat Wells.

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- 36. Shut

- in and Temporarily Abandoned Wells.

 R649

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- 37. Enhanced Recovery Project Certification.

 KEY

 Date of Enactment or Last Substantive Amendment

 Notice of Continuation

 Authorizing, Implemented, or Interpreted Law


### R649
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- 1. Bonding. 1. An owner or operator shall furnish a bond to the division prior to approval of a permit to drill a new well, reenter an abandoned we ll or assume responsibility as operator of existing wells. 1.1. An owner or operator shall furnish a bond to t he division on Form 4, for wells located on lands with fee or privately owned minera ls. 1.2. An owner or operator shall furnish evidence to the division that a bond has been filed in accordance with state, federal or Ind ian lease requirements and approved by the appropriate agency for all wells lo cated on state, federal or Indian leases. 2. A bond furnished to the division shall be payabl e to the division and conditioned upon the faithful performance by the op erator of the duty to plug each dry or abandoned well, repair each well causing was te or pollution, and maintain and restore the well site. 3. Bond liability shall be for the duration of the drilling, operating and plugging of the well and restoration of the well site. 3.1. The bond for drilling or operating wells shall remain in full force and effect until liability thereunder is released by the divis ion. 3.2. Release of liability shall be conditioned upon compliance with the rules and orders of the Board. 4. For all drilling or operating wells, the bond am ounts for individual wells and blanket bonds required in subsections 5. and 6. rep resent base amounts adjusted to year 2002 average costs for well plugging and site restoration. The base amounts are effective immediately upon adoption of this bonding rule, subject to division notification as described in subsection 4.1. 4.1. The division shall provide written notificatio n to each operator of the need to revise or establish bonds in amounts required by th is bonding rule. 

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...4.2. Within 120 days of such notification by the di vision, the operator shall post a

bond with the division in compliance with this bond ing rule. 4.3. If the division finds that a well subject to t his bonding rule is in violation of Rule R649-3- 36., Shut-in and Temporarily AbandonedWells, the division shall require a bond amount for the applicable well in th e amount of actual plugging and site restoration costs. 4.4. The division shall provide written notificatio n to an operator found in violation of Rule R649- 3-36., and identify the nee d to establish increased bonding for shut-in wells. 4.4.1. Within 30 days of notification by the divisi on, the operator shall submit to the division an estimate of plugging and site resto ration costs for division review and approval. 4.4.2. Upon review and approval of the cost estimat e, the division will provide a notice of approval back to the operator specifying the approved bond amount for shut-in wells. 4.4.3. Within 120 days of receiving such notice of approval, the operator shall post a bond with the division in compliance with th is bonding rule. 5. The bond amount for drilling or operating wells located on lands with fee or privately owned minerals shall be one of the follow ing: 5.1. For wells of less than 1,000 feet in depth, an individual well bond in the amount of at least $1,500, for each such well. 5.2. For wells of more that 1,000 feet in depth but less than 3,000 feet in depth, an individual well bond in the amount of at least $ 15,000 for each such well. 5.3. For wells of more that 3,000 feet in depth but less than 10,000 feet in depth, an individual well bond in the amount of at least $ 30,000 for each such well. 5.4. For wells of more than 10,000 feet in depth, a n individual well bond in the amount of at least $60,000 for each such well. 6. If, prior to the July 1, 2003 revision of this b onding rule, an operator is drilling or operating more than one well on lands with fee o r privately owned minerals, and a blanket bond was furnished and accepted by the divi sion in lieu of individual well bonds, that operator shall remain qualified for a b lanket bond with the division subject to the amounts described by this bonding ru le. 6.1. A blanket bond shall be conditioned in a manne r similar to individual well bonds and shall cover all wells that the operator m ay drill or operate on lands with fee or privately owned minerals within the state. 6.2. For wells of less than 1,000 feet in depth, a blanket bond in the amount of at least $15,000 shall be required. 6.3. For wells of more than 1,000 feet in depth, a blanket bond in the amount of at least $120,000 shall be required. 6.4. Subsequent to the July 1, 2003 revision of thi s rule, operators who desire to establish a new blanket bond that consists either f ully or partially of a collateral bond as described in subsection 10.2. shall be qualifiedby the division for such blanket bond. 6.4.1. Operators who elect to establish a surety bo nd as a blanket bond shall not require qualification by the division. 6.4.2. In those cases where operator qualification for blanket bond is required, 

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...the division will review the following criteria andmake a written finding of the

operator's adequacy to meet the criteria before acc epting a new blanket bond: 6.4.3. The ratio of current assets to current liabi lities shall be 1.20 or greater, as evidenced by audited financial statements for the p revious two years and the most current quarterly financial report. 6.4.4. The ratio of total liabilities to stockholde r's equity shall be 2.50 or less, as evidenced by audited financial statements for the p revious two years and the most current quarterly financial report. 7. If an operator desires bond coverage in a lesseramount than required by these rules, the operator may file a Request for Agency A ction with the Board for a variance from the requirements of these rules. 7.1. Upon proper notice and hearing and for good ca use shown, the Board may allow bond coverage in a lesser amount for specificwells. 8. If after reviewing an application to drill or re enter a well or when reviewing a change of operator for a well, the division determi nes that bond coverage in accordance with these rules will be insufficient to cover the costs of plugging the well and restoring the well site, the division may requi re a change in the form or the amount of bond coverage. In such cases, the divisio n will support its case for a change of bond coverage in the form of written find ings to the operator of record of the well and provide a schedule for completion of t he requisite changes. 8.1 Appeals of mandated bond amount changes will fo llow procedures established by Rule R649-10., Administrative Procedures. 9. The bond shall provide a mechanism for the surety or other guarantor of the bond, to provide prompt notice to the division and the operator of any action alleging the insolvency or bankruptcy of the surety or guara ntor, or alleging any violations that would result in suspension or revocation of th e suretys or guarantor's charter or license to do business. 9.1. Upon the incapacity of the surety or guarantorto guarantee payment of the bond by reason of bankruptcy, insolvency, or suspen sion or revocation of a charter or license, the operator shall be deemed to be withoutbond coverage. 9.2. Upon notification of insolvency or bankruptcy, the division shall notify the operator in writing and shall specify a reasonable period, not to exceed 90 days, to provide bond coverage. 9.3. If an adequate bond is not furnished within th e allowed period, the operator shall be required to cease operations immediately, and shall not resume operations until the division has received an acceptable bond. 10. The division shall accept a bond in the form of a surety bond, a collateral bond or a combination of these bonding methods. 10.1. A surety bond is an indemnity agreement in a sum certain payable to the division, executed by the operator as principal andwhich is supported by the performance guarantee of a corporation authorized t o do business as a surety in Utah. 10.1.1. A surety bond shall be executed by the oper ator and a corporate surety authorized to do business in Utah that is listed in "A.M. Best's Key Rating Guide" at a rating of A- or better or a Financial Performance Rating (FPR) of 8 or better, according to the "A.M. Best's Guide". All surety co mpanies also will be continuously listed in the current issue of the U.S. Department of the Treasury Circular 570. Operators who do not have a surety bond with a comp any that meets the standards 

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...of subsection 10.1.1. will have 120 days from the d ate of division notification after

enactment of the changes to subsection 10.1.1., or face enforcement action. When the division in the course of examining surety bonds no tifies an operator that a surety company guaranteeing its performance does not meet the standards of subsection 10.1.1., the operator has 120 days after notice fro m the division by mail to correct the deficiency, or face enforcement action. 10.1.2. Surety bonds shall be noncancellable duringtheir terms, except that surety bond coverage for wells not drilled may be canceled with the prior consent of the division. 10.1.3. The division shall advise the surety, withi n 30 days after receipt of a notice to cancel a bond, whether the bond may be canceled on an undrilled well. 10.2. A collateral bond is an indemnity agreement i n a sum certain payable to the division, executed by the operator that is supporte d by one or more of the following:
10.2.1. A cash account. 10.2.1.1. The operator may deposit cash in one or m ore accounts at a federally insured bank authorized to do business in Utah, mad e payable upon demand only to the division. 10.2.1.2. The operator may deposit the required amo unt directly with the division. 10.2.1.3. Any interest paid on a cash account shall be retained in the account and applied to the bond value of the account unless the division has approved the payment of interest to the operator. 10.2.1.4. The division shall not accept an individu al cash account in an amount in excess of $100,000 or the maximum insurable amount as determined by the Federal Deposit Insurance Corporation. 10.2.2. Negotiable bonds of the United States, a st ate, or a municipality. 10.2.2.1. The negotiable bond shall be endorsed only to the order of and placed in the possession of the division. 10.2.2.2. The division shall value the negotiable b ond at its current market value, not at face value. 10.2.3. Negotiable certificates of deposit. 10.2.3.1. The certificates shall be issued by a fed erally insured bank authorized to do business in Utah. 10.2.3.2. The certificates shall be made payable orassigned only to the division both in writing and upon the records of the bank is suing the certificate. 10.2.3.3. The certificates shall be placed in the p ossession of the division or held by a federally insured bank authorized to do busine ss in Utah. 10.2.3.4. If assigned, the division shall require the banks issuing the certificates to waive all rights of setoff or liens against those c ertificates. 10.2.3.5. The division shall not accept an individu al certificate of deposit in an amount in excess of $100,000 or the maximum insurab le amount as determined by the Federal Deposit Insurance Corporation. 10.2.4. An irrevocable letter of credit. 10.2.4.1. Letters of credit shall be placed in the possession of and payable upon demand only to the division. 

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...10.2.4.2. Letters of credit shall be issued by a fe derally insured bank authorized to

do business in Utah. 10.2.4.3. Letters of credit shall be irrevocable du ring their terms. 10.2.4.4. Letters of credit shall be automatically renewable or the operator shall ensure continuous bond coverage by replacing letter s of credit, if necessary, at least 30 days before their expiration date with other acc eptable bond types or letters of credit. 11. The required bond amount specified in subsectio ns 5. and 6. of all collateral posted as assurance under this section shall be sub ject to a margin determined by the division which is the ratio of the face value of th e collateral to market value, as determined by the division. 11.1. The margin shall reflect legal and liquidatio n fees, as well as value depreciation, marketability and fluctuations that m ight affect the net cash available to the division to complete plugging and restoratio n. 12. The market value of collateral may be evaluatedat any time, and in no case shall the market value of collateral be less than t he required bond amount specified in subsections 5. and 6. 12.1. Upon evaluation of the market value of collat eral by the division, the division will notify the operator of any required changes in the amount of the bond and shall allow a reasonable period, not to exceed 90 days, for the operator to establish acceptable bond coverage. 12.2. If an adequate bond is not furnished within t he allowed period the operator shall be required to cease operations immediately a nd shall not resume operations until the division has received an acceptable bond. 13. Persons with an interest in collateral posted a s a bond, and who desire notification of actions pursuant to the bond, shall request the notification in writing from the division at the time collateral is offered

. 14. The division may allow the operator to replace existing bonds with other bonds that provide sufficient coverage. 14.1. Replacement of a bond pursuant to this sectio n shall not constitute a release of bond under subsection15. 14.2. The division shall not allow liability to cea se under an existing bond until the operator has furnished, and the division has ap proved, an acceptable replacement bond. 14.3. When the operator of wells covered by a blank et bond changes, the division will review the financial eligibility of a new oper ator for blanket bonding as described in subsection 6.4., and the division will make a wr itten finding concerning the applicability of blanket bonding to the prospective new operator. 14.4. Transfer of the ownership of property does no t cancel liability under an existing bond until the division reviews and approv es a change of operator for any wells affected by the transfer of ownership. 14.5. If a transfer of the ownership of property is made and an operator wishes to request a change to a new operator of record for th e affected wells, then the following requirements shall be met: 14.5.1. The operator shall notify the division in w riting when ownership of any well associated with the property has been transfer red to a named transferee, and the operator shall request a change of operator for the affected wells. 

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...14.5.2. The request shall describe each well by ref erence to its well name and number, API number, and its location, as described by the section, township, range, and county, and shall also include a proposed effective date for the operator change. 14.5.3. The request shall contain the endorsement o f the new operator accepting such change of operator. 14.5.4. The request shall contain evidence of the n ew operator's bond coverage. 14.5.5. The request may include a request to cancel liability for the well(s) included in the operator change that are listed und er the existing operator's bond upon approval by the division of an adequate replac ement bond in the name of the new operator. 14.6. Upon receipt of a request for change of opera tor, the division will review the proposed new operator's bond coverage, and if bond coverage is acceptable, the division will issue a notice of approval of the cha nge of operator. 14.6.1. If the division determines that the new ope rator's bond coverage will be insufficient to cover the costs of plugging and sit e restoration for the applicable well (s), the division may deny the change of operator, or the division may require a change in the form and amount of the new operator's bond coverage in order to approve the change of operator. In such cases, the division will support its case for a change of the new operator's bond coverage in the f orm of written findings, and the division will provide a schedule for completion of the requisite changes in order to approve the operator change. The written findings a nd schedule for changes in bond coverage will be sent to both the operator of recor d of the applicable well(s) and the proposed new operator. 14.7. If the request for operator change included arequest to cancel liability under the existing operator's bond in accordance with sub section 14.5.5., and the division approves the operator change, then the division wil l issue a notice of approval of termination of liability under the existing bond fo r the wells included in the operator change. When the division has approved the terminat ion of liability under a bond, the original operator is relieved from the responsibility of plugging or repairing any wells and restoring any well site affected by the o perator change. 14.8. If all of the wells covered by a bond are aff ected by an operator change, the bond may be released by the division in accordance with subsection 15. 15. Bond release procedures are as follows: 15.1. Requests for release of a bond held by the division may be submitted by the operator at any time after a subsequent notice of p lugging of a well has been submitted to the division or the division has issue d a notice of approval of termination of liability for all wells covered by a n existing bond. 15.1.1. Within 30 days after a request for bond rel ease has been filed with the division, the operator shall submit signed affidavi ts from the surface landowner of any previously plugged well site certifying that re storation has been performed as required by the mineral lease and surface agreement s. 15.1.2. If such affidavits are not submitted, the d ivision shall conduct an inspection of the well site in preparation for bond release as explained in subsection 15.2. 15.1.3. Within 30 days after a request for bond rel ease has been filed with the division, the division shall publish notice of the request in a daily newspaper of general circulation in the city and county of Salt Lake and in a newspaper of general circulation in the county in which the proposed wel l is located. 

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...15.1.4. If a written objection to the request for b ond release is not received by the

division within 15 days after publication of the no tice of request, the division may release liability under the bond as an administrative action. 15.1.5. If a written objection to the request for b ond release is received by the division within 15 days after publication of the no tice of request, the request shall be set for hearing and notice thereof given in accorda nce with the procedural rules of the Board. 15.2. If affidavits supporting the bond release app lication are not received by the division in accordance with subsection 15.1.1., the division shall within 30 days or as soon thereafter as weather conditions permit, condu ct an inspection and evaluation of the well site to determine if restoration has be en adequately performed. 15.2.1. The operator shall be given notice by the d ivision of the date and time of the inspection, and if the operator is unable to at tend the inspection at the scheduled date and time, the division may reschedule the insp ection to allow the operator to participate. 15.2.2. The surface landowner, agent or lessee shal l be given notice by the operator of such inspection and may participate in the inspection; however, if the surface landowner is unable to attend the inspectio n, the division shall not be required to reschedule the inspection in order to a llow the surface landowner to participate. 15.2.3. The evaluation shall consider the adequacy of well site restoration, the degree of difficulty to complete any remaining rest oration, whether pollution of surface and subsurface water is occurring, the prob ability of future occurrence of such pollution, and the estimated cost of abating s uch pollution. 15.2.4. Upon request of any person with an interestin bond release, the division may arrange with the operator to allow access to th e well site or sites for the purpose of gathering information relevant to the bond relea se. 15.2.5. The division shall retain a record of the i nspection and the evaluation, and if necessary and upon written request by an interes ted party, the division shall provide a copy of the results. 15.3. Within 60 days from the filing of the bond re lease request, if a public hearing is not held pursuant to subsection 15.1.5., or within 30 days after such public hearing has been held, the division shall provide written notification of the decision to release or not release the bond to the following parties: 15.3.1. The operator. 15.3.2. The surety or other guarantor of the bond. 15.3.3. Other persons with an interest in bond coll ateral who have requested notification under R649- 3-1.13. 15.3.4. The persons who filed objections to the not ice of application for bond release. 15.4. If the decision is made to release the bond, the notification specified in subsection 15.3. shall also state the effective dat e of the bond release. 15.5. If the division disapproves the application f or release of the bond or portion thereof, the notification specified in subsection 1 5.3. shall also state the reasons for disapproval, recommending corrective actions necess ary to secure the release, and allowing an opportunity for a public hearing. 15.6. The division shall notify the municipality in which the well is located by 

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...certified mail at least 30 days prior to the releas e of the bond.

16. The following guidelines will govern the Forfei ture of Bonds.
16.1. The division shall take action to forfeit the bond if any of the following
occur: 16.1.1. The operator refuses or is unable to conduct plugging and site restoration. 16.1.2. Noncompliance as to the conditions of a per mit issued by the division. 16.1.3. The operator defaults on the conditions und er which the bond was accepted.
16.2. In the event forfeiture of the bond is necess ary, the matter will be considered by the Board. 16.3. For matters of bond forfeiture, the division shall send written notification to the parties identified in subsection 15.3., in addi tion to the notice requirements of the Board procedural rules. 16.4. After proper notice and hearing, the Board ma y order the division to do any of the following: 16.4.1. Proceed to collect the forfeited amount as provided by applicable laws for the collection of defaulted bonds or other debts. 16.4.2. Use funds collected from bond forfeiture to complete the plugging and restoration of the well or wells to which bond cove rage applies. 16.4.3. Enter into a written agreement with the ope rator or another party to perform plugging and restoration operations in acco rdance with a compliance schedule established by the division as long as such party has the ability to perform the necessary work. 16.4.4. Allow a surety to complete the plugging andrestoration, if the surety can demonstrate an ability to complete the plugging and restoration. 16.4.5. Any other action the Board deems reasonable and appropriate. 16.5. In the event the amount forfeited is insufficient to pay for the full cost of the plugging and restoration, the division may complete or authorize completion of plugging and restoration and may recover from the o perator all costs of plugging and restoration in excess of the amount forfeited. 16.6. In the event the amount of bond forfeited was more than the amount necessary to complete plugging and restoration, the unused funds shall be returned by the division to the party from whom they were co llected. 16.7. In the event the bond is forfeited and there exists any unplugged well or wells previously covered under the forfeited bond, then the operator must establish new bond coverage in accordance with these rules. 16.8. If the operator requires new bond coverage un der the provisions of subsection 16.7., then the division will notify the operator and specify a reasonable period, not to exceed 90 days, to establish new bon d coverage. 

### R649
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- 2. Location And Siting of Vertical Wells and Statew ide Spacing for Horizontal Wells. 1. In the absence of special orders of the board es tablishing drilling units or authorizing different well density or location patt erns for particular pools or parts thereof, each oil and gas well shall be located in the center of a 40 acre quarter

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...quarter section, or a substantially equivalent lot or tract or combination of lots or

tracts as shown by the most recent governmental survey, with a tolerance of 200 feet in any direction from the center location, a "windo w" 400 feet square. 1.1.No oil or gas well shall be drilled less than 9 20 feet from any other well drilling to or capable of producing oil or gas from the same pool. 1.2. No oil or gas well shall be completed in a kno wn pool unless it is located more than 920 feet from any other well completed in and capable of producing oil or gas from the same pool.
2. The division shall have the administrative autho rity to determine the pattern location and siting of wells adjacent to an area fo r which drilling units have been established or for which a request for agency actio n to establish drilling units has been filed with the board and adjacent to a unitize d area, where there is sufficient evidence to indicate that the particular pool underlying the drilling unit or unitized area may extend beyond the boundary of the drilling unit or unitized area and the uniformity of location patterns is necessary to ens ure orderly development of the pool. 3. In the absence of special orders of the Board, n o portion of the horizontal interval within the potentially productive formatio n shall be closer than six hundredsixty (660) feet to a drilling or spacing unit boun dary, federally unitized area boundary, uncommitted tract within a unit, or bound ary line of a lease not committed to the drilling of such horizontal well. 4. The surface location for a horizontal well may b e anywhere on the lease. 5. Any horizontal interval shall not be closer than one thousand three hundred and twenty (1,320) feet to any vertical well comple ted in and producing from the same formation. Vertical wells drilled to and compl eted in the same formation as in a horizontal well are subject to applicable drilling unit orders of the board or the other conditions of this rule that do not specifically pe rtain to horizontal wells and may be drilled and produced as provided therein. 6. A temporary six hundred and forty (640) acre spa cing unit, consisting of the governmental section in which the horizontal well i s located, is established for the orderly development of the anticipated pool. 7. In addition to any other notice required by the statute or these rules, notice of the Application for Permit to Drill for a horizontal well shall be given by certified mail to all owners within the boundaries of the des ignated temporary spacing unit. 8. Horizontal wells to be located within federally supervised units are exempt from the above referenced conditions of 5, 6 and 7. 9. Exceptions to any of the above referenced condit ions of 3 through 7 may be approved upon proper application pursuant to R649-3 -3, Exception to Location and Siting of Wells, or R649-10, Administrative Procedu res. 10. Additional horizontal wells may be approved by order of the Board after hearing brought upon by a Request for Agency Action (Petition) filed in accordance with the Board's Procedural Rules. 

### R649
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- 3. Exception to Location and Siting of Wells.
1. The division shall have the administrative autho rity to grant an exception to the locating and siting requirements of R649-3-2 or an order of the board establishing oil or gas well drilling units after receipt from t he operator of the proposed well of the following items: 1.1. Proper written application for the exception w ell location. 

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...1.2. Written consent from all owners within a 460 f oot radius of the proposed well location when such exception is to the requirements of R649-3-2, or; 1.3. Written consent from all owners of directly ordiagonally offsetting drilling units when such exception is to an order of the boa rd establishing oil or gas well drilling units. 2. If for any reason the division shall fail or ref use to approve such an exception, the board may, after notice and hearing, grant an e xception. 3. The application for an exception to R649-3-2 or board drilling unit order shall state fully the reasons why such an exception is ne cessary or desirable and shall be accompanied by a plat showing: 3.1. The location at which an oil or gas well couldbe drilled in compliance with R649-3-2 or Board drilling unit order. 3.2. The location at which the applicant requests p ermission to drill. 3.3. The location at which oil or gas wells have be en drilled or could be drilled, in accordance with R649-3-2 or board drilling unit ord er, directly or diagonally offsetting the proposed exception. 3.4. The names of owners of all lands within a 460 foot radius of the proposed well location when such exception is to the require ments of R649-3-2, or 3.5. The names of owners of all directly or diagonally offsetting drilling units when such exception is to an order of the board est ablishing oil or gas drilling units. 4. No exception shall prevent any owner from drilli ng an oil or gas well on adjacent lands, directly or diagonally offsetting the exception, at locations permitted by R649-3-2, or any applicable order of the board e stablishing oil or gas well drilling units for the pool involved. 5. Whenever an exception is granted, the board or the division may take such action as will offset any advantage that the person securing the exception may obtain over other producers by reason of the exception loc ation. 

### R649
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- 4. Permitting of Wells to be Drilled, Deepened or Plugged
Back. 1. Prior to the commencement of drilling, deepeningor plugging back of any well, exploratory drilling such as core holes and stratig raphic test holes, or any surface disturbance associated with such activity, the oper ator shall submit Form 3, Application for Permit to Drill, Deepen, or Plug Ba ck and obtain approval. Approval shall be given by the division if it appears that t he contemplated location and operations are not in violation of any rule or orde r of the board for drilling a well. 2. The following information shall be included as p art of the complete Application for Permit to Drill, Deepen, or Plug Back. 2.1. The telephone number of the person to contact if additional information is needed. 2.2. Proper identification of the lease as state, f ederal, Indian, or fee. 2.3. Proper identification of the unit, if the well is located within a unit. 2.4. A plat or map, preferably on a scale of one in ch equals 1,000 feet, prepared by a licensed surveyor or engineer, that shows the proposed well location. For directional wells, both surface and bottomhole loca tions should be marked. 2.5. A copy of the Division of Water Rights approval or the identifying number of 

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...the approval for use of water at the drilling site.

2.6. A drilling program containing the following in formation shall also be submitted as part of a complete APD. 2.6.1. The estimated tops of important geologic markers. 2.6.2. The estimated depths at which the top and th e bottom of anticipated water, oil, gas, or other mineral-bearing formations are e xpected to be encountered, and the owner's or operator's plans for protecting such res ources. 2.6.3. The owner's or operator's minimum specificat ions for pressure control equipment to be used and a schematic diagram thereo f showing sizes, pressure ratings or API series, proposed testing procedures and testing frequency. 2.6.4. Any supplementary information more completely describing the drilling equipment and casing program as required by Form 3, Application for Permit to Drill, Deepen, or Plug Back. 2.6.5. The type and characteristics of the proposedcirculating medium or mediums to be employed in drilling, the quantities and types of mud and weighting material to be maintained, and the monitoring equip ment to be used on the mud system. 2.6.6. The anticipated type and amount of testing, logging, and coring. 2.6.7. The expected bottomhole pressure and any ant icipated abnormal pressures or temperatures or potential hazards, such as hydro gen sulfide, H 2 S rules are found in R649-3-12 expected to be encountered, along with contingency plans for mitigating such identified hazards. 2.6.8. Any other facets of the proposed operation t hat the lessee or operator desires to point out for the division's considerati on of the application. 2.6.9. If an Application for Permit to Drill, Deepe n, or Plug Back is for a proposed horizontal well, a horizontal well diagram clearly showing the well bore path from the surface through the terminus of the lateral shall be submitted. 2.7. Form 5, Designation of Agent or Operator shallbe filed when the operator is a person other than the owner. 2.8. If located on State or Fee surface, an APD wil l not be approved until an Onsite Predrill Evaluation is performed as outlinedin R649-3-18. 3. Two legible copies, carbon or otherwise, of the APD filed with the appropriate federal agency may be used in lieu of the forms pre scribed by the board. 4. Approval of the APD shall be valid for a period of 12 months from the date of such approval. Upon approval of an APD, a well willbe assigned an API number by the division. The API number should be used to iden tify the permitted well in all future correspondence with the division. 5. If a change of location or drilling program is d esired, an amended APD shall be filed with the division and its approval obtained. If the new location is at an authorized location in the approved drilling unit, or the change in drilling program complies with the rules for that area, the change m ay be approved verbally or by telegraph. Within five days after obtaining verbal or telegraphic authorization, the operator shall file a written change application wi th the division. 6. After a well has been completed or plugged and abandoned, it shall not be reentered without the operator first submitting a n ew APD and obtaining the division's approval. Approval shall be given if it appears that a bond has been 

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...furnished or waived, as required by R649-3-1, Bondi ng, and the contemplated

work is not in violation of any rule or order of th e board. 7. An operator or owner who applies for an APD in a n area not subject to a special order of the board establishing drilling units, may contemporaneously or subsequently file a Request for Agency Action to es tablish drilling units for an area not to exceed the area reasonably projected by the operator or owner to be underlaid by the targeted reservoir. 8. An APD for a well within the area covered by a p roper Request for Agency Action that has been filed by an interested person, or the division or the board on its own motion, for the establishment of drilling units or the revision of existing drilling units for the spacing of wells shall be held in abeyance by the division until such time as the matter has been noticed, fully heard and det ermined. 9. An exception to R649-3-4-8 shall be made and a p ermit shall be issued by the division if an owner or operator files a sworn stat ement demonstrating to the division's satisfaction that on and after the date the Request for Agency Action requesting the establishment of drilling units was filed, or the action of the division or board was taken; and 9.1. The owner or operator has the right or obligat ion under the terms of an existing contract to drill the requested well; or 9.2. The owner or operator has a leasehold estate o r right to acquire a leasehold estate under a contract that will be terminated unl ess he is permitted to commence the drilling of the required well before the mattercan be fully heard and determined by the board. 

### R649
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- 5. Identification. 1. Every drilling and producible well shall be iden tified by a sign posted on the derrick or in a conspicuous place near the well. 2. The sign shall be of durable construction. The l ettering on the sign shall be kept in a legible condition and shall be large enough to be legible under normal conditions at a distance of 25 feet. 3. The wells on each lease or property shall be num bered in nonrepetitive, logical, and distinctive sequence. Each sign shall show the number or name of the well, the name of the owner or operator, the lease name, and the location of the well by quarter section, township, and range. 

### R649
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- 6. Drilling Operations. 1. Drilling operations shall be conducted accordingto the drilling program submitted on the original APD and as approved by th e division. Any change of plans to the original drilling program shall be submittedto the division by using Form 9, Sundry Notices and Reports on Wells and shall receive division approval prior to implementation. A change of plans necessary because of emergency conditions may be implemented without division approval. The operator shall provide the division with verbal notice of the emergency change within 2 4 hours and written notice within five days. 2. An operator of a drilling well as designated in R649-2-4 shall comply with reporting requirements as follows: 2.1. The spudding in of a well shall be reported to the division within 24 hours. The report should include the well name and number, drilling contractor, rig number and type, spud date and time, the date that continu ous drilling will commence, the name of the person reporting the spud, and a contact telephone number. 

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...2.2. The operator shall file Form 6, Entity Action Form with the division within

five working days of spudding in a well. The divisi on will assign the well an entity number that will identify the well on the operator' s monthly oil and gas production and disposition reports. 2.3. The operator shall notify the division 24 hour s in advance of all testing to be performed on the blowout preventer equipment on a w ell. 2.4. The operator shall submit a monthly status rep ort for each drilling well on Form 9, Sundry Notices and Reports on Wells. The re port should include the well depth and a description of the operations conductedon the well during the month. The report shall be submitted no later than the fif th day of the following calendar month until such time as the well is completed and the well completion report is filed. 2.5. The operator shall notify the division 24 hour s in advance of all casing tests performed in accordance with R649-3-13. 2.6. The operator shall report to the division all fresh water sand encountered during drilling on Form 7, Report of Water Encounte red During Drilling, The report shall be filed with Form 8, Well Completion or Reco mpletion Report and Log. 

### R649
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- 7. Well Control. 1. When drilling in wildcat territory, the owner oroperator shall take all reasonably necessary precautions for keeping the we ll under control at all times and shall provide, at the time the well is started, pro per high pressure fittings and equipment. All pressure control equipment shall be maintained in good working condition at all times. 2. In all proved areas, the use of blowout preventi on equipment "BOPE" shall be in accordance with the established and approved pra ctice in the area. All pressure control equipment shall be maintained in good worki ng condition at all times. 3. Upon installation, all ram type BOPE and relatedequipment, including casing, shall be tested to the lesser of the full manufactu rer's working pressure rating of the equipment, 70% of the minimum internal yield pressu re of any casing subject to test, or one psi/ft of the last casing string depth. Annu lar type BOPE are to be tested in conformance with the manufacturer's published recom mendations. The operator shall maintain records of such testing until the we ll is completed and will submit copies of such tests to the division if required. 4. In addition to the initial pressure tests, ram a nd annular type preventers shall be checked for physical operation each trip. All BO PE components, with the exception of an annular type blowout preventer, sha ll be tested monthly to the lesser of 50% of the manufacturer's rated pressure of the BOPE, the maximum anticipated pressure to be contained at the surface, one psi/ftof the last casing string depth, or 70% of the minimum internal yield pressure of any c asing subject to test. 5. If a pressure seal in the assembly is disassembl ed, a test of that seal shall be conducted prior to the resumption of any drilling o peration. A shell test of the affected seal shall be adequate. If the affected se al is integral with the BOP stack, either pipe or blind ram, necessitating a test plug to be set in order to test the seal, the division may grant approval to proceed without testing the seal if necessary for prudent operations.
6. All tests of BOPE shall be noted on the driller' s log, IADC report book, or equivalent and shall be available for examination b y the director or an authorized agent during routine inspections. 7. BOPE used in possible or probable hydrogen sulfi de or sour gas formations 

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...shall be suitable for use in such areas.



### R649
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- 8. Casing Program. 1. The method of cementing casing in the hole shall be by pump and plug method, displacement method, or other method approved by th e division. 2. When drilling in wildcat territory or in any fie ld where high pressures are probable, the conductor and surface strings of casi ng must be cemented throughout their lengths, unless another procedure is authoriz ed or prescribed by the division, and all subsequent strings of casing must be secure ly anchored. 3. In areas where the pressures and formations to b e encountered during drilling are known, sufficient surface casing shall be run t o: 3.1. Reach a depth below all known or reasonably es timated, utilizable, domestic, fresh water levels. 3.2. Prevent blowouts or uncontrolled flows. 4. The casing program adopted must be planned to pr otect any potential oil or gas horizons penetrated during drilling from infiltrati on of waters from other sources and to prevent the migration of oil, gas, or water from one horizon to another. 

### R649
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- 9. Protection of Upper Productive Strata. 1. No well shall be deepened for the purpose of pro ducing oil or gas from a lower stratum until all upper productive strata are prote cted, either permanently by casing and cementing or temporarily through the use of tub ing and packer, to the satisfaction of the division. 2. In any well that appears to have defective, poorly cemented, or corroded casing that will permit or may create underground waste ormay contaminate underground or surface fresh water, the operator shall proceed with diligence to use the appropriate method and means to eliminate such haza rd of underground waste or contamination of fresh water. If such hazard cannotbe eliminated, the well shall be properly plugged and abandoned. 3. Natural gas that is encountered in substantial quantities in any section of a drilled hole above the ultimate objective shall be shut off with reasonable diligence, either by mudding, casing or other approved method, and shall be confined to its original source to the satisfaction of the division

. 

### R649
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- 10. Tolerances for Vertical Drilling.
1. Deviation from the vertical for short distances is permitted in the drilling of a well without special approval to straighten the hol e, sidetrack junk, or correct other mechanical difficulties. 2. All wells shall be drilled such that the surface location of the well and all points along the intended well bore shall be within the to lerances allowed by R649-3-2, Location and Siting of Vertical Wells and Statewide Spacing for Horizontal Wells, or the appropriate board order. 

### R649
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- 11. Directional Drilling. 1. Except for the tolerances allowed under R649-3-1 0, no well may be intentionally deviated unless the operator shall fi rst file application and obtain approval from the division. 1.1. An application for directional drilling may be approved by the division without notice and hearing when the applicant is th e owner of all the oil and gas 

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...within a radius of 460 feet from all points along the intended well bore, or the

applicant has obtained the written consent of the o wner to the proposed directional drilling program. 1.2. An application for directional drilling may be included as part of the initial APD for a proposed well. 2. An application for directional drilling shall in clude the following information: 2.1. The name and address of the operator. 2.2. The lease name, well number, field name, reservoir name, and county where the proposed well is located. 2.3. A plat or sketch showing the distance from the surface location to section and lease lines, the target location within the intende d producing interval, and any point along the intended well bore outside the 460 foot r adius for which the consent of the owner has been obtained. 2.4. The reason for the intentional deviation. 2.5. The signature of designated agent or represent ative of operator. 3. Within 30 days following completion of a directi onally drilled well, a complete angular deviation and directional survey of the wel l obtained by an approved well survey company shall be filed with the division, to gether with other regularly required reports. 

### R649
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- 12. Drilling Practices for Hydrogen Sulfide H 2 

### S Areas and Formations. 1. This rule shall apply to drilling, redrilling, d eepening, or plugging back operations in areas where the formations to be pene trated are known to contain or are expected to contain H 2 S in excess of 20 ppm and to areas where the presen ce or absence thereof is unknown. 2. A written contingency plan, providing details of actions to be taken to alert and protect operating personnel and members of the publ ic in the event of an accidental release of H 2 S gas shall be submitted to the division as part of the initial APD for a well or as a sundry notice. 3. All proposed drill site locations shall be plann ed to obtain the maximum safety benefits consistent with the rig configuration, ter rain, prevailing winds, etc. 3.1. The drilling rig shall, where possible, be sit uated so that prevailing winds blow across the rig in a direction toward the reserve pit and away from escape routes. 3.2. On-site trailers shall be located to allow rea sonably safe distances from both the well and the outlet of the flare line. 4. At least two cleared areas shall be designated a s crew briefing or safety areas. 4.1. Both areas shall be located at least 200 feet from the well, with at least one area located generally upwind from the well. 5. Protective equipment shall be provided by the op erator or its drilling contractor for operating personnel and shall includ e the following: 5.1. An adequate number of positive pressure type s elf-contained breathing apparatus to allow all personnel normally involved on a drilling location immediate access to such equipment, with a minimum of one working apparatus available for the immediate use of each rig hand in emergencies. 

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...5.2. Chalk boards or note pads to be used for commu nication when wearing

protective breathing apparatus. 5.3. First aid supplies. 5.4. One resuscitator complete with medical oxygen. 5.5. A litter or stretcher. 5.6. Harnesses and lifelines. 5.7. A telephone, radio, mobile phone, or other com munication device that provides emergency two-way communication from a saf e area near the well location.
6. Each drill site shall have an H 2 S detection and monitoring system that activates audible and visible alarms when the conce ntration of H 2 S reaches the threshold limit of 20 ppm in air. This equipment sh all have a rapid response time and be capable of sensing a minimum of ten ppm H 2 S in air, with at least three sensing points, located at the shale shaker, on the derrick floor, and in the cellar. Other sensing points shall be located at other crit ical areas where H 2 S might accumulate. Portable H 2 S detection equipment capable of sensing an H 2 S concentration of 20 ppm shall be available for all working personnel and shall be equipped with an audible warning signal. 7. Equipment to indicate wind direction at all time s shall be installed at prominent locations. At least two wind socks or str eamers shall be located at separate elevations at the well location and shall be easily visible from all areas of the location. Windsocks or streamers shall be located i n illuminated areas for night operations. 8. When H 2 S is encountered during drilling, well marked, high ly visible warning signs shall be displayed at the rig and along all a ccess routes to the well location. 8.1. The signs shall warn of the presence of H 2 S and shall prohibit approach to the well location when red flags are displayed. 8.2. Red flags shall be displayed when H 2 S is present in concentrations greater than 20 ppm in air as measured on the equipment required under R649-3-12-6. 9. Unless adequate natural ventilation is present, portable fans or ventilation equipment shall be located in work areas to dispers e H 2 S when it is encountered. 10. A flare system shall be utilized to safely gath er and burn H 2 S bearing gas.
10.1. Flare lines shall be located as far from the operating site as feasible and shall be located in a manner to compensate for wind chang es. 10.2. The outlets of all flare lines shall be locat ed at least 150 feet from the well head unless otherwise approved by the division. 11. Sufficient quantities of additives shall be mai ntained on location to add to the mud system to scavenge or neutralize H 2 S.


### R649
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- 13. Casing Tests. 1. In order to determine the integrity of the casin g string set in the well, the operator shall, unless otherwise requested by the d ivision, perform a pressure test of the casing to the pressures specified under R649-3- 7.4 before drilling out of any casing string, suspending drilling operations, or c ompleting the well. 

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...

### R649
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- 14. Fire Hazards on the Surface.

1. All rubbish or debris that might constitute a fi re hazard shall be removed to a distance of a least 100 feet from the well location , tanks, separator, or any structure. All waste oil or gas shall be burned or disposed of in a manner to avert creation of a fire hazard. 2. Any gas other than poisonous gas escaping from the well during drilling operations shall be, so far as practicable, conduct ed to a safe distance from the well site and burned in a suitable flare. 

### R649
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- 15. Pollution and Surface Damage Control. 1. The operator shall take all reasonable precautio ns to avoid polluting lands, streams, reservoirs, natural drainage ways, and und erground water. 1.1. The owner or operator shall carry on all opera tions and maintain the property at all times in a safe and workmanlike manner havin g due regard for the preservation and conservation of the property and for the health and safety of employees and people residing in close proximity to those operati ons. 1.2. At a minimum, the owner or operator shall: 1.2.1. Take reasonable steps to prevent and shall r emove accumulations of oil or other materials deemed to be fire hazards from the vicinity of well locations, lease tanks and pits. 1.2.2. Remove from the property or store in an orde rly manner, all scrap or other materials not in use. 1.2.3. Provide secure workmanlike storage for chemi cal containers, barrels, solvents, hydraulic fluid, and other non-exempt mat erials. 1.2.4. Maintain tanks in a workmanlike manner that will preclude leakage and provide for all applicable safety measures, and con struct berms of sufficient height and width to contain the quantity of the largest ta nk at the storage facility. 1.2.4.1. The use of crude or produced water storage tanks without tops is strictly prohibited except during well testing operations. 1.2.5. Catch leaks and drips, contain spills, and cleanup promptly. 1.2.6. Waste reduction and recycling should be practiced in order to help reduce disposal volumes. 1.2.7. Produced water, tank bottoms and other misce llaneous waste should be disposed of in a manner that is in compliance with these rules and other state, federal, or local regulations or ordinances. 1.2.8. In general, good housekeeping practices shou ld be used. 

### R649
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- 16. Reserve Pits and Other On

- site Pits. 1. Small onsite oil field pits including, but not l imited to, reserve pits, emergency pits, workover and completion pits, storage pits, p ipeline drip pits, and sumps shall be located and constructed in such a manner as to c ontain fluids and not cause pollution of waters and soils. They shall be locate d and constructed according to the Division guidelines for onsite pits. See Ranking Cr iteria for Reserve and Onsite Pit Liner Requirements, on the Oil, Gas and Mining web page. 2. Reserve pit location and construction requiremen ts including liner requirements will be discussed at the predrill site evaluation. Special stipulations concerning the reserve pit will be included as part of the Division's approval to drill. 

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...3. Following drilling and completion of the well th e reserve pit shall be closed

within one year, unless permission is granted by th e Division for a longer period. 4. Pit contents shall meet the Division's Cleanup L evels (guidance document for numeric clean-up levels) or background levels priorto burial. 5. The contents may require treatment to reduce mob ility and/or toxicity in order to meet cleanup levels. 6. The alternative to meeting cleanup levels would be transporting of material to an appropriate disposal facility. 

### R649
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- 17. Inspection. 1. Inspection of wells shall be performed by the division to determine operator compliance with the rules and orders of the board. 2. The inspection shall not interfere with the mech anical operation of facilities or equipment used in drilling and production operation s. 3. Inspections of operations involving a safety haz ard shall not be conducted, nor shall an inspection be conducted that may cause a s afety hazard. 

### R649
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- 18. On

- site Predrill Evaluation. 1. An on-site predrill evaluation of drilling opera tions located on state or private land shall be scheduled and conducted by the divisi on prior to approval of an APD and no later than 30 days after receipt by the divi sion of a complete APD. 1.1. An on-site predrill evaluation may be performe d by the division prior to submittal of a complete APD at the written request of the operator. 1.2. The division, the operator, and other persons associated with the surface management or construction of the well site shall a ttend the predrill evaluation. 1.3. When appropriate, the operator's surveyor and archaeologist may also participate in the predrill evaluation. 1.4. When the surface of the land involved is priva tely owned, the operator shall include in the APD the name, address, and telephone number of the private surface owner as shown on the real property records of the county where the well is located. 1.5. The surface owner shall be invited by the divi sion to attend the predrill evaluation. 1.6. The surface owner's inability to attend the pr edrill evaluation shall not delay the scheduled evaluation. 2. Special stipulations concerning surface use or j ustifications for well spacing exceptions may be addressed and developed at the pr edrill evaluations. 2.1. Special stipulations shall be incorporated as conditions of the approved APD, together with any additional conditions determined by the division to be necessary following a review of the complete application. 

### R649
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- 19. Well Testing. 1. Each operator shall conduct a stabilized product ion test of at least 24 hours duration not later than 15 days following the compl etion or recompletion of any well for the production of oil or gas. 1.1. The results of the test shall be reported in writing to the division within 15 days after completion of the test. 

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...1.2. Additional tests shall be made as requested by the division. 2. The division may request subsurface pressure mea surements on a sufficient number of wells in any pool to provide adequate dat a to determine reservoir characteristics. 3. Upon written request, the division may waive or extend the time for conducting any test. 4. A gas-oil ratio "GOR" test shall be conducted no t later than 15 days following the completion or recompletion of each well in a po ol that contains both oil and gas. 4.1. The average daily oil production, the average daily gas production and the average GOR shall be recorded. 4.2. The results of the GOR test shall be reported in writing to the division within 15 days after completion of the test. 4.3. A GOR test of at least 24 hours duration shall satisfy the requirements of R649-3-19-1. 5. When the results of a multipoint test or other a pproved test for the determination of gas well potential have not been s ubmitted to the division within 30 days after completion or recompletion of any producible gas well, the division may order this test to be made. 5.1. All data pertinent to the test shall be submit ted to the division in legible, written form within 15 days after completion of the test. 5.2. The performance of a multipoint or other appro ved test shall satisfy the requirements of R649-3- 19-1. 6. All tests of any producible gas well will be tak en in accordance with the Manual of Back-Pressure Testing of Gas Wells published by the Interstate Oil and Gas Compact Commission, with necessary modifications as approved by the division. 

### R649
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- 20. Gas Flaring or Venting. 1. Produced gas from an oil well, also known as ass ociated gas or casinghead gas, may be flared or vented only in the following amoun ts: 1.1. Up to 1,800 MCF of oil well gas may be vented or flared from an individual well on a monthly basis at any time without approva l. 1.2. During the period of time allowed for conducti ng the stabilized production test or other approved test as required by R649-3-1 9, the operator may vent or flare all produced oil well gas as needed for conducting the test. 1.2.1. The operator shall not vent or flare gas that is not necessary for conducting the test or beyond the time allowed for conducting the test. 1.3. During the first calendar month immediately fo llowing the time allowed for conducting the initial stabilized production test a s required by R649-3-19.1, the operator may vent or flare up to 3,000 MCF of oil w ell gas without approval. 1.4. Unavoidable or short-term oil well gas ventingor flaring may occur without approval in accordance with R649-3-20.4, 4.1, 4.2, and 4.3. 2. Produced gas from a gas well may be vented or fl ared only in the following amounts: 2.1. During the period of time allowed for conducti ng the stabilized production test, the multipoint test, or other approved test a s required by R649-3-19, the 

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...operator may vent or flare all produced gas well ga s as needed for conducting the

test. 2.2. The operator shall not vent or flare gas which is not necessary for conducting the tests or beyond the time allowed for conducting the tests. 2.3. Unavoidable or short-term gas well gas ventingor flaring may occur without approval in accordance with R649-3-20.4, 4.1, 4.2, and 4.3. 3. If an operator desires to produce a well for the purpose of testing and evaluation beyond the time allowed by R649-3-19 andvent or flare gas in excess of the aforementioned limits of gas venting or flaring , the operator shall make written request for administrative action by the division t o allow gas venting or flaring during such testing and evaluation. 3.1. The operator shall provide any information pertinent to a determination of whether marketing or otherwise conserving the produ ced gas is economically feasible. 3.2. Upon such request and based on the justificati on information presented, the division may authorize gas venting or flaring at un restricted rates for up to 30 days of testing or no more than 50 MMCF of gas vented or fl ared, whichever is less. 4. Once a well is completed for production and gas is being transported or marketed, the operator is allowed unavoidable or sh ort-term gas venting or flaring without approval only in the following cases: 4.1. Gas may be vented or released from oil storage tanks or other low pressure oil production vessels unless the division determines that the recovery of such vapors is warranted. 4.2. Gas may be vented or flared from a well during periods of line failures, equipment malfunctions, blowouts, fires, or other e mergencies if shutting in or restricting production from the well would cause wa ste or create adverse impact on the well or producing reservoir. 4.3. The operator shall provide immediate notificat ion to the division in all such cases in accordance with R649-3-32, Reporting of Un desirable Events. 4.4. Upon notification, the division shall determin e if gas venting or flaring is justified and specify conditions of approval if nec essary. 4.5. Gas may be vented or flared from a well duringperiods of well purging or evaluation tests not exceeding a period of 24 hours or a maximum of 144 hours per month. 4.6. The operator shall provide subsequent written notification to the division in all such cases. 5. If an operator wishes to flare or vent a greateramount of produced gas than allowed by this rule, the operator must submit a Re quest for Agency Action to the board to be considered as a formal board docket ite m. The request should include the following items: 5.1. A statement justifying the need to vent or fla re more than the allowable amount. 5.2. A description of production test results. 5.3. A chemical analysis of the produced gas. 5.4. The estimated oil and gas reserves. 

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...5.5. A description of the reinjection potential or other conservation oriented

alternative for disposition of the produced gas. 5.6. A description of the amount of gas used in lea se operations. 5.7. An economic evaluation supporting the operator 's determination that conservation of the gas is not economically viable. The evaluation should utilize any engineering or geologic data available and should c onsider total well production, not just gas production, in presenting the profitability and costs for beneficial use of the gas. 5.8. Any other information pertinent to a determination of whether marketing or otherwise conserving the produced gas is economical ly feasible. 6. Upon review of the request for approval to vent or flare gas from a well, the board may elect to: 6.1. Allow the requested venting or flaring of gas. 6.2. Restrict production until the gas is marketed or otherwise beneficially utilized. 6.3. Take any other action the board deems appropri ate in the circumstances. 7. When gas venting or flaring from a well has not been approved by the division or the magnitude and duration of venting or flaring exceeds the amounts specified in these rules or any division or board approval, then the board may issue a formal order to alleviate the noncompliance and/or require the operator to appear before the board to provide justification of such venting or flaring. The division shall notify the appropriate governmental taxing and royalty age ncies of any unapproved venting or flaring and of any subsequent board action. 8. No extraction plant processing gas in Utah shall flare or vent such gas unless such venting or flaring is made necessary by mechan ical difficulty of a very limited temporary nature or unless the gas vented or flared is of no commercial value. 9. In the event of a more prolonged mechanical diff iculty or in the event of plant shut-downs or curtailment because of scheduled or n onscheduled maintenance or testing operations or other reasons, or in the even t a plant is unable to accept, process, and market all of the casinghead gas produ ced by wells connected to its system, the plant operator shall notify the divisio n as soon as possible of the full details of such shut-down or curtailment, following which the division shall take such action as is necessary. 

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- 21. Well Completion and Filing of Well Logs. 1. For the purposes of this rule only, a well shall be determined to be completed when the well has been adequately worked to be capable of producing oil or gas or when well testing as required by the division is co ncluded. 2. Within 30 days after the completion of any well drilled or redrilled for the production of oil or gas, Form 8, Well Completion o r Recompletion Report and Log, shall be filed with the division, together with a c opy of the electric and radioactivity logs, if run. 3. In addition, one copy of all drillstem test repo rts, formation water analyses, porosity, permeability or fluid saturation determin ations, core analyses and lithologic logs or sample descriptions if compiled, shall be filed with the division. 4. As prescribed under R649-2-12, Test and Surveys, the directional, deviation and/or measurement- while-drilling (MWD) survey fora horizontal well shall be filed within 30 days of being run. Such directional , deviation and/or MWD survey 

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...specifically related to well location or well bore path shall not be held

confidential. Other MWD survey data that presents w ell log, or other geological, geophysical, or engineering information may be heldconfidential as provided in R649-2-11, Confidentiality of Well Log Information. 

### R649
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- 22. Completion Into Two or More Pools. 1. The completion of a single well into more than o ne pool may be permitted by submitting an application to the division and secur ing its approval. 1.1. The application shall be submitted on Form 9, Sundry Notice and Report and shall be accompanied by an exhibit showing the loca tion of all wells on contiguous oil and gas leases or drilling units overlying the pool

. 1.2. The application shall set forth all material f acts involved and the manner and method of completion proposed. 2. If oil or gas is to be produced from two or more pools open to each other through the same string of casing so that commingli ng will take place, the application must also be accompanied by a descripti on of the method used to account for and to allocate production from each po ol so commingled. 3. The application shall include an affidavit showi ng that the operator has provided a copy of the application to the owners of all contiguous oil and gas leases or drilling units overlying the pool. 3.1. If none of these owners file a written objecti on to the application within 15 days after the date the application is filed with t he division, the application may be considered and approved by the division without a h earing. 3.2. If a written objection is filed that cannot be resolved administratively, the application may be approved only after notice and h earing by the board. 

### R649
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- 23. Well Workover and Recompletion. 1. Requests for approval of a notice of intention t o perform a workover or recompletion shall be filed by an operator with the division on Form 9, Sundry Notices and Reports on Wells, or if the operation i ncludes substantial redrilling, deepening, or plugging back of an existing well, on Form 3, Application for Permit to Drill, Deepen or Plug Back. 2. The division shall review the proposed workover or recompletion for conformance with the Oil and Gas Conservation Gener al Rules and advise the operator of its decision and any necessary conditio ns of approval. 3. Recompletions shall be conducted in a manner to protect the original completion interval(s) and any other known producti ve intervals. 4. The same tests and reports are required for any well recompletion as are required following an original well completion. 5. The applicant shall file a subsequent report of workover on Form 9, Sundry Notices and Reports, or a subsequent report of reco mpletion on Form 8, Well Completion or Recompletion Report and Log, within 3 0 days after completing the workover or recompletion operations. 6. For the purpose of qualifying for a tax credit u nder Utah Code Ann. Section 59- 5-102(6), the operator on his behalf and on behalf of each working interest owner must file a request with the division on Form 15, D esignation of Workover or Recompletion. The request must be filed within 90 d ays after completing the workover or recompletion operations. 

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...7. A workover which may qualify under Utah Code Ann . Section 59-5-102(6) shall

be downhole operations conducted to maintain, resto re or increase the producibility or serviceability of a well in the geologic interva l(s) that the well is currently completed in, but shall not include: 7.1. Routine maintenance operations such as pump ch anges, artificial lift equipment or tubing repair, or other operations that do not involve changes to the wellbore configuration or the geologic interval(s) that it penetrates and that do not stimulate production beyond that which would be ant icipated as the result of routine maintenance. 7.2. Operations to convert any well for use as a di sposal well or other use not associated with enhancing the recovery of hydrocarb ons. 7.3. Operations to convert a well to a Class II inj ection well for enhanced recovery purposes may qualify if the secondary or enhanced r ecovery project has received the necessary board approval. 8. A recompletion that may qualify under Utah Code Ann. Section 59-5-102(6) shall be downhole operations conducted to reestabli sh producibility or serviceability of a well in any geologic interval(s). 9. The division shall review the request for design ation of a workover or recompletion and advise the operator and the State Tax Commission of its decision to approve or deny the operations for the purposes of Utah Code Ann. Section 59-5- 102(6). 10. The division is responsible for approval of workover and recompletion operations that qualify for the tax credit. 10.1. If the operator disagrees with the decision o f the division, the decision may be appealed to the board. 10.2. Appeals of all other workover and recompletio n tax credit decisions should be made to the State Tax Commission. 

### R649
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- 24. Plugging and Abandonment of Wells. 1. Before operations are commenced to plug and aban don any well the owner or operator shall submit a notice of intent to plug an d abandon to the division for its approval. 1.1. The notice shall be submitted on Form DOGM-9, Sundry Notice and Report on Wells. 1.2. A legible copy of a similar report and form fi led with the appropriate federal agency may be used in lieu of the forms prescribed by the board. 1.3. In cases of emergency the operator may obtain verbal or telegraphic approval to plug and abandon. 1.4. Within five days after receiving verbal or tel egraphic approval, the operator shall submit a written notice of intent to plug and abandon on Form 9. 2. Both verbal and written notice of intent to plug and abandon a well shall contain the following information: 2.1. The location of the well described by section, township, range, and county. 2.2. The status of the well, whether drilling, prod ucing, injecting or inactive. 2.3. A description of the well bore configuration i ndicating depth, casing strings, cement tops if known, and hole size. 

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...2.4. The tops of known geologic markers or formatio ns.

2.5. The plugging program approved by the appropria te federal agency if the well is located on federal or Indian land. 2.6. An indication of when plugging operations will commence. 3. A dry or abandoned well must be plugged so that oil, gas, water, or other substance will not migrate through the well bore fr om one formation to another. 3.1. Unless a different method and procedure is app roved by the division, the method and procedure for plugging the well shall be as follows: 3.2. The bottom of the hole shall be filled to, or a bridge shall be placed at, the top of each producing formation open to the well bore, and a cement plug not less than 100 feet in length shall be placed immediately abov e each producing formation open to the well bore. 3.3. A solid cement plug shall be placed from 50 fe et below a fresh water zone to 50 feet above the fresh water zone, or a 100 foot c ement plug shall be centered across the base of the fresh water zone and a 100 foot plu g shall be centered across the top of the fresh water zone. 3.4. At least ten sacks of cement shall be placed a t the surface in a manner completely plugging the entire hole. If more than o ne string of casing remains at the surface, all annuli shall be so cemented. 3.5. The interval between plugs shall be filled wit h noncorrosive fluid of adequate density to prevent migration of formation water int o or through the well bore. 3.6. The hole shall be plugged up to the base of th e surface string with noncorrosive fluid of adequate density to prevent m igration of formation water into or through the well bore, at which point a plug of not less than 50 feet of cement shall be placed. 3.7. Any perforated interval shall be plugged with cement and any open hole porosity zone shall be adequately isolated to preve nt migration of fluids. 3.8. A cement plug not less than 100 feet in length shall be centered across the casing stub if any casing is cut and pulled, a seco nd plug of the same length shall be centered across the casing shoe of the next larger casing. 4. An alternative method of plugging, required unde r a federal or Indian lease, will be accepted by the division. 5. Within 30 days after the plugging of any well ha s been accomplished, the owner or operator shall file a subsequent report of plugging with the division. The report shall give a detailed account of the followi ng items: 5.1. The manner in which the plugging work was carr ied out, including the nature and quantities of materials used in plugging and th e location, nature, and extent by depths, of the plugs. 5.2. Records of any tests or measurements made. 5.3. The amount, size, and location, by depths of a ny casing left in the well. 5.4. A statement of the volume of mud fluid used. 5.5. A complete report of the method used and the r esults obtained, if an attempt was made to part any casing. 6. Upon application to and approval by the division , and following assumption of 

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...liability for the well by the surface owner, a well or other exploratory hole that

may safely be used as a fresh water well need not b e filled above the required sealing plugs set below the fresh water formation. The owne r of the surface of the land affected may assume liability for any well capable of conversion to a water well by sending a letter assuming such liability to the division and by filing an application with and obtaining approval for appropriation of un derground water from the Division of Water Rights. 7. Unless otherwise approved by the division, all abandoned wells shall be marked with a permanent monument showing the well n umber, location, and name of the lease. The monument shall consist of a porti on of pipe not less than four inches in diameter and not less than ten feet in le ngth, of which four feet shall be above the ground level and the remainder shall be s ecurely embedded in cement. The top of the pipe must be permanently sealed. 8. If any casing is to be pulled after a well has b een abandoned, a notice of intent to pull casing must be filed with the division and its approval obtained before the work is commenced.
8.1. The notice shall include full details of the c ontemplated work. If a log of the well has not already been filed with the division, the notice shall be accompanied by a copy of the log showing all casing seats as well as all water strata and oil and gas shows. 8.2. Where the well has been abandoned and liability has been terminated with respect to the bond previously furnished under R649 -3-1, a $10,000 plugging bond shall be filed with the division by the applicant. 

### R649
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- 25. Underground Disposal of Drilling Fluids. 1. Operators shall be permitted to inject and dispo se of reserve pit drilling fluids downhole in a well upon submitting an application f or such operations to the division and obtaining its approval. Injection of r eserve pit fluids shall be considered by the division on a case-by-case basis. 2. Each proposed injection procedure will be review ed by the division for conformance to the requirements and standards for p ermitting disposal wells under R649-5-2 to assure protection of fresh-water resour ces. 3. The subsurface disposal interval shall be verifi ed by temperature log, or suitable alternative, during the disposal operation

. 4. The division shall designate other conditions fo r disposal, as necessary, in order to ensure safe, efficient fluid disposal. 

### R649
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- 26. Seismic Exploration. 1. Form 1, Application for Permit to Conduct Seismi c Exploration shall be submitted to the division by the seismic contractorat least seven days prior to commencing any type of seismic exploration operatio ns. In cases of emergency, approval may be obtained either verbally or by tele graphic communication. 1.1. Changes of plans or line locations may be impl emented in an emergency situation without division approval. 1.2. Within five days after the change is performed , the seismic contractor shall submit written notice of the change to the division

. 1.3. The permit may be revoked at any time by the d ivision for failure to comply with the rules and orders of the board. 1.4. Any request to deviate from the general pluggi ng and operations procedures 

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...of these rules shall be included on the permit appl ication.

1.5. The name, address, and telephone number of the seismic contractor's local contact shall be submitted to the division as soon as determined if not available when the permit application is submitted. 1.6. After review of the application for a seismic permit, the division may require written permission of the owner of the surface of the affected land if it is determined that the seismic operation may significantly impact any building, pipeline, water well, flowing spring, or other cultural or natural feature in the area. 1.7. The permit will be in effect for six months fr om the date of approval. The permit may be extended upon application to and appr oval by the division. 2. Bonding shall not be required for seismic explor ation requiring the drilling of shot holes. 3. Seismic contractors shall give the division at l east 24 hours advance notice of the plugging of seismic holes. The notice shall include the date and time the plugging activities are expected to commence, the name and a ddress of the seismic contractor responsible for the holes, and, if different, the n ame and address of the hole plugging company. 4. Unless the seismic contractor can prove to the s atisfaction of the division that another method will provide adequate protection to ground water resources and other man-made or natural features and will provide long-term land stability, the following procedures shall be required for the cond uct of seismic operations and hole plugging: 4.1. Seismic contractors shall take reasonable prec autions to avoid conducting shot hole operations closer than 1,320 feet to any building, pipeline, water well, flowing spring, or other cultural/natural feature, e.g., a historical monument, marker, or structure, that may be adversely affecte d by the seismic operations. 4.2. When nonartesian water is encountered while dr illing seismic shot holes, the holes shall be filled from the bottom up with a hig h grade bentonite/water slurry mixture. 4.3. The slurry shall have a density that is at lea st four percent greater than the density of fresh water and shall have a marsh funne l viscosity of at least 60 seconds per quart. 4.4. The density and viscosity of the slurry are to be measured prior to adding cuttings. Cuttings not added to the slurry are to b e disposed of in accordance with R649-3-26-4.6. 4.5. Upon approval by the division, any other suitable plugging material commonly used in the industry may be substituted fo r the bentonite/water slurry as long as the physical characteristics of the substit ute plugging material are at least comparable to those of the bentonite/water slurry. 4.6. The hole shall be filled with the substitute p lugging material from the bottom up to a depth of three feet below ground level. 4.7. A nonmetallic permaplug shall be set at a depth of three feet. The remaining hole shall be filled and tamped to the surface with cuttings and native soil. 4.8. The permaplug shall be imprinted with an appro ved identification number or mark. 4.9. When drilling with air only, and in completely dry holes, plugging may be accomplished by returning the cuttings to the holes , tamping the returned cuttings to 

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...the depth of three feet below ground level, and set ting the permaplug topped with

more cuttings and soil. A small mound shall be left over the hole for settling allowance. 4.10. If artesian flow, water flowing at the surfac e, is encountered in the drilling of any seismic hole, cement shall be used to seal o ff the water flow to prevent crossflow, erosion, or contamination of fresh water supp lies. 4.11. Unless severe weather conditions prevent acce ss, the holes shall be cemented immediately. 4.12. Approval may be granted to seismic operator t o plug a flowing hole in another manner, if it is proved to this division th at the alternate method will provide adequate protection to ground water resources and p rovide long term land stability. 4.13. The owner of the surface of the land affected may assume liability for a seismic hole capable of conversion to a water well by sending a letter assuming such liability to the division and by filing an applicat ion with and obtaining approval for appropriation of underground water from the Divisio n of Water Rights. 4.14. Shotholes shall be properly plugged and aband oned as soon as practical after the shot has been fired. 4.15. No shothole shall be left unplugged for more than 30 days without approval of the division. 4.16. Until properly plugged, shotholes shall be co vered with a tin hat or other similar cover. 4.17. The hats shall be imprinted with the seismic contractor's name or initials. 4.18. Any slurry, drilling fluids, or cuttings thatare deposited on the surface around the seismic hole shall be raked or otherwise spread out to a height of not more than one inch above the surface, so that the g rowth of the natural grasses or foliage will not be impaired. 4.19. Restoration plans required by the Mined Land Reclamation Act, Chapter 8 of Title 40, or by any other surface management age ncy will be accepted by the division. 4.20. The surface area around each seismic shothole shall be reclaimed and reseeded to its original condition insofar as such restoration is practical and is required by the surface management agency. 4.21. All flagging, stakes, cables, cement, or mud sacks shall be removed from the drill site and disposed of in an acceptable manner. 5. Upon application to the division, approval may b e obtained for preplugging of shotholes using coarse bentonite material or a suit able alternative used in the industry. Preplugging of holes in this manner shallbe performed according to the following procedures: 5.1. A sales receipt indicating proof of purchase o f an adequate amount of coarse bentonite to properly plug all shotholes shall be s ubmitted to the division upon request. 5.2. For shotholes drilled with air that are comple tely dry, the seismic contractor shall have the option of preplugging with the coars e bentonite material or of using an alternate plugging material under R649-3-26-4.3. 5.3. For conventionally drilled, wet holes, enough approved material shall be used to cover the initial water level, i.e., the depth o f the initial water level in the hole prior 

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...to adding coarse bentonite material shall be equal to the final plug depth.

5.4. An additional ten feet of approved material sh all be placed above this depth and hole cuttings shall be used to fill the remaind er of the hole to a depth of three feet below ground level. 5.5. A nonmetallic plug imprinted with an approved identification number or mark shall be installed at this depth. 5.6. The remaining three feet of hole shall be fill ed and tamped to the surface with cuttings and native soil. 5.7. The remaining cuttings shall be raked or sprea d to a height not to exceed one inch above ground level. 5.8. When using heliportable drills and insufficien t cuttings are available, the hole shall be preplugged with bentonite plugging material or an approved alternate material to a depth of three feet below ground leve l. 5.9. Installation of a nonmetallic plug and fillingthe remainder of the hole shall be performed as required by R649-3-26-5.3. 5.10. The coarse bentonite plugging material shall have the following specifications - chemically unaltered sodium benton ite, coarse ground, three quarter inch maximum size, not more than 19% moisture conte nt and not more than 15% inert solids by volume. 6. Form 2, Seismic Exploration Completion Report sh all be submitted to the Division within 60 days after completion of each se ismic exploration project. The report shall include: Certification by the seismic contractor that all shot holes have been plugged as prescribed by the division. 

### R649
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- 27. Multiple Mineral Development. 1. Drilling operations conducted in areas designate d by the board for multiple mineral development shall comply with all rules or orders of the board for drilling, casing, cementing, and plugging except as the gener al rules or orders may be modified by this rule. 2. It is the policy of the division to promote the development of all mineral resources on land under its jurisdiction. Consisten t with that policy, operators engaged in oil and gas operations on lands on which operators are exploring for and developing mineral resources other than oil and gas may enter into a cooperative agreement with these other operators with respect t o multiple mineral development. The agreement shall define: 2.1. The extent and limits of liability when one op erator, either intentionally or unintentionally, interferes with or damages the dep osits of another. 2.2. The coordination of access to and development of the area. 2.3. Mitigation of surface impact including but notlimited to issues pertaining to relocation of natural gas pipeline gathering and di stribution systems and other surface facilities occasioned by placement of a spe nt shale pile; phased or coordinated surface occupancy so as to allow each o perator to enjoy his respective mineral estate with the least disruption of operati ons and damage to the oil and gas deposits, either directly or indirectly, through wa ste; and limitation of oil and gas operations in areas of concentrated surface oil sha le facilities. 2.4. Mitigation of subsurface impact including but not limited to issues pertaining to the interface in the underground environment of oil shale mining operations with other mineral operations. 

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...2.5. The extent of exchange of geological, engineer ing, and production data.

2.6. Other cooperative efforts consistent with mult iple mineral development under the rules and orders of the board pertaining to oil and gas operations, oil shale operations, and mined land reclamation. 3. The division, together with the Division of Fore stry, Fire and State Lands, and School and Institutional Trust Lands Administration shall be signatory to the agreement, where applicable. 4. In the event the operators cannot agree on coope rative development of their respective mineral deposits, or having once enteredinto a cooperative agreement subsequently disagree on the application of the ter ms and provisions thereof, any operator whose oil and gas or mining operation or d eposit may be adversely affected or damaged by the operations of another operator may apply to the board for, or the board may on its own motion enter an order, after n otice and hearing, delineating the respective rights and obligations of all operat ors with respect to development of all minerals concerned. 5. After notice and hearing the board may modify it s order to more effectively carry out the policies of multiple mineral developm ent. 

### R649
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- 28. Designated Potash Areas. 1. In any area designated as a potash area, either by the board, or an appropriate state or federal government agency, all wells shall be drilled, cased, cemented, and plugged in accordance with the rules and orders of the board. The following minimum requirements and definitions shall also app ly to the drilling, logging, casing, and plugging operations within the Salt Section to protect against migration of oil, gas, or water into or within any formation or zone containing potash. As used in this rule, Salt Section shall mean the Paradox S alt Section of Pennsylvanian Age. 2. Any drilling media used through the Salt Section shall be such that sodium chloride is not soluble in the media at normal temp eratures. 3. Gamma ray-neutron, gamma ray-sonic or other appr opriate logs shall be run promptly through the Salt Section. One field copy o f the log through the Salt Section shall be submitted to the division within ten days, or upon the request of the division, whichever is the earlier. 4. A directional survey shall be run from a point at least 20 feet below the Salt Section to the surface. The survey shall be filed with the division prior to completion or plugging and abandonment of the well. 5. In addition to the requirements of the R649-3-8, any casing set into or through the Salt Section shall be cemented solidly through the Salt Section above the casing shoe. 6. Any cement used in setting casing or in plugging that comes in contact with the Salt Section shall be of such chemical composition as to avoid dissolution of the Salt Section and to provide weight, strength, and physic al properties sufficient to protect uphole formations and prevent blowouts or uncontrol led flows. 7. If a well is dry, cement plugs at least 200 feetin length shall be placed across the top and the base of the Salt Section, across an y oil, gas or water show, and across any potash zone. 7.1. Plugs shall not be required inside a properly cemented casing string. The division shall approve the location of the plugs af ter examining the appropriate logs, drilling and testing records for the well. 7.2. No well shall be temporarily abandoned with op en hole in the Salt Section. 

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...8. The division may inspect the drilling operations at all times, including any

mining operations that may affect any drilling or p roducing well bores. A potash owner, if contributing by agreement to the logging and directional survey costs of a well, may inspect the well for compliance with this rule. 9. Before commencing drilling operations for oil orgas on any land within designated potash area, the operator shall furnish by registered mail, a copy of the APD, together with the plat or map required under R 649-3-4, to all potash owners and lessees whose interests are within a radius of 2,640 feet of the proposed well. 10.After proper notice and hearing, the board may m odify this rule for a particular well or area by requiring that greater o r lesser precautions be taken to prevent the escape of oil, gas, or water from one s tratum into another. The board may also expand or contract from the designated pot ash areas. 

### R649
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- 29. Workable Coal Beds. 1. Prior to commencing drilling operations for oil and gas on any lands where there are mine workings, the operator shall furnish a copy of the APD, a plat or map as required under R649-3-4, and a designation of th e proposed angle and direction of the well, if the well is to be deviated substant ially from a vertical course, to all coal owners and lessees whose interests are within a rad ius of 5,280 feet of the proposed well. 2. A well penetrating one or more workable coal bed s or mine workings shall be drilled to a depth and shall be of a size, to permi t the placing of casing in the hole at the points and in the manner necessary to exclude a ll oil, gas or gas pressure from the coal bed, other than oil, gas or gas pressure o riginating in the coal bed. 3. Unless otherwise authorized by the division, the casing run through a coal bed shall be seated at least 50 feet into the closest i mpervious formation below the coal bed. The casing shall be cemented solidly through t he coal bed to a height at least 50 feet into the closest impervious formation above th e coal bed. 4. A directional survey or a cement bond log shall be performed and furnished to the division upon written request by the division. 5. Upon penetrating a coal bed the operator shall n otify the division, in writing, before completing or plugging and abandoning the we ll. 

### R649
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- 30. Underground Mining Operations. 1. Prior to commencing drilling operations for oil and gas on any land where there are known or suspected underground mining operation s, solution mining operations or surface mining operations, including solar evapo ration ponds, the operator shall include in the APD or in a separate cover letter, a ny information known to the operator concerning the name and address of the own er or operator of the mining workings. 2. The division may, with the concurrence of the op erator, change the surface location of the proposed well if there appears to b e any possibility of interference between the proposed well bore and the mine working s. 

### R649
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- 31. Designated Oil Shale Areas. 1. Designated oil shale areas are subject to the ge neral drilling, plugging and other performance standards described in this section, ex cept where the board has adopted, by order, specific standards for individual oil shale areas. As of June 8, 2001, the board has adopted specific standards for individual oil shale areas by board orders in Cause Nos. 190-5(b), 190-3, and 190-13. The board may adopt specific standards in other areas, or modify the above order s, in the future. 

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...2. Lands may be designated as an oil shale area by the board, either upon its own

motion, or upon the petition of an interested perso n following notice and hearing. 3. As used in this rule, oil shale section means th e sequence of strata containing oil shale beds, including any interbedded strata no t containing oil shale, consisting of the Parachute Creek Member of the Green River Forma tion of Tertiary Age, defined as the stratigraphic equivalent of the interval between 1,428 feet and 2,755 feet below the Kelly Bushing on the induction-electrical log o f the Ute Trail No. 10 API No. 43- 047-15382 well drilled by Dekalb Agricultural Association, Inc. and located in the NE 1/4 of Section 34, Township 9 South, Range 21 East, S.L.M., Uintah County, Utah. The Mahogany Zone is defined as the stratigraphic e quivalent of the interval between 2,230 feet and 2,360 feet below the Kelly Bushing o n the induction-electrical log of the well cited above. 4. For purposes of identifying the oil shale interv als, an appropriate electrical log shall be run through the oil shale section. One fie ld copy of the log through the oil shale section shall be made available to the divisi on pursuant to R649-3-23 or upon written request by the division. 5. On all wells that are intentionally deviated fro m the vertical within the oil shale section, pursuant to the provisions of R649-3-10 an d R649-3-11, a directional survey shall be run from a point at least 20 feet below th e oil shale section to the surface and shall thereafter be filed with the division within 20 days after reaching total depth. 6.Any oil shale lessee or operator whose oil shale mine workings reach a distance of 2,640 feet from a producing well or any oil and gas lessee or operator whose producing well is approached by oil shale mine work ings within a distance of 2,640 feet shall request agency action with the board. Th e board may promulgate an order after notice and hearing with respect to the runnin g of a directional survey through the oil shale section, the cost and potential resou rce loss liability and responsibility as to the oil and gas operator and the oil shale le ssee or operator and any other issues regarding multiple mineral development. 7. The directional survey shall be the confidential property of the parties paying for the survey and shall be kept confidential until released by said parties or the division. 8. In addition to the requirements pertaining to th e cementing of casing contained in the R649-3-8, any casing set into or t hrough the oil shale section shall be cemented over the entire oil shale section. 9. If a well is dry, junked or abandoned, a cement plug shall be placed across that portion of the oil shale section extending 200 feet above and 200 feet below the longitudinal center of the Mahogany Zone. The cemen t plug shall not be required inside a casing cemented in accordance with R649-3- 31-8. When the casing is cemented, cement plugs 200 feet in length shall be centered across the top and across the base of the Parachute Creek Member of th e Green River Formation. 10. In the event the casing is not cemented in acco rdance with R649-3-31-8, the division shall approve the method and procedure to prevent the migration of oil, gas, and other substances through the wellbore from one formation to another. 11. The division shall approve the adequacy and loc ation of the cement plugs after examining the appropriate logs and drilling and tes ting records for the well, to ensure that the oil shale section is adequately pro tected. 12. Upon written request of the owner or operator u nder R649-8-6, the division shall keep all well logs confidential. The division may inspect the drilling operations at all times, including any mining operations that may affect drilling or producing well bores. 

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...13. Before commencing drilling operations for oil o r gas on any land within a

designated oil shale area, the operator shall furni sh a copy of the APD, together with a plat or map as directed under R649-3-4, to all oi l shale owners or their lessees whose interests are within a radius of 2,640 feet o f the proposed well. The operator shall furnish a notice of intention to plug and aba ndon any well in the oil shale area, as required under R649-3-24-1, to the owners or the ir lessees prior to commencement of plugging operations. 14. The operator shall use generally accepted techn iques for vertical or directional drilling as defined under R649-3-10 and R649-3-11 t o maintain the well bore within an intact core of a mine pillar. Within 20 days of reaching the total depth or before completion of the well, whichever is the earlier, a directional survey shall be run as prescribed by this rule. 

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- 32. Reporting of Undesirable Events. 1. The division shall be notified of all fires, lea ks, breaks, spills, blowouts, and other undesirable events occurring at any oil or ga s drilling, producing, or transportation facility, or at any injection or dis posal facility. 2. Immediate notification shall be required for all major undesirable events as outlined in R649-3- 32-5. 2.1. Immediate notification shall mean a verbal rep ort submitted to the division as soon as practical but within a maximum of 24 hou rs after discovery of an undesirable event. 2.2. A complete written report of the incident shal l also be submitted to the division within five days following the conclusion of an undesirable event. 2.3. The requirements for written reports are speci fied in R649-3-32-4. 3. Subsequent notification shall be required for al l minor undesirable events as outlined in R649-3- 32-6. 3.1. Subsequent notification shall mean a complete written report of the incident submitted to the division within five days followin g the conclusion of an undesirable event. 3.2. The requirements for written reports are speci fied in R649-3-32-4. 4. Complete written reports of undesirable events m ay be submitted on Form 9, Sundry Notice and Report on Wells. The report shallinclude: 4.1. The date and time of occurrence and, if immedi ate notification was required, the date and time the occurrence was reported to th e Division. 4.2. The location where the incident occurred descr ibed by section, township, range, and county. 4.3. The specific nature and cause of the incident. 4.4. A description of the resultant damage. 4.5. The action taken, the length of time required for control or containment of the incident, and the length of time required for s ubsequent cleanup. 4.6. An estimate of the volumes discharged and the volumes not recovered. 4.7. The cause of death if any fatal injuries occur red. 5. Major undesirable events include the following: 5.1. Leaks, breaks or spills of oil, salt water or oil field wastes that result in the 

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...discharge of more than 100 barrels of liquid, that are not fully contained on

location by a wall, berm, or dike. 5.2. Equipment failures or other accidents that res ult in the flaring, venting, or wasting of more than 500 Mcf of gas. 5.3. Any fire that consumes the volumes of liquid o r gas specified in R649-3-32- 5.1 and R649-3-32- 5.2. 5.4. Any spill, venting, or fire, regardless of the volume involved, that occurs in a sensitive area stipulated on the approval notice of the initial APD for a well, e.g., parks, recreation sites, wildlife refuges, lakes, r eservoirs, streams, urban or suburban
areas. 5.5. Each accident that involves a fatal injury. 5.6. Each blowout, loss of control of a well. 6. Minor undesirable events include the following: 6.1. Leaks, breaks or spills or oil, salt water, oroil field wastes that result in the discharge of more than ten barrels of liquid and ar e not considered major events in R649-3-32-5. 6.2 Equipment failures or other accidents that resu lt in the flaring, venting or wasting of more than 50 Mcf of gas and are not cons idered major events in R649-3- 32-5. 6.3. Any fire that consumes the volumes of liquid o r specified in R649-3-32-6.1 and R649-3-32- 6.2. 6.4. Each accident involving a major or life-threat ening injury. 

### R649
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- 33. Drilling Procedures in the Great Salt Lake. 1. For all drilling activities proposed within the Great Salt Lake, the APD required by R649-3-4 shall be filed at least 30 days prior t o the date on which the operator intends to commence operations. As part of the APD, the operator shall include: 1.1. The name of the drilling contractor and the nu mber and type of rig to be used.
1.2. An illustration of the boundaries of all state or federal parks, wildlife refuges, or waterfowl management areas within one mile of th e proposed well location. 1.3. An illustration of the locations of all evapor ation pits, producing wells, structures, buildings, and platforms within one mil e of the proposed well location. 1.4.An oil spill emergency contingency plan. 2. Unless permitted by the board after notice and h earing, no well shall be drilled that has a surface location: 2.1. Within 1,320 feet from an evaporation pit with out the consent of the operator of such pit. 2.2. Within one mile from the boundary of a state o r federal park, wildlife refuge, or waterfowl management area without the consent of the appropriate state or federal regulatory agency. 2.3. Within three miles of Gunnison Island during t he Pelican nesting season (March 15 through September 30) or within one mile from said island at any other time. 2.4. Within any area south of the Salt Lake Base Me ridian Line. 

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...2.5. Within any area north of Township 10 North.

2.6. Within one mile inside of what would be the water's edge if the water level of the Great Salt Lake were at the elevation of 4,193. 3 feet above sea level. 3. Well casing and cementing shall be subject to th e following special requirements for the purpose of this rule, the seve ral casing strings in order of normal installation are drive or structural casing, conductor casing, surface casing, intermediate casing, and production casing. All dep ths refer to true vertical depth: 3.1. The drive or structural casing shall be set by drilling, driving or jetting to a minimum depth of 50 feet below the floor of the lak e bed or to such greater depth required to support unconsolidated deposits and to provide hole stability for initial drilling operations. If drilled in, the drilling fl uid shall be a type that will not pollute the lake; in addition, a quantity of cement suffici ent to fill the annular space back to the lake floor with returns circulated, must be use d. 3.2. The conductor casing shall be set at a minimum depth of 200 feet below the floor of the lake, and shall be cemented with a qua ntity sufficient to fill the annular space back to the lake surface with returns circula ted. 3.3. The surface casing shall be set at a minimum d epth of 500 feet if the proposed depth of the well is less than 7,000 feet; or 1,000 feet if the proposed depth is over 7,000 feet but less than 11,000 feet; or 1, 500 feet if the depth is 11,000 feet. The casing shall be cemented with a quantity suffic ient to fill the annular space back to the lake surface with returns circulated, and th e bottom of the casing shall be in competent rock. 3.4. The intermediate and production casing shall b e set at any time when drilling below the surface casing and hole conditions justif y setting casing. This casing will be cemented in such a manner that all hydrocarbons, wa ter aquifers, lost-circulation or zones of significant porosity and permeability, sig nificant beds containing priority minerals, and abnormal pressure intervals are cover ed or isolated. 3.5. Prior to drilling the plug after cementing, al l casing strings except the drive or structural casing, shall be pressure tested. This t est shall not exceed the rated working pressure of the casing. If the pressure declines more than ten percent in 30 minutes, or if there are other indications of a lea k, corrective measures must be taken until a satisfactory test is obtained. All casing p ressure tests shall be recorded on the driller's log. 4. Blowout preventers and related well control equi pment shall be installed, and tested in a manner necessary to prevent blowouts an d shall be subject to the following special conditions: 4.1. Prior to drilling below the surface casing, bl owout prevention equipment shall be installed and maintained ready for use unt il drilling operations are completed. 4.2. An inside blowout preventer assembly and a ful l opening string safety valve in the open position shall be maintained on the rig floor at all times while drilling operations are being conducted. 4.2.1. Valves shall be maintained on the rig floor to fit all pipe in the drill string. 4.2.2. A top kelly cock shall be installed below th e swivel and another at the bottom of the kelly of such design that it can be r un through the blowout preventers. 4.3. Before drilling below the surface casing the b lowout prevention equipment shall include a minimum of: 4.3.1. Three remotely and manually controlled, hydr aulically operated blowout 

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...preventers with a rated working pressure that excee ds the maximum anticipated

surface pressure, including one equipped with pipe rams, one with blind rams and one hydril type. 4.3.2. A drilling spool with side outlets, if side outlets are not provided in the blowout preventer body. 4.3.3. A choke manifold. 4.3.4. A kill line. 4.3.5. A fill-up line. 4.4. Ram-type blowout preventers and related contro l equipment shall be tested to the rated working pressure of the stack assembly or to the working pressure of the casing, whichever is the lesser, at the following t imes: 4.4.1. When installed. 4.4.2. Before drilling out after each string of cas ing is set. 4.4.3. Not less than once each week while drilling. 4.4.4. Following repairs that require disconnecting a pressure seal in the assembly. 4.5. The hydril-type blowout preventer shall be tes ted to 70 percent of the pressure testing requirements of ram-type blowout p reventers. The hydril-type blowout preventer shall be actuated on the drill pi pe once each week. 4.6. Accumulators or accumulators and pumps shall m aintain a reserve capacity at all times to provide for repeated operation of h ydraulic preventers. 4.7. A blowout prevention drill shall be conducted weekly for each drilling crew to insure that all equipment is operational and that c rews are properly trained to carry out emergency duties. All blowout preventer tests a nd crew drills shall be recorded on the driller's log. 5. The characteristics and use of drilling mud and the conduct of related drilling procedures shall be such as are necessary to mainta in the well in a safe condition to prevent uncontrolled blowouts of any well. Quantiti es of mud materials sufficient to insure well control shall be maintained and readily accessible for use at all times. 6. Mud testing equipment shall be maintained on the derrick floor at all times, and mud tests consistent with good operating practi ce shall be performed daily, or more frequently as conditions warrant. The followin g mud system monitoring equipment must be installed, with derrick floor ind icators, and used throughout the period of drilling after setting and cementing the surface casing: 6.1. A recording mud pit level indicator including a visual and audio warning device to determine mud pit volume gains and losses

. 6.2. A mud return indicator to determine when retur ns have been obtained, or when they occur unintentionally, and additionally t o determine that returns essentially equal the pump discharge rate. 7. In the conduct of all oil and gas operations, th e operator shall prevent pollution of the waters of the Great Salt Lake. The operator shall comply with the following pollution prevention requirements: 7.1. Oil in any form, liquid or solid wastes contai ning oil, shall not be disposed of into the waters of the lake. 

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...7.2. Liquid or solid waste materials containing sub stances that may be harmful to

aquatic life or wildlife, or injurious in any manne r to life and property, or that in any way unreasonably adversely affects the chemicals or minerals in the lake shall not be disposed of into the waters of the lake. 7.3. Waste materials, exclusive of cuttings and dri lling media, shall be transported to shore for disposal. 8. All spills or leakage of oil and liquid or solidpollutants shall be immediately reported to the division. A complete written statem ent of all circumstances, including subsequent clean-up operation, shall be forwarded t o said agencies within 72 hours of such occurrences. 9. Standby pollution control equipment consistent with the state of the art, shall be maintained by, and shall be immediately availabl e to, each operator. 

### R649
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- 34. Well Site Restoration. 1. The operator of a well shall upon plugging and abandonment of the well restore the well site in accordance with these rules.
2. For all land included in the well site for which the surface is federal, Indian, or state ownership, the operator shall meet the well s ite restoration requirements of the appropriate surface management agency. 3. For all land included in the well site for which the surface is fee or private ownership, the operator shall meet the well site re storation requirements of the private landowner or the minimum well site restorat ion requirements established by the division. 4. Well site restoration on lands with fee or priva te ownership shall be completed within one (1) year following the plugging of a wel l unless an extension is approved by the division for just and reasonable cause. 5. These rules shall not preclude the opportunity f or a private landowner to assume liability for the well as a water well in ac cordance with R649-3-24.6. 6. The operator shall make a reasonable effort to e stablish surface use agreements with the owners of land included in the well site p rior to the commencement of the following actions on fee or private surface: 6.1. Drilling a new well. 6.2. Reentering an abandoned well. 6.3. Assuming operatorship of existing wells. 7. Upon application to the division to perform any of the aforementioned and prior to approval of such actions by the division, the operator shall submit an affidavit to the division stating whether appropria te surface use agreements have been established with and approved by the surface l andowners of the well site. 8. If necessary and upon request by the division, t he operator shall submit a copy of the established surface use agreements to the di vision. 9. If no surface use agreement can be established, the division shall establish minimum well site restoration requirements for any well located on fee or private surface for the purposes of final bond release. 10. Established surface use agreements may be modif ied or terminated at any time by mutual consent of the involved parties; how ever, the operator shall notify the division if such is the case and if a surface use a greement is terminated without a new agreement established, the division shall estab lish minimum well site 

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...reclamation requirements.

11. The operator shall be responsible for meeting t he requirements of any surface use agreement, and it shall be assumed by the divis ion until notified otherwise that surface use agreements remain in full force and eff ect until all the requirements of the agreement are satisfied or until the agreement has been terminated by mutual consent of the involved parties. 12. The surface use agreement shall stipulate the m inimum well site restoration to be performed by the operator in order to allow fina l release of the bond. 13. The final bond release by the division shall in clude a determination by the division whether or not the operator has met the re quirements of an established surface use agreement, and the division may suspend final bond release until the operator has completed all the requirements of the surface use agreement. 14. The agreement may state requirements for well s ite grading, contouring, scarification, reseeding, and abandonment of any eq uipment or facilities for which the landowner agrees to assume liability. 15. The agreement shall not address operations regu lated by the rules and orders of the board such as: 15.1. Disposal of drilling fluid, produced fluid, o r other fluid waste associated with the drilling and production of the well. 15.2. Reclamation or treating of waste crude oil. 15.3. Any other operation or condition for which th e board has jurisdiction. 16. If the operator cannot establish surface use ag reements then the operator shall so notify the division. 17. Within 30 days of the notification or as soon a s weather conditions permit, the division shall conduct an inspection and evaluation of the well site in order to establish minimum well site restoration requirement s for the purpose of final bond release. 18. The operator shall be given notice by the divis ion of the date and time of the inspection, and if the operator cannot attend the i nspection at the scheduled date and time, the division may reschedule the inspectio n to allow the operator to participate. 19. The surface landowner, agent or lessee shall be given notice by the operator of such inspection and may participate in the inspecti on; however, if the surface landowner cannot attend the inspection, the divisio n shall not be required to reschedule the inspection in order to allow the sur face landowner to participate.
20. The evaluation shall consider the condition of the land prior to disturbance, the extent of proposed disturbance, the degree of d ifficulty to conduct complete restoration, the potential for pollution, the requi rements for abating pollution, and the possible land use after plugging and restoratio n are completed. 21. Within 30 days after performing the inspection, the division shall provide the operator with the results of the inspection and the evaluation listing the minimum well site restoration requirements established by the division. 22. The division shall retain a record of the inspe ction and the evaluation, and if necessary and upon written request by an interested party, the division shall provide a copy of the minimum well site restoration require ments established by the division. 23. If any person disagrees with the results of the inspection and the evaluation 

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...and desires a reconsideration of the minimum well s ite restoration requirements

established by the division, such person may submit a request to the board for a hearing and order to modify the requirements. 24. The board, after proper notice and hearing, may issue an order modifying the minimum well site restoration requirements establis hed by the division. 25. The minimum well site restoration requirements established by the division or by board order shall be considered part of any p ermit granted by the division to conduct operations at a well site, and the inability of the operator to meet such requirements shall be considered grounds for forfei ture of the bond. 26.If the minimum well site restoration requirement s suggest to the division that bond coverage for a well should be increased, the d ivision shall take action as stated in R649-3-1. 

### R649
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- 35. Wildcat Wells. 1. For purposes of qualifying for a severance tax e xemption under Section 59-5- 102(5)(b), an operator must file an application wit h the division for designation of a wildcat well. 1.1. The application may be filed prior to drillingthe well, and a tentative determination of the wildcat designation will be is sued at that time. An application or request for final designation of wildcat status as appropriate, must be filed at the time of filing of Form 8, Well Completion or Recomp letion Report and Log. 1.2. The application shall contain, where applicabl e, the following information: 1.2.1. A plat map showing the location of the well in relation to producing wells within a one mile radius of the wellsite. 1.2.2. A statement concerning the producing formati on or formations in the wildcat well and also the producing formation or fo rmations of the producing wells in the designated area, including completion report s and other appropriate data. 1.2.3. Stratigraphic cross sections through the pro ducing wells in the designated area and the proposed wildcat well. 1.2.4. A statement as to whether the well is in a known geologic structure. However, whether the well is in a known geologic st ructure shall not be the sole basis of determining whether the well is a wildcat. 1.2.5. Bottomhole pressures, as applicable, in a wi ldcat well compared to the wells producing in the designated area from the same zone

. 1.2.6. Any other information deemed relevant by the applicant or requested by the division. 2. Information derived from well logs, including ce rtain information in completion reports, stratigraphic cross sections, b ottomhole pressure data, and other appropriate data provided in R649-3-35-1 will be he ld confidential in accordance with R649-2-11 at the request of the operator. 3. The division shall review the submitted informat ion and advise the operator and the State Tax Commission of its decision regard ing the wildcat well designation as related to Section 59-5-102(5)(b). 4. The division is responsible for approval of a re quest for designation of a well as a wildcat well. If the operator disagrees with the decision of the division, the decision maybe appealed to the board. Appeals of all other t ax-related decisions concerning wildcat wells should be made to the State Tax Commi ssion. 

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...

### R649
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- 36. Shut

- in and Temporarily Abandoned Wells.

1. Wells may be initially shut-in or temporarily ab andoned for a period of twelve (12) consecutive months. If a well is to be shut-in or temporarily abandoned for a period exceeding twelve (12) consecutive months, th e operator shall file a Sundry Notice providing the following information: 1.1. Reasons for shut-in or temporarily abandonmentof the well, 1.2. The length of time the well is expected to be shut-in or temporarily abandoned, and 1.3. An explanation and supporting data, for showin g the well has integrity, meaning that the casing, cement, equipment conditio n, static fluid level, pressure, existence or absence of Underground Sources of Drin king Water and other factors do not make the well a risk to public health and safety or the environment. 2. After review the Division will either approve th e continued shut-in or temporarily abandoned status or require remedial action to be taken to establish and maintain the well's integrity. 3. After five (5) years of nonactivity or nonproductivity, the well shall be plugged in accordance with R649-3-24, unless approval for e xtended shut-in time is given by the Division upon a showing of good cause by the op erator. 4. If after a five (5) year period the well is orde red plugged by the Division, and the operator does not comply, the operator shall fo rfeit the drilling and reclamation bond and the well shall be properly plugged and aba ndoned under the direction of the Division. 

### R649
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- 37. Enhanced Recovery Project Certification. 1. In order for incremental production achieved fro m an enhanced recovery project to qualify for the severance tax rate reduction provided under Subsection 59- 5-102(7), the operator on behalf of the producers s hall present evidence demonstrating that the recovery technique or techni ques utilized qualify for an enhanced recovery determination and the Board must certify the project as an enhanced recovery project. 2. For enhanced recovery projects certified by the Board after January 1, 1996: 2.1. As part of the process of certifying increment al production that qualifies for a reduction in the severance tax rate under Subsectio n 59-5-102(7), the operator shall furnish the Division: 2.1.1. An extrapolation (projection) and tabulation of expected non-enhanced recovery of oil and gas production from the project

. 2.1.2. The projection shall be for not less than seventy-two (72) months commencing with the first month following the proje ct certification by the Board. 2.1.3. The projection shall be based on production history of all wells within the project area for not less than twelve (12) months i mmediately preceding either certification or commencement of the project; reservoir and production characteristics; and the application of generally a ccepted petroleum engineering practices. 2.1.4. The projected production volumes approved by the division shall serve as the base level production for purposes of determini ng the incremental oil and gas production that qualifies for a reduction in the se verance tax rate. 2.2. The operator shall provide a statement as to all assumptions made in 

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...preparing the projection and any other information concerning the project that

the division may reasonably require in order to evaluate the operator's projection. 2.3. An operator's request for incremental producti on certification may be approved administratively by the Director or author ized agent. The Director or authorized agent shall review the request within 30 days after its receipt and advise the operator of the decision. If the operator disag rees with the Director or authorized agent's decision, the operator may request a hearin g before the Board at its next regularly scheduled hearing. The Director or author ized agent may also refer the matter to the Board if a decision is in doubt. 2.4. Upon approval of a request for incremental pro duction certification, the Director or authorized agent shall forward a copy o f the certification to the Utah Tax Commission. 

### KEY oil and gas law


### Date of Enactment or Last Substantive Amendment July 1, 2003


### Notice of Continuation February 3, 2012 

### Authorizing, Implemented, or Interpreted Law 40-6-1 et seq.

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...