Alabama Administrative Code › Title 400 - STATE OIL AND GAS BOARD OF ALABAMA › GOVERNING ONSHORE LANDS OPERATIONS › Chapter 400-1-2 - PERMITTING OF WELLS › Section 400-1-2-.05 - Change Of Operator

Current through Register Vol. 42, No. 9, June 28, 2024
(1) The operator
				of record shall immediately notify the Supervisor in writing of any agreement
				or other transaction, by which a new operator is to be designated for a well or
				wells, including all associated production, processing, injection, plant, and
				gathering line and pipeline facilities, and all other equipment associated with
				such well or wells. Such notification shall include, but not be limited to,
				identification of the proposed new operator and a list of wells and all
				associated facilities and equipment.
(2) Within sixty (60) days of the effective
				date of any agreement or other transaction causing a change of operator, any
				person or persons desiring to become the new operator of a well or wells must
				submit for approval to the Supervisor Form OGB-1E, Application for Change of
				Operator. A single Application for Change of Operator, Form OGB-1E, may be
				filed requesting a change of operator for multiple wells, facilities, and
				equipment. Form OGB-1E shall be signed by both the operator of record or
				present operator and the proposed new operator, with both parties applying to
				change the operator for the well or wells, including all associated production,
				processing, injection, plant, and gathering line and pipeline facilities, and
				all other equipment associated with such well or wells.
(3) In the Application for Change of
				Operator, Form OGB-1E, the new operator shall acknowledge that it has ownership
				or control of one hundred percent (100%) of the rights to drill and produce
				with respect to oil and gas underlying the lands comprising the unit assigned
				to the well or wells for which a change of operator is requested. Further, the
				Application for Change of Operator, Form OGB-1E, shall be accompanied by a bond
				on Form OGB-3 or OGB-4, whichever is appropriate, if such requirement has not
				been fulfilled as prescribed in Rule 400-1-2-.03, relating to Bond; an
				Operator's Certificate of Compliance and Authorization to Transport Oil, Gas,
				or Condensate from Well on Form OGB-12 if required by Rule 400-1-8-.01; an
				Operator's Certificate of Compliance for Operations Involving Hydrogen Sulfide
				on Form OGB-24 and other sour gas filing requirements prescribed in Rule
				400-1-9-.02 if required by Rule 400-1-9-.02; and an Organization Report on Form
				OGB-5, if not already on file with the Board and current.
(4) In the event that the new operator is
				uncertain whether it owns or controls one hundred percent (100%) of the rights
				to drill or produce, then the new operator may petition the Board to delay
				filing of the Application for Change of Operator, Form OGB-1E. The Board may,
				after notice and hearing for good cause, delay the filing of the Application
				for Change of Operator, Form OGB-1E, for a period of up to 120 days thereby
				allowing the new operator time to ensure that the operator owns one hundred
				percent (100%) of the ownership rights or to force pool and integrate the
				interests in the unit or units assigned to the well or wells for which a change
				of operator is requested. The Board, on the petition by the new operator after
				notice and hearing for good cause, may delay for an additional period beyond
				120 days the filing of the Application of Change of Operator, Form
				OGB-1E.
(5) In addition to the
				filing of an Application for Change of Operator on Form OGB-1E as required in
				section (2) and the additional filing requirements in section (3), filing
				requirements for Class II injection wells shall include, an Application for
				Permit to Inject Fluids on Form OGB-1C, an Affidavit of Ownership or Control,
				Underground Injection Control on Form OGB-2C, an affidavit of source, and a
				current analysis of fluids being injected.
(6) In addition to the filing of an
				Application for Change of Operator on Form OGB-1E as required in section (2)
				and the additional filing requirements in section (3), filing requirements for
				change of operator for a natural gas storage operation shall include an
				Application for Permit to Inject Storage Gas on Form OGB-1D, and an Affidavit
				of Ownership or Control, Natural Gas Storage Operations on Form
				OGB-2D.
(7) Prior to the
				Supervisor's approval of an Application for Change of Operator on Form OGB-1E,
				the current operator of record must be in compliance with the Board's
				submission requirements for forms and geologic data, such as logs, cuttings and
				cores for the subject well(s).
(8)
				The Supervisor may waive any filing requirements, or request additional
				information, associated with an application for change of operator.
(9) The Application for Change of Operator,
				Form OGB-1E, shall become effective upon approval by the Supervisor. Until such
				approval, the current operator of record shall be responsible for ensuring
				continued compliance with all applicable laws, and all rules, regulations, and
				orders, including special field rules, promulgated by the Board.
(10) When the operator is a corporation,
				limited liability company, limited partnership, or general partnership that is
				not publicly traded and when the majority of the ownership of the entity
				designated by the Board as operator changes, as a result of one or more
				transactions within a six-month period then the operator shall immediately
				notify the Supervisor in writing that the majority of the ownership has
				changed. Within sixty (60) days of the effective date of such change in
				ownership, the operator shall file a new Organization Report on Form OGB-5
				showing the new ownership.
Author:
Marvin Rogers
Statutory Authority:
Code of Ala.
					 1975
, §§
											9-17-1,
et
					 seq
.