Alabama Administrative Code › Title 400 - STATE OIL AND GAS BOARD OF ALABAMA › GOVERNING SUBMERGED OFFSHORE LANDS OPERATIONS › Chapter 400-2-2 - PERMITTING OF WELLS › Section 400-2-2-.02 - Spacing Of Wells

Current through Register Vol. 42, No. 9, June 28, 2024
(1)
				Each well drilled in search of oil or gas shall be spaced on either (a) a
				drilling unit or (b) a drainage or production unit. A drilling unit is an
				administrative unit established by the Board to provide and allow for the
				drilling of a well. A drainage or production unit is the area in a pool that
				may be drained efficiently and economically by one well. Prior to the
				establishment of a field and the establishment of drainage or production units
				within the field, an operator may drill a well on a drilling unit. Furthermore,
				with respect to wells drilled in submerged offshore lands, a well may also be
				drilled on a "drilling unit" or a "drilling and developmentunit." When the
				Board, after notice and hearing, establishes afield for a pool, special field
				rules apply for that field. The special field rules designate, among other
				things, the drainageor production units for the field. Thereafter, wells are
				drilledon the drainage or production units designated in the special field
				rules. The term "spacing unit" is used from time to time in these regulations.
				A spacing unit is either (a) a drillingunit, (b) a drilling and development
				unit, or (c) a drainage or production unit. For simplicity, the term
				"production unit" ishereinafter used from time to time in place of the longer
				term "drainage and production unit." A spacing unit shall not include any part
				of another unit established for the same pool.
(2) The spacing for a well to be drilled to a
				pool or pools in an established field shall be governed by special field rules
				for that particular field. With respect to a well to be drilled to a pool or
				pools that are not governed by special field rules, the following spacing
				provisions shall be applicable for drilling and development units and for
				drilling units within an offshore tract.
(a)
				Where the operator owns or controls one hundred percent (100%) of working
				interest in the entire offshore tract, drilling and development units for wells
				deeper than six thousand (6,000) feet true vertical depth (TVD) may be
				permitted on an entire offshore tract, three-quarter (3/4) offshore tract, or
				one-half (1/2) offshore tract. Offshore tract lines may be projected across
				land areas to determine the appropriate unit boundaries. More than one well may
				be permitted on a drilling and development unit; however, no production except
				for testing can occur until unit operations are approved or until special field
				rules establishing appropriate production units are approved by the
				Board.
(b) Where the operator owns
				or controls one hundred percent (100%) of working interest in the entire
				offshore tract, drilling and development units for wells six thousand (6,000)
				feet true vertical depth (TVD) or shallower may be permitted on a one-half
				(1/2) offshore tract, or one-quarter (1/4) offshore tract. Offshore tract lines
				may be projected across land areas to determine the appropriate unit
				boundaries. More than one well may be permitted on a drilling and development
				unit; however, no production except for testing can occur until unit operations
				are approved or until special field rules establishing appropriate production
				units are approved by the Board.
(c) Drilling units for wells deeper than six
				thousand (6,000) feet true vertical depth (TVD) will be permitted on
				aone-quarter (1/4) offshore tract for regular offshore tracts. For irregular
				offshore tracts where regular one-quarter offshore tract units cannot be
				established, a drilling unit comprising up to fourteen hundred (1,400) acres
				may be permitted. Offshore tract lines may be projected across land areas to
				determine the unit boundaries. No production except for testing can occur until
				unit operations are approved or until special field rules establishing
				appropriate production units are approved by the Board.
(d) Drilling units for wells six thousand
				(6,000) feet true vertical depth (TVD) or shallower will be permitted on a
				quarter-quarter offshore tract for regular offshore tracts. For irregular
				offshore tracts where quarter-quarter units cannot be established, a drilling
				unit comprising up to three hundred sixty (360) acres may be permitted.
				Offshore tract lines may be projected across land areas to determine the unit
				boundaries. No production except for testing can occur until unit operations
				are approved or until special field rules establishing appropriate production
				units are approved by the Board.
(e) Wells to be drilled deeper than six
				thousand (6,000) feet true vertical depth (TVD) shall be located at least one
				thousand three hundred twenty (1,320) feet from every exterior boundary of the
				drilling and development unit or drilling units, and no closer than five
				hundred (500) feet from the State/Federal boundary. Wells to be drilled six
				thousand (6,000) feet TVD or shallower shall be located at least six hundred
				sixty (660) feet from every exterior boundary of the drilling and development
				units or drilling units, and no closer than five hundred (500) feet from the
				State/Federal boundary.
(f) The
				Board may approve a drilling and development unit or drilling unit consisting
				of portions of offshore tracts equal to an entire offshore tract, a
				three-quarter offshore tract or a one-half offshore tract, where it is shown,
				after notice and hearing, and the Board finds that a well located at a regular
				location on an offshore tract would cause the drilling of unnecessary
				wells.