New York Codes, Rules and Regulations › Title 6 - DEPARTMENT OF ENVIRONMENTAL CONSERVATION › Chapter V - RESOURCE MANAGEMENT SERVICES › Subchapter B - Mineral Resources › Part 556 - Operating Practices › Section 556.1 - Oil wells

Current through Register Vol. 46, No. 28, July 10, 2024
(a) The
				  operating practice requirements of subdivisions (b) through (h) of this section
				  shall be applicable only to oil wells.
(b) All oil wells capable of production shall
				  be equipped with welhead controls adequate to properly contain and control the
				  flow thereof.
(c) All flowing oil
				  wells except those flowed artificially as a result of water flooding or other
				  secondary recovery techniques must be flowed through an adequate oil and gas
				  separator. In addition, connections or fittings of size adequate to permit
				  efficient measurement of the effluent gas by meter or orifice or other
				  industry-accepted well tester for the purpose of obtaining gas-oil ratios shall
				  be installed on the gas vent line of said separator. Wellhead equipment also
				  shall be installed and maintained in first-class condition so that static
				  bottom hole pressure may be obtained at any reasonable time by the department
				  after notification to the owner or operator and valves shall be installed so
				  that surface pressures can readily be obtained on both casing and
				  tubing.
(d) Except where some
				  alternative rules governing a specific pool are in effect, the owner or
				  operator of any oil well producing from a pool which contains both oil and gas
				  shall be required at least once each calendar year to measure the gas-oil ratio
				  of said well and report same to the department on form OG14. Unless the owner
				  or operator wishes some alternative reporting time, the gas-oil ratio report
				  should be flled with the annual production report on form OG2 as specified in
				  section
				  551.2(a) 
				  of this Title. At the option of the owner or operator of the well, or upon
				  written request from the department, in order to demonstrate the status of the
				  well on a more current basis, the gas-oil ratio test may be made at a more
				  frequent interval and the resuits thereof filed with the department on form
				  OG14. Such more recent test shall remain in effect until the annual test shall
				  again be required.
(e) Each oil
				  well shall be permitted to produce without penalty of a restriction in oil
				  production only that volume of gas equivalent to the applicable limiting
				  gas-oil ratio multiplied by the oil production potential of the well as
				  determined by the production rate reported on form OG14. In the event the
				  department has not established a specific gas-oil ratio limit for a particular
				  oil pool, the limiting gas-oil ratio shall be 2,000 cubic feet for each barrel
				  of oil production. If the gas-oil ratio exceeds 2,000 cubic feet of gas for
				  each barrel of oil, it shall be unlawful to produce more oil than is determined
				  by multiplying the oil production potential of the well as reported on form
				  OG14 by a fraction, the numerator of which shall be the limiting gas-oil ratio
				  for the pool and the denominator of which shall be the official gas-oil ratio
				  test of the well as reported on form OG14. All gas produced with the current
				  oil production pursuant to the foregoing ruling shall be deemed to have been
				  lawfully produced.
(f) All wells or
				  developed spacing units which are to be restricted in production because of
				  high gas-oil ratios will be so indicated in a production schedule prepared by
				  the department.
(g) Upon the
				  application therefor by any interested owner or operator, or on the
				  department's own motion, a limiting gas-oil ratio shall be established only
				  after appropriate notice and public hearing. Subsequent hearings may be held in
				  the same manner for the purpose of considering a change in the limiting gas-oil
				  ratio when there is apparent good cause for such revision.
(h) Water-oil ratio surveys and reports shall
				  be conducted by the owner or operator or any producing oil well or wells upon
				  request of the department. Such request may be made on the department's own
				  motion or as a result of a petition therefor and subsequent demonstration of
				  good cause in a public hearing. After a study of the results of the water-oil
				  ratio survey by the department and all interested owners or operators to whom
				  same shall be made available by the department upon request, a public hearing
				  will be held and a ruling issued by the department on the establishment of
				  water-oil ratio limits and restrictions in oil production as a result of
				  excessive water production.