Oklahoma Administrative Code › Title 165 - Corporation Commission › Chapter 10 - Oil And Gas Conservation › Subchapter 3 - Drilling, Developing, and Producing › Part 5 - OPERATIONS › Section 165:10-3-28 - Horizontal drilling

Current through Vol. 41, No. 20, July 1, 2024
(a)
Scope.
This Section affects a horizontal well with one or more
				  laterals.
(b)
Definitions.
The following words and terms, when used in this
				  Section, shall have the following meaning, unless the context clearly indicates
				  otherwise:
(1)
"Adjacent common source
				  of supply"
shall mean a common source of supply which is immediately
				  adjacent to and adjoining the targeted reservoir(s) in a multiunit horizontal
				  well being drilled or a well being drilled in a horizontal well unitization
				  pursuant to 52 O.S. § 87.6 et seq. and which is inadvertently encountered
				  in the drilling of the lateral of a multiunit horizontal well or a well
				  pursuant to a horizontal well unitization when such well is drilled out of or
				  exits, whether on one or multiple occasions, the targeted reservoir(s), and
				  which is not the primary target of the subject well and shall not be included
				  in the relinquished rights pursuant to 52 O.S. § 87.1(h). In the event
				  that an adjacent common source of supply may be inadvertently encountered in
				  the drilling of the lateral of a multiunit horizontal well or a well pursuant
				  to a horizontal well unitization when such well is drilled out of or exits,
				  whether on one or multiple occasions, the targeted reservoir(s), then said
				  inadvertently entered adjacent common source of supply shall be included as
				  part of the targeted reservoir only for the purpose of the inadvertent
				  penetrations, and any subsequent completion, commingling and production of said
				  adjacent common source of supply with the targeted reservoir(s), but not for
				  future development of said adjacent common source of supply [52 O.S. §
				  87.6(B)(1)].
(2)
"Completion
				  interval"
shall mean, for open hole completions, the interval from the
				  point of entry to the terminus and, for cased and cemented completions, the
				  interval from the first perforations to the last perforations [52 O.S. §
				  87.6(B)(5)].
(3)
"Conventional
				  reservoir"
shall mean a common source of supply that is not an
				  unconventional reservoir.
(4)
"Date of first production"
shall mean the date hydrocarbons are
				  first produced from the horizontal well, whether or not production occurs
				  during drilling, completion, or through permanent surface equipment.
(5)
"Directional survey"
shall
				  mean that survey or report showing the location of any point of the wellbore as
				  it relates to the surveyed surface location from the surface to the terminus of
				  each lateral.
(6)
"Horizontal
				  component"
shall mean the calculated horizontal distance from the point
				  of entry to the terminus [52 O.S. § 87.6(B)(8)].
(7)
"Horizontal well"
shall mean
				  a well drilled, completed, or recompleted with one or more laterals which, for
				  at least one lateral, the horizontal component of the completion interval
				  exceeds the vertical component of the completion interval and the horizontal
				  component extends a minimum of 150 feet in the formation [52 O.S. §
				  87.6(B)(6)].
(8)
"Horizontal
				  well unit"
shall mean a drilling and spacing unit established by the
				  Commission, after application, notice, and hearing, for a common source of
				  supply into which a horizontal well has been or will be drilled.
(9)
"Horizontal well
				  unitization"
shall mean a unitization for a targeted reservoir created
				  pursuant to 52 O.S. § 87.6 et seq. [52 O.S. § 87.6(B)(7)].
(10)
"Lateral"
shall mean the
				  portion of the wellbore of a horizontal well from the point of entry to the
				  terminus [52 O.S. § 87.6(B)(9)].
(11)
"Multiunit horizontal well"
shall mean a horizontal well in a targeted reservoir or targeted reservoirs
				  wherein the completion interval of the well is located in more than one unit
				  formed for the same targeted reservoir, with the well being completed in and
				  producing from such targeted reservoir in two or more of such units [52 O.S.
				  § 87.6(B)(10)].
(12)
"Non-standard horizontal well unit"
shall mean a horizontal well
				  unit that is not a standard horizontal well unit.
(13)
"Point of entry"
shall mean
				  the point at which the borehole of a horizontal well first intersects the top
				  of the common source of supply [52 O.S. § 87.6(B)(12)].
(14)
"Standard horizontal well
				  unit"
shall mean a horizontal well unit that is a square 10-, 40-, 160-,
				  or 640-acre tract or a rectangular 20-, 80-, 320- or 1,280-acre tract in
				  accordance with OAC
				  165:10-1-22.
(15)
"Targeted reservoir"
shall
				  mean one or more common sources of supply which will be encountered by the
				  horizontal lateral portion of a horizontal well, and which has been designated
				  by the Commission as part of an order, rule or emergency rule as potentially
				  suited for development for the applied for multiunit horizontal well or
				  horizontal well unitization pursuant to 52 O.S. § 87.6 et seq. Provided,
				  however, that more than one common source of supply may only be granted by the
				  Commission and included in the targeted reservoir upon a showing of reasonable
				  cause by the applicant requesting the multiunit well in the application
				  requesting authority for the multiunit well prior to the drilling of said
				  multiunit well that the inclusion of the additional common source(s) of supply
				  shall prevent waste and protect the correlative rights of all of the owners of
				  the oil and gas rights [52 O.S. § 87.6(B)(14)].
(16)
"Terminus"
shall mean the
				  end point of the borehole of a horizontal well in the targeted reservoir [52
				  O.S. § 87.6(B)(15)].
(17)
"True vertical depth"
shall mean that depth at the point of entry
				  perpendicular to the surface as measured from the elevation of the kelly
				  bushing on the drilling rig.
(18)
"Unconventional reservoir"
shall mean a common source of supply
				  that is a shale or a coal bed. "Unconventional reservoir" shall also mean any
				  other common source of supply designated as such by Commission order or
				  rule.
(19)
"Vertical
				  component"
shall mean the calculated vertical distance from the point of
				  entry to the terminus of the lateral [52 O.S. § 87.6(B)(20)].