New York Codes, Rules and Regulations › Title 6 - DEPARTMENT OF ENVIRONMENTAL CONSERVATION › Chapter V - RESOURCE MANAGEMENT SERVICES › Subchapter B - Mineral Resources › Part 559 - "bass Island" Regulations › Section 559.5 - Production rates

Current through Register Vol. 46, No. 28, July 10, 2024
(a) The
				  provisions of this section supersede section
				  556.1(e) 
				  of this Title.
(b) Absent a
				  department order establishing oil production rates for a particular "Bass
				  Island" pool and subject to subdivision (c) of this section, the daily oil
				  production allowable for those days a "Bass Island" well is on production is 2
				  1/2 barrels of oil for each acre which that well's application to drill,
				  deepen, plug back or convert shows is assigned to it, but not to exceed 200
				  barrels; and in gas production to whatever is produced in association with the
				  well's daily oil production allowable. In the case of a "Bass Island" wildcat
				  well, the daily production allowable is 200 barrels of oil per day, regardless
				  of the number of acres assigned to it, for a period of one year from the date
				  on which production from that well first begins. Subsequently, that well's
				  daily oil production allowable will be determined by the method stated in the
				  first sentence of this subdivision. Upon provision to the department of copies
				  of bottom hole oil sample analyses and other data demonstrating that a "Bass
				  Island" well may produce oil at a daily rate greater than 200 barrels without
				  going below the bubble point pressure at the midpoint of the production
				  interval, the department may, on an administrative basis, allow production at
				  that rate to occur until the bubble point is reached; subsequently, the daily
				  production allowable will be determined by the methods stated in the first
				  three sentences of this subdivision. Data demonstrating that continued daily
				  production in excess of 200 barrels of oil is warranted must be submitted to
				  the department monthly. Oil not actually produced under the daily production
				  allowable cannot be produced at a later date.
(c) If a "Bass Island" well is determined to
				  have a gas-oil ratio greater than 2,000 standard cubic feet of gas per barrel
				  of oil measured at the stock tank based upon the gas-oil ratio tests under
				  sections
				  559.3(b)
				 and
				  559.4(b) 
				  of this Part, that well is limited in oil production to the amount determined
				  by multiplying the allowable as calculated under subdivision (b) of this
				  section by a fraction, the numerator of which is 2,000 standard cubic feet of
				  gas per barrel of oil measured at the stock tank and the denominator of which
				  is the latest reported gas-oil ratio; and in gas production to whatever is
				  produced with the oil produced under the well's daily oil production allowable.
				  If the gas-oil ratio aproaches infinity, the well is limited in daily gas
				  production to the amount determined by multiplying the daily oil allowable as
				  calculated under subdivision (b) of this section by 2,000 standard cubic feet
				  of gas. Gas not actually produced under the daily production allowable cannot
				  be produced at a later date. The department may increase the limiting gas-oil
				  ratio on an administrative basis to an amount greater than 2,000 standard cubic
				  feet whenever the operator presents data to the department which the department
				  determines on an administrative basis is adequate justification for such
				  increase.
(d) The operator of a
				  "Bass Island" well may at any time petition the department for a change in
				  production allowable for that well. In so doing, he must use the procedures set
				  forth in section
				  559.3(b) 
				  of this Part if gas-oil ratio test results are submitted with that
				  request.