SECTION 3.41. Application for New Oil or Gas Field Designation and/or Allowable

(a) The commission shall assign a new field designation and/or discovery allowable after an operator furnishes to the commission's Austin office proper evidence, other than horizontal distance, proving that a well is a new discovery. An operator shall include the following in the application:

(1) a legible area map, drawn to scale, preferably on white paper, which shows the following:

(A) all oil, gas, and abandoned wells within at least a 2 1/2-mile radius of the well claimed to be a discovery well;

(B) the producing intervals of all pertinent oil and gas wells identified in subparagraph (A) of this paragraph;

(C) all commission-recognized fields within a 2 1/2-mile radius of the well claimed to be a discovery well, that are presently active or were active in the past, identified by commission-assigned field names, names of the producing formations, and approximate average depth of the producing interval;

(D) the total depth of all wells identified in subparagraph (A) of this paragraph that penetrated the subject zone;

(E) scale, legend, and name of person who prepared the map;

(2) a complete legible electric log of the well. However, an operator is not required to file a complete electric log if the operator has filed all other required data, a portion of the log showing the top and bottom of the proposed reservoir interval, log headings, and applicable scales, and satisfactorily proves discovery as a new reservoir. Any electric log filed shall be considered public information pursuant to §3.16 of this title (relating to Log and Completion or Plugging Report) (Statewide Rule 16).

(3) a bottom-hole pressure for oil wells, submitted on the appropriate form. This bottom-hole pressure may be determined by a pressure build-up test, drill stem test, or wire- line formation tester. Calculations based on fluid level surveys or calculations made on flowing wells using shut-in wellhead pressures may be used if no test data is available.

(4) a subsurface structure map and/or cross section(s), if separation is based on structural differences, including faulting and pinch-outs. The structure map shall show the contour of the top of the producing formation and the line(s) of cross section. The cross section(s) shall be prepared from comparable electric logs (not tracings) with the wells, producing formation, and hydrocarbon reservoir identified. The engineer or geologist who prepared the map and cross section shall sign them.

(5) reservoir pressure measurements or calculations, if separation is based on pressure differentials.

(6) core data, drillstem test data, cross sections of nearby wells, and/or production data estimating the fluid level, if separation is based on differences in fluid levels. The operator shall obtain the fluid level data within 10 days of the potential test date.

(b) The staff may require additional data deemed necessary to make a determination. Deviation from the requirements of subsection (a) of this section may be allowed at the staff's discretion.

(c) The director, oil and gas, may administratively grant an application if all required data is submitted with the form prescribed, and the evidence proves that the new reservoir is effectively separated from any other reservoir previously shown to be productive.

(d) If the director of the Oil and Gas Division, or the director's delegate, declines administratively to grant an application, the operator may request a hearing. If the commission receives the hearing request within 10 days of the date of the notice of administrative denial of the application, the commission shall schedule a hearing. After hearing, the examiner shall recommend final commission action.

Source Note: The provisions of this §3.41 adopted to effective January 1, 1976; amended to be effective July 24, 1980, 5 TexReg 2859; amended to be effective February 28, 1986, 11 TexReg 545; amended to be effective January 4, 1999, 24 TexReg 131