SECTION 3.55. Reports on Gas Wells Commingling Liquid Hydrocarbons before Metering

(a) When the full well stream from a gas well is moved to a plant or central separation facilities, and the liquid hydrocarbons produced by two or more wells are commingled without being measured or metered from each gas well, the operator of each well so producing shall periodically file with the commission, as provided for in this section, a report showing the following information for each well:

(1) the specific gravity of the gas at 60 degrees Fahrenheit, after the removal of the liquid hydrocarbons;

(2) the API gravity corrected to 60 degrees Fahrenheit of the liquid hydrocarbons removed;

(3) the number of stock tank barrels of liquid hydrocarbons (corrected to 60 degrees Fahrenheit) recovered per 1,000 standard cubic feet of gas.

(b) Tests.

(1) The tests necessary for this report shall be made by one or more of the following methods:

(A) conventional mechanical separation;

(B) low temperature separation;

(C) split stream method;

(D) in accordance with AGA-NGAA Testing Code 101-43.

(2) The tests shall be made semiannually, or quarterly if contracts for royalty payments require quarterly tests. Semiannual tests must be made during the first and third or second and fourth quarters of the year. If a contract for royalty payments requires quarterly tests, the tests shall be made during each quarter. Both semiannual and quarterly tests may be made during any month of the quarter if the same (first, second, or third) month of each quarter is used thereafter for any well.

(c) The results of each test shall be submitted in duplicate on the appropriate commission form to the proper commission district office not later than the 15th day of each month following the month in which the test is made. The tests shall be required when the conditions set out in the first paragraph of this section exist, regardless of whether or not the conditions are an exception to §3.26 of this title (relating to Separating Devices, Tanks, and Surface Commingling of Oil) (Statewide Rule 26). The tests shall not be required, however, in any reservoir in which 100% of the operating and royalty ownership has been unitized.

(d) This section does not purport to alter any procedure for periodic tests of gas wells that has previously been approved by the commission. If test periods agreed upon by the interested parties have not been approved by the commission, and if the periods agreed upon differ from the test periods provided for in this section, alternative testing periods may be approved by the commission upon application.

Source Note: The provisions of this §3.55 adopted to be effective January 1, 1976; amended to be effective March 10, 1986, 11 TexReg 901; amended to be effective November 24, 2004, 29 TexReg 10728