Railroad Commission of Texas Directional Surveys, Down-hole Commingling, and Gas Plant Reports Part 2: Down-hole Commingling and Gas Plant Reports Scott Rosenquist , Engineering Unit December 2012 - PowerPoint PPT Presentation

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Railroad Commission of Texas Directional Surveys, Down-hole Commingling, and Gas Plant Reports Part 2: Down-hole Commingling and Gas Plant Reports Scott Rosenquist , Engineering Unit December 2012

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Title: Railroad Commission of Texas Directional Surveys, Down-hole Commingling, and Gas Plant Reports Part 2: Down-hole Commingling and Gas Plant Reports Scott Rosenquist , Engineering Unit December 2012


1
Railroad Commission of Texas Directional
Surveys, Down-hole Commingling, and Gas Plant
ReportsPart 2 Down-hole Commingling and Gas
Plant ReportsScott Rosenquist , Engineering
UnitDecember 2012
2
Down-Hole Commingling
  • Applicable Statewide Rules
  • Rule 3.10
  • This rule prevents down-hole commingling.
  • The subject of this discussion is the
    administrative exception to this rule.

3
Down-Hole Commingling
What is down-hole commingling?
4
Down-Hole Commingling
  • Purpose of the Exception
  • A permit to allow two or more RRC fields to be
    produced commingled in the same production string
  • See following slide for sketches

5
Down-Hole Commingling
  • Purpose of the Exception (contd)
  • Are down-hole commingling exceptions based on
    fields, or are they based on zones?
  • A field is taken to mean an interval designated
    by the Commission as a single reservoir for
    proration purposes. One field could contain
    multiple zones / strata.
  • Down-hole commingling exceptions are actually
    permitted based on fields, and not necessarily
    individual zones.

6
Down-Hole Commingling
Field 1
Field 1
Field 2
Field 2
Field 3
7
Down-Hole Commingling
  • Down-hole commingle vs. multiple completion
  • Both involve completing two or more RRC fields
  • In a down-hole commingled completion, all
    completion intervals are producing into the same
    production string
  • See following slide for sketches

8
Down-Hole Commingling
Down-hole Commingled Completion
Multiple Completion
9
Down-Hole Commingling
  • Application procedures
  • Fill out the datasheet
  • http//www.rrc.state.tx.us/forms/forms/og/docfiles
    /rule10w.doc
  • Items should not be modified or deleted when
    filling out the template
  • Serve notice to affected offsets.
  • 375 application fee as of May 2012.
  • One well per application.

10
Down-Hole Commingling
  • Notice Requirements
  • Which of the following notice categories applies?
  • Initial this combination of fields has never
    been the subject of a down-hole commingling
    exception
  • Non-initial opposite of initial
  • Blanket order this combination of fields is
    pre-approved to be commingled via Commission
    order
  • How to determine the above?
  • Obtain a copy of the Statewide Rule 10 exception
    database on CD from Central Records (512-463-6882)

11
Down-Hole Commingling
  • Notice Requirements (contd)
  • Initial
  • All operators in each field are considered
    affected
  • Non-Initial
  • All offset operators in the field are considered
    affected. See Rule 3.10 for specific references
    on what constitutes an offset.
  • Blanket order
  • No notice required
  • Fill out only items 1-4 and 8 on the application

12
Down-Hole Commingling
  • Application Requirements
  • Determine the correct notice category
  • Provide well history information
  • Is the well permitted in each field? (yes/no)
  • Is the well currently on schedule in each field?
    (yes/no)
  • If the well is not on schedule in one of the
    fields, it needs an open drilling permit for that
    field. Note the following drilling permit
    condition
  • Completion of the well in a field authorized by
    this permit voids the permit for all other fields
    included in the permit unless the operator
    indicates on the initial completion report that
    the well is to be a dual or multiple completion
    and promptly submits an application for multiple
    completion.

13
Down-Hole Commingling
  • Application Requirements (contd)
  • Pressure information
  • Shut-in pressure
  • Flowing pressure
  • Capable of flowing without artificial lift?
  • For wells in low-pressure zones / well-developed
    areas, it is reasonable for estimates to be
    provided

14
Down-Hole Commingling
  • Application Requirements (contd)
  • Wellbore diagram
  • Tops of cement must be adequate. Comply with
    Statewide Rule 13(b)(3) and (b)(4).
  • Perfs for each field must be clearly indicated.
  • See sketch on next slide
  • Service list
  • The applicant certifies that notice has been
    served to each affected operator. Notice period
    is 14 days.

15
Down-Hole Commingling
Inadequate top of cement for production casing
16
Down-Hole Commingling
  • Application Requirements (contd)
  • Production information
  • Producing capabilities of each zone
  • Economic limit and ultimate recovery without
    commingling
  • Economic limit and ultimate recovery with
    commingling
  • The purpose of this section is for the operator
    to make the point that the ultimate recovery for
    each zone will be higher with commingling

17
Down-Hole Commingling
  • Application Requirements (contd)
  • Answer to fluid compatibility
  • The operator is responsible for the ability to
    operate the well in a prudent and practicable
    manner
  • The operator is responsible for the ability to
    initiate chemical treatment for scale build-up

18
Down-Hole Commingling
  • Application Requirements (contd)
  • Crossflow and migration
  • The well must comply with Statewide Rule 3.7
  • Whenever hydrocarbon or geothermal resource
    fluids are encountered in any well drilled for
    oil, gas, or geothermal resources in this state,
    such fluid shall be confined in its original
    stratum until it can be produced and utilized
    without waste. Each such stratum shall be
    adequately protected from infiltrating waters.
  • A down-hole commingling exception should not be
    proposed as a resolution to a violation of
    cementing and isolation requirements

19
Down-Hole Commingling
  • Completion Reports
  • The commingled production is assigned to one
    reporting field
  • Must report formation tops and completion
    intervals for each field
  • Oil wells
  • File one W-2 for the reporting field only
  • The reporting field is usually the one with the
    lowest allowable

20
Down-Hole Commingling
  • Completion Reports (contd)
  • Gas wells
  • File a G-1 for each field. Initial Potential
    for the reporting field and Well Record Only
    for each non-reporting field.
  • The reporting field cannot be a 100 AOF field
    unless all of the fields are 100 AOF

21
Frac Port Completions
  • Example a horizontal well with an open-hole
    packer completion system
  • Violation of Rule 13 isolation requirements
  • Is this the same as down-hole commingling?

Field 1
Field 2
22
  • (Type Info Here)

http//www.rrc.state.tx.us/forms/reports/notices/i
ndex.php
23
Frac Port Completions
  • Difference from down-hole commingling
  • Completion report cannot list an actual
    completion interval for Field 1
  • Cannot be accepted as a completion in Field 1

Field 1
Field 2
24
Gas Processing Plants
  • Applicable Statewide Rules
  • Rule 3.54 Reporting requirements
  • Rule 3.60 Difference between refinery and gas
    plant report
  • Rule 3.61 Metering requirements
  • Rule 3.62 Reporting requirements for cycling
    plants

25
Gas Processing Plants
  • Applicable Forms
  • Form R-3 monthly report for gas processing
    plants
  • Form R-7 monthly report for pressure maintenance
    plants
  • Form R-5/R-6 yearly certificate of compliance
    for gas plants, refineries, and cycling plants

26
(Insert Graph Here) Delete if un-needed
27
Gas Processing Plants
General purpose of the report
Residue Gas continuing to flow in pipeline
Gas flowing in pipeline
Gas processing facility or compressor or drip
station
Condensed hydrocarbon liquids
28
Gas Processing Plants
  • General purpose of Form R-3/R-7
  • Report movement of liquids condensed from
    processed gas
  • Applies to the following facilities
  • Actual gas processing plants (R-3)
  • Drip stations (R-3)
  • Compressors (R-3)
  • Cycling plants (R-3)
  • Pressure maintenance plants (R-7)

29
Gas Processing Plants
  • Filing Requirements
  • Certificate of Compliance Form R-5 or R-6.
    Filed yearly. The R-5 is for gas plants and
    refineries. The R-6 is for cycling plants. Drip
    stations and Compressors or other non-processing
    facilities do not need this.
  • Monthly Report Form R-3/R-7. A Form R-3 must be
    filed for each subject facility by the 25th of
    the next month.
  • A gas processing plant or refinery cannot be
    operated without a current certificate of
    compliance.

30
Gas Processing Plants
  • Form R-3 Requirements
  • The form contains about 20 separate balancing
    conditions
  • Example section I total must equal section III
    total
  • Cannot be accepted if it does not meet all of
    these conditions
  • A complete list of conditions can be found on the
    last slide
  • See following slides for two examples

31
Example 1
Section I indicates total gas volume flowing into
the facility
Line 4 must equal line 2 minus line 3
(Must be equal)
Section II is a breakdown of Section I Line 3
Section III is a breakdown of Section I Line 4
31
32
Example 2
Section V is a breakdown of the total condensed
liquid
Section VII documents volumes of stock
on-hand (See instructions for complete list of
balancing conditions)
Section VII is a breakdown of Section I Line 3
32
33
Gas Processing Plants
  • Common Questions
  • Residue (section 3) for a compressor/drip
    station
  • The prompts on the form were based on the
    applicability of the form to an actual gas plant.
    However, for a compressor, the computer that
    collects the data is expecting the gas that goes
    to through the compressor to be reported as
    residue even though it isnt actually being
    processed
  • Meter difference sections
  • For any two sections whose totals must be equal,
    at least one of those sections will have a meter
    difference section to absorb cases in which the
    totals would otherwise be unequal
  • Difference between R-3 and PR (Production Report)
  • The PR is for lease production while the R-3 is
    for condensate handled outside the lease level

34
Gas Processing Plants
Common errors No original signature Omitting
necessary information. If one particular line is
tied to another section via a balancing
condition, make sure data is present to satisfy
that balancing condition. Please review the list
of balancing conditions. Filling in the amounts
but not transferring them over to the Total
line Writing date or serial number in wrong
number format. Date needs to be in MM/YY format
and serial number should be in 12-3456
format. Omitting serial numbers for Section 1,
Line 8 Omitting state abbreviation for Section 1,
Line 11. If gas is received from another
facility outside Texas, the two-letter state
abbreviation must be entered here. Section 1,
Line 3 and Section 2, Line 10 are not
equal. Section 1, Line 12 and Section 3, Line 16
are not equal. Addition or subtraction
errors. Using decimals. There should be no
decimals on this form. Section 7, Line 5 needs to
equal Section 5, Line 11. Unreadable font on
form. Font size should be Arial and at least
10-point size. Section X left blank or the wrong
numbers are put in. Section X1, Line 3 is left
blank.
35
Gas Processing Plants
  • List Of Balancing Requirements
  • Section I, line 12 (Total) needs to equal Section
    III, line 16.
  • Section I, line 3 needs to equal Section II, line
    10.
  • Section I, line 8 needs to include serial number
    from the other processing plant(s). Circle your
    response before submitting.
  • Section I, line 11 needs State abbreviation.
    Circle your response before submitting.
  • Lines 2, 4 and 5 should equal the same total
    unless loss or gain on line 6
  • Lines 5 and 6 equal line 4 and 2
  • Section I, line 3 equals total in section II, so
    this line is subtracted from line 2 and equals
    line 4
  • Section V numbers need to be the same in Section
    VII, line 5.
  • Section VI no longer applies
  • Section VII, line 4 needs to be the same as
    Section VIII under Received. Make sure to
    complete the rest of section VIII and to complete
    the Totals.
  • Section VII, line 6 needs to be the same as
    Section VIII under Delivered. Make sure to
    complete the rest of section VIII and to complete
    the Totals.
  • Section VII, line 7 loss needs explanation in
    Section XI.3 (Examples - BSW, Evaporation or
    measurement loss. Please circle response before
    submitting.)
  • Section VIII does have a total line.
  • Section IX numbers come from Section II line 3, 4
    and/or 5 and/or Section III, line 7, 8 and/or 9.
  • Section X numbers for Unprocessed Gas comes from
    Section II, line 6 (List amount on line 6 as A
    under Use or Disposition) and/or 8(List number
    on line 8 as B under Use or Disposition).
  • Section X numbers for Residue Gas comes from
    Section III, line 11(List number on line 11 as
    A under Use or Disposition) and or 12 (List
    number on line 12 as B under Use or
    Disposition).
  • Section XI, line three explains the loss in
    Section VII. Line 7 or reason for Final Report or
    information when the plant is being transferred
    to another operator.
  • Please refer to the form instructions
    periodically for additional guidance
    http//www.rrc.state.tx.us/forms/forms/og/pdf/r-3i
    ns.pdf

36
Directional Surveys, Down-hole Commingling, and
Gas Plant Reports
  • Oil and Gas Division
  • District Offices
  • Abilene
  • Corpus Christi
  • Houston
  • Kilgore
  • Midland
  • Pampa
  • San Angelo
  • San Antonio
  • Wichita Falls
  • Pipeline Safety
  • Regional Offices
  • Austin
  • Corpus Christi
  • Fort Worth
  • Houston
  • Kilgore
  • Midland
  • Pampa

37
RRC District Offices
38
Contact Information
Steven Arauza 512/463-4990 Steven.Arauza_at_rrc.state.tx.us
Karen Cassidy 512/463-6209 Karen.Cassidy_at_rrc.state.tx.us
Paul Dubois 512/463-6452 Paul.Dubois_at_rrc.state.tx.us
Pam Johns 512/463-6899 Pamela.Johns_at_rrc.state.tx.us
Stephan Paetzold 512/463-3163 Stephan.Paetzold_at_rrc.state.tx.us
Scott Rosenquist 512/475-2307 Scott.Rosenquist_at_rrc.state.tx.us
39
Contact Information
Barry T. Smitherman, Chairman David J. Porter,
Commissioner Buddy Garcia, Commissioner 1701 N.
Congress Ave. P.O. Box 12967 Austin, TX 78711-2967
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