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Notices to Industry, Publications and Statewide Rules

More Gas Wells Now Exempt from Semi-Annual Testing

To provide additional regulatory relief to operators of marginal gas wells, the Railroad Commission revised Statewide Rule 28, Potential and Deliverability of Gas Wells To Be Ascertained and Reported, effective October 12, 1998. The effect of the change is to exempt more gas wells from their semi-annual testing requirements.

If your company operates a non-commingled gas well with a deliverability in the range of 100 mcf (thousand cubic feet) a day to 250 mcf a day in a gas field without special field rules AND you already have a test on file that indicates this deliverability, the semi-annual G-10 survey is no longer necessary. Prior to this rule revision, only non-commingled wells with a deliverability of 100 mcf or less a day were exempt.

To implement newly revised Statewide Rule 28 immediately, before mailing the pre-printed G-10 forms Commission staff is marking them to identify which well tests are not required. The survey G-10’s mailed at the end of October, effective March 1999, were the first pre-printed forms marked in this manner. If you have already received your survey G-10 forms that are effective November 1998 through February 1999, you need not test any gas wells on these surveys meeting the exemption criteria. You may file a G-10 test if you wish. If, however, you choose not to test these wells, the Commission will use the G-10 rate already on file in the allowable determination process.

Once the necessary computer programming has been completed, these additional exempt wells will no longer be listed on semi-annual surveys.

If a gas well is commingled or is in a field with special field rules, the well must continue to be tested on a semi-annual basis and will remain on the semi-annual survey. The initial G-10 test is still required for all gas wells.

If you have any questions concerning new G-10 filing requirements, please contact your gas proration analyst in Austin.

Austin, Texas- October 1998