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Notices to Industry, Publications and Statewide Rules

OIL WELL TESTING REQUIREMENTS SIMPLIFIED

Statewide Rules 52 and 53 Amended

As a part of the Commission’s ongoing Regulatory Reform Initiative to simplify required filings, Statewide rules 52 and 53 have been revised to remove unnecessary regulatory reporting for oil wells.

Rule 52, Oil Well Allowable Production, amended effective January 10, 2000, no longer requires the testing operator to notify of offset operators of annual oil well tests. If an offset operator desires to witness an annual test, that operator must make a written request of the testing operator. Upon receipt of such a request, the testing operator must provide the offset operator a reasonable opportunity to witness the test by giving at least 24 hours notice of the date of the next annual test.

Rule 53, Annual Well Tests and Well Status Reports Required, was amended effective January 10, 2000 to expand the number of wells eligible for the allocated production method currently used for wells making 2 barrels a day or less. The allocation method is now available for most wells making 5 barrels a day or less. An operator no longer has to test these wells, but can report the required oil, gas, and water volumes based on an allocation of the well’s production on a prorated daily basis.

    • When filing the annual W-10 reports on wells making 5 barrels a day or less, leave the “date tested” block empty to indicate that the volumes reported are based on allocation.
    • When filing a W-10 retest, enter the month and year used to calculate the allocation in the “date tested” block.

This expanded allocation option does not apply to surface commingled wells, swabbed wells, the East Texas field, or Panhandle oil fields listed in docket #10-87,017. The expanded allocation option may be used on any W-10 report filed that is to be effective March 2000 forward.

For questions concerning these oil well testing revisions, please contact the Proration Unit at (512) 463-6742.

Austin, Texas
March 2000