W. Va. Code R. § 38-21-4

Current through Register Vol. XLI, No. 42, October 18, 2024

Section 38-21-4 - Demonstration of Designation of Bona Fide Future Use

4.1 For any well which is not in active status, an operator must demonstrate bona fide future use to avoid having such well deemed abandoned under W.Va. Code 22B-1-19. In order to establish bona fide fixture use, the operator shall submit information and data sxifficient to satisfy the Chief that there is a bona fide future use for the well. The operator should consider the following information:

4.1.1 The date on which the well was completed;

4.1.2 The method which the well meets the financial responsibility requirements of W.VA.. Code 22B-5-4 and 22B-5-5.

4.1.3 The date on which the well first produced;

4.4.4 The results of the initial gas-oil ratio test;

4.1.5 The last date on which the well was producing;

4.1.6 The average monthly production at the time production ceased;

4.1.7 The formation(s) from which the well produced;

4.1.8 The estimated remaining recoverable reserves associated with the well without reworking the well;

4.1.9 Whether reworking the well to recover additional reserves is possible;

4.1.10 The estimated remaining recoverable reserves associated with the well after reworking;

4.1.11 The method used to estabhsh reserve estimates in sections 4.1.8 and 4.1.10;

4.1.12 Whether secondary recovery is possible;

4.1.13 Whether production from other formations is possible;

4.1.14 Whether the well can be drilled deeper;

4.1.15 The estimated cost to deepen the well;

4.1.16 Whether the well is covered by a gas sales contract;

4.1.17 Wliether the well is connected to a gas meter or how it is measured at the transfer of ownership or custody;

4.1.18 Other equipment connected to the well;

4.1.19 Whether the well is connected to a pipehne system;

4.1.20 A description of the Line pressure of the receiving pipeline;

4.1.21 Whether a compressor is in place and whether it is in use on the well;

4.1.22 If the well is not connected to a pipeline, the distance to the nearest pipeline that would accept production from the well;

4.1.23 Whether a shut-in royalty is being paid;

4.1.24 The operator's schedule for putting the well into production;

4.1.25 Whether the well is currently used for or capable of use for gas storage;

4.1.26 Whether the well is capable of being used as a Liquid injection well;

4.1.27 Whether money has been escrowed for use to plug the well in the future; and,

4.1.28 Any other information which the operator considers relevant to establishing a bona fide future use.

W. Va. Code R. § 38-21-4