ARKANSAS OIL AND GAS COMMISSION

ARKANSASOIL AND GAS COMMISSIONGENERAL RULESAs of December 21, 2020

FOREWORDThis publication contains the Commission Rules of statewide application. Special rulespertaining to individual oil, gas, or salt water fields and pools are not included but should beconsulted.In using this publication one should be aware that there is a considerable body ofstatutory law in Arkansas that must be consulted in evaluating an oil and gas matter.This statutory law is not set out in full herein. The reader should refer to Arkansas Code,Annotated, Title 15, Chapter 72, for the statutory law.

GENERAL RULESTable of ContentsGENERAL RULE A – ADMINISTRATIVE . 1RULE A-1:RULE A-2:RULE A-3:RULE A-4:RULE A-5:RULE A-6:RULE A-7:RULE A-8:REPEALED . 1GENERAL HEARING PROCEDURES . 2ADDITIONAL REQUIREMENTS FOR SPECIFIC TYPES OF HEARINGS . 9DEFINITIONS . 13ENFORCEMENT PROCEDURES . 21RESERVED . 28DETERMINATION OF NATURAL GAS WELL CATEGORIES FOR SEVERANCE TAX PURPOSES . 28REPEALED . 33GENERAL RULE B - DRILLING AND PRODUCTION . 34RULE B-1:RULE B-2:RULE B-3:RULE B-4:RULE B-5:RULE B-6:RULE B-7:RULE B-8:RULE B-9:RULE B-10:RULE B-11:RULE B-12:RULE B-13:RULE B-14:RULE B-15:RULE B-16:RULE B-17:RULE B-18:RULE B-19:RULE B-20:RULE B-21:RULE B-22:RULE B-23:RULE B-24:RULE B-25:RULE B-26:RULE B-27:RULE B-28:RULE B-29:RULE B-30:RULE B-31:RULE B-32:RULE B-33:RULE B-34:RULE B-35:APPLICATION TO DRILL A PRODUCTION WELL . 34PROOF OF FINANCIAL RESPONSIBILITY REQUIRED TO BE FURNISHED . 39SPACING OF WELLS . 44APPLICATION TO TRANSFER A WELL . 46SUBMISSION OF WELL RECORDS AND ISSUANCE OF CERTIFICATE OF COMPLIANCE . 50OIL, GAS AND WATER TO BE PROTECTED . 52WHEN WELLS SHALL BE PLUGGED AND ABANDONED AND NOTICE OF INTENTION TO PLUG ANDABANDON WELLS . 53PLUGGING METHODS AND PROCEDURES . 56DRY GAS WELL PLUGGING METHODS AND PROCEDURES . 57SEISMIC CORE AND OTHER EXPLORATORY HOLES TO BE PLUGGED; METHODS, RECORDS . 62DOMESTIC NATURAL GAS WELLS AND CONVERSION OF PERMITTED OIL AND NATURAL GAS WELLSFOR USE AS DOMESTIC NATURAL GAS OR FRESH WATER SUPPLY WELLS . 63REPEALED . 65ORGANIZATION REPORTS . 65REPEALED . 66CASING REQUIREMENTS . 67BLOW-OUT PREVENTION . 69WELL DRILLING PITS AND COMPLETION PITS REQUIREMENTS . 70WELLHEAD FITTINGS . 80REQUIREMENTS FOR WELL COMPLETION UTILIZING FRACTURE STIMULATION . 80REPEALED . 85REPEALED . 85REPEALED . 85TUBING . 86REPEALED . 86REPEALED . 86GENERAL LEASE OPERATING REQUIREMENTS . 87REPEALED . 95REPEALED . 95REPEALED . 95DEVIATION TESTS . 96REPEALED . 97VACUUM PUMPS PROHIBITED . 97REPEALED . 98NOTICE OF FIRE, BREAKS, OR BLOW-OUTS AND REMEDIATION OF ASSOCIATED SPILLS OF CRUDEOIL AND PRODUCED WATER . 99DETERMINING AND NAMING COMMON SOURCES OF SUPPLY . 103i

GENERAL RULESRULE B-36:RULE B-37:RULE B-38:RULE B-39:RULE B-40:TAKINGS TO BE RATABLE . 104DUAL COMPLETION OF WELLS . 105ESTABLISHMENT OF FIELD RULES . 106REPEALED . 107AUTHORIZATION FOR DIRECTOR OF PRODUCTION AND CONSERVATION TO ADMINISTRATIVELYAPPROVE APPLICATIONS FOR EXCEPTIONAL WELL LOCATIONS . 108RULE B-41: RULE FOR OPERATION IN HYDROGEN SULFIDE (H 2 S) AREAS . 112RULE B-42: SEISMIC RULES . 117RULE B-43: ESTABLISHMENT OF DRILLING UNITS FOR GAS PRODUCTION FROM CONVENTIONAL ANDUNCONVENTIONAL SOURCES OF SUPPLY OCCURRING IN CERTAIN PROSPECTIVE AREAS NOTCOVERED BY FIELD RULES . 121RULE B-44: ESTABLISHMENT OF DRILLING UNITS FOR GAS PRODUCTION FROM ALL SOURCES OF SUPPLYOCCURING IN CERTAIN PRODUCING AREAS IN FRANKLIN, LOGAN, SCOTT, SEBASTIAN AND YELLCOUNTIES . 130RULE B-45: ESTABLISHMENT OF WELL SET-BACK REQUIREMENTS FOR DRY GAS PRODUCTION WELLS OCCURINGIN ESTABLISHED FIELDS IN CRAWFORD, FRANKLIN, JOHNSON, LOGAN, MADISON, POPE, SCOTT,YELL, SEBASTIAN AND WASHINGTON COUNTIES . 138GENERAL RULE C - OIL . 141RULE C-1:RULE C-2:RULE C-3:RULE C-4:RULE C-5:RULE C-6:RULE C-7:RULE C-8:RULE C-9:RULE C-10:FIELDS OR POOLS IN WHICH PRODUCTION WILL BE CONTROLLED . 141REPORTS BY PRODUCERS . 142REPEALED . 144REPEALED . 145OIL ASSESSMENT . 146REPEALED . 147REPEALED . 147REPEALED . 147REPEALED . 147ESTABLISHMENT OF WELL SET-BACK REQUIREMENTS FOR OIL PRODUCTION WELLS . 148GENERAL RULE D - GAS . 149RULE D-1:RULE D-2:RULE D-3:RULE D-4:RULE D-5:RULE D-6:RULE D-7:RULE D-8:RULE D-9:RULE D-10:RULE D-11:RULE D-12:RULE D-13:RULE D-14:RULE D-15:RULE D-16:RULE D-17:RULE D-18:RULE D-19:RULE D-20:RULE D-21:REPEALED . 149REPEALED . 149REPEALED . 149REPEALED . 149REPEALED . 149REPEALED . 149NATURAL GAS TO BE METRED . 150MONTHLY NATURAL GAS PRODUCTION REPORTS . 151REPEALED . 152REPEALED . 152REPEALED . 152REPEALED . 152REPEALED . 152GAS ASSESSMENT . 153MEASURING GAS AT CUSTODY TRANSFER POINTS . 154BACK PRESSURE TESTS FOR NATURAL GAS PRODUCTION ALLOWABLE DETERMINATION . 155GENERAL RULE FOR THE REGULATION OF NATURAL GAS PIPELINES . 157AUTHORITY TO COMMINGLE . 162ADDITIONAL COMPLETIONS WITHIN COMMON SOURCESOF SUPPLY WITHIN A DRILLING UNIT . 164NOISE LEVEL REQUIREMENTS FOR NON-WELLHEAD COMPRESSOR FACILITIES . 166PROCEDURES FOR DETERMINING THE PRODUCTION ALLOWABLE FOR DRY NATURAL GASPRODUCTION WELLS . 168ii

GENERAL RULESRULE D-22: REQUIREMENTS FOR LEASE GAS RIGHTS SUPPLY LINES . 170RULE D-23: REGULATION OF UNDERGROUND NATURAL GAS STORAGE PROJECTS. 174GENERAL RULE E - TRANSPORTATION . 186RULE E-1:RULE E-2:RULE E-3:PIPE LINES, PURCHASERS AND TRANSPORTERS . 186REPORTS FROM OIL PIPE LINES, TRANSPORTERS AND STORERS . 187EXPLORATION AND PRODUCTION FLUID GATHERING, HANDLING AND TRANSPORTATION . 188GENERAL RULE F - PROCESSING . 191RULE F-1:RULE F-2:RULE F-3:REPEALED . 191REFINERY REPORTS . 191GASOLINE PLANT REPORTS. 191GENERAL RULE G - ABANDONED AND ORPHAN WELL PLUGGING PROGRAM . 192RULE G-1:RULE G-2:RULE G-3:ABANDONED OR LEAKING WELL AND WELL SITE REMEDIATION . 192PLUGGING OF ORPHAN WELLS . 195TRANSFER OF WELLS IN THE ABANDONED AND ORPHANED WELL PLUGGING PROGRAM . 196GENERAL RULE H - CLASS II UIC WELLS . 197RULE H-1:RULE H-2:RULE H-3:CLASS II DISPOSAL AND CLASS II COMMERCIAL DISPOSAL WELL PERMIT APPLICATIONPROCEDURES. 197WELL CONSTRUCTION, OPERATING AND REPORTING REQUIREMENTS FOR CLASS II DISPOSALWELLS . 212WELL CONSTRUCTION, OPERATING AND REPORTING REQUIREMENTS FOR CLASS II COMMERCIALDISPOSAL WELLS . 216ELECTRONIC COPIES OF REQUIRED FORMSwww.aogc.state.ar.usiii

GENERAL RULESGENERAL RULE A – ADMINISTRATIVERULE A-1:REPEALEDRule Repealed Effective October 19, 2018 in accordance with Act 781 of 20171

GENERAL RULESRULE A-2:a)GENERAL HEARING PROCEDURESExecution and Filing1)All applications, except for applications filed by the Director, shall be in writing and statethe interests of the application and the general nature of the order requested. Fourteencopies of the application, including exhibits, shall be filed with the CommissionDirector’s office located in Little Rock, Arkansas (“Director’s Office”). The applicationshall be deemed filed when it is received by the Director’s Office.2)All fourteen (14) copies of the applications, including exhibits, except for those filed bythe Director, must be received in the Directors Office at least twenty (20) days prior tothe first day of regularly scheduled hearing. If the applicant or his/her representative filesan electronic version (a .pdf file labeled by the assigned docket number) of theapplication, including exhibits, on an electronic storage device approved by the Director aminimum of twenty (20) days prior to the first day of the regularly sched

pertaining to individual oil, gas, or salt water fields and pools are not included but should be consulted. In using this publication one should be aware that there is a considerable body of statutory law in Arkansas that must be consulted in evaluating an oil and gas matter. This statutory law is not set out in full herein. The reader should .