State Oil And Gas Board Of Alabama

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STATE OIL AND GAS BOARD OF ALABAMA Berry H. (Nick) Tew, Jr. State Geologist and Oil and Gas Supervisor S. Marvin Rogers General Counsel STATE OIL AND GAS BOARD OF ALABAMA ADMINISTRATIVE CODE OIL AND GAS REPORT 1 RULES AND REGULATIONS GOVERNING THE CONSERVATION OF OIL AND GAS IN ALABAMA and OIL AND GAS LAWS OF ALABAMA with OIL AND GAS BOARD FORMS Published by the GEOLOGICAL SURVEY OF ALABAMA for the STATE OIL AND GAS BOARD Tuscaloosa, Alabama March 2023

CONTENTS Introduction . Chronological list of rules and regulations promulgated by the State Oil and Gas Board . 400-1. Rules and Regulations of the State Oil and Gas Board of Alabama Governing Onshore Lands Operations . 400-1-1. General. 400-1-1-.01. Applicability. 400-1-1-.02. Application of Other Rules. 400-1-1-.03. Repealed Rules, Special Field Rules, and Orders . 400-1-1-.04. Authority . 400-1-1-.05. Definitions . 400-1-1-.06. Forms . 400-1-1-.07. Determining and Naming Fields and Pools . 400-1-1-.08. Authority of Supervisor . 400-1-1-.09. Appeal from Decision of Supervisor . 400-1-1-.10. Agents to Have Access . 400-1-1-.11. Order Closing Down Operations . 400-1-1-.12. Supervisor’s Order Closing Down Operations . 400-1-1-.13. Exceptions to Rules . 400-1-2. Permitting of Wells . 400-1-2-.01. Well Permit . 400-1-2-.02. Spacing of Wells . 400-1-2-.03. Bond . 400-1-2-.04. Organization Reports . 400-1-2-.05. Change of Operator . 400-1-3. Notification and Approval of Activities . 400-1-3-.01. Well Status Report . 400-1-3-.02. Notification of Activities . 400-1-3-.03. Approval of Activities . 400-1-4. Drilling . 400-1-4-.01. Identification of Wells . 400-1-4-.02. Protection of Freshwater Resources . 400-1-4-.03. Well Record . 400-1-4-.04. Directional Surveys . 400-1-4-.05. Abandonment of Radioactive Logging Sources . 400-1-4-.06. Operations Involving Radioactive Material . 400-1-4-.07. Chemically Treating or Fracturing a Well . 400-1-4-.08. Report of Well Treatment . 400-1-4-.09. Casing, Cementing, and Test Pressure Requirements . 400-1-4-.10. Pit Construction and Maintenance . 400-1-4-.11. Recycling or Disposal of Pit Fluids and Pit Closure . 400-1-4-.12. Drilling Mud. 400-1-4-.13. Blow-Out Prevention . 400-1-4-.14. Plugging and Abandonment of Wells . 400-1-4-.15. Report of Well Plugging . 400-1-4-.16. Restoration of Location . 400-1-4-.17. Request to Classify Wells as Temporarily Abandoned or Shut in. 400-1-4-.18. Abandoned Wells . 400-1-4-.19. Wells Used for Freshwater . 400-1-4-.20. Seismic, Core, and Other Exploratory Holes to be Plugged . 400-1-5. Testing and Allowable . 400-1-5-.01. Daylight Hours . 400-1-5-.02. Swabbing and Cleaning Wells. 400-1-5-.03. Production Tests . i Page 1 2 A-1 A-1 A-1 A-1 A-1 A-1 A-1 A-7 A-8 A-8 A-8 A-8 A-8 A-8 A-9 A-9 A-9 A-10 A-12 A-13 A-13 A-14 A-14 A-14 A-14 A-15 A-15 A-16 A-16 A-16 A-17 A-18 A-18 A-18 A-18 A-20 A-20 A-21 A-21 A-22 A-23 A-23 A-23 A-24 A-24 A-24 A-24 A-24 A-24 A-24

CONTENTS–continued 400-1-5-.04. Production Allowable . 400-1-5-.05. Oil Measurements . 400-1-5-.06. Oil and Condensate to be Measured . 400-1-5-.07. Gas to be Metered . 400-1-5-.08. Gas-Oil Ratio . 400-1-5-.09. Permissible Tolerance in Production Volumes Allowed for Oil Wells . 400-1-5-.10. Permissible Tolerance in Production Volumes Allowed for Gas Wells . 400-1-6. Production . 400-1-6-.01. General . 400-1-6-.02. Protection of Oil and Gas . 400-1-6-.03. Initial Bottom Hole Pressure Survey . 400-1-6-.04. Pressure-Volume-Temperature Analysis . 400-1-6-.05. Procedures for Multiple Completions . 400-1-6-.06. Recompletion or Reworking . 400-1-6-.07. Tanks or Tank Batteries . 400-1-6-.08. Dikes . 400-1-6-.09. Berms . 400-1-6-.10. Site Maintenance . 400-1-6-.11. Location of Fired Vessels . 400-1-6-.12. Authorization to Clean Tanks . 400-1-7. Processing . 400-1-7-.01. Production Facilities, Processing Facilities, and Plants . 400-1-8. Transportation . 400-1-8-.01. Certificate of Compliance, Authorization to Transport . 400-1-8-.02. Revocation of Certificate of Compliance . 400-1-8-.03. Gathering Lines . 400-1-9. Safety and Environment . 400-1-9-.01. Notification of Fire, Spill, Leak, or Blow Out . 400-1-9-.02. Operations Involving Hydrogen Sulfide . 400-1-9-.03. Transportation of Wastes Associated with Oil and Gas Operations . 400-1-9-.04. Hydraulic Fracturing . 400-1-10. Reports . 400-1-10-.01. Reports . 400-2. Rules and Regulations of the State Oil and Gas Board of Alabama Governing Submerged Offshore Lands Operations . 400-2-1. General. 400-2-1-.01. Applicability. 400-2-1-.02. Application of Other Rules. 400-2-1-.03. Repealed Rules, Special Field Rules, and Orders . 400-2-1-.04. Authority . 400-2-1-.05. Definitions . 400-2-1-.06. Forms . 400-2-1-.07. Determining and Naming Fields and Pools . 400-2-1-.08. Authority of Supervisor . 400-2-1-.09. Appeal from Decision of Supervisor . 400-2-1-.10. Agents to Have Access . 400-2-1-.11. Order Closing Down Operations . 400-2-1-.12. Supervisor's Order Closing Down Operations . 400-2-1-.13. Exceptions to Rules . 400-2-2. Permitting of Wells . 400-2-2-.01. Well Permit . 400-2-2-.02. Spacing of Wells . 400-2-2-.03. Bond . ii Page A-25 A-25 A-26 A-26 A-26 A-26 A-27 A-27 A-27 A-27 A-27 A-27 A-28 A-28 A-28 A-28 A-28 A-29 A-29 A-29 A-29 A-29 A-32 A-32 A-32 A-32 A-34 A-34 A-34 A-40 A-41 A-42 A-42 B-1 B-1 B-1 B-1 B-1 B-1 B-1 B-7 B-8 B-8 B-8 B-8 B-8 B-9 B-9 B-9 B-9 B-11 B-13

CONTENTS–continued 400-2-2-.04. Organization Reports . 400-2-2-.05. Change of Operator . 400-2-3. Notification and Approval of Activities . 400-2-3-.01. Well Status Report . 400-2-3-.02. Notification of Activities . 400-2-3-.03. Approval of Activities . 400-2-4. Drilling . 400-2-4-.01. Identification of Wells . 400-2-4-.02. Protection of Freshwater Resources . 400-2-4-.03. Well Record . 400-2-4-.04. Directional Surveys . 400-2-4-.05. Abandonment of Radioactive Logging Sources . 400-2-4-.06. Operations Involving Radioactive Material . 400-2-4-.07. Chemically Treating or Fracturing a Well . 400-2-4-.08. Report of Well Treatment . 400-2-4-.09. Casing, Cementing, Mud, and Blowout Prevention Program . 400-2-4-.10. Recycling or Disposal of Tank Fluids . 400-2-4-.11. Plugging and Abandonment of Wells . 400-2-4-.12. Report of Well Plugging . 400-2-4-.13. Clearance of Location . 400-2-4-.14. Request to Classify Wells as Temporarily Abandoned or Shut-in . 400-2-4-.15. Abandoned Wells . 400-2-4-.16. Seismic, Core, and Other Exploratory Holes to be Plugged . 400-2-5. Testing and Allowable . 400-2-5-.01. Daylight Hours . 400-2-5-.02. Swabbing and Cleaning Wells. 400-2-5-.03. Production Tests . 400-2-5-.04. Production Allowable . 400-2-5-.05. Oil Measurements . 400-2-5-.06. Oil and Condensate to be Measured . 400-2-5-.07. Gas to be Metered . 400-2-5-.08. Gas-Oil Ratio . 400-2-5-.09. Permissible Tolerance in Production Volumes Allowed for Oil Wells . 400-2-5-.10. Permissible Tolerance in Production Volumes Allowed for Gas Wells . 400-2-6. Production . 400-2-6-.01. General . 400-2-6-.02. Protection of Oil and Gas . 400-2-6-.03. Initial Bottom Hole Pressure Survey . 400-2-6-.04. Pressure-Volume-Temperature Analysis . 400-2-6-.05. Procedures for Multiple Completions . 400-2-6-.06. Recompletion or Reworking . 400-2-6-.07. Subsurface Safety Devices . 400-2-6-.08. Wellhead Equipment and Testing Procedures . 400-2-6-.09. Platforms and Fixed Structures . 400-2-6-.10. Production Facilities, Processing Facilities, and Offshore Plants . 400-2-7. Transportation . 400-2-7-.01. Certificate of Compliance, Authorization to Transport . 400-2-7-.02. Revocation of Certificate of Compliance . 400-2-8. Safety and Environment . 400-2-8-.01. Survey of Shallow Hazards . 400-2-8-.02. Notification of Fire or Blow Out. 400-2-8-.03. Pollution Prevention and Control . 400-2-8-.04. Operations Involving Hydrogen Sulfide . iii Page B-14 B-14 B-15 B-15 B-16 B-16 B-17 B-17 B-17 B-17 B-18 B-18 B-19 B-19 B-19 B-19 B-24 B-25 B-26 B-26 B-27 B-28 B-28 B-28 B-28 B-28 B-28 B-29 B-29 B-30 B-30 B-30 B-30 B-31 B-31 B-31 B-31 B-31 B-31 B-32 B-32 B-32 B-33 B-34 B-35 B-39 B-39 B-39 B-40 B-40 B-40 B-40 B-42

CONTENTS–continued 400-2-8-.05. Transportation of Wastes Associated with Oil and Gas Operations . 400-2-9. Reports . 400-2-9-.01. Reports . 400-3. Rules and Regulations of the State Oil and Gas Board of Alabama Governing Coalbed Methane Gas Operations . 400-3-1. General. 400-3-1-.01. Applicability. 400-3-1-.02. Application of Other Rules. 400-3-1-.03. Repealed Rules, Special Field Rules, and Orders . 400-3-1-.04. Authority . 400-3-1-.05. Definitions . 400-3-1-.06. Forms . 400-3-1-.07. Determining and Naming Fields and Pools . 400-3-1-.08. Authority of Supervisor . 400-3-1-.09. Appeal from Decision of Supervisor . 400-3-1-.10. Agents to Have Access . 400-3-1-.11. Order Closing Down Operations . 400-3-1-.12. Supervisor's Order Closing Down Operations . 400-3-1-.13. Exceptions to Rules . 400-3-2. Permitting of Wells . 400-3-2-.01. Well Permit . 400-3-2-.02. Spacing of Wells . 400-3-2-.03. Bond . 400-3-2-.04. Organization Reports . 400-3-2-.05. Change of Operator . 400-3-3. Notification and Approval of Activities . 400-3-3-.01. Well Status Report . 400-3-3-.02. Notification of Activities . 400-3-3-.03. Approval of Activities . 400-3-4. Drilling . 400-3-4-.01. Identification of Wells . 400-3-4-.02. Protection of Freshwater Resources . 400-3-4-.03. Well Record . 400-3-4-.04. Directional Surveys . 400-3-4-.05. Abandonment of Radioactive Logging Sources . 400-3-4-.06. Operations Involving Radioactive Material . 400-3-4-.07. Chemically Treating or Fracturing a Well . 400-3-4-.08. Report of Well Treatment . 400-3-4-.09. Casing, Cementing, and Test Pressure Requirements . 400-3-4-.10. Pit Construction and Maintenance . 400-3-4-.11. Recycling or Disposal of Pit Fluids and Pit Closure . 400-3-4-.12. Drilling Fluid . 400-3-4-.13. Blow-Out Prevention . 400-3-4-.14. Plugging and Abandonment of Wells . 400-3-4-.15. Report of Well Plugging . 400-3-4-.16. Restoration of Location . 400-3-4-.17. Request to Classify Wells as Temporarily Abandoned or Shut-in . 400-3-4-.18. Abandoned Wells . 400-3-4-.19. Wells Used for Freshwater . 400-3-4-.20. Seismic, Core, and Other Exploratory Holes to be Plugged . 400-3-5. Testing and Allowable . 400-3-5-.01. Daylight Hours . 400-3-5-.02. Swabbing and Cleaning Wells. iv Page B-47 B-48 B-48 C-1 C-1 C-1 C-1 C-1 C-1 C-1 C-6 C-6 C-7 C-7 C-7 C-7 C-7 C-7 C-7 C-7 C-9 C-10 C-11 C-11 C-12 C-12 C-13 C-13 C-13 C-13 C-14 C-14 C-14 C-15 C-16 C-16 C-16 C-16 C-18 C-18 C-18 C-18 C-18 C-20 C-20 C-20 C-20 C-21 C-21 C-21 C-21 C-21

CONTENTS–continued 400-3-5-.03. Venting or Flaring of Coalbed Methane Gas . 400-3-5-.04. Production Approval . 400-3-5-.05. Production Test . 400-3-5-.06. Production Allowable . 400-3-5-.07. Gas to be Metered . 400-3-6. Production . 400-3-6-.01. General . 400-3-6-.02. Holding Ponds . 400-3-6-.03. Produced Water . 400-3-6-.04. Commingling. 400-3-6-.05. Recompletion or Reworking . 400-3-6-.06. Tanks or Tank Batteries . 400-3-6-.07. Dikes . 400-3-6-.08. Site Maintenance . 400-3-6-.09. Production Facilities . 400-3-7. Transportation . 400-3-7-.01. Certificate of Compliance, Authorization to Transport . 400-3-7-.02. Revocation of Certificate of Compliance . 400-3-7-.03. Gathering Lines . 400-3-8. Safety and Environment .

STATE OIL AND GAS BOARD OF ALABAMA Berry H. (Nick) Tew, Jr. State Geologist and Oil and Gas Supervisor S. Marvin Rogers General Counsel STATE OIL AND GAS BOARD OF ALABAMA ADMINISTRATIVE CODE OIL AND GAS REPORT 1 RULES AND REGULATIONS GOVERNING THE CONSERVATION OF OIL AND GAS IN ALABAMA and OIL AND GAS LAWS OF ALABAMA with OIL AND GAS BOARD FORMS

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