Part 559: "Bass Island" Regulations
(Statutory authority: Environmental Conservation Law, §§ 3-0301, 23-0305)
- 559.1 Applicability and special definitions
- 559.2 Reporting requirements: logs
- 559.3 Reporting requirements: initial testing and records maintenance
- 559.4 Reporting requirements: periodic testing
- 559.5 Production rates
- 559.6 Drilling practices
- 559.7 Temporary allowances: Gerry-Onondaga Oil and Gas Pool
§559.1 Applicability and special definitions
(a) Except as provided in subdivision (b) of this section, this Part applies only to a "Bass Island" well. Each person who intends to drill, drills, or operates such a well must comply with this Part's requirements and with those contained in Parts 550 through 558, inclusive, of this title that have not been specifically superseded by provisions of this Part.
(b) Section 559.6 of this Part applies to:
(1) a well to be drilled below the Tully horizon in an area determined by the department to have the potential to be an extension of a field of "Bass Island" pools;
(2) a well for which the operator designates a "Bass Island" pool as the primary target; and
(3) a well to be drilled into a pool lying below the Tully horizon and above the base of the lowest Salina Group Salt horizon whose primary permeability results from faults or natural fractures and which is expected to produce nonassociated gas with or without condensate.
(c) As used in this Part:
(1) A "Bass Island" well is an oil and gas well completed in a "Bass Island" pool that has daily production of more than 60,000 standard cubic feet of gas or of more than 10 barrels of oil measured at the stock tank, or both.
(2) A "Bass Island" pool is a pool lying below the Tully horizon and above the base of the lowest Salina Group Salt horizon whose primary permeability results from faults or natural fractures, other than one in the Devonian shales as the department determines and other than one producing nonassociated gas with or without condensate, which is located in any of the following counties:
(3) A "Bass Island" wildcat well is the first "Bass Island" well completed in a "Bass Island" pool, or is a "Bass Island" well drilled one mile or more from any existing "Bass Island" well.
§559.2 Reporting requirements: logs
Before completion, the operator of a "Bass Island" well must run, in open hole, a gamma ray log, a neutron or resistivity log, and a density log on the well. The operator may run any or all of the logs, other than the resistivity log, in a cased hole if running of the log in open hole may pose a safety hazard. The operator must file three copies of each of those logs with the department within 30 calendar days of their being run. The operator also must file with the department, within 30 calendar days of its being specifically requested by the department, a copy of any other log that was run on that well.
§559.3 Reporting requirements: initial testing and records maintenance
(a) After completion of and after cleanup or stimulation, but before placing the well on production, the operator of a "Bass Island" well must measure initial bottom hole pressure. The operator must do this by shutting-in the well for a minimum of 72 hours and then obtaining a bottom hole pressure, using best efforts to obtain that pressure by running a pressure bomb as close to the midpoint of the production zone as prudent practices indicate, making gradient stops 1,000 feet and 500 feet above that point of sufficient duration to record the pressures at each of those levels. In instances where wellbore conditions and/or equipment would make the use of a pressure bomb imprudent, the operator must determine a bottom hole pressure by calculations based upon a dead-weighted surface pressure and measurement of any liquid level in the wellbore.
(b) (1) The operator of a "Bass Island" well must calculate the gas-oil ratio based on actual production for the first seven days the well is on production and report the results of those calculations to the department on a form the department prescribes within 30 days of the end of the seven-day production period.
(2) The operator of a "Bass Island" well must measure by means of a chart recording device all gas separated, and must certify to the department the accuracy of those results and the gas-oil ratio determined under paragraph (1) of this subdivision. If gas is not measured in the final stage of separation, the gas volume in the gas-oil ratio calculation must include an estimate of the gas left in solution after the last stage where measurement occurred.
(3) The operator must have available for department inspection the charts used in the gas-oil ratio calculation for no less than three years after the charts were made.
§559.4 Reporting requirements: periodic testing
(a) Starting with the year after the first year of production and during the last two weeks of a month prescribed by the department, the operator of a "Bass Island" well must annually measure static pressures at the midpoint of the production zone and at points 500 feet and 1,000 feet above that point. The department will notify operators at least 60 days in advance of the taking of those pressures that the respective "Bass Island" pool must be shut-in for a minimum period stated in the notice, not to exceed two weeks. The operator must make measurements as set forth in section 559.3(a) of this Part. That operator must file with the department on a form the department prescribes the results of those measurements no later than 30 days after the measurements were taken. The department may, on an administrative basis, revise the testing procedures or reduce the frequency or eliminate the tests under this subdivision when in its judgment, revision, reduction, or elimination is indicated.
(b) (1) The provisions of this subdivision supersede those contained in section 551.2(b) of this Title that concern production reports, and in section 556.1(d)-(e) of this Title that concern gas-oil ratio test reports.
(2) The operator of a "Bass Island" well must file with the department on a form the department prescribes a report of the oil and gas produced from that well. The report must provide a statement of the actual amount of oil and gas produced from the well during each of the three months to which the report pertains; must state the actual number of days in each of those months the well was on production; and must set forth the operator's calculation of the gas-oil ratios for that well for each period in each month during which oil and gas was produced and for the three-month period the report covers. The operator must file this report no later than 60 calendar days after the end of the three-month period to which it pertains. The end days of the three-month periods are March 31st, June 30th, September 30th, and December 31st.
§559.5 Production rates
(a) The provisions of this section supersede section 556.1(e) of this Title.
(b) Absent a department order establishing oil production rates for a particular "Bass Island" pool and subject to subdivision (c) of this section, the daily oil production allowable for those days a "Bass Island" well is on production is 2-1/2 barrels of oil for each acre which that well's application to drill, deepen, plug back or convert shows is assigned to it, but not to exceed 200 barrels; and in gas production to whatever is produced in association with the well's daily oil production allowable. In the case of a "Bass Island" wildcat well, the daily production allowable is 200 barrels of oil per day, regardless of the number of acres assigned to it, for a period of one year from the date on which production from that well first begins. Subsequently, that well's daily oil production allowable will be determined by the method stated in the first sentence of this subdivision. Upon provision to the department of copies of bottom hole oil sample analyses and other data demonstrating that a "Bass Island" well may produce oil at a daily rate greater than 200 barrels without going below the bubble point pressure at the midpoint of the production interval, the department may, on an administrative basis, allow production at that rate to occur until the bubble point is reached; subsequently, the daily production allowable will be determined by the methods stated in the first three sentences of this subdivision. Data demonstrating that continued daily production in excess of 200 barrels of oil is warranted must be submitted to the department monthly. Oil not actually produced under the daily production allowable cannot be produced at a later date.
(c) If a "Bass Island" well is determined to have a gas-oil ratio greater than 2,000 standard cubic feet of gas per barrel of oil measured at the stock tank based upon the gas-oil ratio tests under sections 559.3(b) and 559.4(b) of this Part, that well is limited in oil production to the amount determined by multiplying the allowable as calculated under subdivision (b) of this section by a fraction, the numerator of which is 2,000 standard cubic feet of gas per barrel of oil measured at the stock tank and the denominator of which is the latest reported gas-oil ratio; and in gas production to whatever is produced with the oil produced under the well's daily oil production allowable. If the gas-oil ratio approaches infinity, the well is limited in daily gas production to the amount determined by multiplying the daily oil allowable as calculated under subdivision (b) of this section by 2,000 standard cubic feet of gas. Gas not actually produced under the daily production allowable cannot be produced at a later date. The department may increase the limiting gas-oil ratio on an administrative basis to an amount greater than 2,000 standard cubic feet whenever the operator presents data to the department which the department determines on an administrative basis is adequate justification for such increase.
(d) The operator of a "Bass Island" well may at any time petition the department for a change in production allowable for that well. In so doing, he must use the procedures set forth in section 559.3(b) of this Part if gas-oil ratio test results are submitted with that request.
§559.6 Drilling practices
(a) This section applies to a "Bass Island" well and to a well described in section 559.1(b) of this Part.
(b) (1) The operator of a well described in subdivision (a) of this section must make every effort to accomplish penetration of the target interval during daylight hours, and must notify the department's regional permitting office administering to the county in which the well is located of its intention to penetrate that interval at least eight hours before that interval is reached. A rig that has been certified by the drilling contractor as having an approved vapor-proof lighting system and air shut-off on the rig engines is exempt from the daylight hour requirement.
(2) That operator must notify the local fire department of that well's location and the potential hazards involved before penetrating the target interval, unless the operator has adequate firefighting equipment and personnel on a standby basis approved in writing by the department.
(c) (1) The operator of a well described in subdivision (a) of this section must construct and have ready for use before penetrating the target interval, a completely lined and sealed pit sized to fully contain all drilling fluids and any fluids resulting from natural precipitation.
(2) That operator must maintain all fluids onsite and properly dispose of them as soon as possible after completion of drilling operations. The disposal must be undertaken only by a solid waste hauler having a permit issued under Part 364 of this Title.
(d) (1) Unless the department's studies show some other requirements to be more appropriate in a particular area, the operator of a well described in subdivision (a) of this section must set surface casing to the greater depth of 450 feet from the surface or 100 feet into bedrock and must cement that casing to the surface by circulating cement, using enough excess cement to ensure cement returns. That operator must use centralizers and baskets at appropriate intervals, and the surface casing must have a minimum bursting pressure of 1,800 pounds per square inch. That operator must notify the department of the start of cementing operations at least four hours before those operations start. If a State inspector is not present during cementing operations, that operator must attach a copy of the cement ticket to the well's completion report.
(2) To ensure adequate cementing results, that operator must add material to control lost circulation to the cement used in cementing the conductor and surface casing strings. If a lost circulation zone is encountered, the operator must try to seal off that zone with lost circulation materials before pumping the cement slurry. If cement circulation is not achieved, that operator must grout the well from the surface using cement having materials to control lost circulation, to ensure a complete cement bond. If cement grouting is inadequate, the department may require a cement bond log and additional remedial measures to ensure adequacy of the bond.
(e) (1) The operator of a well described in subdivision (a) of this section must install on the surface casinghead blow-out prevention equipment of the pipe and blind ram type or of the spherical annular type that must be actuated by an energy source other than rig hydraulics. The blow-out prevention equipment must be tested to a minimum of 1,000 pounds per square inch before drilling out the surface casing cement. That operator must notify the department at least eight hours before the testing of the equipment. If the department's inspector is not on location at the designated time, the test may proceed, with the witness' name and results of the test being noted on the driller's log. All blow-out prevention equipment control lines must be made of high pressure tubular steel with flanged connections. A new air-head rubber must be installed in a rotating head before penetrating the target interval.
(2) That operator must install a flanged choke manifold assembly no closer than 25 feet from the wellhead. This assembly must not contain any elbows or T's either at the wellhead or before the choke that controls the flow through the kill lines. Each kill line must be connected with welded flanges from the flange spool to the choke assembly.
(3) That operator must stake and chain all pipes and lines and must remove any diverters from the flow lines before penetrating the interval between the Tully horizon and above the base of the lowest Salina Group Salt horizon.
(4) Once fluid has been put into the well to kill it, that operator must have pressure control devices (e.g., spherical annular blow-out preventers, lubricators, wipers, etc.) installed and ready for use during logging operations. That operator also must have a blow-out preventer installed and ready for use while running production casing.
(5) That operator must provide the drilling company with a well prognosis, indicating formation tops and appropriate warning comments. That operator must ensure that this prognosis is clearly posted and maintained in the dog house. Drilling companies must post in the dog house individual crew member responsibilities for blow-out control. That operator, or his designee, must be on site before and during the penetration of the target interval.
(f) The operator of a well described in this section must provide supplementary connected mud pumping capability on site, either with a secondary mud pump or with a standby service company pump truck. At least 300 barrels of kill fluid must be on site and ready for use if required by well conditions. Additionally, appropriate amounts of bentonite, weight material, and material to control lost circulation must be on site to aid in well control.
(g) The operator of a well described in subdivision (a) of this section must construct the flow line from the wellhead to the pit using T and C tubular goods with a working pressure of 1,500 pounds per square inch and with flanged connections at the wellhead.
(h) If oil is produced during drilling operations of a well described in subdivision (a) of this section, the operator of that well must store the oil on site in tanks.
§559.7 Temporary allowances: Gerry-Onondaga Oil and Gas Pool
(a) For a period of 18 months from the effective date of this Part, daily oil production allowable for each of the following wells: the Piazza No. 2 well (API No. 31-013-17719); the Lebarron No. 1 well (API No. 31-013-17998); the Forbes No. 3 well (API No. 31-013-16909); the Torrey No. 1 well (API No. 31-013-16061); any wells found in pressure communication with these four wells; the Oag No. 4 well (API No. 31-013-16884); and the Gross No. 3 well (API No. 31-013-16706); is 150 percent of that determined under section 559.5 of this Part.
(b) In the event the department determines that they are subject to this Part, for a period of 18 months from the effective date of this Part, the daily oil production allowable for each of the following wells: the Howard No. 1 well (API No. 31-013-18401); the Main No. 1 well (API No. 31-013-18339); and the Josephson No. 2 well (API No. 31-013-17716); is 150 percent of that determined under section 559.5 of this Part.
(c) Upon the expiration of the 18-month period described in subdivisions (a) and (b) of this section, this section shall have no further force and effect, and the determination of production allowables of the wells identified in this section shall be made under the provisions of section 559.5 of this Part.