TITLE 4. CONSERVATION AND NATURAL RESOURCES
VIRGINIA GAS AND OIL BOARD
Proposed Regulation
Title of Regulation: 4VAC25-160. Virginia Gas and Oil Board Regulations (amending
4VAC25-160-10, 4VAC25-160-30, 4VAC25-160-40, 4VAC25-160-50, 4VAC25-160-60,
4VAC25-160-70, 4VAC25-160-130, 4VAC25-160-190, 4VAC25-160-200).
Statutory Authority: § 45.1-361.15 of the
Code of Virginia.
Public Hearing Information:
October 23, 2009 - 9 a.m. - Department of Mines, Minerals and Energy, 3405 Mountain Empire Road, Buchanan-Smith Building, Conference Room 219, Big Stone Gap, VA
Public Comments: Public comments may be
submitted until 5 p.m. on October 30, 2009.
Agency Contact: Tabitha Hibbitts Peace,
Policy Analyst, Department of Mines, Minerals and Energy, 3405 Mountain Empire
Road, P.O. Drawer 900, Big Stone Gap, VA 24219, telephone (276) 523-8212, FAX
(276) 523-8148, TTY (800) 828-1120, or email tabitha.peace@dmme.virginia.gov.
Basis: The Department of Mines, Minerals and Energy (DMME)
has authority to promulgate this regulation under authority found in
§§ 45.1-161.3, 45.1-361.4, and 45.1-361.15 of the Code of Virginia.
Section 45.1-161.3 of the Code of Virginia
empowers DMME, with the approval of the director, to promulgate regulations
necessary or incidental to the performance of duties or execution of powers
under Title 45.1 of the Code of Virginia.
Section 45.1-361.4 of the Code of Virginia
empowers the director with the power and duty to regulate gas, oil, or
geophysical operations, collect fees, and perform other responsibilities as may
be prescribed in regulations promulgated by the Department of Mines, Minerals
and Energy, or the Virginia Gas & Oil Board.
Section 45.1-361.15 of the Code of Virginia
empowers the Virginia Gas and Oil Board to have the specific authority to issue
rules, regulations, or orders pursuant to the provisions of the Administrative
Process Act.
Purpose: The Department of Mines, Minerals and Energy
and the Virginia Gas and Oil Board have determined the proposed regulatory
amendments to various sections of 4VAC25-160 (4VAC25-160-30; 4VAC-25-160-40;
4VAC25-160-50; 4VAC25-160-70) are necessary to protect the health, welfare, and
safety of citizens, reduce workload, and increase efficiency for applicants.
The proposed regulatory actions to 4VAC25-160-200 will update references to
external technical documents.
The proposed amendments to various sections
of 4VAC25-160 are also essential to protect the health and welfare of citizens
by providing clear language that is consistent with state law and regulation.
Substance: As a result of periodic review, the
Department of Mines, Minerals and Energy and the Virginia Gas and Oil Board is
amending 4VAC25-160, Virginia Gas and Oil Board Regulations, to make technical
corrections, improve clarity, increase efficiency, and restore consistency with
other chapters.
4VAC25-160-30, 4VAC25-160-40, 4VAC25-160-50,
4VAC25-160-60, 4VAC25-160-70, and 4VAC25-160-200 will be amended to correct
several technical areas for accuracy, and provide clarity. These amendments
regarding process will aid the gas and oil industry, as well as the Gas and Oil
Board in the approval and regulation of gas and oil permits.
Amending 4VAC25-160-30 will reduce workload
and increase efficiency for applicants by providing flexibility and economy in
the permit process.
Amendments to 4VAC25-160-40, 4VAC25-160-50,
and 4VAC25-160-70 are being made to bring consistency to data submission
requirements for the Division of Gas and Oil. The use of latitude and longitude
and the Virginia Coordinate System of 1927 have been replaced by the Virginia
Coordinate System of 1983 in other Division of Gas and Oil regulations. Current
industry practice is to use the more modern 1983 coordinate system for
describing the locations of wells and core holes. Applicants for permits under
this chapter must currently convert their coordinates back to the 1927 system,
as required by the regulation, in order to submit them to the Department of
Mines, Minerals and Energy's Division of Gas and Oil. The amendment will allow
applicants to use the updated 1983 coordinate system.
Issues: These regulatory actions are expected to provide
technical corrections, improve clarity, increase efficiency, and restore
consistency with other chapters of regulation. These amendments regarding
process will aid the gas and oil industry, as well as the Gas and Oil Board in
the approval and regulation of gas and oil permits. Reduced workload and
increased efficiency for applicants will occur by providing flexibility and
economy in the permit process.
The Department of Planning and Budget's
Economic Impact Analysis:
Summary of the Proposed Amendments to
Regulation. The Virginia Gas and Oil Board (Board) proposes to make several
clarifications and to update technical language to reflect current conditions.
Additionally, the Board proposes two small changes to paperwork requirements.
Result of Analysis. The benefits likely
exceed the costs for all proposed changes.
Estimated Economic Impact. Under the current
regulations applicants must submit 10 sets of each application and accompanying
exhibits. The proposed regulations only require that 8 sets are submitted. This
will result in a small amount of savings in time and resources.
The current regulations also require that
"Each person offering exhibits into evidence shall also have available a
reasonably sufficient number of exhibits for other persons who are subject to
the provisions of §§ 45.1-361.19 and 45.1-361.23 of the Code of Virginia and
are expected to be in attendance at the hearing." The Board proposes to
amend this to “Each person offering exhibits into evidence shall also have
available a reasonably sufficient number of exhibits for other persons who are
subject to the provisions of §§ 45.1-361.19 and 45.1-361.23 of the Code of
Virginia, who have notified the division by certified mail notice of their
request for copies of exhibits, and are expected to be in attendance at the
hearing. This proposed change will help applicants avoid spending time and
resources on producing more copies than are needed. Similar to above though,
the expected savings are small.
Businesses and Entities Affected. According
to the Department of Mines, Minerals and Energy, four large firms drill most
oil and gas wells in Virginia. An unknown number of other companies may also
undertake such activities from time to time. None of these would be defined as
small businesses. Interested citizens and localities are also potentially
affected.
Localities Particularly Affected. Oil and gas
wells in Virginia are predominately located in Buchanan, Dickenson, Lee,
Russell, Scott, Tazewell, & Wise Counties.1
Projected Impact on Employment. The proposal
amendments do not significantly affect employment.
Effects on the Use and Value of Private
Property. The proposal amendments do not significantly affect the use and value
of private property.
Small Businesses: Costs and Other Effects.
The proposed amendments do not significantly affect small businesses.
Small Businesses: Alternative Method that
Minimizes Adverse Impact. The proposed amendments do not significantly affect
small businesses.
Real Estate Development Costs. The proposed
amendments do not significantly affect real estate development costs.
Legal Mandate. The Department of Planning and
Budget (DPB) has analyzed the economic impact of this proposed regulation in
accordance with § 2.2-4007.04 of the Administrative Process Act and Executive
Order Number 36 (06). Section 2.2-4007.04 requires that such economic impact
analyses include, but need not be limited to, the projected number of
businesses or other entities to whom the regulation would apply, the identity
of any localities and types of businesses or other entities particularly
affected, the projected number of persons and employment positions to be
affected, the projected costs to affected businesses or entities to implement
or comply with the regulation, and the impact on the use and value of private
property. Further, if the proposed regulation has adverse effect on small
businesses, § 2.2-4007.04 requires that such economic impact analyses
include (i) an identification and estimate of the number of small businesses
subject to the regulation; (ii) the projected reporting, recordkeeping, and
other administrative costs required for small businesses to comply with the
regulation, including the type of professional skills necessary for preparing
required reports and other documents; (iii) a statement of the probable effect
of the regulation on affected small businesses; and (iv) a description of any
less intrusive or less costly alternative methods of achieving the purpose of
the regulation. The analysis presented above represents DPB's best estimate of
these economic impacts.
________________________
1 Source:
Department of Mines, Minerals and Energy
Agency's Response to the Department of
Planning and Budget's Economic Impact Analysis: The agency concurs with
Department of Planning and Budget's economic impact analysis.
Summary:
As a result of periodic
review, the Department of Mines, Minerals and Energy and the Virginia Gas and
Oil Board are amending 4VAC25-160, Virginia Gas and Oil Board Regulations, to
make technical corrections, improve clarity, increase efficiency, and to
restore consistency with other chapters. 4VAC25-160-30, 4VAC25-160-40,
4VAC25-160-50, 4VAC25-160-60, 4VAC25-160-70, and 4VAC25-160-200 will be amended
to correct several technical areas for accuracy, and provide clarity. Amending
4VAC25-160-30 will reduce workload and increase efficiency for applicants by
providing flexibility and economy in the permit process. Amendments to
4VAC25-160-40, 4VAC25-160-50, and 4VAC25-160-70 are being made to bring
consistency to data submission requirements for the Division of Gas and Oil.
4VAC25-160-10. Definitions.
The following words and
terms, when used in this chapter, shall have the following
meanings, unless the context clearly indicates otherwise:
"Act" means the
Virginia Gas and Oil Act of 1990, Chapter 22.1 (§ 45.1-361.1 et seq.) of Title
45.1 of the Code of Virginia.
"Applicant" or
"petitioner" means a person or business who files an
application, petition, appeal or other request for board action with
the Division of Gas and Oil.
"Board" means the
Virginia Gas and Oil Board.
"Complete
application" means all the materials required to be filed by the applicant
under this chapter.
"Department" means
the Department of Mines, Minerals and Energy.
"Director" means
the Director of the Department of Mines, Minerals and Energy or his authorized
agent.
"Directional
survey" means a well survey that measures the degree of deviation of a
hole, or distance, from the vertical and the direction of departure.
"Division" means
the Division of Gas and Oil of the Department of Mines, Minerals and Energy.
"Division
Director" means the Director of the Division of Gas and Oil.
"Election" means
the performance of an act within the time established or required by statute,
order or regulation. An election required to be made by board order or
regulation must be in writing and (i) be personally delivered to the person or
agent of the person described in the order or regulation by the date
established or required, or (ii) be mailed to the person or agent of the person
described in the order or regulation at the address stated therein and be
postmarked by the United States Postal Service before midnight on the date
established or required.
"Field" means the
general area underlain by one or more pools.
"Gas/oil ratio"
means the product of the number of Mcf of natural gas produced from a well
divided by the number of barrels of oil produced from the well as determined by
a gas/oil ratio test.
"Gas well" means
any well which produces or appears capable of producing a ratio of 6,000 cubic
feet (6 Mcf) of gas or more to each barrel of oil, on the basis of a gas-oil
ratio test.
"Inclination
survey" means a well survey to determine the deviation, using the surface
location of the well as the apex, of a well bore from the true vertical beneath
the apex on the same horizontal subsurface plane.
"Mcf" means, when
used with reference to natural gas, 1,000 cubic feet of gas at a pressure base
of 14.73 pounds per square inch gauge and a temperature base of 60°F.
"Mine development
plan" means a permit or license application filed with the Division of
Mines or Mined Land Reclamation for legal permission to engage in extraction of
coal resources.
"Oil well" means
any well which produces or appears capable of producing a ratio of less than
6,000 cubic feet (6 Mcf) of gas to each barrel of oil, on the basis of a
gas-oil ratio test.
"Petitioner" means
any person or business who files a petition, appeal, or other request for
action with the Division of Gas and Oil or the Virginia Gas and Oil Board.
"Pooling" means
the combining of all interests or estates in a gas, oil or coalbed methane
drilling unit for the development and operations thereof. Pooling may be
accomplished either through voluntary agreement or through a compulsory order
of the board.
"Respondent" means
a person named in an application, petition, appeal or other request for board
action and against whom relief is sought by the applicant, or a person who
under the terms of a board order, is required to make an election.
"Unit operator"
means the gas or oil owner designated by the board to operate in or on a pooled
unit.
4VAC25-160-30.
Administrative provisions.
A. The Virginia Gas and Oil
Board shall meet on the third Tuesday of each calendar month unless no action
is required by the board or unless otherwise scheduled by the board. All
hearings shall be scheduled in accordance with the requirements for notice by
publication in § 45.1-361.19 of the Code of Virginia. Except where otherwise
established by the Act, the board may establish deadlines for filing materials
for meetings or hearings scheduled on other than the third Tuesday of each
month.
B. Applications to the board
must be filed by the following deadlines:
1. All applications, petitions, appeals or
other requests for board action must be received by the division at least 30
calendar days prior to the regularly scheduled meeting of the board. If the
30th day falls on a weekend or a legal holiday, the deadline shall be the prior
business day.
2. When required, two copies of the following
material must be filed with the division at least seven calendar days prior to
the regularly scheduled meeting of the board in order for the application to be
considered a complete application:
a. The affidavit demonstrating that due
diligence was used to locate and serve persons in accordance with § 45.1-361.19
of the Code of Virginia and 4VAC25-160-40; and
b. Proof of notice by publication in
accordance with 4VAC25-160-40 D.
C. A complete application
that is not filed by the deadlines of this subsection shall be carried over to
the next scheduled meeting of the board. A submission that does not contain a
complete application shall not be considered by the board until the application
is complete.
D. The division shall assign
a docket number to each application or petition at the time of payment
receipt and filing, and. The division shall notify the
applicant of the completed filing and assigned docket number. The docket
number shall be referenced when submitting material regarding the application
or petition.
E. In addition to the other
requirements of this chapter, applications to the board shall meet the
following standards:
1. Each application for a hearing before the
board shall be headed by a caption which shall contain a heading including:
a. "Before the Virginia Gas and Oil board
Board";
b. The name of the applicant;
c. The relief sought; and
d. The docket number assigned by the
division.
2. Each application shall be signed by the
applicant, an authorized agent of the applicant, or an attorney for the
applicant, certifying that, "The foregoing application to the best of my
knowledge, information, and belief is true and correct."
3. Exhibits shall be identified by the docket
number and an exhibit number and may be introduced as part of a person's
presentation.
4. Persons Applicants shall
submit 10 eight sets of each application and exhibit exhibits.
Each person offering exhibits into evidence shall also have available a
reasonably sufficient number of exhibits for other persons who are subject to
the provisions of §§ 45.1-361.19 and 45.1-361.23 of the Code of Virginia,
who have notified the division by certified mail notice of their request for
copies of exhibits, and are expected to be in attendance at the hearing.
F. Applications for the
establishment and modification of units, spacing or pooling shall be
accompanied by a $130 nonrefundable fee, payable to the Treasurer of Virginia.
G. All parties in any
proceeding before the board are entitled to appear in person or be represented
by counsel or other qualified representative, as provided for in the
Administrative Process Act, § 2.2-4000 et seq. of the Code of Virginia.
4VAC25-160-40. Notice of
hearings.
A. Each applicant for a
hearing to establish an exception to statewide spacing under § 45.1-361.17 of
the Code of Virginia shall provide notice by certified mail, return receipt
requested, to all gas, oil, coal or mineral owners having an interest
underlying any tract located within the distances provided in § 45.1-361.17 of
the Code of Virginia or the distance to the nearest well completed in the same
pool, whichever is less. Each applicant for a hearing to establish an exception
to a well location provided for in a drilling unit established by an order of
the board shall provide notice by certified mail, return receipt requested, to
all gas, oil, coal or mineral owners having an interest underlying the unit
where the exception is requested.
B. Each applicant shall
include, in or with the mailed notice of the hearing required under §
45.1-361.19 of the Code of Virginia, the following information:
1. The name and address of the applicant and
the applicant's counsel, if any;
2. In the case of an application to vacate or
amend an order, identification of the order to be vacated or amended;
3. A statement of the relief sought and
proposed provisions of the order or proposed order;
4. Citations of statutes, rules, orders and
decided cases supporting the relief sought;
5. A statement of the type of well or wells
(gas, oil or coalbed methane gas);
6. a. For a pooling order, the notice should
include: a plat showing the size and shape of the proposed unit and boundaries
of tracts within the unit. The location of the proposed unit shall be shown in
accordance with the Virginia Coordinate System of 1927 1983, as
defined in Chapter 17 (§ 55-287 et seq.) of Title 55 of the Code of Virginia,
also known as the State Plane Coordinate System. The proposed unit shall
also be located by taking the measured distance in feet from the unit to the
nearest 2.5 minute longitude line to the east and the nearest 2.5 minute
latitude line to the north on the 7.5 minute (1:24,000) topographic map, with a
notation of the 7.5 minute topographic map name and series. The plat containing
shall include property lines taken from (i) deed descriptions and chain of
title, (ii) county courthouse records, or (iii) a physical survey for each land
track in the unit. The location of the well and the percentage of acreage
in each tract in the unit shall be certified by a licensed land surveyor
or a licensed professional engineer and attested by the applicant as to its
conformity to existing orders issued by the board;
b. For a field rule, the notice should
include: a description of the pool or pools in the field, the boundaries of the
field, information on the acreage and boundaries of the units proposed to be in
the field and any proposed allowable production rates; or
c. For a location exception, the notice
should include: a description of the proposed well location in relation to
other wells within statewide spacing limits or in relation to the allowable
area for drilling within a unit;
7. A description of the interest or claim of
the respondent being notified;
8. A description of the formation or
formations to be produced;
9. An estimate of the amount of reserves of
the unit;
10. An estimate of the allowable costs in
accordance with 4VAC25-160-100; and
11. How interested persons may obtain
additional information or a complete copy of the application.
C. When after a diligent
search the identity or location of any person to whom notice is required to
be given in accordance with subsection A or B of this section is unknown at the
time the applicant applies for a hearing before the board, the applicant for
the hearing shall cause a notice to be published in a newspaper of general
circulation in the county, counties, city, or cities where the land or the
major portion thereof which is the subject of the application is located. The
notice shall include:
1. The name and address of the applicant;
2. A description of the action to be
considered by the board;
3. A map showing the general location of the
area which that would be affected by the proposed action or
and a description which that clearly describes the
location or boundaries of the area which that would be affected
by the proposed action sufficient to enable local residents to identify the
area;
4. The date, time and location of the hearing
at which the application is scheduled to be heard; and
5. How interested persons may obtain
additional information or a complete copy of the application.
D. Notice of a hearing made
in accordance with § 45.1-361.19 of the Code of Virginia or this section shall
be sufficient, and no additional notice is required to be made by the applicant
upon a postponement or continuance of the hearing.
E. Each applicant for a
hearing to modify an order established under § 45.1-361.21 or § 45.1-361.22 of
the Code of Virginia shall provide notice in accordance with § 45.1-361.19 of
the Code of Virginia to each person having an interest underlying the tract or
tracts to be affected by the proposed modification.
F. An applicant filing a
petition to modify a forced pooling order established under § 45.1-361.21 or §
45.1-361.22 of the Code of Virginia to change the unit operator based on a
change in the corporate name of the unit operator; a change in the corporate
structure of the unit operator; or a transfer of the unit operator's interests
to any single subsidiary, parent or successor by merger or consolidation is not
required to provide notice. Other applicants for a hearing to modify a forced
pooling order shall provide notice in accordance with § 45.1-361.19 of the Code
of Virginia to each respondent named in the order to be modified whose interest
may be affected by the proposed modification.
4VAC25-160-50. Applications
for field rules.
Each application filed under
§ 45.1-361.20 of the Code of Virginia to establish or modify a field rule, a
drilling unit or drilling units shall contain:
1. The name and address of the applicant and
the applicant's counsel, if any;
2. In the case of an application to vacate or
amend an order, identification of the order to be vacated or amended;
3. A statement of the relief sought and the
proposed provisions of the order or a proposed order;
4. Citations of statutes, rules, orders, and
decided cases supporting the relief sought;
5. In the case where a field rule is proposed
to be established or modified:
a. A statement of the type of field (gas, oil
or coalbed methane gas);
b. A description of the proposed formation or
formations subject to the petition; and
c. A description of the pool or pools
included in the field, based on geological and technical data, including the
boundaries of the pool or pools and field, shown in accordance with the
Virginia Coordinate System of 1927 1983, as defined in Chapter 17
(§ 55-287 et seq.) of Title 55 of the Code of Virginia, also known as the State
Plane Coordinate System. The boundaries of the pool or pools and field shall
also be located by taking the measured distance in feet from the unit to the
nearest 2.5 minute longitude line to the east and the nearest 2.5 minute
latitude line to the north on the 7.5 minute (1:24,000) topographic map, with a
notation of the 7.5 minute topographic map name and series;
6. In the case where a drilling unit or units
are proposed to be established or modified:
a. A statement of the acreage to be embraced
within each drilling unit;
b. A description of the formation or
formations to be produced by the well or wells in the unit or units; and
c. The boundaries of the drilling unit or
units shown in accordance with subdivision 5 c of this section;
7. A statement of the amount of acreage to be
included in the order;
8. A statement of the proposed allowable
production rate or rates and supporting documentation, if applicable;
9. Evidence that any proposal to establish or
modify a unit or units for coalbed methane gas will meet the requirements of §
45.1-361.20 C of the Code of Virginia;
10. An affidavit demonstrating that due
diligence was used to locate and serve persons in accordance with § 45.1-361.19
of the Code of Virginia and 4VAC25-160-40; and
11. When required, proof of notice by
publication in accordance with 4VAC25-160-40 D C.
4VAC25-160-60. Applications
for exceptions to minimum well spacing requirements.
Applications for an
exception to statewide spacing under § 45.1-361.17 of the Code of Virginia
or under a field rule issued by the board shall contain the following:
1. The name and address of the applicant and
the applicant's counsel, if any;
2. In the case of an application for an
exception to spacing established in a field rule, identification of the order
governing spacing in the field;
3. A statement of the proposed location of
the well in relation to wells permitted or for which a permit application is
pending before the Division of Gas and Oil at the time of filing within the
distances prescribed in § 45.1-361.17 of the Code of Virginia;
4. A description of the formation or
formations to be produced by the well proposed for alternative spacing and the
wells identified in subdivision 3 of this section;
5. A description of the conditions justifying
the alternative spacing;
6. An affidavit demonstrating that due
diligence was used to locate and serve persons in accordance with
4VAC25-160-40; and
7. When required, proof of notice by
publication in accordance with 4VAC25-160-40 D C.
4VAC25-160-70. Applications
to pool interests in a drilling unit: conventional gas or oil or no conflicting
claims to coalbed methane gas ownership.
A. Applications filed under
§ 45.1-361.21 of the Code of Virginia to pool interests in a drilling unit for
conventional gas or oil or for coalbed methane gas where there are no
conflicting claims to ownership of the coalbed methane gas, except as provided
for in subsection B of this section, shall contain the following:
1. The name and address of the applicant and
the applicant's counsel, if any;
2. In the case of an application to vacate or
amend an order, identification of the order to be vacated or amended;
3. A statement of the relief sought and
proposed provisions of the order or a proposed order;
4. Citations of statutes, rules, orders, and
decided cases supporting the relief sought;
5. A statement of the type of well or wells
(gas, oil or coalbed methane gas);
6. The permit number or numbers, if any have
been issued;
7. A plat showing the size and shape of the
proposed unit and boundaries of tracts within the unit, shown in accordance
with the Virginia Coordinate System of 1927 1983, as defined in
Chapter 17 (§ 55-287 et seq.) of Title 55 of the Code of Virginia, also known
as the State Plane Coordinate System. The proposed unit shall also be
located by taking the measured distance in feet from the unit to the nearest
2.5 minute longitude line to the east and the nearest 2.5 minute latitude line
to the north on the 7.5 minute (1:24,000) topographic map, with a notation of
the 7.5 minute topographic map name and series. Also included shall be the
names of owners of record of the tracts, and the percentage of acreage in each
tract, certified by a licensed land surveyor or a licensed professional
engineer and attested by the applicant as to its conformity to existing orders
issued by the board;
8. A description of the status of interests
to be pooled in the unit at the time the application is filed;
9. For an application to pool a coalbed
methane gas unit, a statement of the percentage of the total interest held by
the applicant in the proposed unit at the time the application for the hearing
is filed;
10. A statement of the names of owners and
the percentage of interests to be escrowed under § 45.1-361.21 D of the Code of
Virginia for each owner whose location is unknown at the time the application
for the hearing is filed;
11. A description of the formation or
formations to be produced;
12. An estimate of production over the life
of well or wells, and, if different, an estimate of the recoverable reserves of
the unit;
13. An estimate of the allowable costs in
accordance with 4VAC25-160-100;
14. An affidavit demonstrating that due
diligence was used to locate and serve persons in accordance with § 45.1-361.19
of the Code of Virginia and 4VAC25-160-40 C; and
15. When required, proof of notice by
publication in accordance with 4VAC25-160-40 D C.
B. Applications to amend an
order pooling interests in a drilling unit may be filed by written stipulation
of all persons affected. The application is not required to contain the
information specified in subsection A of this section, but shall contain the
proposed amended language to the order, shown by interlineation.
C. After Within 45
days after the time for election provided in any pooling order has expired,
the unit operator shall file an affidavit with the board stating whether or not
any elections were made. If any elections were made, the affidavit shall name
each respondent making an election and describe the election made. The
affidavit shall state if no elections were made or if any response was
untimely. The affidavit shall be accompanied by a proposed supplemental order
to be made and recorded to complete the record regarding elections. The
affidavit and proposed supplemental order shall be filed by the unit operator
within 45 days of the last day on which a timely election could have been
delivered or mailed, or within 45 days of the last date for payment set forth
in the pooling order, whichever occurs last. The applicant shall mail a true
and correct copy of any supplemental order to all persons identified in the
supplemental order.
4VAC25-160-130. Appeals of
the director's decisions.
A. Appeals of the division
director's decisions shall be filed in writing, at the office of the division,
in accordance with §§ 45.1-361.23 and 45.1-361.36 of the Code of Virginia.
B. A petition to appeal a
decision of the division director shall contain:
1. The name and address of the petitioner and
the petitioner's counsel, if any;
2. Identification of the decision being
appealed, and the date the decision was issued;
3. A statement identifying the standing of
the petitioner to appeal;
4. A statement setting forth the reasons for
the appeal, including errors alleged in the director's decision and the reasons
why the decision is deemed contrary to law or regulation;
5. A statement that the issues on appeal were
in fact raised as required by § 45.1-361.36 B of the Code of Virginia;
6. A statement setting forth the specific
relief requested; and
7. When a stay to any proposed activity
allowed as a result of the director's decision is desired, a request for the
stay and the basis for granting the stay.
C. Upon receipt of an appeal
containing a request for a stay, the division director shall decide on
the request in accordance with § 45.1-361.23 D of the Code of Virginia.
4VAC25-160-190. Civil
charges.
A. Civil charges shall be
provided for in accordance with § 45.1-361.8 C of the Code of Virginia.
B. The division
director, after finding any violation of the Act, a regulation promulgated
under the Act, or order of the director or board, or upon direction from the
board, may recommend a civil charge against a gas, oil or geophysical operator
and shall base the recommendation on the Civil Charge Calculation Procedure
established by order of the board.
4VAC25-160-200. Surveys and
tests.
A. Deviation tests.
1. An inclination survey shall be made on all
rotary drilled wells located in accordance with a field rule established by the
board. An inclination survey is not required for wells drilled in accordance
with the distance limitations of § 45.1-361.17 of the Code of Virginia.
2. The first shot point shall be at a depth
not greater than the bottom of the surface casing or, for a well drilled
through a coal seam, at a depth not greater than that of the bottom of the coal
protection string. Succeeding shot points shall be no more than 1,000 feet
apart, or as otherwise ordered by the director.
3. Inclination surveys conforming to these
requirements may be made either during the normal course of drilling or after
the well has reached total depth. Survey data shall be certified in writing as
being true and correct by the designated agent or person in charge of a
permittee's Virginia operations, or the drilling contractor, and shall indicate
the resultant lateral deviation as the maximum calculated lateral displacement
determined at any inclination survey point in a horizon approved for
production, by an order of the board or a permit approved by the director,
assuming that all displacement occurs in the direction of the nearest boundary
of the unit. The resultant lateral deviation shall be recorded on the drilling
or completion report filed by the permittee.
4. If a directional survey determining the
location of the bottom of the hole is filed upon completion of the well, it
shall not be necessary to file the inclination survey data.
5. A directional survey shall be made when:
a. A well is directionally controlled and is
thereby intentionally deflected from vertical;
b. The resultant lateral deviation of any
well, calculated from inclination survey data, is greater than the distance
from the center of the surface location of the well bore to the nearest
boundary of the area where drilling is allowed in a unit established by the board;
or
c. A well is drilled as an exception location
and a directional survey is ordered by the board.
6. The board or the director, on their own
initiative or at the request of a gas or oil owner on a contiguous unit or
tract, may require the permittee drilling any well to make a directional survey
of the well if there is reasonable cause therefor. Whenever a survey is
required by the board or the director at the request of a contiguous owner and
the permittee of the well and contiguous owner are unable to agree as to the
terms and conditions for making the directional survey, the permittee shall pay
for the survey if the bottom hole location is found to be outside of the area
approved for drilling, and the contiguous owner shall pay for the survey if the
bottom hole location is found to be inside of the area approved for drilling.
7. Directional surveys shall be run from
total depth to the base of the surface casing or coal protection string, unless
otherwise approved by the board or the director. In the event that the proposed
or final location of the producing interval or intervals of any well is not in
accordance with this section or a board order, the unit operator shall apply to
the board for an exception to spacing. However, directional surveys to total
depth shall not be required in cases where the interval below the latest survey
is less than 500 feet, and in such an instance, a projection of the latest
survey shall be deemed to satisfy board requirements.
8. The results of each inclination or directional
survey made in accordance with this section shall be filed by the permittee
with the first drilling or completion report required by the department division.
B. Flow potential and
gas/oil ratio tests: conventional gas or oil wells.
1. If a gas or oil well appears capable of
producing gas or oil, the permittee shall conduct a potential flow test and a
gas/oil ratio test within 10 14 days after the well is completed
and capable of producing gas or oil. The permittee shall file the test results,
electronically or in writing, with the director division.
The director division director shall hold the test results
confidential in accordance with § 45.1-361.6 of the Code of Virginia.
2. If a permittee deepens or stimulates a
well after the initial potential flow test and gas/oil ratio test have been
conducted, when determined to be necessary by the permittee or when requested
by the board, the permittee shall conduct another potential flow test and
gas/oil ratio test and, within 30 days after completing the test, file the
results, in writing, with the director division.
3. A back-flow method of determining open
flow shall be used, such as provided for in recommended by the
Interstate Oil and Gas Compact Commission, "Manual of Back-Pressure
Testing of Gas Wells," 1979 2000. However, when a back-flow
method is believed not to be feasible, the permittee shall obtain prior
approval from the director division, and test the well in
accordance with, an alternate method approved by the director that does not
entail excessive physical waste of gas.
C. Testing of coalbed
methane gas wells. If a permittee cannot test the potential flow of a coalbed
methane gas well by a back-flow method or complete the test within the time
period required in subdivision B 1 of this section, the permittee may request
approval from the director to perform a coalbed methane gas production test.
Such a test shall only be made when the water production and the gas flow rates
are stabilized for a period of not less than 10 14 days prior to
the test. The test shall be conducted for a minimum of 24 hours in the manner
approved by the director. The permittee shall file the test results, electronically
or in writing, with the director division. The director
division director shall hold the test results confidential in accordance
with § 45.1-361.6 of the Code of Virginia.
D. The board may, by order
and after notice and hearing, require a permittee to complete other tests on
any well.
VA.R. Doc. No. R08-1317;
Filed August 12, 2009, 11:14 a.m.