S.C. Code Regs. § 121-8.19 - Production Operations

A. Before any oil or gas well is completed as a producer, the producing horizons shall be sealed or separated in order to prevent their contents from passing into other strata.

B. All flowing wells shall be produced through tubing anchored by a packer and shall be equipped with a master valve and shall be equipped with adequate chokes to properly control the flow from such well, unless otherwise specified by the Commission. Christmas tree fittings or wellhead connections must have a working pressure greater than any pressure which may be encountered.

C. An operator shall provide twenty-four (24) hour notice to the Commission before testing any well for production. The test or tests, other than drill-stem testing, shall be conducted in a manner agreeable to the Commission. Cleaning of a well into a pit shall not be considered as a test for the purpose of determining capacity. Results of the test shall be filed with the Commission not less than ten (10) days after the test is completed. All tests may be witnessed by the Commission or its authorized representative.

D. Wells shall be permitted to produce under temporary or test allowables established by the Commission prior to the establishment of permanent allowables. Permanent allowables shall be established only after notice and hearing.

E. The multiple zone completion of a well and the production of oil or gas from more than one pool from one well without segregation of such production are permitted only upon order of the Commission pursuant to an application thereto.

The application shall set forth the manner and method of completion proposed, and be accompanied by the following:

(1) Geophysical logs with tops and bottoms of producing zones and perforated intervals shown and marked;

(2) Diagrammatic sketch of mechanical installation;

(3) Plat showing all wells on the applicant's lease which have penetrated the same pool or pools in which multiple completion is to be attempted as well as offset wells which have penetrated the same pool or pools;

(4) Names of all interested owners in the area.

(5) Evidence that notice of application has been given by the applicant to all interested owners in the area. In the event a written protest is received within fifteen (15) days of the date of the application, then a hearing shall be held as soon as practicable. If no protests are received within fifteen (15) days then the application shall be approved.

F. All multiple completion wells shall be equipped, operated, produced, and maintained so that there will be no commingling of the production, unless otherwise permitted by the Commission. Upon request of the Commission, any multiple completion well shall be tested at any time, to demonstrate the effectiveness of the separation of sources of supply. Such test may be witnessed by representatives of the Commission.

G. An initial production test shall be conducted, and reported, on all new wells and on all recompleted wells. The test shall not commence until a volume of oil equivalent to or greater than the amount of load oil or other liquids introduced into the well has been recovered. Such tests shall show oil, gas, and water production, gas-oil ratio, and API gravity of the oil.

(1) The volume of production of oil shall be computed in terms of barrels of clean oil on the basis of properly calibrated meter measurements or tank measurements of oil-level differences, made and recorded to the nearest quarter inch of 100% capacity tables, subject to the following corrections:

(a) Corrections for Impurities--the percentage of impurities (water, sand and other foreign substances not constituting a natural component part of oil) shall be determined to the satisfaction of the Commission, and the observed gross volume of oil shall be corrected to exclude the entire volume of such impurities;

(b) Temperature Correction--the observed volume of oil corrected for impurities shall be further corrected to the standard volume of 60°F in accordance with A.S.T.M. D-1250 Table 6 or any revisions thereof, and any supplements thereto or to any close approximation thereof approved by the Commission;

(c) Gravity Determination--the gravity of oil at 60°F shall be determined in accordance with A.S.T.M. D-1250 Table 5, or any revisions thereof and any supplements thereto or any close approximation thereof approved by the Commission.

(2) Production of gas of all kinds shall be measured by meter unless otherwise agreed to by the Commission. For computing the volume of gas to be reported to the Commission, the standard pressure base shall be 14.73 pounds per square inch absolute (psia) regardless of atmospheric pressure at the point of measurement, and the standard temperature base shall be 60°F. All volumes of gas to be reported to the Commission shall be adjusted by temperatures at which the gas was actually measured, unless otherwise authorized by the Commission. The unit to be used for reporting gas production shall be thousand cubic feet (Mcf) and gas condensate production shall be reported in barrels (BBL). Meter charts and records shall be kept in a permanent file for a period of at least two years and such information shall be made available to the Commission. No bypass connected around any meter will be authorized if such bypass allows for or results in the illegal taking of gas or liquid hydrocarbons.

H. The Commission may occasionally require the presentation of such data and facts as may be necessary to indicate reservoir performance and conditions in any pool. The Commission may also, through its representatives, witness or supervise the taking of such reservoir performance tests and keep such records as it deems necessary to properly regulate the operation of any pool. Any tests required by the Commission may be witnessed by representatives of the Commission. Where special field rules require bottom hole pressure tests, the test shall be reported to the Commission.

I. The Commission may, after notice and hearing, determine that the efficient producing rate should be less or greater than the allowable as determined by any other rule establishing allowables, and grant such an allowable consistent with sound engineering and conservation practices as may be justified by the circumstances and evidence submitted.

J. Except as in accordance with R.121-8.22 herein, gas may be used for the artificial lifting of oil, provided that all the gas returned to the surface with the oil is used without waste. Where the returned gas is not to be so used, the artificial gas lifting of oil is prohibited unless otherwise ordered and authorized by the Commission.

K. The installation of any device for the purpose of imposing a vacuum at the well head on any oil or gas well or any oil or gas bearing reservoir is prohibited, except upon approved application, notice and hearing. Notice of application shall be given by applicant by certified or registered mail to all interested owners in the area. In the event no written objections by the interested owners in the area are filed within fifteen (15) days of the date of application, said application shall be approved. If any written objection is filed within fifteen (15) days of the date of application, then a hearing shall be held as soon as practicable.

Notes

S.C. Code Regs. § 121-8.19