Directional Surveys and Associated Issues Rick Behal, P. G

Directional Surveys and Associated Issues Rick Behal, P. G
Directional Surveys and Associated Issues Rick Behal, P.G. Technical Permitting Engineering Unit Good afternoon. Welcome to “Engineer Review: Horizontal Audit/Directional Surveys/Box Rules. My name is Rick Behal. I’ve been with the Commission for 13 years: The first 9 years with the Environmental Permits Section, the next 3.5 with Injection Permitting, and for the last 6 months or so, the Engineering Unit. Also here with us today is Scott Rosenquist, Team Leader of the Engineering Unit. Hopefully I will be able to answer any questions you might have, but if I can’t, I’m sure Scott can. I’ll stop throughout the presentation and ask for questions, or feel free to raise your hand or holler and anytime if you like and we can answer questions as we go. This presentation might be familiar to some of you as it was prepared Steven Arauza at presented a couple previous conferences. Steven is still with the Commission and currently works in Field Ops Unit. .

Presentation Overview
Introduction Survey Requirements Submission Procedures Engineering Review I’ll begin with an short into followed by the survey requirements as required by SWR 11 and 12. Then I will go over the submission procedures before getting the Engineer Review.

Introduction Survey Requirements Submission Procedures Engineering Review

We live in a great age for drilling
We live in a great age for drilling. It’s quite remarkable that today we can drill two miles down and a mile or more over staying within a formation one hundred feet thick and hit a target the size of a table.

How can we know for sure? How do we know for sure? From survey data. Measurement while drilling, or MWD, allows the driller to “steer” the drill bit toward the intended target. Every time another joint of pipe is added to the drill stem, position data is transmitted up the wellbore, processed and recorded. MWD and survey data provides operators control over well spacing maximizing efficiency. What we end up with is, basically are x, y and z distances from the origin (or surface hole location). The x and y are east-west and north-south grid coordintes, and the z is the depth. Another type of survey tool is the Gyro. A gyro is different from a MWD in that a Gyro is tool that run down after the hole is drilled, whereas MWD is measured “while drilling.

Vertical Well 100’ 90’

Drift Happens Geology is complex
Drift happen. There are a number of factors that effect the direction of the wellbore. Faulting and changes in lithology come to mind. Geology is complex.

Drift Happens EOR increases size of wellbore
Of course we are all aware of the advantage of horizontal drilling combined with hydraulic fracturing to increases the effective porosity.

Drift Happens Operators drill as many wells as possible on lease
Another advantage of horizontal drilling is it allows for operators to drill multiple wells from a single well pad to maximize production and decrease the overall well pad footprint.

An Example Drilling a 5280’ horizontal with 3 degree error in a particular direction would result in offset of 276’ in that direction! Lease Line Only 3°! Permitted Location Typical horizontal wells have laterals that are several thousand feet in length. A small error over such a large distance can result in a big difference in the bottom hole location between what was permitted and what was drilled. 276’ Actual Terminus!

An Example Drilling a 5280’ horizontal with 3 degree error in a particular direction would result in offset of 276’ in that direction! Typical horizontals in Eagle Ford are thousands of feet in length. Typical lease line spacing is 330’. Must be in compliance with spacing rules. Why does that matter? Because the as-drilled well bore must be in compliance with drilling permit and other Commission rules. And that is the function of the Engineering Unit.

The RRC has a job to do In the State’s Interest: Protect property/lease lines Protect O&G reservoirs/resources in the state In the operator’s interest: Keep drillers on task Maximize production efficiency Therefore: We require directional surveys of every well drilled or deepened with rotary tools* *(TX Administrative Code, Title 16, Part 1, Chapter 3, Rule §3.11; SWR 11) The RRC has a job to do. I think of it as making sure everyone is on the same page playing by the same rules for the same objective which is to prevent of waste, prevent confiscation, and to protect of correlative rights to develop resources. And to do that, we need the survey data which is required by SWR11 for every well that is drilled or deepened.

What is a Directional Survey?
Set of location data measured via tools either in drill string assembly (measured-while-drilling, MWD) or lowered into wellbore after well is drilled (gyroscopic survey, GYRO) What is a directional survey? A directional survey is a set of location data measured via tools either in the drill string assembly (measured-while-drilling, MWD) or lowered into the wellbore after the well is drilled (gyroscopic survey, GYRO). The data is reported as a set of x, y and z coordinates. The x and y are the grid coordinates is east-west and north south direction from the well surface location (or origin). The “z” coordinate is the depth. There is also the inclination survey (that is the Form W-12) that provides less precise but acceptable for vertical wells and for the vertical surface casing portion of horizontal wells. Plat view (2d) Directional Survey (3d)

Where can I find the Rules?

Statewide Rule 3.11 (SWR 11) Outlines requirements for Inclination and Directional surveys Purpose: to accurately constrain well location in 3-D space (X, Y, Z) *Different survey combinations required depending on wellbore profile* SWR11 outlines the requirements for inclination and directional surveys. The type of survey required depends of the wellbore profile – that is whether the well is a vertical well, a directional well or a horizontal well.

Survey Types Inclination surveys
Inclination and offset data only (Form W-12) No coordinates or directional data Directional surveys Gyroscopic borehole survey (GYRO) Measurement while drilling (MWD) Provide coordinate data (X, Y, and Z) Each survey type has different data and certification requirements. It pays to get it right the first time. There a two general types of surveys: the Inclination Survey and the Directional Survey. Inclination surveys: An inclination survey provides only the inclination (or angle) and the maximum possible offset. There are no coordinates or directional data. Inclination survey data are reported on the Form W-12. Directional surveys. There a 2 types: The Gyro survey and the MWD survey. Directional surveys provides coordinate data. That is the grid distance in the north/south, east/west directions and depth. The different surveys have different certification requirements and we’ll cover that a little later.

Statewide Rule 3.11 (SWR 11) INCLINATION SURVEYS
Required of any well drilled/deepened with rotary tools First data point shall not exceed 500’ deep Data points not to exceed 1000’ apart Outlines several exceptions to the rule based on depth and spacing to lease lines An inclination survey is required for any vertical well drilled or deepened. For inclination survey, the first data point should not exceed a depth of 500 feet with succeeding shot points no more that 1000’ feet apart. There are some exceptions provided by the rule. For example: Inclination surveys are not required for wells that are less than <2000’ deep provided the well is located at least 150’ from nearest lease line and the well is not intentionally deviated from the vertical. The well is deepened no more than 300’ or the distance from the well location to the nearest lease line, whichever is lesser, again, provided the well was not intentionally deviated from the vertical at any time. Also, inclination surveys are on required for wells that are completed as dry holes and permanently PA’d . However if the well is reentered at a latter date and completed as a producer or injector, the inclination survey will be required.

Statewide Rule 3.11 (SWR 11) INCLINATION SURVEYS
Submitted on form W-12 by operator Performed by drilling company Certified by drilling company and operator Report horizontal offset without direction, so offset direction assumed to be toward nearest lease line Inclination data is submitted on the Form W-12. The survey must be performed by the drilling company and certified by both the drilling company and the operator. As I mentioned earlier, the inclination survey provide only the maximum offset without direction, so the direction is assumed to be in the least favorable direction or toward the nearest lease line.

Form W-12 This is the Form W-12.
The first section is the usual operator, lease and well info. Followed by the inclination survey data, Followed by a summary of the data and well location with respect to lease lines, With the operator and driller certification at the bottom.

Form W-12 Shows cumulative displacement from vertical.
DEVIATION IS NOT DISPLACEMENT The red field on the left is the Measured depth Course length – that is the distance between shot points. Angle, displacement if the displacement for each course length And in the blue field is the accumulative displacement which is the running total of displacement for each course length. Shows cumulative displacement from vertical. Must not exceed distance to nearest lease line Shot points must begin within 500’ of the surface shall not exceed 1000’ apart.

Drilling company representative certifies accuracy of the data
Form W-12 The questions on Form give the operator and Commission a indication of whether or not the well may be in compliance. Item 18 is the data summary or “accumulative total displacement at the total depth of the well”. The number in 18 is compared to the numbers in items nos. 20 and/or 21 which are “distance from the well location to the nearest lease line”, and “the minimum distance to lease line prescribed by field rules” If the number in 18 is greater than the number in 20 or 21, that is an indication that the well may or may not be in compliance because the bottom hole location is too close to, or crossing, the lease line. But being the inclination survey provides the accumulative displacement, which is usually greater than the true, and it doesn’t provide direction, a more accurate direction survey will be required to know for sure. Operator certifies that the well was not intentionally deviated from vertical. Accumulative displacement is given without a compass direction, must not exceed distance to nearest lease line. Drilling company representative certifies accuracy of the data

SWR 11: Vertical Wells Ideal Vertical Well N 0 1000’ W E 150’
’ W E In this example we have a vertical well located 300’ from the south line. Because this a vertical well, an inclination survey or W-12 is acceptable for the entire depth. 150’ W-12 accepted for entire depth

SWR 11: Vertical Wells Actual Well N 0 1000’ W E 155’ 150’ 155’ offset
’ W E Define deviation vs. displacement The inclination survey tells us that the accumulative total displacement is 150’ but we don’t know in which direction. It is assumed that the displacement is in the least favorable direction in this case, toward the lease line. In this example, if the rules allow the bottom hole location to be 150’ from the lease line, you would be OK. However, if rules required a 200’ lease line spacing, the operator will be required to run a directional survey to get a more accurate BHL. 155’ 150’ 155’ offset ?

SWR 11: Directional Surveys
Any intentionally-deviated well Data points no more than 200’ apart, *beginning within 200’ of the surface May begin immediately below surface casing depth (W-12 required in this case) When does a vertical well become a directional well? If a vertical well is intentionally deviated in a predetermined compass direction, then it is no longer considered to be a vertical well and a directional survey may be required. The rule require that data points for directional surveys be no more than 200’ apart. A combination of surveys type is acceptable is some cases. For example, for a horizontal well, a inclination survey (that is W-12) is acceptable for the vertical surface casing section of the well. Beyond that point the direction survey requirements apply.

SWR 86: Horizontal Wells Surface Casing (W-12 accepted)
Gyro or MWD required Here is the example I just mention where an inclination survey is performed for the vertical surface casing section of the wellbore with MWD or Gyro survey performed beyond the surface casing.

SWR 11: Directional Wells
Standard Directional S-curve Variation* Change animation order For instance. The S-curve variation where directional survey is run for the well that includes the horizontal displacement. Once the well is back to vertical, inclination data is acceptable for the remainder of the hole. Directional Survey Required Inclination Survey Accepted *Special permission required to drill an S-curve

Statewide Rule 3.86 (SWR 86) Outlines requirements for Horizontal Drainhole Wells Purpose: to establish standard requirements for horizontal wells *Directional surveys required* SWR86 outlines requirements for horizontal wells. This are the “statewide” requirements, which in many fields are trumped by special filed rules. Main point here is that in SWR86 you will find the requirements that direction surveys to be conducted and filed in accordance with SWRs 11 and 12. Another tidbit in R86 is that an amended permit and plat shall be filed after completion of the horizontal drainhole if the commission determines that the drain hole is not consistent with the drilling permit. Recognizing that a completed well needs an amended permit can expedite final approval of the pkt. You can either identify that a drilling permit needs to be amended and get the amended permit filed off the bat, or wait for us to message you that the permit needs an amendment resulting in a possible delay.

SWRs 11 & 86: Surveys Common mistakes:
WRONG SURVEYS for wellbore profile Surveys missing completely Surveys lacking certification Surveys don’t tie-in Surveys attached for wrong well Solution: Survey company must correct and resubmit Here is a list of some common deficiencies. If we come across a deficiency, we will message the operator via the on-line message system. If the message is for the surveyor, the operator is responsible for make sure the surveyor gets that message and make the necessary corrections.

Statewide Rule 3.12 (SWR 12) Outlines requirements for Submission and Certification of Directional Surveys: Survey Company Name Name and title of individual performing survey Date survey was performed Type of survey conducted Complete well identification Depths surveyed Drilling permit plat with bottom hole location. SWR12 outlines the requirements for submitting and certifying the directional surveys. Basically, the certification must include all this info…. Rule 12 also requires a certified plat on which the BHL is oriented both to the surface location and to lease lines. Not to be confused with the as-drilled plat which is required by some field rule. This requirement is usually in the form of a copy of the DP plat with an approximation of the BHL and a range and bearing from the SHL.

SWR 12: Proper Certification
I, name, an authorized employee of THE SURVEY COMPANY, have verified the GYRO/MWD survey performed on 04/01/2013 to 04/02/2013, from 200’ to 15000’. The data are true, correct, complete and within the limitations of the tool. This survey was conducted at the request of OPERATOR for LEASE WELL# (API#) drilled in TRAVIS COUNTY, Texas. Here is a example of a certification shell that includes all the information necessary for certification.

SWR 12: Directional Surveys
Directional Surveys must be submitted and certified by the company that performed the survey. They cannot be accepted directly from the operator. Directional surveys must be certified and submitted directly for the survey company. We cannot accept from the operator.

SWR 12: Proper Certification
Common mistakes: Uploading cover letter instead Double-certifying another company’s interval Certification completely missing Solution: Survey company must correct and resubmit Here is a list of common certification deficiencies. The most common I see is probably the certification submitted for the wrong well.

Introduction Survey Requirements Submission Procedures Engineering Review Real quick, this is a overview of submission procedures.

Submission Procedures
Requirements of survey companies: Must appear on list of approved survey companies* Must have active P-5 (Organization Report) Must upload certification letter as a separate file As I just mentioned, the survey data and certification must be submitted directly for the surveyor. For the commission to receive data from a survey company, the company must be approved by the Commission, which includes having an organization report, or P-5. Also, certification letter must be uploaded as a separate file. If you need the link and requirements for directional survey companies, see me at the break and I’ll give that info.

Submission Procedures
Surveys may be mailed via hardcopy to Austin: This method takes at least two (2) weeks Surveys submitted online are available immediately Surveys can be submitted in hardcopy, of course filing on-line is preferred.

Online Submission Filing or querying survey data is done via the on-line completion system under Direction Survey on the completion home page.

Online Submission Screen shot of the filing page. Files can be uploaded with descriptions such as survey interval, date range and lateral#. Having these descriptions makes it a little easier to review when a well has multiple survey segments to see at a glance the chronologic order of each survey segment and if the segments overlap which may indicate the presence of an abandoned sidetrack.

Online Submission Surveys submitted online are available for use immediately. Directional Survey query (following slides) may be used to confirm submission Erroneous surveys can only be deleted by RRC internal users Erroneous surveys can only be deleted by the Commission. If we come across the wrong survey, we’ll deleted and message you for the correct one. You can also contact us to delete incorrect surveys if we haven’t yet got to the pkt . Survey can only be deleted before a pkt has been approved. If a pkt gets approved with the wrong survey included, it’s stuck in there along with the correct survey. Which isn’t a big deal

Online Query This is screen shoot of the survey query page.

Online Query Search online by API number to verify submission
Query by API to verify submission. Surveys are available online within minutes, if the search has no results then you know something went wrong. As I mentioned earlier, the survey and certification need to be submitted as separate files as you can see is here.

Engineering Review Survey completeness Spacing Tie-ins
Certification Well construction Wellbore profile Abandoned wellbore Required plugs and cementing Spacing Lease line spacing Between-well spacing Permitted location NPZs In this section will cover the Engineering Unit review including the following. For wells that have multiple survey segments, we’ll check that an survey data for the different segments “ties-in” and we’ll check for proper certification. We’ll check the well profile for any abandoned sections of wellbore that may or may not required plugging. And we’ll check for compliance with the drilling permit and other rules, that includes lease line spacing, between-well spacing, surface location and any “non-perforation zones”

Eng Review: Tie-Ins RRC will accept specific combinations of surveys that present a complete picture of the entire wellbore. Key Concept: Tie-ins All surveys must tie in at given depths with identical X,Y, and Z coordinates. Tie-in. A tie-in is where two survey segments tie-in that is where the grid coordinate are the same. We compare the grid coordinates for the last data point of one survey segment and to the grid coordinates of the first data point of the next segment. If the grid coordinates of the last and first shot points tie in, that indicates just a continuation of the wellbore. However, if the first shot point doesn’t tie in with the last shot point but ties in farther up the hole, that is an indication of an abandoned section of wellbore.

Eng Review: Tie-Ins Survey A (GYRO) Depth Incl. Azimuth +N/-S +E/-W Tool 600’ 2.3 270° 5 20 GYRO 800’ 3.3 268° 9 -80 Survey B (MWD) Tie-in point Depth Incl. Azimuth N-S E-W Tool 800’ 3.3 268° 9 N 80 W GYRO 1000 10 272° 15 N 120 W MWD In this example there are two segments: The first segment ends at 800 feet and next segment begins at 800 feet. We see that the last shot point ties into the first shot point at 9’N and 80’W. We will contact you if the tie-in data are missing.

Eng Review: Certification
Attachments page of the G-1 or W-2 This is an image of the survey data portion of the attachment page of the on-line completion system. In this example, there are three survey segments, each with it’s separate certification. Point out: 1) combination of surveys (i.e., gyro and MWD); 2) overlap of two MWDs (tie-in at 9900’ or above?); 3) all survey data is required, not just the ’; 4) and separate certification for each survey segment.

Engineering Review Wellbore Construction:
Compiled from inclination and directional surveys SWR 11 requires ALL directional surveys Well location projected onto Permit Plat Permit and As-drilled plat requirements follow Wellbore construction: What we do here is take the x and y grid coordinates for points along the wellbore (PoP, FTP, LTP, BHL) and project those points on the drilling permit plat and then compare that to the as-drilled plat. The as-drilled path should be fairly close to what was permitted within limits (more on that later). We also check to see the as-drilled surface location is as-permitted. If not, an permit amendment may be required.

Eng Review: Construction
Lease boundary Scale bar North Arrow Surface Location (SL) Penetration Point (PP) First Take Point (FTP) Last Take Point (LTP) Terminus/Bottom Hole Location (BHL) Distance to Lease Lines Plat Requirements N ’ (SL) (FTP) (BHL) (PP) (LTP) This is an example of the information required on all as-drilled plats. Same as for a drilling permit

Permit Location Permit Location As-drilled Location N ’ The as-drilled well is always a little different than what was proposed. The question is: Is it close enough? (more on that shortly)

Wellbore construction (SL) (PP) DEFINE CORRELATIVE INTERVAL. We also check to make sure the well is completed with in the correlative interval. In this cartoon cross section the correlative interval is shown in yellow. The correlative interval is the depth interval designated by the field rules showing the producing interval for the field in which the horizontal drainhole is completed. If the well is completed outside the correlative interval, or downhole commingled, you will need to file for an exception to SWR10 has Darren discussed in the previous session. The point of penetration is where the wellbore enters the correlative interval. the FTP and LTP is the upper and lower perforation. And the BHL is the bottom hole location. (FTP) (LTP) (BHL)

Sometimes directional surveys indicate abandoned sections of wellbore (pilot holes or sidetracks) that must be plugged. Sometimes surveys indicate abandoned section of wellbore that may or may not require plugging. Maybe a pilot hole was drilled to get a TVD of the target interval for the area. Maybe the KOP was too soon or curve the was build quickly. It is important to communicate any intentions to abandon portions of wellbore with the District. It may be the abandon section requires plugging. Maybe it doesn’t. And we talk more about that. Regardless, it is important to notified the district office of any abandoned section of wellbore, whether or not you intend to plug that section of wellbore. District Offices don’t necessarily review directional surveys, so it is crucial to communicate any intentions to abandon portions of the wellbore with the District Offices directly and in advance.

Wellbore construction Penetration Point (PP) In order to better understand whether or not an abandoned section of wellbore requires plugging, we have to familiarize ourselves with a few terms. Here we have cartoon cross section again with the correlative interval in yellow. The point of penetration is the where the well bore intersect the correlative interval.

Wellbore construction Kick-off Point (KOP) Penetration Point (PP) Kick off point is the point where the driller starts building the curve.

PLUG REQUIRED PLUG NOT REQUIRED The example on the left we have what looks like a pilot hole and then a KOP above the POP. This is an example that would require plugging because if left unplugged, the abandoned section would provide a conduit for fluid migration between strata which is prohibit by SWR7. SWR7 states fluids must be confined to its original stratum. This is the same objective of casing and cementing requirements of SWR13 that casing be cemented through and above any productive zone, potential flow zone or zone with corrosive formation fluids. The example of the right does not require plugging because the KOP and the abandoned section are within the correlative unit Kick Off Points

Statewide Rule 3.14 (SWR 14) Outlines Cementing and Plugging Requirements Purpose: To isolate and protect usable water and productive formations from migration and contamination *Minimum plug dimensions*: 100’ thick, centered on penetration point Additional 10’ required for each 1000’ TVD. SWR14 outlines cementing and plugging requirements with the purpose of protecting usable quality water and productive formations from fluid migration between strata. Rule 14 outlines plug thickness and placement. SWR7 requires that fluids be confined in its original stratum. You may be familiar with the SWR13 which requires cement though and above the uppermost productive or over pressurized zones. So if there are any extra conduits between strata, those are required to be plugged.

Form: W-15 Plugging record on page 2 Used to calculate plug thickness This is a screen shot of the Cementing Report Form W-15 that must be filed any time cementing operations are performed. The items here highlighted in read are used to calculate plug thickness. If the form is incomplete you probably get a message from the district or EU to complete. We need to now the base and thickness of every plug.

SWR 14 (j) “The district director or the director's delegate shall review and approve the notification of intention to plug in a manner so as to accomplish the purposes of this section.” Exceptions may be granted by district offices, not Austin Note Job# of communication/notification with District in the remarks section of W-2/G-1 Anytime you have an abandoned section of wellbore that requires plugging, you need to notify the district office prior to plugging. Exceptions may be granted by the district director as provided by the rule. If an exception has been granted you need to add a remark to the completion report including the Job# of the communication and preferable attach a copy of an or other documentation granting the exception. If it there is a section of wellbore we think requires plugging and there is no documentation or W-15 for the plugging, will message the operator and request that info.

SWR 14 Exceptions Contact District Office:
Acknowledge/advise of SWR 14 violation Explain circumstances of violation Make a case for adequate isolation Formally request an exception to the rule Forward District Office response to Engineering Letter from operator to District may not resolve issue Repeat violations may result in recommendation for administrative penalty action Here’s a list of information the District might want when an exception is requested. Notification and requests should be timely. It hard to do anything with an abandoned section of wellbore after the well is completed. So you want contact the District ASAP whether you plan to plug or request an exception.

SWR 14 Exceptions 10 9 8A 7B 5 6 7C 8 3 1 2 4 Oil and Gas Division
District Offices: Abilene Corpus Christi Houston Kilgore Midland Pampa San Angelo San Antonio Wichita Falls 9 8A 7B 5 6 7C 8 3 1 2 4

District Office Contact Info

Eng Review: Spacing Spacing concerns N 0 1000’ Lease Line Spacing
’ Lease Line Spacing Between-well spacing (horizontal wells) Between-well spacing (vertical wells) We will also check if the spacing is in compliance with the drilling permit and Commission rules. The lease line spacing is the distance between takepoints and the lease line both perpendicular and parallel to the wellbore direction. There may also be required minimums between horizontal wells and/or between horizontal and vertical wells. If plans include completed a drainhole is completed closer to a lease line of well than is required by either SWR87 or field rules, of course the well must be permitted with a SWR37 exception. the well must be permitted as such. That is a SWR37 exception than Any exception to spacing rules are covered in SWR 37, and should be requested during the drilling permit process.

Eng Review: Spacing Permitted Location N 0 1000’ Permitted location.
’ Permitted location. The as-drilled SHL must be as-permitted. There is only a small tolerance for change in surface location. That established tolerance is 10’. If the well location changes more then that the drilling permit may need to be amended. Submitted an as-drilled plat with a new location will not take care of it. So if the well location changes significantly, you will be messaged that the drilling permit will need to be amended.

Eng Review: Spacing Permitted As-Drilled Location N 0 1000’
’ There is more flexibility when it comes to the BHL. However, if the BHL varies significantly, the drilling permit may have to be amended. If the as-drilled location does not match the permit location, the permit may need to be revised.

’ N Sometimes when we plot the data on the drilling plat, it appears the wellbore path varies significantly to what was permitted. But that could be that it just because the north arrow is misaligned. If the as-drilled location does not match the permit location, the permit may need to be revised. However, this may be the result of an inaccurate North arrow.

’ N Correcting the north arrow solve the problem.

Eng Review: Spacing Permitted Location N 0 1000’
’ Another situation that sometimes has us scratching our head is when the wrong scale is provide.

Eng Review: Spacing Permitted Location N 0 500’
’ It may appear that the BHL is off-lease, but it is really not. Fortunately that doesn’t happen very often. If the scale bar is inaccurate, lease line spacing will be unreliable.

Engineering Review Online messages Attached if an issue arises
Dispatched at the end of the day No notification is sent when an operator responds, to notify us directly for rapid response Otherwise, we go through all old messages periodically, takes a few days depending on reviewer. Online message. If there is a discrepancy in the only completion report, the engineering unit will contact the operator via the on-line message system. The message go out an the end of the day. Most of our messages are “can messages” that request the filer to send us an when the deficiency has been addressed. That is really the most efficient way for our group however I understand that some analyst prefer not to receive and prefer to work through the message responses. But in our group I think we all appreciate the notification so we can resolve the message quickly. And sometimes we approved the pkt and forget to resolve the message so they hang around. So feel free contact us to clear the message.

Common Online Messages
Problem Solution Plat Incomplete Directional survey(s) lacking Directional survey(s) missing Wrong Directional Survey Invalid tie-in points Certification lacking Double-certification SWR 14 violation Off-lease Terminus Lease-Line Violation Between-well Spacing violation Well location doesn’t match Plat Correct and resubmit Search online query, contact surveyor Have surveyor correct cert. letter Here is a list of some common messages and action required to resolve the deficiency. Contact District Office Check scale bar and North arrow (on plat)

Special Field Rules Almost done here. Just a few more slides about Special Field Rules. Here is the link to field rules. Go to navigate there, go to Meetings/ogpfd and the field rules. You can search the field name district. You want to be sure you search the entire list because sometimes there may be several dockets for the same field. So you will want to locate the most recent.

Special Field Rules Statewide Rules N 0 500’ 467’ 467’ 467’
’ 467’ 467’ 467’ Special Field Rules trump the statewide rules. If there are no special field rules, the default statewide rules apply. Fields with lots of horizontal activity generally have special filed rules. Default Statewide Spacing rules: 467’ Lease Line and 1200’ Between-Well SL/PP FTP/LTP BHL

Special Field Rules Take-Point Provisions N 0 500’ 467’ 467’ 467’
’ 467’ 467’ 467’ Take-point provisions allow for longer drainhole because the parallel lease line spacing is to the takepoints instead of the POP and BHL. Take-Point Provisions allow longer drainhole length because spacing is measured to producing interval SL/PP FTP/LTP BHL

Special Field Rules Off-lease Penetration Points N 0 500’ 467’ 467’
’ 467’ 467’ 467’ Some special field rules allow for off-lease penetration points. If the penetration point is off-lease, it must be permitted as such which involves providing notice to the off-track mineral owner. Off-lease penetration points enable operator to have surface-hole and penetration points outside of lease SL/PP FTP/LTP BHL

Special Field Rules Heel and Toe Provisions N 0 500’ 467’ 200’ 200’
’ 467’ 200’ 200’ The heel-and-toe provision allows for the lease line spacing parallel to the wellbore path to be less than the lease line spacing perpendicular to the well path. In this example we have lease line spacing of 467’ with a 200’ heel-and-toe provision. Heel and Toe Provisions reduce spacing requirements measured from take points, parallel to the drainhole SL/PP FTP/LTP BHL

Special Field Rules Box/Rectangle Rule N 0 500’ 467’ 467’ 467’
’ 467’ 467’ 467’ The Box Rule. The box rule provides for some tolerance between the takepoints and the lease line. This is usually not a problem if takepoints are well within the lease line. However, if there are takepoint permitted near or at the minimum lease line distance, then the box rule gives you room to play with. In this example let say the lease line spacing 467’ and the well is permitted right at that spacing. If the box rule is 50’, that means take points can be as near as 417’ from the lease line and still be in compliance. Well is permitted with drainhole exactly 467’ to lease line. SL/PP FTP/LTP BHL

Special Field Rules Box/Rectangle Rule N 0 500’ 467’ 467’ SL/PP
’ 467’ 467’ Well is permitted with drainhole exactly 467’ to lease line. As long as the as-drilled location is within the specified rectangle, the well is compliant SL/PP FTP/LTP BHL

In Summation Know your required surveys.
Certify and Submit accordingly. Remarks are helpful Special Field Rules are your friend. Take-Point Provisions Off-Lease Penetration Heel/Toe Provisions Rectangle Rules As-Drilled Plat requirements For best results: contact your Engineering Specialist directly in addition to responding to Online Messages. Special field rules are your friend. These are the most common special field rules for horizontal wells. If you have ever read through field rules for several different fields you will notice that the language is very similar although the number may differ from field to field.

Technical Permitting, Engineering Unit
Contact Information Technical Permitting, Engineering Unit Karen Cassidy: 512/ Pam Johns Hardcopies 512/ Rick Behal 512/ Stephan Paetzold 512/ Darren Tjepkema 512/ Scott Rosenquist 512/ And that’s about it. Here is the contact info for our unit.

Questions?

FAQs Q: In the vertical section of a horizontal well, what is the directional survey shot point spacing? A: The shot point spacing is always 200 feet or less for all directional survey in all cases. Q: If the “correlative interval” is penetrated off-lease but the well is only perfed at a legal location, what does the operator need to do? A: By statewide default rules, the well is not allowed to penetrate the correlative interval off-lease. However, in some fields special field rules do allow for off-lease POP. Operator is required to serve 21-day notice to the offset mineral owner. (check special field rules) Q: If special field rules authorize an off-lease penetration point, can the terminus be drilled off-lease? A: This provision does not allow the terminus to be off-lease. Special field rules are your friend. These are the most common special field rules for horizontal wells. If you have ever read through field rules for several different fields you will notice that the language is very similar although the number may differ from field to field.

Directional Surveys and Associated Issues Rick Behal, P. G

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Directional Surveys and Associated Issues Rick Behal, P. G

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