13Financial Requirements Financial Security required for most organizations.Option 1 - IndividualOption 2 - Blanket
14Oil & Gas Non-Well Operators Exempt if your only operations are:Master Meter / Gas Distribution CenterPurchaserDirectional SurveyorSalt Water HaulerApproved Well PluggerApproved Cementer for Well Plugging(Well plugging requires Approval by Fld Ops)Service company for well stimulation activities$25,000 if you have any other activities
15Individual Performance Bond, Letter of Credit or Cash Deposit Option 1Individual Performance Bond, Letter of Credit or Cash DepositOnly available to well operators who have no activity other than wellsAmount determined by multiplying the aggregate depth of all wells (active, inactive, injection, producer, etc.) at $2.00 per foot.
16Blanket Performance Bond, Letter of Credit or Cash Deposit Option 2Blanket Performance Bond, Letter of Credit or Cash DepositAvailable to all operatorsAmount determined by the total number of wells (active, inactive, injection, producer, etc.)1 to 10 wells $25,00011 to 99 wells $50,000100 wells or more $250,000For operators without wells who are required to file FA, $25,000.
17Bay and Offshore WellsStatewide Rule §3.78 amended to require additional financial security for operators of Bay and Offshore wellsCalculated by Base amount + Entry Level amount + Non-Producing AmountPresumed Plugging Cost for Bay Well $60, / Offshore Well $100,000.00
18Bay & Offshore Wells Base: $50,000 Entry Level: $60,000 Example: Operator A has 15 wells, of which 8 are bay wells. 4 of these wells are non-producing.Base: $50,000Entry Level: $60,000Non-Producing amount: $180,000Total: $290,000
19Drilling PermitsEffective Statewide Rule 78 amended requiring financial security as a condition of the issuance of permit to drill, recomplete or reenter a well.Required amount: Option 1 or Option 2Permits cannot be issued to “unbonded” operators.
21Effective date MUST be current date. P-5LC (back page LOC)Effective date MUST be current date.
22(Individual and Blanket Performance Bonds) P-5PB1 and P5PB2(Individual and Blanket Performance Bonds)
23(Back page of P-5PB1 and P-5PB2) Date MUST be affixed by principal.
24Filing Fee and Surcharges Filing fee required for annual P-5 renewals and new P-5 filingsStatewide Rule 78 amended to impose a surcharge of 150% to filing feesNotification to industry sent out February 2012Effective May 1, 2012
25P-5 Filing Fee Amount based on the following four components: Number of wells operated1 – 25 wells $75026 – 100 wells $1,250101 wells or more $2,500Natural Gas Pipelines (one or more): $562.50Pipelines other than Natural Gas (one or more): $1,562.50Facilities and/or Service Activities: $500 to $750(One single fee regardless of quantity or variety)Operator with no activity or a new filer is $750.
26Facilities & Service Activities Oil & Gas Regulated activities other than pipelines or wells.$750 if the activities include only:Pollution Cleanup Contractor, (CLENUP)Directional Surveyor, (DIRSUR)Approved Cementer for plugging wells, and/or (PLUGGR)Moving/Storing Crude or Condensate. (TRANSP)Approved Cementer for Well Plugging (CEMNTR)$1,250 if the operator has any other Commission-regulated facilities or service activities, including (but not limited to):Commercial Facility, (COMFAC)Gas Plant, (GASPLT)Reclamation Plant, (RECLPL)Refinery, (REFINE)Saltwater Disposal P18 authority, and/or (SWDP18)Waste Hauler authority. (WHAUL)Service Comp. for Well Stimulation/Hydr. Fracturing Activities (WLSTIM)
27Filing fee and Surcharges Statewide Rule 78 amended to impose a surcharge of 150% to filing feesEffective May 1, 2012Notification to industry sent out February 2012
28Auto P-4 ChangesName change P-5 Large acquisitions of property Same Operator change25 or more leasesOperator change Auto - Request letter requires signature of previous P-5 officer and acquiring P-5 officerSame operator change Auto – Letter can be signed by company authorized individualQuestions contact: Linda Turk (512)28
29RRC Online SystemFile a SAD (Security Administration Designation) FormTwo types of accounts:Security Administrator AccountsFiler Accounts
30SAD Form (Security Administrator Designation For Electronic Filing)
31SAD Form (Security Administrator Designation For Electronic Filing) Complete address