1. RAILROAD COMMISSION OF TEXAS Completion Guidance Oil and Gas Regulatory Conference September 25, 2013 Speaker - Jim Moore

2. Terms & Definitions UIC : Underground Injection Control UIC Number : 9 digit number assigned to Well W-2 : Oil/Injection/Disposal Well Completion G-1 : Gas/Injection/Disposal Well Completion H-1 Number : aka F- number, Project number, Water Injection Permit No., 5 digits W-14 Number : aka Permit number, Salt Water Disposal Permit No., 5 digits API Number : 10-14 digit number assigned to Well Well Number : D or L D D D L L, 6 digits 2

3. Terms & Definitions (cont.) RRC District Number RRC Oil Lease No. : 5 digit Number RRC Gas ID : 6 digit Number W-1 : Permit to Drill, Recomplete or Re-Enter Plat : Lease Map, Survey Location RRC–designated Field Name, Field Number H-1 Field Name : correlative to injection/disposal Formation (deepest if more than one Formation) W-14 Field Name : correlative to disposal Formation, or to disposal fluids source Formation 3

4. Terms & Definitions (cont.) W-15 : Cementing Report W-12 : Inclination Report P-4 : Certificate of Compliance and Transportation Authority L-1 : Electric Log Status Report GAU : Groundwater Advisory Unit, formerly TCEQ, formerly TNRCC, formerly T.D.W.R. 4

5. LOG IN TO ONLINE SYSTEM 5 Operator needs both Security Administrator Designation (SAD) & Security Administrator Designation (SAD) User ID. Each User ID has certain filing rights per program.

6. FORM - SECURITY ADMINISTRATOR DESIGNATION (SAD) 6

7. RRC HOMEPAGE 7 Select Online Filings

8. ONLINE FILINGS 8 Select Security Administration For Filing Operations (Oil and Gas Operators)

9. DATA SUBMISSION REQUIREMENTS 9 Select user account creation/ maintenance for a multi-step tutorial

10. ONLINE APPLICATIONS 10 Select Completions Select Account Administration to setup User ID’s

11. FILING OPTIONS / MESSAGES 11 File a New Completion or Update Existing Completion Packet Check Messages, Find Unresolved Messages for All Packets with this User ID Completions Menu

12. WELL COMPLETION PACKAGE 12 Click Search Enter Drilling Permit No. or API No.

13. WELLS FOUND 13  Multiple Field Names Allowed on Drilling Permit  Field Name Must Match Injection/Disposal Permit Select New Packet

14. FORM W-1 DRILLING PERMIT 14

15. W-1 APPLICATION FOR PERMIT TO DRILL, RECOMPLETE OR RE-ENTER REQUIRED FOR :  New Well  Deepening  Re-enter  Plug Back / Re-Completion / Workover Field  Refer to State Wide Rule (SWR) 5  Online filing available  (512) 463-6751 15

16. PACKET DATA – NEW 16 Purpose of Filing Type of Completion Well Type Wellbore Profile Packet Type

17. PACKET DATA – NEW (cont.) 17

18. PACKET DATA – NEW (cont.) 18

19. PACKET DATA – NEW (cont.) 19 (For Water Supply Well)

20. PACKET DATA – NEW (cont.) 20 Wellbore Profile is Auto-Populated based on W-1, Drilling Permit

21. PACKET DATA – NEW (cont.) 21

22. PACKET DATA – CREATE 22 Click Create Packet tab Tracking Number gets assigned Purpose of Filing Type of Completion Well Type Vertical Profile Packet Type Done

23. PACKET DATA OIL / W-2 23 Fill in Well Data 60-70% View or Scroll Search for Current Field & Reservoir Table for Workover, Reclass or Well Number Change Enter H-1 or W-14 Permit No. & Date Save Next W-2

24. W-2 PAGE 1 24 Page 1: Potential Test Data not required when filing for Active or Shut-In UIC (Well Type) Save, then Next Page #

25. W-2 PAGE 2 25 Save Fill In Well Data System responds with red text warnings if critical data is missing on this page.

26. W-2 PAGE 3 26 Form W-12 “Waterboard Letter” Date or SWR-13 Exception Date Form W-15

27. W-2 PAGE 4 27 Casing Record Liner Record Tubing Record

28. W-2 PAGE 4 (Casing Record) 28 Multi-Stage Tool Depth Weight B #/FT are only fields that can be left blank. If using multi-stage (DV) tool, use separate line for each cement stage.

29. W-2 PAGE 4 (Liner Record) 29 Liner record if applicable, attach W-15 for new liner

30. W-2 PAGE 4 (Tubing Record) 30 Tubing Size & Depth Set (Feet) Packer Set Depth

31. W-2 PAGE 5 31 Actual Perfs, not Permitted Interval Check Yes only for Unperf’d Shut-In List all Work Chronologically, attach W-15 for new BP, Cement Squeeze, Squeeze Perfs, etc. List 3 Formation Tops Please add Remarks

32. W-2 PAGE 6 32 Certify (or Re-certify due to RRC analyst Messages) Electronic Signature Red text warnings if critical data is missing on W-2 pages. Next Complete Additional Forms

33. ADD ADDITIONAL FORMS 33 Online Forms Attachment Forms By Type Select W-15 Cementing ReportW-15 Cementing Report Complete Additional Forms Determine All Required Forms

34. ATTACHMENTS W-15 34 Current Attachments Browse to your file location such as Desktop (.pdf,.tif) of W-15 filled out Upload

35. FORM W-15 CEMENTING REPORT 35

36. W-15 CEMENTING REPORT REQUIRED FOR :  New Well  Remedial Cementing, Casing Repairs  Cement / Block Squeeze (CS), Squeeze Perfs, Bridge Plug (BP), Plug Back  Injection/Disposal Permit Special Conditions, H-1/H-1A, W-14 36

37. ATTACHMENTS W-12 37 Current Attachments Pick 1 of 2 ways to initiate the next Upload Attachment step, click here or go back to Complete Additional Forms

38. ATTACHMENTS W-12 (cont.) 38 Select W-12W-12 Pull-Down or Pull-Up Menu for Attachment Type

39. ATTACHMENTS W-12 (cont.) 39 Current Attachments Browse to your file location such as Desktop (.pdf,.tif) of W-12 filled out Upload

40. FORM W-12 INCLINATION REPORT 40

41. ATTACHMENTS W-12 (cont.) 41 Current Attachments Select Complete Additional Forms to Add W-12 Inclination Report Online Form

42. ADD ADDITIONAL FORMS (cont.) 42 Online Forms Attachment Forms By Type Select W-12 Inclination Report Complete Additional Forms

43. W-12 ONLINE FORM 43 Well Information Shot Point Information Certify (or Re-certify due to RRC analyst Messages) Electronic Signature Complete Additional Forms

44. W-12 INCLINATION REPORT REQUIRED FOR : Total Depth > 2000 feet  New Well  Re-Entry requires new survey if one was not already filed when the well was originally drilled  Deepening  Refer to SWR 11 44

45. Directional Surveys, Gyro, MWD REQUIRED FOR :  New Drill if the Wellbore Profile is Directional or Horizontal. Applicable to some Re-Entry, or Deepening.  New Drill if the Wellbore Profile is Vertical and the W-12 violates SWR 11(c)(1)(A). Applicable to some Re-Entry, or Deepening.  Directional Surveys can only be filed/uploaded by the responsible service company.  Follow RRC Engineering Unit & Support Upload Procedures (512) 463-1126. 45

46. ADD ADDITIONAL FORMS (cont.) 46 Online Forms Select P-4 Certificate of Compliance and Transportation Authority Complete Additional Forms

47. P-4 ONLINE FORM 47 Service Well, Yes Certify (or Re-certify due to RRC analyst Messages) Gatherers and/or Purchasers info blank for injection/disposal well.* RRC Gas ID or Oil Lease No. is blank/zero

48. P-4 CERTIFICATE OF COMPLIANCE APPLICABLE TO :  Initial Potential, Reclass, Well Record Only when a new Oil Lease / Gas ID number needs to be assigned  Some Workover/Re-Completions from one RRC-designated Field to another RRC- designated Field  Zero lease injection/disposal permits 48

49. ADD ADDITIONAL FORMS (cont.) 49 Online Forms Select L-1 Electric Log Status Report Complete Additional Forms

50. L-1 ONLINE FORM CONFIDENTIAL 50 Certify (or Re-certify due to RRC analyst Messages) Electronic Signature For Basic Electric Log Run with Confidentiality Complete Additional Forms to Attach L-1 Electric Log Header

51. ADD ADDITIONAL FORMS (cont.) 51 Online Forms Attachment Forms By Type Select L-1 Electric Log HeaderL-1 Electric Log Header Complete Additional Forms

52. ATTACHMENTS L-1 LOG HEADER 52 Current Attachments Browse to your file location such as Desktop (.pdf,.tif) of Log Header Upload

53. ATTACHMENTS L-1 LOG HEADER (cont.) 53 Current Attachments

54. SAMPLE ELECTRIC LOG HEADERS 54

55. L-1 ONLINE FORM - LOG RUN 55 Certify (or Re-certify due to RRC analyst Messages) Electronic Signature For Basic Electric Log Run, Log Attached

56. MAIL LOG TO RRC AUSTIN  Mail Continuous Log to RRC Austin 1701 N. Congress Austin, Texas 78701 Or P.O. Box 12967 Austin, Texas 78711-2967  Write Tracking Number on Log 56

57. ADD ADDITIONAL FORMS (cont.) 57 Online Forms Attachment Forms By Type Select Groundwater Advisory Unit LetterGroundwater Advisory Unit Letter Complete Additional Forms

58. ATTACHMENTS GAU LETTER 58 Current Attachments Browse to your file location such as Desktop (.pdf,.tif) of GAU Letter Upload

59. ATTACHMENTS GAU LETTER 59 Current Attachments

60. SAMPLE GAU LETTER 60

61. SUBMIT PACKET 61 Certified Online Forms: W-2, W-12, P-4 Data, L-1 Status Current Attachments W-15, W-12, L-1 Log Header, GAU Letter Submit Service Well Yes Submit

62. SUBMIT PACKET (“2 nd ” screen) 62 Submit No Attempt to Submit With Forms Lacking Answered No Submit

63. SUBMIT PACKET FORMS LACKING  Submit with required forms missing or uncertified?: Yes And / Or  Submit with required attachments missing?: Yes Submit Packet with 1 or both questions marked Yes from the Submit Packet “2 nd ” screen. If RRC analysts give Final Approval to the Completion Packet with Forms Lacking, then the Operator will need to provide the missing forms or attachments as soon as possible. 63

64. SUBMIT PACKET (cont.) 64 … submitted successfully message

65. MESSAGES 65 Messages Tab

66. PROBLEM RESOLUTION Check for RRC analysts Messages on Packet. Provide additional data, forms, attachments. Re-certify all Online Forms that are released. Re-submit Packet if released. Problem resolution – W-1 Amendment – H-1/H-1A or W-14 Amendment – UIC “pre-severance” or severance letter – Refer to SWR 16 66

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68. INJECTION-STORAGE PERMITS & SUPPORT Section (512) 463-6792 David Hill, Manager (512) 463-3011 David.Hill@rrc.state.tx.us Jim Moore (512) 463-6443 Jim.Moore@rrc.state.tx.us Robert (Bob) Freymuller (512) 936-0981 Robert.Freymuller@rrc.state.tx.us Nagi Mabruk (512) 475-4655 Nagi.Mabruk@rrc.state.tx.us Jim Davis (512) 463-6453 Jim.Davis@rrc.state.tx.us Cheryl Burns(512) 463-6439 Cheryl.Burns@rrc.state.tx.us Ashley Johnston (512) 463-6778 Ashley.Johnston@rrc.state.tx.us 68

69. RRC HOMEPAGE 69 Select Online Research (Queries), to Search for Scanned Images of Filed Well Data, GAU Letters, H-1/H-1A & W- 14 Applications

70. ONLINE RESEARCH QUERIES 70 Select Oil & Gas Imaged Records Query Menu, Launch Application

71. OIL AND GAS IMAGED RECORDS QUERY MENU – LINKS TO NEUBUS WEBPAGE 71 Oil & Gas Well Records; Search by API No. Groundwater Protection Letters; Search by API No., or District/Lease No. W-14, H-1/H-1A; Search by Permit or Project No.