railroad commission of texas horizontal drilling permit applications lorenzo garza

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RAILROAD COMMISSION OF TEXAS Horizontal Drilling Permit Applications Lorenzo Garza

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RAILROAD COMMISSION OF TEXAS

Horizontal Drilling Permit Applications

Lorenzo Garza

Presentation overview

Penetration Point

•Differences between horizontal and vertical wells

•Learn how to determine if your in need of a SWR exception

•Learn how to resolve these SWR 37 & 38 exceptions

Vertical Well in Productive Zone

Penetration Point

Penetration Point

Drilling Permits and Online Filing - Advanced

Horizontal Well Productive Zone

Penetration Point

Penetration Point

Drilling Permits and Online Filing - Advanced

To be considered a horizontal well the displacement of the well must be at least 100 feet.

Horizontal Well Productive Zone

Horizontal Drainhole Containing the

Productive Portions of the Well Bore

Drilling Permits and Online Filing - Advanced

Surface location

Penetration point

Terminus location

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Drilling Permits and Online Filing - Advanced

TERMS YOU SHOULD BE FAMILIAR WITH

Statewide Rule that covers horizontal drilling is SWR 3.86

Drilling Permits and Online Filing - Advanced

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SWR 86 PLAT

Where to find out more information concerning horizontal well:

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Drilling Permits and Online Filing - Advanced

Where to find out more information concerning horizontal well:

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Drilling Permits and Online Filing - Advanced

Where to find out more information concerning horizontal well:

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Drilling Permits and Online Filing - Advanced

Where to find out more information concerning special horizontal field rules.

What you can find:

Information concerning dual lease line distances

Off lease penetration point information

As-drilled tolerance box rule

Acreage assignment based on length of lateral

Stacked lateral rules

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Drilling Permits and Online Filing - Advanced

Where to find out more information concerning horizontal well:

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Drilling Permits and Online Filing - Advanced

Where to find out more information concerning horizontal well:

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Drilling Permits and Online Filing - Advanced

Where to find out more information concerning horizontal well:

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Drilling Permits and Online Filing - Advanced

Located in Rule 2

Drilling Permits and Online Filing - Advanced

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Drilling Permits and Online Filing - Advanced

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PENETRATION POINTS

Defined as the point your well penetrates the top of the regulatory field’s correlative interval as defined in Rule 1 of the field rules.

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STANDARD SWR 86 FIELD

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SWR 86 PLAT

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SPECIAL HORIZONTAL FIELD RULES

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OFF LEASE PENETRATION POINTS•If the well is in a standard SWR 86 field then the penetration point must be on lease or an exception to rule is needed.

•If the well is in a field approved for special horizontal rules then application can be processed as long as proper notification to affected parties is done prior to the submission of the Drilling Permit application.

If you are proposing to drill a vertical pilot hole to log the formation you will need to follow the rules for off lease penetration and provide notice to affected parties prior to submission of the application.

Drilling Permits and Online Filing - Advanced

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Drilling Permits and Online Filing - Advanced

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SPECIAL HORIZONTAL FIELD RULES

Drilling Permits and Online Filing - Advanced

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Determining if you are a SWR 37 lease line or between well exception.

HORIZONTAL WELL:What is the distance to nearest lease line?

• Look at the entire length of your wellbore’s productive portion

• Use the shortest distance to a lease line from any point in the productive portion

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Out of compliance SWR exception needed

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Un-leased mineral interests

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330’ halo around wellbore

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Multiple terminus locations can be applied for at the same time

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Drilling Permits and Online Filing - Advanced

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MAIN POINTS

1.SWR 3.86 MUST BE ADHERED TO UNLESS THERE ARE SPECIAL HORIZONTAL RULES FOR THE FIELD YOU ARE APPLYING FOR.

2.KNOW HOW TO DETERMINE DISTANCE TO NEAREST LEASE LINE AND WELL FOR THE TYPE OF FIELD RULES (STANDARD OR SPECIAL) YOU ARE WORKING UNDER.

3.ONCE YOUR WELL HAS PENETRATED THE FORMATION YOU CANNOT CROSS INTO A TRACT THAT IS NOT LEASED. THIS IS MINERAL TRESSPASS.

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