Administrative Rule Review Report  #AR08-019

Legislative Service Office

27-Feb-08

 

AGENCY:                                 Oil & Gas Conservation Commission.

 

DATE SUBMITTED:                  February 25, 2008.

 

SUBJECT:                                 Chapter 1, Authority and Definitions; Chapter 2, General Rules; Chapter 3, Operational Rules, Drilling Rules; and Chapter 5, Rules of Practice and Procedure.

 

NATURE OF RULES:                     Legislative, Procedural

 

STATUTORY AUTHORITY:         W.S. 30-5-104(c) and (d)(v)

 

DETERMINATION OF PROCEDURAL COMPLIANCE BASED UPON INFORMATION SUBMITTED BY THE AGENCY TO LSO:

The rules were not delivered to the LSO within 10 days after adoption as required by W.S. 28‑9‑103(b). 

 

Notice of the proposed adoption of new rules was provided by the LSO as required by W.S. 28‑9‑103(d).  No comments have been received to date.  Otherwise, procedural compliance is apparently complete to date.

 

SUMMARY OF RULES: 

Generally, these rules amend definitions, make clerical corrections, modify some general, operational, drilling and environmental rules and rules of practice before the Commission and incorporate new provisions in response to 2007 Session Laws, Chapter 27 requiring compliance with the national electrical code.

 

More specifically, these rules:

Chapter 1, Section 2 adds a definition for "spud", which is a term commonly used in the industry but is not currently defined in the rules.

 

Chapter 2, Section 6, new subsection (c) requires operators to report the depth to fluid and casing pressure to the Agency on all shut-in, dormant and/or temporarily abandoned wells as required.

 

Chapter 3, Section 1 requires an operator intending to do a non-routine operation which affect the well bore to file a Sundry form and receive approval before beginning those operations.

 

8(b) eliminates the use of a federal application form.

 

 

Administrative Rule Review Report  #AR08-019

Legislative Service Office

27-Feb-08

 

New 8(e) requires operators to certify that all electrical conductors outside of their facilities comply with the 2005 national electric code.

Section

 

8(h) excludes operations described and approved in the original APD, requires the submission of a new application when requesting an extension of the APD,

 

New 35 (d) and (e) establishes measurements for wells and ensures that owners of diverse working interests and/or royalty interest ownership are fully informed of the proposed commingling and requires the supervisor to request certain tests to be done.

 

36 requires an initial gas well test if required by the supervisor and submitted on approved forms.

 

42 allows reporting forms to be available on the agency website.

 

Chapter 5, Section 12(v) precludes any action on an objection or protest that was not timely filed and provides for a pre-hearing process to discuss and resolve issues of standing and remedy prior to agency hearings.

 

FINDINGS:

The rules appear to be within the scope of statutory authority and legislative intent.

 

Compliance with federal law has not been determined as it is assumed the Attorney General has provided such review.

 

STAFF RECOMMENDATION:

That the rules be placed on the Consent List and be approved by the Council as submitted by the Agency.  Further, that the Council request the Governor to caution the Agency concerning the need to comply with statutory procedural requirements for adoption of rules, as noted in the rule review report.

 

 

                                                            _______________________

                                                            Maxine R. Weaver

                                                            Staff Attorney

 

 

                                                            _______________________

                                                            Dan J. Pauli

                                                            Director

MRW/