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New Rules for Injection Wells in Oklahoma: Monitoring Volumes and Pressures

The earthquakes in Oklahoma has brought a lot of attention to the industry over the past few months. That being said, the Oklahoma Corporation Commission has established some new rules for new & existing disposal wells.

Image Credit: EMSNews

For those of you with production in Oklahoma, more specifically production in the Arbuckle formation, heads up!

As of September 1st (2 days ago), disposal well operators injecting into the Arbuckle formation are required monitor daily volumes, casing pressure, surface injection pressure.

Remember, GreaseBook tracks daily cums, pressure, and casing. That being said, most of you are probably already doing this — which is great!

If not, please holler and we’ll be happy to get you set up immediately…

Let us be very clear: while you are required to monitor your wells, the submission of the information is only required upon request.

Essentially, you are not required to report it unless it is specifically requested by Commission staff or Oklahoma Geological Survey staff.

The commission is paying special attention to disposal wells within seven “areas of interest” in central and northern Oklahoma. The areas are near the epicenters of the 20 magnitude 4.0 or greater quakes the state has experienced over the past five years.

Oklahoma is dotted with nearly 12,000 water injection and disposal wells — that being said, it seems there are only 97 wells in which they are particularly interested…

For more background information, check out the article printed in the Sunday Oklahoman on August 24th, entitled “Quake Study Leads to Cooperation”:

http://newsok.com/quake-study-leads-to-cooperation/article/5335369

Special thanks to Glenn Blumstein, President of GLB Exploration, Inc. and his team in Oklahoma City for tipping us off…

And, a BIG thank you to Brian Woodard (the OIPA’s former VP of Regulatory Affairs, now Director of EHS Regulatory Affairs at Chesapeake) for helping GreaseBook to clarify the new rules!!

Wanna take a look at the new rules for yourself?

You’ll find them attached below…

1.      Oklahoma Corporation Commission (OCC)

a.      Joint Advisory Subcommittee and Technical Rulemaking Conference Highlights

i.     OIPA representatives attended OCC’s Technical Rulemaking Conferences held on January 14th, January 29th, February 7th, February 19th, February 28th, in addition to the final, hearing en banc which was held before the Commissioners on March 13th. Substantive rulemaking items which were addressed, include:

 1.      OAC 165:10 – Oil and Gas Conservation Rules

a.      OAC 165:10-3-15 (A-E) Venting and Flaring

1.      Provides a 72-hour exemption period for conditioning producing wells and provides a 14-day exemption period for gas flared subsequent to initial flowback of a newly completed or recompleted well. Moreover, the rule provides for an additional 30-day period exemption if gas volumes flared are less than a rate of 300 mcf/d on a rolling average basis. The 14-day timeline commences following >50 mcf/d of combustible gas flow.

b.      OAC 165:10-3-17 (D) Required Lease Signs

1.      Requires API number and Global Positioning System (GPS) coordinates on lease signs for wells completed following the effective date of the rulemaking (July, 2014).

c.      OAC 165:10-3-26 (A-D) Well Logs

1.      Revises all instances where “wireline logs” are referenced to be more robust through the inclusion of the verbage “geophysical formation evaluation type well logs.” Also, the final rule requires producers to submit sonic logs to the OCC and allows the Commission to request additional well logs.

d.      OAC 165:10-5-6 (D)(1)(A)Testing and Monitoring Requirements for Enhanced Recovery Injection Wells and Disposal Wells (D) Subsequent Mechanical Integrity Tests (MIT).

1.       Requires operators of non-commercial disposal wells permitted for injection at volumes equal to or greater than 20,000 barrels shall demonstrate mechanical integrity by using one of the following methods:

a.       Conduct a pressure test of the casing tubing annulus at least once every five years year according to the minimum testing standards of (3) of this subsection, or

b.      If a continuous pressure monitor is installed on the casing tubing annulus that will automatically notify the operator of a mechanical failure, then the well shall demonstrate mechanical integrity at least once every five years according to the minimumtesting standards of (3) of this subsection.

e.      OAC 165:10-5-7 (b) (3)(B)Monitoring and Reporting Requirements for Wells Covered by 165:10-5-1 – Required Monthly Monitoring

1.      On a daily basis, the operator of each well authorized for disposal into the Arbuckle formation shall monitor and record the volumes, the casing tubing annulus pressure and the surface injection pressure for the well. The operator must maintain the information required by this subparagraph for a minimum of three years. This information shall be produced upon request by an authorized representative of the Commission.

f.       Additional items concerning the concurrent development of horizontal and non-horizontal drilling and spacing units were a significant topic of discussion during these technical rulemaking hearings. The following was a significant provision adopted within the Ch. 5 and Ch. 10 rulemaking.

1.      OAC 165:10-3-28(e)(4) – upon the formation of a horizontal well unit that includes within the boundaries thereof one or more non-horizontal drilling and spacing units, the Commission may provide that such horizontal well unit supersedes one or more of such non horizontal drilling and spacing units or mayshall provide that such horizontal well unit exists concurrently with one or more of such non-horizontal drilling and spacing units, In the event the Commission provides for the concurrent existence of a horizontal well unit and a non horizontal drilling and spacing unit, as provided above, and each such unit may be concurrently developed.

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Ask us anything

F.A.Q.

Not really. Simply share with us your Excel reports, paper gauge sheets, or the login to your existing legacy production software and we’ll take care of the rest.

Our petroleum engineers turn-key your entire setup, we’ll reach out once we’re done. Bada bing.

You’re right. And, because no one leaves their house without their phone (and because our app works offline), we eliminate any excuse for your pumpers NOT to send you their data. See, we told you this would be easy.

In addition to both Android and Apple smartphones, the Greasebook also works on any tablet, laptop, or desktop.

While Greasebook has been implemented in many of the country’s largest publicly traded production companies operating thousands of wells, Greasebook is focused on serving the small and mid-sized independent US-based oil & gas operators.

Anywhere, anytime, on any device (phone, tablet, desktop or laptop).

The beauty of the app is once your pumpers start submitting their production via the Greasebook – anyone on your team can access production reports, graphs and well files from any device at any time.

It’s sorta like a centralized place from which everyone on your team can work, without all the calls, text messages and emails that would go on otherwise.

Absolutely. As your pumpers continue to add tickets, comments, pressures, well tests and any other relevant information, your investors will have guest access to as much (or as little) information as you’d like.

Of course, they’ll only see production info for the wells in which they participate.

Oil & gas companies who run Legacy oil and gas software systems expose themselves to major risks (and minor annoyances…)

The complexity of traditional oil & gas production systems is twofold:

  1. Software Problem: Legacy software systems are expensive, outdated, clunky and have extremely complex interfaces. In fact, because of all the support and manual interventions required, continuing to use outdated software can often be more costly than simply upgrading.
  2. People Problem: Legacy software systems take an enormous amount of time to familiarize oneself with. And, anytime an employee quits, retires, or is let go the amount of training required for new employees can be significantly higher than for newer, more user-friendly software.

 

This is a lose/lose. What’s more, given all the set-up fees, training fees, support fees and the like the projected ‘savings’ never materialize and now your forced to contend with fluctuating hydrocarbon prices AND a bloated monthly OPEX.

Talk about getting stuck in the muck!

With Greasebook, office users are 99% proficient with the platform in about 20 minutes.

Within 2 seconds – FROM YOUR SMARTPHONE – you’ll have your answer to any question regarding production, allocations, performance, well history files, commentary, run ticket reconciliation, Custom Reports, State reports, and more – all sliced and diced and customized at the Company, Operator, Battery, Well, State, County, Section, Township, Range, Acquisition, or even Supervisor level…

We’ve been at this for awhile. Greasebook was established in 2012 and now supports more than 400+ oil and gas operators (small ma & pops and publicly traded companies alike) across 20 States and is the fastest growing production software in the patch.

The Greasebook corporate outpost is proudly located in Oklahoma City, Oklahoma 🤠📍

The Greasebook helpdesk is staffed by Petroleum Engineers, Geologists, and Completions Experts Monday through Friday, 8AM to 5PM CST. 

We have a real-time chat through which most questions are answered in 2 minutes or less.

Naturally, some questions are more complex and you’ll want to speak to someone over the phone. In this case, we aim to complete all callbacks within two hours of scheduling.👌

Of course, your Dashboard and Reports are available to you 24/7.

We don’t blame them.

Pumpers have been burned by Legacy Production Systems in the past. 😵

However, given how much upside you stand to gain in the form of time savings and profit, DO NOT make the mistake of letting the tail wag the dog, folks!! 💸

Real talk: the average pumper takes about 8 minutes to learn Greasebook (and that goes for guys in their 80s still tending wells…)

Give us two days and we’ll make believers out of your entire pumping crew….

Still not convinced? Check out Greasebook’s “Pumper Wall of Love” by clicking here and let the pumpers tell you themselves 😘

Let us help you help yourself. Simply send us your existing production info, and we’ll assign a production engineer to turn-key your entire setup for you.

We’ll build your wells, your tank straps, your users and anything else you require.

Finally, once everything has been reviewed by your team, we’ll roll out your pumpers and either train them for you or with you while you focus on more important stuff.

That’s not a question, but actually no.

The average pumper demands anywhere from $125 to $400 per month.

And depending on what you require, Greasebook is priced anywhere from $5-15 well/mo.

So, given how much more you’ll get out of your pumpers, how much we’ll streamline your operations, and how quickly we’ll get this all done for you, we’re actually kind of a bargain.

Our guarantee is two-pronged…

First, run the app for full 6 weeks in your operations. If you’re not completely satisfied, let us know and we’ll DOUBLE your money back.

Second, if for any reason you’d like your money back in first 30 days after paying simply let us know and it’s yours. 🤝

However, if you’re anything like our other 400+ operators you’ll be wondering why you didn’t do this 6 months ago…

We’re ready when you are. Take the quiz and schedule a call here – depending how many operators we have in front of you, there’s a chance we can get you up and running by the end of next week.

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