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Our presenter this afternoon is Krystal Heibel
at the engineering unit
and technical marketing department of the oil
and gas division.
All right, let's go ahead and get started.
Krystal, whenever you're ready.
Instructor: Thanks Molly.
Hello everyone.
My name is Krystal and I work as an engineering specialist
in the engineering unit at the Railroad Commission.
I'm going to go over this presentation today,
just about some knowledge on field transfers.
I'm gonna go over what field transfers are and what they
are used for.
I'm going to talk about Statewide Rule 40
and about what type of situation needs a field transfer.
At the end,
I will go over what information is required
in a field transfer,
and I'll show you what an approval letter looks like.
So let's get started.
So, a long time ago,
long before I worked at the Railroad Commission,
field transfers were rare and discouraged.
They were used as a correction tool for when wells replaced
in an incorrect field.
During recent times the field transfers are dominantly used
to bring wells into compliance with Statewide Rule 40.
I will explain Statewide Rule 40 in later slides.
So, operators will submit their field transfer requests
to the engineering unit and the reviewers like myself,
look to see if a field transfer brings some degree of order
to the well's current situation.
To elaborate, the reviewer will look to see
if other wells in the area are already placed
in the desired fields.
We do not wanna situation where the well in question
is placed in a field that does not make sense
of the area's geology.
We also look to see if the field transfer
is necessary for this situation.
If the well's in a Statewide Rule 40 violation,
then a field transfer makes perfect sense
to correct that problem.
Like I said earlier, the reviewers want to make sure
the field transfer brings some degree of order
to the wells current situation.
This means that we make sure that the desired field
makes sense geographically and geologically.
Geographically means that we want to make sure that
see if other wells in the surrounding areas are already
within the desire's field.
If so, then that's a really great start.
Next, we check to make sure that the well makes sense
geologically.
We look to see at what depths the wells perforated
and in what formation or formations
the well is producing from.
We look to see if other wells within the desired field
are producing from similar depths
and from the same formations.
If there is some confusion figuring these things out,
then we may request additional information
such as a cross-section and an area map.
More on that stuff later, too.
Just so you're aware, field transfers affect
the amount of acreage assigned to the wellbore.
This is because fields have different field rules
when it comes to calculating maximum acres.
This affects the amount of hydrocarbon allowables
the operator can produce.
On this slide is an example of this.
Both comments are for the same well with obviously
the same estimated drain hole and the same take points.
The comment on the top illustrates that when the well
is placed in the Phantom Wolfcamp field,
the max acreage allowed is 704.
On the bottom comment,
the well's able to have 840 acreage when placed
in the parks consolidated fields,
thus increasing the allowables.
When the field change from the Phantom Wolfcamp
to the Parks Consolidated,
the max acreage assigned to the wellbore
increased from 704 to 840.
As a friendly reminder,
requesting a field transfer to alter your max acreage
and allowables, is strictly not allowed.
Field transfers are only allowed if they bring some degree
of order to the wells current situation.
As you can see here,
we have an internal database that records the low numbers
located within specific fields.
In district eight, this very, very trend area fields
with its associated field number has multiple wells
placed within it.
Moving on, we will discuss Statewide Rule 40.
Statewide Rule 40.
A lot of field transfers are requested in order to prevent
or correct for Statewide Rule 40 violations.
Statewide Rule 40 is called assignment of acreage
to pool development and proration units.
Irrelevant clause within Statewide Rule 40,
is that multiple assignment of acreage is not permitted.
Multiple assignment at acreage is defined
as the assignment of the same surface acreage
to more than one well in a fields.
Some fields have correlative intervals that overlap
with the formations in another fields.
A well can be perforated and multiple formations,
therefore, in this simplified example,
a well can technically be placed in either fields.
If an operator as well,
wells are producing from the same interval
and the operator is assigning the wells to different fields,
then that is a Statewide Rule 40 violation.
An example of this is on the next slide.
This slide states that it's a Statewide Rule 40 violation,
if wells that are producing from the same formation
are assigned to multiple fields.
Some fields allow for the wells to be perforated
and multiple formations,
and sometimes these formations they overlap.
Therefore, it is a Statewide Rule 40 violation
if the same surface acreage is assigned in multiple fields.
I'm going to give you an example.
So for example,
two wells that are producing from the same formation,
let's say the Third Bone Springs.
This operator's wells can be in either
the two Georgia's Bone Springs field
or the Phantom Wolfcamp field.
The operator cannot have one well producing
from the Third Bone Springs within the two Georgia's field
and the other well producing from the Wolfcamp.
There must be separation or a pattern for what is being put
into the two Georgia's Bone Springs field
and what's being put into the Phantom Wolfcamp fields.
Clause D does not want to prevent the reformation
of development or proration units as long as
no multiple assignment of acreage occurs,
and such reformation does not violate
other conservation regulations.
Now let's talk about UFT fields,
Unconventional Fracture Treatment fields.
This part of Statewide Rule 40 is unique
because it says that it is permissible
to have multiple assignments of acreage.
The next slide will talk about this further.
So clause E of the UFT fields states that
where ownership of the right to drill
or produce from a tract in the UFT field
is divided horizontally,
acreage may be assigned to more than one well
provided that the wells having
the same level wellbore profile
are not completed in the same ownership interval.
For purposes of the section divided horizontally
means that the ownership of the right to drill
or produce has been separated in a depth intervals
defined by total vertical depth,
depth relative to specific geologic contact
or some other discriminator.
A tract maybe divided horizontally,
even where one operator has the right to drill
or produce multiple intervals on the same tract of land
in the same field.
So to apply for multiple assignment at acreage
under this subsection,
the operators drilling permit application
must indicate the upper and lower limits
of the operators ownership interval.
The interval shown on the drilling permit application
is measured as a total vertical depth from the surface.
So what constitutes a field transfer?
Now that we looked at one of the main reasons
people request field transfers,
let's go over some scenarios that may
or may not require a field transfer.
And overarching question would be,
how do we change the field name for this well,
from field A to field B?
To answer this question,
let's look at it, some specific things.
Is the well on schedule in field A?
Are the current perfs different from the perfs
that were originally associated with field A?
If the well is not on a proration schedule in field A,
then you just need to amend the existing drilling permit,
which is called a Form W-1 to add field B.
You'll mark amended as the purpose of filing
on the Form W-1.
So then you'll change the field name
on the completion report to field B.
So easy peasy, no field transfer is required
for this situation.
If the well is on the proration schedule in field A
and the current perfs are different,
then you need to file a drilling permit Form W-1
for field B.
You'll mark recompletion as the purpose of filing
on Form W-1 and you'll file a new completion report
for field B.
So another situation where a field transfer is not required.
So if the well is on the proration schedule in field A,
and the current perfs are not different,
then a field transfer request is needed.
You'll submit that field transfer request
to the engineering unit and reviewer like myself
will review the request.
So when you submit your field transfer request,
we require some additional information.
So a letter of request is required,
and you'll have to say why the field requested
is more appropriate than the permitted field.
Just so you're aware you may request a transfer
more than one well on a single letter application.
So in terms of information, we require,
we need the operator information such as the operator name
and their number, well information, the well number,
lease number and API, the current field name and number,
the desired field name and number,
and the credit of interval, the wells producing interval,
the current depth and the current status of the well.
If you ever have questions about this,
please feel free to contact the engineering unit.
We can help you out.
So transferring a well to different desired field
should make sense geographically and geologically.
Reviewers are just trying to make sure
that the well transfer will bring some degree
of order to the well.
So in terms of information required,
if you submit an area map,
it must have the well locations of all names
for field names for each well.
It needs to demonstrate why the requested field
is geographically appropriate.
If you provide a cross-section which may be needed,
it needs to tie the subject well to other wells in the area
because it's main point is to demonstrate
why that field is geologically appropriate.
So the engineering unit staff will review the request
and provide information for appropriateness.
Upon approval, the requesting party
will be sent an approval letter,
which looks like this.
The areas that are highlighted or areas that we change,
depending on the course they request.
This concludes the end of my field transfers presentation.
I hope you've learned a thing or two about field transfers.
If you have any questions, I can answer them now,
or you can reach out to the engineering unit
or the proration unit at the phone numbers
listed on this slide.
Thank you for listening.
Please, let me know if you have any questions.
Instructor: Krystal, can you go back
to the required information section?
Instructor: Yes, this one?
Instructor: I believe so.
A question is, can you repeat the required information?
Instructor: I wonder if they mean this one?
Lecturer: I think it was one of three.
Instructor: Yes, I bet so.
Yes, I definitely can.
We need the operator information,
which means we need the operator name
and their operator number, their key file number.
We need well information such as the well number,
the lease number and the API number.
We need the current field name and number,
and we also need the desired field name
and number and the correlative interval.
So, we also need to know the current status of the well.
when operators submit field transfer requests,
a lot of times they actually don't have
all of this information and that's it.
I guess it's more preferred
if they do have more information,
but we definitely can look up
a lot of this information ourselves,
as long as we have the API number
and we definitely do need to know what field
the operator is wanting to transfer to.
So I'd say the most important things are the API number
and the desired fields,
because we can look up most of the other information too.
Instructor: Krystal, another one.
When you say send to the engineering group,
who exactly is that?
And can these be sent via email as attachments?
Instructor: Oh yeah, definitely.
So the engineering unit is the unit that Weston
and myself are a part of.
So there is, let me see,
Oh, I did not include the email address, unfortunately,
but if you call this number,
we can give you the engineering unit email address
and yes, you can submit them as attachments.
Usually, people submit the field transfer request
as attachments.
On the top of your head Weston,
you made the engineering unit email address.
Instructor: Yeah.
Just give me 10 seconds here
and I'll get it so that everyone can write it down.
Instructor: Thank you so much.
Instructor: All right, I'm happy to type it out.
If someone wants to type a question
or just ask for it again, then I can type.
Instructor: That'd be really helpful.
Actually, Weston, you can go ahead
and still type the answer, it's still open.
Instructor: Okay, great, thank you.
Instructor: Also, if anyone is requesting
a field transfer and they have my,
or Weston's direct email address,
you can always send them to us too,
and we will get it processed.
Instructor: All right.
So it's engunit@rrctexas.gov,
it's under the question that Larry Smith asked,
he just said, "Send the email."
So I typed it under there.
Instructor: Thank you so much Weston.
And it's Texas spelled out too,
just so it's not TX, but TEX-
Instructor: Alright, Crispy has asked two more questions,
as a Commission staff considered field consolidation
for some of the problem areas like Fanon and Wolf Bone
eliminate the books, field shopping occurs?
Instructor: Oh, wow.
That's a great question.
(laughing) Weston, let me know
if you have any insight on this,
but I haven't heard of any work being done to,
I guess, amend or 'cause you're right.
Operators, there is some problem with field shopping
in terms of placing wells in those two fields.
Have you heard anything Weston?
Instructor: So, on those two fields I haven't,
but I will say one sort of point against doing,
I guess, more field consolidation than less would be,
you get into areas such as, you know,
the Sprayberry Trend area, where it gets very, very large.
And then all of a sudden you have to introduce
a sort of Statewide Rule 40 field
because all of a sudden you can't produce
as much of that field,
'cause you get into double sign at the Bay Bridge
and whatnot as you would like to.
So for that reason,
one of the many reasons we don't consolidate,
or we're not currently talking about consolidating
feels like the Phantom or Wolfcamp,
is it so we can sort of produce
out of the entire corroded interval
of that field versus just making it enormously large.
Instructor: If you'd like a followup on this question,
just shoot us your email address.
And someone in engineering unit can get back to you.
Lecturer: Very true.
Instructor: Tim Spear, the engineering unit manager
may know about something that could be currently happening
with regards to those fields.
One more Krystal,, the new well on a lease
that already has permitted county regular field wells
be placed in a field other than county regular.
Instructor: Oh, Weston,
I think you might know more about those county, right?
Instructor: So on that,
I would say most likely not,
this would probably be an instance
where you would wanna reach out to Krystal, myself,
or Tim, so that we can look at the GIS
and maybe even get with the proration unit
or work compliance to avoid any sort of
double Simon of acreage.
I would assume most likely that it does need to be
in that county regular field.
Instructor: Thank you Weston.
Instructor: But yeah, we're, we're happy
to just take a look at that.
See, we have another one from Bonnie,
where can you find fuel orders for the fields?
Instructor: Oh, like field rules?
Instructor: So when you're referring to the final orders
or these specific fields-
Instructor: Does she mean the dockets?
Instructor: That's my assumption.
Instructor: The dockets are on the RRC website.
Weston, what is the name of the new dockets?
Instructor: It's called cases.
Generally the easiest way to find information
on special field rules
and dockets and whatnot,
is to use the field wary search in the online system
and then from there you click on your field
and then scroll down to the bottom
and there should be a list of the irrelevant dockets
that discuss all of these special field rules.
Instructor: Yes, that would be the better way.
(laughing) Thank you, Weston.
Instructor: And then there is-
So all type out that the field rules query
and attach it here for a link,
hopefully that went through there.
There is another docket search as well.
I don't think that we really have used cases for this,
but yeah, just a normal docket search by field.
So if you go to docket search,
you should be able to filter by field,
type in that field number
and then you should be able to,
you should be able to pull up
all the dockets related to that field.
So, Bonnie, I'm more than happy
to help you find something specific.
in one of those dockets, if you wanna reach out to me
or Krystal.
We can probably find exactly what you're looking for.
There're some fields do not have the dockets.
So, okay, that is probably where you would wanna go
into the docket search on our website.
And let me see if I can go ahead and send a link to that,
If you don't mind bearing with me.
Instructor: Thank you so much, Weston ,
really appreciate it.
'Cause I also have received emails through time
of people requesting that.
So I'm sure that'd be very helpful.
Instructor: The difficult thing is,
all of you clearly know about these barely older fields,
is that not all of the information is right there
in the field query where it would be very nice to have.
Instructor: That's true.
Instructor: Let me see if I can find.
Instructor: And then I guess Weston,
Oh, come on Weston.
Instructor: Please, go ahead.
Instructor: Another helpful tip is if you are looking
at like a docket for a very popular field,
then make sure you look at the most recent one,
don't look at,
or I guess refer to the most recent one
for most up to date information.
Instructor: Alright, sorry, one second.
I'm gonna type, this is just the link (indistinct)
where you can type in the specific field number
and you should be able to find all of the dockets
related to that specific field.
So hopefully those older ones
aren't on the online research query
are here in (indistinct).
So that link I just provided is under Bonnie's question
or statement, which says some fields
do not have the dockets.
Hopefully, that's should be helpful there
Instructor: Thanks, so much Weston.
Instructor: It's the idea of Mario, you can absolutely
try cases as well,
and you can't find anything
and in (indistinct) I would absolutely track cases.
I used it earlier this morning, actually was really helpful.
So definitely another place to try it next
that if you can't find anything to renew this, excuse me,
the through our (indistinct)
through our field research query or through cases.
So let us know when we may be able
to dig a little bit deeper,
maybe look through our main frame
and see if we can find anything.
Instructor: Good point.
Instructor: Mark, if you wanna reach out to us,
we could probably dig a little bit deeper on that.
I think you left your email, so we'll make sure to,
to get back to you there, or you have our email,
so feel free to contact us.
Instructor: And it looks like all the questions
have been answered.
So I guess we'll go ahead and wrap it up.
There is an evaluation available
on the RRC regulatory webinars page
on the Railroad Commission of Texas website.
And we would really appreciate you taking the time
to fill it out.
Thank you everyone so much for participating this afternoon.
We appreciate you.
Thank you.