Applicability
of Chapter 78 Versus Chapter 79:
Question 1:
Do
the new regulations affect conservation wells as far as production/intermediate
casing and BOPs? The sections pertaining
to preventing waste differ slightly in Chapter 79 and the Conservation
Law. There is nothing to indicate that
the new Chapter 78 regulations supersede requirements in Chapter 79.
Response 1:
The
intent of the new Chapter 78 regulations is to enhance these standards for all
wells. Conservation regulations were somewhat more prescriptive when initially
developed, but now may appear to be less so. However, since conservation wells
are generally deeper than non-conservation wells, they should be regulated at
least as stringently.
Considering
the reference to Section 79.12, where it states that the intermediate string
must run "sufficient" cement, the new Chapter 78 regulations now
require cement to surface. Where the language in Chapter 79 is more generic, we
would now interpret "sufficient" to mean to the surface, as per the
new Chapter 78 regulations. Generally
speaking, in instances where Chapter 79 is less conservative than Chapter 78
from an environmental protection or well safety standpoint and it is not
prescriptive, Chapter 78 should apply.
Question 2:
If
a well is permitted as a conservation well but doesn't penetrate the Onondaga,
which Chapter applies?
Response 2:
Generally
speaking, in instances where Chapter 79 is less conservative than Chapter 78
from an environmental protection or well safety standpoint and it is not
prescriptive, Chapter 78 should apply.
It should be noted that in the SW Region, operators have been given the
option to apply for conservation well status when they penetrate the Onondaga
and plug back, or when they tag the Onondaga over the directional leg of the
wellbore.