SECTION 165:10-15-7. Procedure for obtaining discovery allowable

(a)   Any operator desiring a discovery allowable shall file Form 1028 with the material and information specified below:

(1)   A resistivity and a porosity type wireline survey of the well in question, if run.

(2)   A Completion Report (Form 1002A) and Cementing Report (Form 1002C), completed in detail.

(3)   A Potential Test (Form 1029A), completed in detail.

(4)   A plat of the area showing all of the following information for each well within one and one-half (1 1/2) miles of the subject well:

(A)   Operator.

(B)   Well name and number.

(C)   Total depth.

(D)   Current status of the well (dry, oil, gas, injection, disposal, temporarily abandoned).

(E)   Name of interval open, if any.

(F)   Perforations, top and bottom, if any.

(G)   Average daily production.

(5)   An isopach contour map of the productive interval and/or a structural contour map of a nearby marker bed or formation, not separated from the producing interval by an unconformity, which is commonly used in the area. The Conservation Division may require either or both types of maps to determine the discovery status. The commission may also require additional geological and/or engineering data, such as: stratigraphic cross-sections, structural cross-sections, production, and pressure information.

(b)   The Conservation Division may administratively designate a discovery allowable for a well when the operator furnishes the Technical Department with the information specified in (a) of this Section. If the information is provided within 30 days of the date of first production and the application is approved, the effective date of the discovery allowable shall be the date of first production. If the information is provided more than 30 days after the date of first production and the application is approved, the discovery allowable shall be effective the date of filing.

(c)   If a gas well in a discovery oil pool is reclassified as an oil well for allowable purposes, the operator must file the appropriate form, information and material specified in (a) of this Section within 30 days of reclassifying the well to obtain a discovery allowable. The allowable shall be effective the date the well was reclassified as an oil well as indicated on Form 1002A. If the application is not received within the specified time period, the application will be processed in accordance with (b) of this Section.