SECTION 165:10-3-39. Commingling of production

(a)   Commingling permit required.

(1)   Commingling of production from a well from separate common sources of supply is prohibited without an approved Form 1023 permit. A permit shall be required when production is from more than one source of supply, without segregation of the production in the wellbore, or is produced separately in the wellbore and then combined together downstream of the wellhead prior to measurement. A permit shall be required for horizontal wells with more than one lateral where production in the individual lateral is from separate common sources of supply. A permit shall also be required for horizontal wells where production in uphole zones is from separate common sources of supply. A permit is not required for a multiunit horizontal well or horizontal well involving production from only one lateral. Commingling downstream of the wellhead shall require Form 1024 (Packer Setting Affidavit) and Form 1025 (Packer Leakage Test) to be filed and approved. The Commission may assess a fine up to $500.00 for non-permitted commingling either down hole or downstream prior to measurement.

(2)   Each application for the approval of the commingling of a well shall be filed with the Technical Services Department on Form 1023. The following shall be filed with the application:

(A)   A well log section with top and bottom of open intervals marked.

(B)   A schematic of the proposed completion configuration of the well.

(C)   A plat showing the locations of all wells producing from the same common sources of supply within one-half (1/2) mile radius of the subject well.

(3)   A copy of the application shall be served, by regular mail, or delivered to each operator of a producing leasehold within one-half (1/2) mile of the well location. An affidavit of mailing shall be filed within five (5) days of filing of the application. No notice is required to be published.

(4)   If a written objection to the application for a commingling permit is filed within 15 days after the application is filed, or if hearing is required by the Commission, the application shall be set for hearing, and notice thereof shall be given as the Commission shall direct. If no objection is filed and the Commission does not require a hearing, the matter shall be reviewed administratively by the Director of Conservation or his designee. If the Conservation Division denies an application, the applicant may request a hearing on said application.

(b)   Restrictions.

(1)   Commingling shall only be authorized when it would prevent waste and protect correlative rights.

(2)   Commingling shall be prohibited where one producing zone is predominately gas and a second zone is predominately oil, unless the operator can verify in writing, submitted with the application, that no cross flow will occur resulting in reservoir damage.

(c)   Commingled allowables.

(1)   Single allowable for commingled production. Common sources of supply commingled under this Section receive a single allowable as if they constituted a single common source of supply in the wellbore.

(2)   Gross daily allowable for commingled production. The gross daily allowable shall be based on the classification of the well as an oil or gas well for allowable purposes under OAC 165:10-13-2.

(A)   Unallocated oil well (GOR < 15,000:1). The gross daily allowable shall be based on what would be the allowable if commingled production comes from the deepest commingled common source of supply.

(B)   Unallocated gas well (GOR > 15,000:1). The gross daily allowable shall be a single unallocated gas allowable, as determined by OAC 165:10-17-11(c). Upon request in a commingling application or in any other appropriate application and upon proper notice thereof, the Commission may designate in a commingling permit or other appropriate order the specific gas formation, completed and producing in the applicable well, to which the allowable for such well is to be attributed when the Commission determines that such designation is necessary to prevent waste and to protect correlative rights.

(C)   Special allocated gas pool. The gross daily allowable shall be based on what would be the allowable if the commingled production came from the special allocated gas pool in the well.

(3)   Operator option if multiple pool rules exist. If more than one common source of supply under a commingling permit or appropriate order for a gas well is subject to gas pool rules, the order shall designate which set of pool rules is applicable for allowable purposes.

(4)   Net daily allowable. The net daily allowable is the gross daily allowable under (3) of this subsection:

(A)   Reduced accordingly by any penalty against any of the commingled common sources of supply under the permit or appropriate order.

(B)   Reduced accordingly by any overage carried forward against a commingled common source of supply.

(C)   Increased by any underage carried forward for the well under applicable allocated or special allocated pool rules.

[Source: Amended at 9 Ok Reg 2295, eff 6-25-92; Amended at 16 Ok Reg 2206, eff 7-1-99; Amended at 24 Ok Reg 1784, eff 7-1-07; Amended at 25 Ok Reg 2187, eff 7-11-08; Amended at 28 Ok Reg 1949, eff 7-11-11; Amended at 35 Ok Reg 973, eff 9-14-18]