805 KAR 1:180. Production reporting.

 

      RELATES TO: KRS 353.550(1)

      STATUTORY AUTHORITY: KRS 353.540, 353.550(4), 353.670(1)

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 353.550(1) authorizes the department to promulgate administrative regulations requiring an operator of oil and gas properties in the Commonwealth to identify producing leases. This administrative regulation is necessary to specify the requirement of annual reporting, the content of the report, and the form on which the report shall be made.

 

      Section 1. Definitions. In addition to the definitions set out in KRS 353.510, the following definitions shall apply to this administrative regulation:

      (1) "GPS" means a global positioning satellite, which:

      (a) Receives radio frequencies from more than one (1) satellite; and

      (b) Is able to locate a point on the earth.

      (2) "Mcf" means 1,000 cubic feet of natural gas.

      (3) "Net gas sales" means the amount of metered or prorated gas sold into the line of first purchase and may be different from produced gas, due to line loss and compressor usage.

      (4) "Produced gas" means the amount of produced gas metered or prorated at the well head on a monthly basis.

      (5) "Purchaser or lease number" means the number assigned by the purchasing company to the lease or well for accounting and payment purposes.

      (6) "Topographic spot" means the act of locating a well on a United States Geological Survey 1:24,000 Topographic Map and scaling that well location on the map to determine its Carter Coordinate location.

 

      Section 2. Annual Report of Monthly Production. (1) An oil or gas operator shall:

      (a) Compile and retain records of the monthly production of natural gas and crude oil; and

      (b) For the preceding year, file the production information with the Division by April 15.

      (2) The information may be submitted to the division:

      (a) On Form ED-17, "Annual Report of Monthly Production for Natural Gas and/or Crude Oil"; or

      (b) By using:

      1. Common personal computer spread sheet or database software;

      2. An electronic mail attachment.

      (3) An operator shall be permitted to submit the information in accordance with subsection (2)(b) of this section, subject to the division being able to process the production data electronically.

      (4) The following shall be included in the information submitted by the operator:

      (a) Operator name and address;

      (b) Production year;

      (c) Permit number issued by the Division of Oil and Gas;

      (d) Purchaser number;

      (e) Number of wells on the lease for which the report is being filed;

      (f) Farm name, complete with the individual well name and well number;

      (g) County of production;

      (h) Producing formation or, if production is commingled from multiple wells which are not metered separately, the identification of the wells as "commingled" and the pertinent formations from which production was made; and

      (i) Well status, identified as producing or shut-in.

      (5) Production from a gas well shall be reported in Mcf of net gas sales by well. In addition to reporting net gas sales, produced gas may also be reported at the option of the operator.

      (6) Monthly oil production shall be reported in barrels by individual well or by lease; if by lease, the operator shall attach to Form ED-17 a list identifying the purchaser number and division permit number of all wells producing on that lease.

      (7) For a well drilled prior to the date upon which a permit for the drilling and production of a well was statutorily required, the operator shall provide a Carter Coordinate location for each well not having a location on file with the division; that location may be estimated by a topographic spot, a GPS locator, or by survey.

      (8) Production information reported pursuant to this administrative regulation shall be organized into a standard format and shall be made available for public release no earlier than January 1 nor later than March 1 of the following year.

 

      Section 3. Penalties. If an operator does not file his production data on Form ED-17 by April 15 after each production year, the division shall notify him in writing of his noncompliance. If he does not submit all required production information within forty-five (45) days after being notified of his noncompliance, he shall be subject to denial of permits in accordance with KRS 353.570 and the penalties established in KRS 353.991(2), (3) and (4).

 

      Section 4. Incorporation by Reference. (1) "Annual Report of Monthly Production for Natural Gas and/or Crude Oil", (November 12, 1997 edition), Division of Oil and Gas, is incorporated by reference.

      (2) This form may be obtained, examined, or copied at the Kentucky Department for Natural Resources, Division of Oil and Gas, 1025 Capital Center Drive, Suite 201, P.O. Box 2244, Frankfort, Kentucky 40602-2244, Monday through Friday, 8 a.m. to 4:30 p.m. (23 Ky.R. 3658; Am. 24 Ky.R. 92; 1263; eff. 11-12-97; TAm eff. 8-9-2007.)