Our estimated processing time for this application is 20 business days. See our timeline spreadsheet for updates.
Purpose of the Application
Under section 10.300(4) of the Oil and Gas Conservation Rules, a company can apply to change a gas allowable when a well is subject to a gas allowable order, and the company believes that its circumstances will allow for change. Those circumstances may include factors such as
- equity (i.e., there is no longer an offsetting productive well),
- conservation (i.e., there is no longer a reason to restrict the production rate),
- pool delineation (i.e., data support a new pool interpretation, and a gas allowable is no longer required for the well), and
- administrative reasons (e.g., the well can no longer meet the allowable).
In some cases, we may issue a gas allowable order to set the maximum allowed gas production rate for a gas well or wells in a pool. Those cases include
- if gas recovery might be adversely affected by unrestricted production rates;
- if a gas well is completed outside of its prescribed target area, and it is necessary to apply an off-target penalty to the well’s base allowable for equity reasons; or
- if we have decided a fractional tract of land should be a drilling spacing unit, and there is a need to apply an area-ratio production penalty or off-target penalty for equity reasons.
Submit an Application
Companies must submit gas allowable applications through our Digital Data Submission (DDS) system. We will register each application and assign a reference number.
By submitting an application, the company accepts that its information is no longer confidential.
- We share all applications on our Public Notice of Application page to encourage public participation in the approval process.
- Anyone who believes they may be directly and adversely affected by an application can file a statement of concern (SOC). If we receive an SOC, it may take us longer to process the application.
- We will assign the application to a subject matter expert for initial review. If information is missing (i.e., the application is not complete), we will close the application. Otherwise, we will proceed with a full technical review. We look at
- whether all Directive 065 requirements are met;
- whether there are any changes since the original gas allowable was assigned;
- whether pool delineation is an issue (i.e., if our pool delineation is different from the applicant’s, and this difference is relevant to the assignment of the allowable). If so, our geologists and engineers will review the delineation; and
- whether offset licensees have been notified.
- We may request additional information (through a supplemental information request) to complete our technical review.
- We will decide to approve, close, or deny the application. If we close it, the applicant may reapply without prejudice. If we deny it, the applicant can file an appeal through our appeal process.
- We will provide the applicant with a link to the letter with our decision, which is accessible for 30 days through the Integrated Application Registry. We will also share our decision on our Publication of Decision page.