R 324.510
R 324.510 Central production facility.
Cite as Mich. Admin. Code R 324.510
Rule 510. (1) A permittee of a well shall not begin the operation of a central production
facility without the approval of the supervisor or authorized representative of the
supervisor. A permittee of a well shall make a written request for approval to operate a
central production facility and shall file the request with the supervisor. The supervisor or
authorized representative of the supervisor shall approve or deny the request within 30 days
of receipt. The request shall have a detailed description and plan of the proposed facility,
which shall include all of the following information:
(a) The location of the proposed central production facility.
(b) Identification of the wells or production units to be connected to the central production
facility.
(c) Identification of the fluid streams that will be commingled.
(d) A schematic of the flow schemes, including the location of all of the following:
(i) Individual gas, oil, condensate, and water meters.
(ii) Facility and sales gas, oil, condensate, and water meters.
(iii) Fuel use and artificial lift meters.
(iv) On-site surface equipment.
(e) The method proposed for measurement or allocation of fluid volumes, if individual
and facility meters are not used. The method proposed for measurement may include
allocation of production to each well using a molal balance scheme.
(f) Identification of the type and model of the gas, oil, condensate, and water meters that
are proposed.
(g) Quality assurance procedures, including calibration and proofing, that will be
implemented to maintain the accuracy of the meters.
(h) The procedure or method proposed for allocation of each commingled fluid stream.
(i) If production from production units or unitized areas is included in the central
production facility, a copy of the pooling or communitization agreement filed pursuant to
R 324.303(2) or the unitization agreement developed pursuant to sections 61701 to 61738
of the act.
(2) A permittee of a well shall obtain the approval of the supervisor or authorized
representative of the supervisor before implementing a subsequent addition, alteration, or
change to the central production facility that affects flow measurement or reporting
methods.
(3) A permittee of a well shall submit monthly reports of meter readings, metered
production, and allocated production on forms approved by the supervisor.