Central production facility - Commingling of production

1. The director shall have the authority to approve requests to consolidate production equipment at a central location. 2. Commingling of production from two or more wells in a central production facility is prohibited unless approved by the director. There are two types of central production facilities that may be approved by the director. a. A central production facility in which all production going into the facility has common ownership (working interests, royalty interests, and overriding royalties), known as a common ownership central production facility. The director may approve a common ownership central production facility provided the production from each well can be accurately determined at reasonable intervals. b. A central production facility in which production going into the facility has diverse ownership, known as a diverse ownership central production facility. The director may approve a diverse ownership central production facility provided the production from each well is accurately metered prior to commingling. A diverse ownership central production facility that is not metered prior to commingling may only be approved by the commission after notice and hearing. 3. Common ownership central production facility. The application for permission to commingle solutions must be submitted on a sundry notice (form 4-sm) and shall include the following: a. A plat or map showing thereon the location of the central facility and the name, well file number, and location of each well and flow lines from each well that will produce into the facility. b. A schematic drawing of the facility which diagrams the testing, treating, routing, and transferring of production. All pertinent items should be shown, such as treaters, tanks, flow lines, valves, meters, and recycle pumps. c. An affidavit executed by a person who has knowledge as to the state of title demonstrating common ownership. d. An explanation of the procedures or method to be used to accurately determine individual well production at periodic intervals. Such procedures or method shall be performed at least once every three months. A copy of all tests are to be filed with the director on form 11-sm within thirty days after the tests are completed. 4. Diverse ownership central production facility. The application for permission to commingle solutions must be submitted on a sundry notice (form 4-sm) and shall include the following: a. A plat or map showing thereon the location of the central facility and the name, well file number, and location of each well, and flow lines from each well that will produce into the facility. b. A schematic drawing of the facility which diagrams the testing, treating, routing, and transferring of production. All pertinent items should be shown, such as treaters, tanks, flow lines, valves, meters, and recycle pumps. c. The name of the manufacturer, size, and type of meters to be used. The meters must be proved at least once every three months and the results reported to the director within thirty days following the completion of the test. d. An explanation of the procedures or method to be used to accurately determine individual well production at periodic intervals. Such procedures or method shall be performed monthly. A copy of all tests are to be filed with the director on form 11-sm within thirty days after the tests are completed. 5. Any changes to a previously approved central production facility must be reported on a sundry notice (form 4-sm) and approved by the director.