Central production facility - Commingling of production

1. The director may approve requests to consolidate production equipment at a central location. The applicant shall provide all information requested by the director. The director may impose such terms and conditions as the director deems necessary. 2. Commingling of oil and gas 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 in which production from two or more wells is commingled that may be approved by the director : a. A central production facility in which all production going into the facility has common ownership. For purposes of this section, production with common ownership is defined as production from wells that do not have diverse ownership. b. A central production facility in which production going into the facility has diverse ownership. For purposes of this section, production with diverse ownership is defined as production from wells: (1) That are in different drilling or spacing units; and (2) Which have different mineral ownership. 3. The commingling of oil and gas production in a central production facility from two or more wells having common ownership may be approved by the director provided the production from each well can be accurately determined at reasonable intervals. Commingling of oil and gas production in a central production facility from two or more wells having diverse ownership may be approved by the director provided the production from each well is accurately metered prior to commingling. Commingling of oil and gas production in a central production facility from two or more wells having diverse ownership which is not metered prior to commingling may only be approved by the commission after notice and hearing. a. The application for permission to commingle oil, gas, or both in a central production facility with common ownership must be submitted on a facility sundry notice and must include the following: (1) 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. (2) A schematic drawing of the facility which diagrams the testing, treating, routing, and transferring of production. All pertinent items such as treaters, tanks, flow lines, valves, meters, recycle pumps, etc., must be shown. (3) An affidavit executed by a person who has knowledge indicating that common ownership as defined above exists. (4) The name of the manufacturer, size, and type of allocation meters to be used. Oil meters must be proved at least semiannually and gas meters must be calibrated at least annually. The results must be reported to the director within thirty days following the completion of the test. (5) An explanation of the procedures or method to be used to determine, accurately, individual well production at periodic intervals. Such procedures or method must be performed at least quarterly. A copy of all tests are to be filed with the director on a central tank battery well test form within thirty days after the tests are completed. b. The application for permission to commingle oil, gas, or both in a central production facility having diverse ownership must be submitted on a facility sundry notice and shall include the following: (1) 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. (2) A schematic drawing of the facility which diagrams the testing, treating, routing, and transferring of production. All pertinent items such as treaters, tanks, flow lines, valves, meters, recycle pumps, etc., must be shown. (3) The name of the manufacturer, size, and type of allocation meters to be used. Oil meters must be proved at least once every three months and gas meters must be calibrated at least semiannually. The results must be reported to the director within thirty days following the completion of the test. (4) An explanation of the procedures or method to be used to accurately determine individual well production at periodic intervals. Such procedures or method must be performed at least monthly. A copy of all tests must be filed with the director on a central tank battery well test form within thirty days after the tests are completed. 4. The commingling of produced water in a central production facility from two or more wells may be approved by the director provided the produced water production can be accurately determined at reasonable intervals. The application for permission to commingle water in a central production facility must be submitted on a facility sundry notice and must 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 such as treaters, tanks, flow lines, valves, meters, recycle pumps, etc., must be shown. c. An affidavit executed by a person who has knowledge indicating that common ownership as defined above exists; or an indication that it is not common ownership. d. The name of the manufacturer, size, and type of allocation meters to be used. Allocation meters must be installed and calibrated in accordance with American petroleum institute or to the meter manufacturer's recommendations. e. An explanation of the procedures or method to be used to determine, accurately, individual well production at periodic intervals. Such procedures or method must be performed quarterly for common ownership and central production facilities monthly for diverse ownership central production facilities. 5. Any changes to a previously approved central production facility must be reported on a facility sundry notice and approved by the director. 6. After notice and hearing pursuant to sections 43-02-03-88.2 through 43-02-03-101, the commission may revoke the authorization to commingle production in a central production facility for failure to comply with this section or any terms, conditions, or directives imposed by the director.