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(a) Before drilling or redrilling a well or re-entering an abandoned well, a person shall submit and obtain the commission's approval of an application for a Permit to Drill (Form 10-401). If, after drilling a well, a person wishes immediately to redrill below the structural or conductor casing to a new bottom-hole location not requiring a spacing exception under 20 AAC 25.055, the person may request oral approval from the commission to avoid interruption of operations. If oral approval is obtained, the name of the representative of the commission who provided oral approval and the date of the approval must be included on the application for a Permit to Drill, which must be submitted by the commission's next working day for final approval by the commission.
(b) The commission will classify a well as
(2) development, either oil or gas;
(3) service; or
(4) stratigraphic test.
(c) An application for a Permit to Drill must be accompanied by each of the following items, except for an item already on file with the commission and identified in the application:
(1) a fee of $100 payable to the State of Alaska/AOGCC;
(2) a plat identifying the property and the property's owners and showing
(A) the coordinates of the proposed location of the well at the surface, at the top of each objective formation, and at total depth, referenced to governmental section lines;
(B) the coordinates of the proposed location of the well at the surface, referenced to the state plane coordinate system for this state as maintained by the National Geodetic Survey in the National Oceanic and Atmospheric Administration;
(C) the proposed depth of the well at the top of each objective formation and at total depth; and
(D) other information required by 20 AAC 25.050(b) ;
(4) information on drilling hazards, including
(A) the maximum downhole pressure that may be encountered, criteria used to determine it, and maximum potential surface pressure based on a methane gradient;
(B) data on potential gas zones; and
(C) data concerning potential causes of hole problems such as abnormally geo-pressured strata, lost circulation zones, and zones that have a propensity for differential sticking;
(5) a description of the procedure for conducting formation integrity tests, as required under 20 AAC 25.030(f) ;
(6) a complete proposed casing and cementing program as required by 20 AAC 25.030, and a description of any slotted liner, pre-perforated liner, or screen to be installed;
(8) a drilling fluid program, including a diagram and description of the drilling fluid system, as required by 20 AAC 25.033;
(9) for an exploratory or stratigraphic test well, a tabulation setting out the depths of predicted abnormally geo-pressured strata as required by 20 AAC 25.033(f) ;
(10) for an exploratory or stratigraphic test well, a seismic refraction or reflection analysis as required by 20 AAC 25.061(a) ;
(11) for a well drilled from an offshore platform, mobile bottom-founded structure, jack-up rig, or floating drilling vessel, an analysis of seabed conditions as required by 20 AAC 25.061(b) ;
(12) evidence showing that the requirements of 20 AAC 25.025 have been met;
(13) a copy of the proposed drilling program;
(14) a general description of how the operator plans to dispose of drilling mud and cuttings and a statement of whether the operator intends to request authorization under 20 AAC 25.080 for an annular disposal operation in the well.
(d) For a well that is to be intentionally deviated, the requirements of 20 AAC 25.050(b) must be met.
(e) Each well branch requires a separate Permit to Drill. If a previously drilled well is proposed to be redrilled below the structural or conductor casing to a new bottom-hole location, the application for a Permit to Drill must be accompanied by all items required under (c) of this section. If concurrent multiple well branches are proposed from a single conductor, surface, or production casing,
(1) the applicant shall designate one well branch as the primary wellbore and include all items required under (c) of this section with the application for a Permit to Drill for that well branch; and
(2) for each other well branch, the application for a Permit to Drill need only include information under (c) of this section that is unique to that well branch and need not be accompanied by the $100 fee.
(f) Each well must be identified by a unique name designated by the operator and a unique API number assigned by the commission under 20 AAC 25.040(b) . For a well with multiple well branches, each branch must similarly be identified by a unique name and API number by adding a suffix to the name designated for the well by the operator and to the number assigned to the well by the commission.
(g) If drilling operations are not commenced with 24 months after the commission approves an application for a Permit to Drill, the Permit to Drill expires.
(h) A Permit to Drill is not valid at a location where the applicant does not have a right to drill for oil and gas.
History: Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am 11/7/99, Register 152; am 6/4/2000, Register 154; am 1/5/2006, Register 177
Authority: AS 31.05.030
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Last modified 7/05/2006