[http://www.gomr.mms.gov/homepg/offshore/royalty/250_1102.TXT]
[Code of Federal Regulations]
[Title 30, Volume 2, Parts 200 to 699]
[Revised as of July 1, 1998]
From the U.S. Government Printing Office via GPO Access
[CITE: 30CFR250.1102]
[Page 365-367]
TITLE 30--MINERAL RESOURCES
CHAPTER II--MINERALS MANAGEMENT SERVICE, DEPARTMENT OF THE INTERIOR
PART 250--OIL AND GAS SULPHUR OPERATIONS IN THE OUTER CONTINENTAL SHELF--Table of Contents
Subpart K--Oil and Gas Production Rates
Sec. 250.1102 Oil and gas production rates.
(a) MER. (1) The lessee shall submit a proposed MER for each
producing sensitive reservoir on Form MMS-127, Request for Reservoir
Maximum Efficient Rate (MER), along with appropriate supporting
information to the Regional Supervisor within 45 days after discovering
that a reservoir is sensitive.
(2) The lessee may propose to revise an MER by submitting Form MMS-
127
[[Page 366]]
with appropriate supporting information.
(3) The effective date of an MER for a reservoir or revision thereof
shall be the first day of the month in which Form MMS-127 is submitted.
(4) When approved, the MER shall not be exceeded, except as provided
in paragraph (a)(5) of this section.
(5) If a reservoir is produced at a rate in excess of the MER for
any month, the lessee should initiate measures necessary to balance
production (offset overproduction by underproduction) during the next
succeeding month. All overproduction shall be balanced by the end of the
next succeeding calendar quarter following the quarter in which the
overproduction occurred. Any operation in an overproduction status in
any reservoir for two successive calendar quarters shall be shut in from
that reservoir until the actual production is equal to that which would
have occurred under the approved MER, unless an alternative plan is
approved by the Regional Supervisor.
(6) The lessee shall review the MER for each producing sensitive
reservoir at least once a year and submit Form MMS-127 with appropriate
supporting information.
(7) The lessee may request the reclassification of a reservoir from
sensitive to nonsensitive and request approval for termination of an MER
by submitting Form MMS-127 with information supporting the
reclassification and termination.
(8) At the request of the Regional Supervisor, the lessee shall
furnish the information specified on Form MMS-127 for any producing
nonsensitive reservoir.
(9) Public information copies of Form MMS-127 shall be submitted in
accordance with Sec. 250.117.
(b) MPR. (1) The lessee shall propose an MPR for each producing well
completion together with full information on the method used in its
determination. The MPR shall be based on well tests and any limitations
imposed by well and surface equipment, sand production, gas-oil and
water-oil ratios, location of perforated intervals, and prudent
operating practices. The sum of the MPR's of wells completed in a
sensitive reservoir shall not exceed the approved MER.
(2) The lessee shall conduct a well-flow potential test within 30
days of the date of first continuous production on all new, recompleted,
and reworked well completions. Within 15 days after the end of the test
period, the lessee shall submit a proposed MPR with well potential test
for the individual well completion on Form MMS-126, Well Potential Test
Report and Request for Maximum Production Rate (MPR). The initial MPR
shall not exceed 110 percent of the test rate submitted and shall be
effective on the first day of the month following the end of the test
period if approved by the Regional Supervisor. During the 30-day period
allowed for testing, the lessee may produce a new, recompleted, or
reworked completion at rates necessary to establish the MPR. After the
30-day period and prior to approval of the initial MPR, a well
completion may be produced at a rate not to exceed the proposed rate.
The lessee shall report the total production obtained during the test
period and shall identify all other wells completed in the reservoir on
Form MMS-126.
(3) At least one well test shall be conducted during a calendar half
for producing oil-well and gas-well completions and results submitted on
Form MMS-128, Semiannual Well Test Report. Well tests shall be submitted
within 45 days of the day the test was conducted.
(4) Unless otherwise ordered by the Regional Supervisor, a revised
MPR shall automatically be approved for each well completion for each
well test submitted equal to 110 percent of the test rate. The revised
MPR will be effective on the first day of the month following the date
the well test was conducted. Prior to the approval of a proposed
increase of the MPR, a well completion may be produced at a rate not to
exceed the proposed increased rate.
(5) When a well test is not submitted during a calendar half for a
producing oil-well or gas-well completion, the MPR will be automatically
canceled effective on the first day of the appropriate following
calendar half.
(6) When the results of a semiannual well test for an oil-well or
gas-well
[[Page 367]]
completion cannot be submitted within the specified time, the lessee
shall request an extension of time for submitting those test results.
The extension must be approved in advance by the Regional Supervisor to
continue production under the last approved MPR.
(7) When approved by the Regional Supervisor, an MPR shall not be
exceeded, except as provided in paragraphs (b)(4) and (c) of this
section.
(8) Public Information copies of Form MMS-126 shall be submitted in
accordance with Sec. 250.117.
(9) Public information copies of Form MMS-128 shall be submitted in
accordance with Sec. 250.117.
(c) Temporary rates. Temporary production rates resulting from
normal variations and fluctuations exceeding a well MPR or reservoir MER
shall not be considered a violation, provided that such production in
excess of an approved MER is balanced by production in accordance with
the provisions of paragraph (a)(5) of this section.
[53 FR 10690, Apr. 1, 1988, as amended at 58 FR 49928, Sept. 24, 1993.
Redesignated and amended at 63 FR 29479, 29486, May 29, 1998]