1. (1) Activities Requiring Permits. The following activities require permits:

   1. (a) Drilling of any well in search of oil or gas;
   2. (b) Drilling a Class II injection well or converting any well to a Class II injection well for enhanced recovery or for the disposal of salt water and other wastes produced in association with oil or gas operations;
   3. (c) Drilling or converting any well for the development of reservoirs or solution-mined cavities for the underground storage of liquid or gaseous hydrocarbons; or
   4. (d) Reentry of a plugged and abandoned well.

2. (2) Permit Requirements. Prior to initiating any of the activities identified in section (1) above, an application on either Form OGB-1, OGB-1A, or OGB-1B, whichever is appropriate, shall be filed with and approval obtained from the Supervisor or the Board. If applicable, applicants should also refer to Rule 400-4-1-.01, et seq. relating to Rules and Regulations Governing Class II Underground Injection Control Operations, Rule 400-5-1-.01, et seq. relating to Rules and Regulations Governing Underground Storage of Gas in Reservoirs, or Rule 400-6-1-.01, et seq. relating to Rules and Regulations Governing Underground Storage of Gas in Solution-Mined Cavities. Such applications shall be accompanied by:

   1. (a) A check or bank draft in the sum of three hundred dollars ($300.00) payable to the State Treasurer, State of Alabama, which sum is fixed as the fee for the approval of a permit to drill. No permit fee is required if the application is submitted for the purpose of obtaining approval to convert or deepen a well;
   2. (b) A plat, in triplicate, prepared by a licensed land surveyor showing the entire offshore tract and the surface and bottom hole locations of the proposed well within said offshore tract. The plat shall be drawn to the scale of one (1) inch equals two thousand (2,000) feet, unless otherwise stipulated by the Supervisor. The plat shall show the direction of north, and the latitude and longitude in decimal degrees to five (5) significant digits and state plane coordinates of the proposed well. The plat shall show the distances of the proposed well to the nearest unit boundaries and offshore tract or section boundaries and from the nearest well in the same offshore tract or section completed in or drilling to the same reservoir. The plat shall also show the location and status of all other wells that have been drilled in said offshore tract or section. For the purpose of designating the unit in which the proposed well is to be drilled, the boundaries of such unit shall be shown. For wells drilled in areas where offshore tracts for submerged offshore lands have not been established, or if the well is being drilled from submerged offshore lands to a bottom hole onshore location, the plat shall be drawn to the specifications of the Supervisor;
   3. (c) An Affidavit of Ownership or Control on Form OGB-2, whereby the applicant verifies that he owns or has control of one hundred percent (100%) of the drilling rights with respect to the oil and gas in and under the land comprising either the drilling unit or the drainage and production unit, or an Affidavit of Ownership or Control, Underground Injection Control on Form OGB-2C, whereby the applicant verifies that he owns or has control of one hundred percent (100%) of the interests having rights to conduct Class II well operations in and under the land on which the well is located, or an Affidavit of Ownership or Control, Natural Gas Storage Operations on Form OGB-2D, whereby the applicant verifies that he owns or has control of one hundred percent (100%) of the interests having rights to conduct Natural Gas Storage Operations, whichever is applicable;
   4. (d) A bond on Form OGB-3 (single well) or OGB-4 (blanket bond) required by Rule 400-2-2-.04 relating to Bond, unless such requirement has been previously satisfied. If two or more persons are designated on the application as operators then each such person shall file a separate or joint bond if an appropriate bond is not already on file;
   5. (e) An organization report on Form OGB-5, as prescribed in Rule 400-2-2-.03, unless such requirement has previously been satisfied. If two or more persons are shown as operator on the application, then each person shall file a separate organization report or have an organization report on file;
   6. (f) A statement that all zones containing oil, gas, or fresh water, shall be fully protected by casing and cement;

   7. (g) Two (2) copies of the following information shall be submitted to the Supervisor with an application for a drilling permit:

      1. 1. Casing and Cement.

         1. (i) A down-hole schematic showing the size of the borehole and the size and anticipated setting depth (measured and true vertical depths) and cement top for each casing string and liner;
         2. (ii) A tabular listing of the size, grade, thread, weight (lbs./ft.), minimum internal yield pressure, test pressure and anticipated setting depth for each casing string and liner;
         3. (iii) A tabular listing of the anticipated type, volume (cu. ft.) and calculated top of cement for each casing string and liner; and
         4. (iv) A vertical section for directionally drilled wells showing the planned trajectory of the borehole from the mud line to proposed total depth.
      2. 2. Mud. A tabular listing of the anticipated type and density (lbs./gal.) of mud in the various depth intervals of the wellbore, including the estimated pore pressure and fracture gradient in each respective depth interval.

      3. 3. Blowout Prevention.

         1. (i) A schematic showing the type, number and arrangement of blowout preventers to be in place before drilling below each casing string and liner;
         2. (ii) A tabular listing of the rated working pressure and test pressure anticipated at the time of initially testing each preventer, including the minimum internal yield pressure of the casing string on which it will be installed and the maximum anticipated surface pressure to be encountered after installation;
         3. (iii) Written justification for any extensions between blowout preventer pressure tests that the operator feels are warranted.
      4. 4. Drilling Rig Specifications. Current specifications of the anticipated drilling facility, unless previously filed with the Board. If the actual drilling facility used is different from that identified in the application, the operator shall notify the Supervisor in writing and provide the necessary specifications.
      5. 5. Listing of Drilling Problems. A listing and description of potential problems that are anticipated during drilling of the proposed well (such as zones of abnormal pressure or lost circulation) and the methods proposed to control such problems.
      6. 6. Report of Shallow Hazards. A report of shallow hazards required by Rule 400-2-8-.01 relating to Survey of Shallow Hazards.
      7. 7. Certificate of Compliance If applicable, an Operator's Certificate of Compliance for Operations Involving Hydrogen Sulfide, Form OGB-24, required by Rule 400-2-8-.04

      8. 8. Area Contingency Spill Response Plan.

         1. (i) An area contingency spill response plan required by Rule 400-2-8-.03(9) relating to Pollution Prevention and Control. This requirement may be satisfied by reference to an approved and current plan on file with the Board.
         2. (ii) If multiple completions are anticipated, available information required by Rule 400-2-6-.05 relating to Procedures for Multiple Completions shall be submitted with the permit application. If said information is not available at the time the permit is filed, it shall be submitted to the Supervisor for approval prior to commencing said completions.
         3. (iii) If applicable and available, the approved discharge permit(s) required by section (3) of Rule 400-2-8-.03 relating to Pollution Prevention and Control.
         4. (iv) Additional information as deemed necessary may be requested by the Supervisor.
3. (3) The Board may require notice and hearing on any application for a drilling permit in submerged offshore lands.
4. (4) Deepening. Prior to deepening a well below its permitted depth, an operator shall obtain approval of the Supervisor and, thereafter, such person shall immediately file Form OGB-1, OGB-1A or OGB-1B, whichever is appropriate. There is no fee required for a permit to deepen a well previously drilled or being drilled under a permit issued by the Supervisor.

5. (5) Directional Drilling.

   1. (a) All wells must be drilled with due diligence to maintain a reasonably vertical wellbore; however, upon application by an operator to drill a well that is to be intentionally deviated and directionally controlled, a permit may be issued by the Supervisor, provided that the proposed location of the bottom hole in the deviated well at the depth of the proposed producing zone is in compliance with the applicable spacing rules. The application for a permit to directionally drill shall be made in the manner prescribed above using Form OGB-1B, and the survey plat must show the proposed bottom hole location in addition to the surface location of the well.
   2. (b) If an operator desires to directionally drill or sidetrack a permitted well, such operator, prior to initiating, any activities shall file with the Supervisor Form OGB-1B and a plat showing the surface location and the proposed bottom hole location of the directionally drilled or sidetracked well.
   3. (c) In the event an operator, in good faith, proceeds with the drilling of a well and thereafter, decides to directionally drill or sidetrack the well, such operator shall obtain prior approval of the Supervisor and, hereafter, shall immediately file with the Supervisor Form OGB-1B and a plat showing the surface location and the proposed bottom hole location of the directionally drilled or sidetracked well.
   4. (d) If an operator desires to deviate a well so as to straighten the wellbore or to drill around an obstruction in the wellbore, such operator shall first obtain approval of the Supervisor and shall file a written report to the Supervisor within thirty (30) days from the completion of said deviation setting forth the facts of the operation.
6. (6) Permit Approval Procedures. Applications for permits to drill, deepen, convert, or reenter that do not comply with submerged offshore lands rules or applicable special field rules shall be approved or rejected by the Board, after due notice and hearing. Applications in compliance with submerged offshore lands rules or applicable special field rules may be approved by the Supervisor. Drilling, deepening, converting or reentering shall not begin until such permit is issued.
7. (7) Expiration of a Permit. A permit shall expire six (6) months from the date of issuance if the permitted well has not been spudded.

Author: Marvin Rogers

Statutory Authority: Code of Ala. 1975, §§9-17-1, et seq.

History: New Rule: Filed April 11, 2000; effective May 16, 2000. Amended: Filed July 6, 2010; effective August 10, 2010.