1. (a) Applicability. This section shall only apply to dry natural gas wells for which it is necessary to determine the PRU deliverability in accordance with 15 CAR §§ 275-105, 275-230, 275-231, 275-408, and 275-410, or the request of the Director of Production and Conservation or his or her designee to conduct a back pressure test on a dry natural gas well.

2. (b) Definitions. As used in this section:

   1. (1) “Existing PRU” means a production reporting unit, which is either an individual source of supply or approved commingled producing zones within a dry natural gas well which was previously productive prior to the effective date of this section;
   2. (2) “IOPT” means an initial one-point test performed to determine PRU deliverability;
   3. (3) “New PRU” means a production reporting unit, which is either an individual producing zone (in a newly drilled dry natural gas well or a new zone in an existing dry natural gas well) or approved commingled producing zones within a dry natural gas well which becomes productive after the effective date of this section;
   4. (4) “Permit holder” means the person to whom the permit is issued and who is responsible for all regulatory requirements relative to the production well;
   5. (5) “Production test” means any one-point test that is performed to determine PRU deliverability which occurs after a successful one-point test has been performed; and
   6. (6) "PRU deliverability" means the measured volume of dry natural gas from an existing or new PRU under normal operating conditions for that existing or new PRU as determined by the IOPT or production test.

3. (c)

   1. (1) An IOPT shall be conducted for any new PRU for the purpose of determining the PRU deliverability.
   2. (2) If a new PRU cannot be tested to determine the PRU deliverability, a written explanation setting forth in detail the reasons why such IOPT cannot be obtained shall be submitted, along with a request for an alternative methodology to determine the PRU deliverability.
4. (d) Further production testing of an existing or new PRU following an IOPT is not required except for purposes of retesting at the request of the permit holder to establish a penalty allowable in accordance with 15 CAR § 275-410, determining marginal well status for severance tax purposes in accordance with 15 CAR § 275-105, an additional completion request in accordance with 15 CAR § 275-408, or if requested by the director or his or her designee.

5. (e) IOPT or production testing requirements.

   1. (1) Notice. The permit holder of the PRU shall provide notice in the manner prescribed by the director or his or her designee at least seventy-two (72) hours in advance of an IOPT or a production test.

   2. (2) When to conduct test.

      1. (A) The permit holder shall conduct the IOPT within ten (10) calendar days of commencement of production of a new PRU.
      2. (B) The director or his or her designee shall retain the right to require a retest of an existing or new PRU at any time.
      3. (C) Additionally, the permit holder shall have the right to request a retest of an existing or new PRU at any time.
   3. (3) Filing of documents. The permit holder shall submit the results of the IOPT or production test within ten (10) business days of the test date.

   4. (4) Commission staff witness.

      1. (A) The IOPT is required to be witnessed by a representative of the Oil and Gas Commission unless the permit holder is notified by the commission that the test shall not be witnessed.
      2. (B) Production tests for purposes of establishing marginal well determination, in accordance with 15 CAR § 275-105, are required to be witnessed by a representative of the commission.
      3. (C) The commission staff witness will be subject to notice by the permit holder in accordance with subdivision (e)(1) of this section, above, and subject to availability of a committee staff witness.
      4. (D) All tests shall be conducted during normal working hours of the commission unless otherwise approved by the director or his or her designee.

6. (f) Testing methodology.

   1. (1) An IOPT or production test shall be conducted to determine the PRU deliverability.

   2. (2) All tests shall be reported on a form prescribed by the director or his or her designee and conducted as follows:

      1. (A) Before a test is started, the wellbore should be cleared of any accumulated fluids;
      2. (B)

7. (i) The dry natural gas from the existing or new PRU shall be flowed through the production facilities into the pipeline for a minimum of twenty-four (24) hours.

   1. (ii) All flow rate measurements shall be obtained by the use of an orifice meter or other authorized metering device in good operating condition previously approved by the director or his or her designee; and

      1. (C)

         1. (i) Should the flow rate not be obtained to determine PRU deliverability, the permit holder shall provide a written explanation setting forth in detail the reasons why such flow rate could not be obtained in accordance with this procedure.
         2. (ii) The director or his or her designee may authorize an alternative method to determine PRU deliverability.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Source: 1992 rule book; amended (Order No. 74-94) October 25, 1994; amended October 1, 2000; amended January 14, 2008; amended February 19, 2009; amended August 21, 2009; amended August 01, 2014)"