1. (a) This section is applicable for administrative approval by the Director of Production and Conservation of additional completions within common sources of supply within established drilling units located in fields covered by field rules.
2. (b) This section is not applicable on a field-wide basis, or within exploratory units.

3. (c) Application for additional completions shall be submitted to the director on a form prescribed by the director, and contain the following information:

   1. (1) The location of the unit;
   2. (2) The location of all well or wells showing the productive zones in each well within the unit for which the additional completions are requested;
   3. (3) Initial and current pressures and current rates and cumulative production for each completion within a common source of supply;
   4. (4) A structure and isopach map of the common source of supply;
   5. (5) A unit cross-section, including the wells for which the additional completion is requested;
   6. (6) A statement as to whether there is common ownership within the wells producing from the common source of supply within the unit; and
   7. (7) If applicable, the drainage characteristics for each well within the common source of supply.
4. (d) In addition, each application shall provide proof of written notice to all owners, as defined in Arkansas Code § 15-72-102(9), in the subject unit and all offset operators in all adjacent established units including all owners, as defined by Arkansas Code § 15-72-102(9), in any offset unit where the operator is the same as the applicant.
5. (e) The notice shall contain at a minimum, the name of the applicant, the name and location of the well, the zone subject to the additional completion request, and instructions as to the filing with the director written objections within fifteen (15) days after receipt of the application by the director.
6. (f) Any offset operator or owner noticed in accordance with subsection (e) of this section, above, shall have the right to object to the granting of such application within fifteen (15) days after receipt of the application by the director.

7. (g) Upon review of the application, and if the submitted evidence or requested additional evidence indicates that:

   1. (1) Stratigraphic or structural separation of the common source of supply can reasonably be demonstrated; or
   2. (2) The irregular shape and/or size of the drilling unit relative to the drainage characteristic of the well within the common source of supply necessitate an additional completion; or
   3. (3) The drainage characteristics of the well within the common source of supply in a regular shape and size drilling unit demonstrate an additional completion is necessary to effectively drain the unit; or
   4. (4) The pressure data from the common source of supply indicates less than a twenty percent (20%) reduction in the original pressure five (5) years after the first completion in that same source of supply; or
   5. (5) The other unit completions in the common source of supply have each produced less than seventy-five (75) Mcf per day over the twelve-month period prior to the additional completion application or a newly drilled well, which is the subject of the additional completion request, and which is only able to produce less than seventy-five (75) Mcf per day absolute open flow; and
   6. (6) If ownership within the wells in the common source of supply within the unit is not common, but evidence of agreement between the owners is provided with the additional completion application; and
   7. (7) If an objection is not received within fifteen (15) days after the receipt of the application, the director shall approve the application.

8. (h)

   1. (1) If an objection is received or if the application does not satisfy the requirements of this section, the application shall be denied.
   2. (2) If an application is denied, or if the reason for an additional completion request is not addressed by this section, the applicant may request to have the matter placed, in accordance with established procedures, on the docket of a regularly scheduled Oil and Gas Commission hearing.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Source: new rule February 2, 2006; amended April 13, 2008)"