(a) A CAA must be modified when there is:

1. (1) A modification to the allocation agreement;
2. (2) Inclusion of additional leases, unit PAs, or CAs are proposed in the CAA; or
3. (3) Termination of or permanent production cessation from any of the leases, unit PAs, or CAs within the CAA.

(b) To request a modification of a CAA, all operators must submit to the AO:

1. (1) A completed Sundry Notice describing the modification requested;
2. (2) A new allocation methodology, including an allocation methodology which includes allocation of produced water and an example of how the methodology is applied, if appropriate; and
3. (3) Certification by each operator in the CAA that it agrees to the CAA modification.