1. (a) Definitions and application to plug.

   1. (1) As used in this section:

      1. (A) "Active operation" means regular and continuing activities related to the production of oil and gas for which the operator has all necessary permits. In the case of a delinquent inactive well that is not permitted as a disposal or injection well, active operation requires reported production or other commission-approved operations, such as recompletion attempts, conducted downhole in a bona fide attempt to re-establish production.
      2. (B) "Delinquent inactive well" means an unplugged well that has had no reported production, disposal, injection, or other permitted activity for a period of greater than 12 months and for which, after notice and opportunity for hearing, the commission has not extended the plugging deadline.
      3. (C) "Funnel viscosity" means viscosity as measured by the Marsh funnel, based on the number of seconds required for 1,000 cubic centimeters of fluid to flow through the funnel.
      4. (D) "Good faith claim" means a factually supported claim based on a recognized legal theory to a continuing possessory right in a mineral estate, such as evidence of a currently valid oil and gas lease or a recorded deed conveying a fee interest in the mineral estate.
      5. (E) "Operator designation form" means a certificate of transportation authority and compliance or an application to drill, deepen, recomplete, plug back, or reenter which has been completed, signed and filed with the commission.
      6. (F) "Productive horizon" means any stratum known to contain oil, gas, or geothermal resources in producible quantities in the vicinity of an unplugged well.
      7. (G) "Reported production" means production of oil or gas, excluding production attributable to well tests, accurately reported to the commission on a monthly producer's report.
      8. (H) To "serve surface notice" means to hand deliver a written notice identifying the well to be plugged and the projected date the well will be plugged to the intended recipient at least three days prior to the day of plugging or to mail the notice by first class mail, postage pre-paid, to the last known address of the intended recipient at least seven days prior to the day of plugging.
      9. (I) "Usable quality water strata" means all strata determined by the Texas Natural Resource Conservation Commission to contain usable quality water.
   2. (2) The operator shall give the commission notice of its intention to plug any well or wells drilled for oil, gas, or geothermal resources or for any other purpose over which the commission has jurisdiction, except those specifically addressed in §3.100(f)(1) of this title (relating to Seismic Holes and Core Holes) (Statewide Rule 100), prior to plugging. The operator shall deliver or transmit the written notice to the district office on the appropriate form.
   3. (3) The operator shall cause the notice of its intention to plug to be delivered to the district office at least five days prior to the beginning of plugging operations. The notice shall set out the proposed plugging procedure as well as the complete casing record. The operator shall not commence the work of plugging the well or wells until the proposed procedure has been approved by the district office. The operator shall not initiate approved plugging operations before the date set out in the notification for the beginning of plugging operations unless authorized by the district director. The operator shall notify the district office at least four hours before commencing plugging operations and proceed with the work as approved. The district director may grant exceptions to the requirements of this paragraph concerning the timing of notices when a workover or drilling rig is already at work on location, ready to commence plugging operations. Operations shall not be suspended prior to plugging the well unless the hole is cased and casing is cemented in place in compliance with commission rules.
   4. (4) The landowner and the operator may file an application to condition an abandoned well located on the landowner's tract for usable quality water production operations, provided the landowner assumes responsibility for plugging the well and obligates himself, his heirs, successors, and assignees as a condition to the commission's approval of such application to complete the plugging operations. The application shall be made on the form prescribed by the commission. In all cases, the operator responsible for plugging the well shall place all cement plugs required by this rule up to the base of the usable quality water strata.
   5. (5) The operator of a well shall serve surface notice on the surface owner of the well site tract, or the resident if the owner is absent, before the scheduled date for beginning the plugging operations. A representative of the surface owner may be present to witness the plugging of the well. Plugging shall not be delayed because of the lack of actual notice to the surface owner or resident if the operator has served surface notice as required by this paragraph. The district director may grant exceptions to the requirements of this paragraph concerning the timing of notices when a workover or drilling rig is already at work on location ready to commence plugging operations.

2. (b) Commencement of plugging operations and extensions.

   1. (1) The operator shall complete and file in the district office a duly verified plugging record, in duplicate, on the appropriate form within 30 days after plugging operations are completed. A cementing report made by the party cementing the well shall be attached to, or made a part of, the plugging report. If the well the operator is plugging is a dry hole, an electric log status report shall be filed with the plugging record.

   2. (2) Plugging operations on each dry or inactive well shall be commenced within a period of one year after drilling or operations cease and shall proceed with due diligence until completed. Plugging operations on delinquent inactive wells shall be commenced immediately unless the well is restored to active operation. For good cause, a reasonable extension of time in which to start the plugging operations may be granted pursuant to the following procedures.

      1. (A) The commission or its delegate may administratively grant an extension of time of one year if the well is in compliance with all other laws and commission rules; the well and associated facilities are not a pollution hazard; the operator's organization report is current and active, the operator has, and upon request provides evidence of, a good faith claim to operate the well; and

         1. (i) the operator pays the proper fee as provided in §3.76 of this title (relating to Fees, Performance Bonds, and Alternate Forms of Financial Security Required To Be Filed) (Statewide Rule 78), obtains a permit for this extension, and no more than three extensions have been granted after June 1, 1992, for the well under the provisions of this clause; or
         2. (ii) the operator files an individual or blanket performance bond as provided in §3.76 of this title (relating to Fees, Performance Bonds, and Alternate Forms of Financial Security Required To Be Filed) (Statewide Rule 78), or a letter of credit.
      2. (B) The commission or its delegate may revoke an administratively granted extension of time if an operator fails to maintain the well in compliance with commission rules, fails to maintain a current and accurate organization report on file with the commission, or fails to provide the commission, upon request, with evidence of a continuing good faith claim to operate the well.
      3. (C) If the commission or its delegate declines administratively to grant or continue an extension of time, or revokes an extension, the operator shall, within 30 days, return the well to active operation, plug the well or request a hearing on the matter.
      4. (D) The commission or its delegate may allow a well to be the subject of more than four extensions granted after June 1, 1992, under the provisions of subparagraph (A)(i) of this paragraph, upon written application, if the operator's organization report is current and active, the operator has, and upon request provides evidence of, a good faith claim to operate the well, and the operator demonstrates that no pollution of surface or subsurface water could occur as a result of granting the extension. If such application is administratively denied, the commission may subsequently grant the extension.

      5. (E) The operator of any well more than 25 years old that becomes inactive and subject to the provisions of this paragraph shall plug or test such well to determine whether the well poses a potential threat of harm to natural resources, including surface and subsurface water, oil and gas.

         1. (i) In general, a fluid level test is a sufficient test for purposes of this subparagraph. However, the commission or its delegate may require alternate methods of testing if the commission deems it necessary to ensure the well does not pose a potential threat of harm to natural resources. Alternate methods of testing may be approved by the commission or its delegate by written application and upon a showing that such a test will provide information sufficient to determine that the well does not pose a threat to natural resources.
         2. (ii) No test other than a fluid level test shall be acceptable without prior approval from the district office. The district office shall be notified at least 48 hours before any test other than a fluid level test is conducted. Mechanical integrity test results shall be filed with the district office and fluid level test results shall be filed with the commission in Austin. Test results shall be filed on a commission-approved form, within 30 days of the completion of the test.
         3. (iii) Notwithstanding the provisions of clause (ii) of this subparagraph, a hydraulic pressure test may be conducted without prior approval from the district office, provided that the operator gives the district office at least 48 hours advance notice of the test, the production casing is tested to a depth of at least 250 feet below the base of usable quality water strata, or 100 feet below the top of cement behind the production casing, whichever is deeper, and the minimum test pressure is greater than or equal to 250 psig for a period of at least 30 minutes.
         4. (iv) Except as otherwise provided in this clause, the operator shall perform annually the test required by this paragraph. In the event that a well has undergone a fluid level test for two consecutive years and the fluid level is found in each such test to be at least 250 feet below the base of the deepest usable quality water strata, the operator may test the well biennially rather than annually for so long as each fluid level test conducted shows the fluid level to be at least 250 feet below the base of the deepest usable quality water strata. If any test conducted on a biennial schedule shows that the fluid level is within 250 feet of the base of the deepest usable quality water strata, the operator shall no longer have the option to biennially test that well and shall resume annual testing. If the operator performs a hydraulic pressure test in accordance with the provisions of clause (iii) of this subparagraph, the well shall be exempt from further testing for five years from the date of the test. The commission or its delegate may require the operator to perform testing more frequently to ensure that the well does not pose a threat of harm to natural resources. The commission or its delegate may approve less frequent well tests under this subparagraph upon written request and for good cause shown provided that less frequent testing will not increase the threat of harm to natural resources.
         5. (v) Wells that are returned to continuous production, as evidenced by three consecutive months of reported production, need not be tested.
   3. (3) An operator may apply to have an inactive, mechanically sound and non-polluting wellbore accepted into the Texas Experimental Research and Recovery Activity (TERRA) program. If the well is accepted into the TERRA program, the operator is no longer responsible for plugging the well. An operator is not entitled to a hearing to contest the administrative denial of an application to accept a well into the TERRA program.

   4. (4) The commission may plug or replug any dry or inactive well as follows:

      1. (A) After notice and hearing, if the well is causing or is likely to cause the pollution of surface or subsurface water or if oil or gas is leaking from the well, and:

         1. (i) Neither the operator nor any other entity responsible for plugging the well can be found; or
         2. (ii) Neither the operator nor any other entity responsible for plugging the well has assets with which to plug the well.

      2. (B) Without a hearing if the well is a delinquent inactive well and:

         1. (i) the commission has sent notice of its intention to plug the well as required by §89.043(c) of the Texas Natural Resources Code; and
         2. (ii) the operator did not request a hearing within the period (not less than 10 days after receipt) specified in the notice.

      3. (C) Without notice or hearing, if:

         1. (i) The commission has issued a final order requiring that the operator plug the well and the order has not been complied with; or
         2. (ii) The well poses an immediate threat of pollution of surface or subsurface waters or of injury to the public health and the operator has failed to timely remediate the problem.
   5. (5) The commission may seek reimbursement from the operator and any other entity responsible for plugging the well for state funds expended pursuant to paragraph (4) of this subsection.

3. (c) Designated operator responsible for proper plugging.

   1. (1) The entity designated as the operator of a well specifically identified on the most recent commission-approved operator designation form filed on or after September 1, 1997, is responsible for properly plugging the well in accordance with this section and all other applicable commission rules and regulations concerning plugging of wells.
   2. (2) As to any well for which the most recent commission-approved operator designation form was filed prior to September 1, 1997, the entity designated as operator on that form is presumed to be the entity responsible for the physical operation and control of the well and to be the entity responsible for properly plugging the well in accordance with this section and all other applicable commission rules and regulations concerning plugging of wells. The presumption of responsibility may only be rebutted at a hearing called for the purpose of determining plugging responsibility.

4. (d) General plugging requirements.

   1. (1) Wells shall be plugged to insure that all formations bearing usable quality water, oil, gas, or geothermal resources are protected. All cementing operations during plugging shall be performed under the direct supervision of the operator or his authorized representative, who shall not be an employee of the service or cementing company hired to plug the well. Direct supervision means supervision at the well site during the plugging operations. The operator and the cementer are both responsible for complying with the general plugging requirements of this subsection and for plugging the well in conformity with the procedure set forth in the approved notice of intention to plug and abandon for the well being plugged. The operator and cementer may each be assessed administrative penalties for failure to comply with the general plugging requirements of this subsection or for failure to plug the well in conformity with the approved notice of intention to plug and abandon the well.
   2. (2) Cement plugs shall be set to isolate each productive horizon and usable quality water strata.
   3. (3) Cement plugs shall be placed by the circulation or squeeze method through tubing or drill pipe. Cement plugs shall be placed by other methods only upon written request with the written approval of the district director or the director's delegate.
   4. (4) All cement for plugging shall be an approved API oil well cement without volume extenders and shall be mixed in accordance with API standards. Slurry weights shall be reported on the cementing report. The district director or the director's delegate may require that specific cement compositions be used in special situations; for example, when high temperature, salt section, or highly corrosive sections are present.

   5. (5) Operators shall use only cementers approved by the assistant director of well plugging or the assistant director's delegate, except when plugging is conducted in accordance with subparagraph (B)(ii) of this paragraph or paragraph (6) of this subsection. Cementing companies, service companies, or operators may apply for designation as approved cementers. Approval will be granted on a showing by the applicant of the ability to mix and pump cement in compliance with this rule. An approved cementer is authorized to conduct plugging operations in accordance with commission rules in each commission district.

      1. (A) A cementing company, service company, or operator seeking designation as an approved cementer shall file a request in writing with the district director of the district in which it proposes to conduct its initial plugging operations. The request shall contain the following information:

         1. (i) the name of the organization as shown on its most recent approved organizational report;
         2. (ii) a list of qualifications including personnel who will supervise mixing and pumping operations;
         3. (iii) length of time the organization has been in the business of cementing oil and gas wells;
         4. (iv) an inventory of the type of equipment to be used to mix and pump cement; and
         5. (v) a statement certifying that the organization will comply with all commission rules.

      2. (B) No request for designation as an approved cementer will be approved until after the district director or the director's delegate has:

         1. (i) inspected all equipment to be used for mixing and pumping cement; and
         2. (ii) witnessed at least one plugging operation to determine if the cementing company, service company, or operator can properly mix and pump cement to the specifications required by this rule.
      3. (C) The district director or the director's delegate shall file a letter with the assistant director of well plugging recommending that the application to be designated as an approved cementer be approved or denied. If the district director or the director's delegate does not recommend approval, or the assistant director of well plugging or the assistant director's delegate denies the application, the applicant may request a hearing on its application.

      4. (D) Designation as an approved cementer may be suspended or revoked for violations of commission rules. The designation may be revoked or suspended administratively by the assistant director of well plugging for violations of commission rules if:

         1. (i) the cementer has been given written notice by personal service or by registered or certified mail informing the cementer of the proposed action, the facts or conduct alleged to warrant the proposed action, and of its right to request a hearing within 10 days to demonstrate compliance with commission rules and all requirements for retention of designation as an approved cementer; and
         2. (ii) the cementer did not file a written request for a hearing within 10 days of receipt of the notice.
   6. (6) An operator may request administrative authority to plug its own wells without being an approved cementer. An operator seeking such authority shall file a written request with the district director and demonstrate its ability to mix and pump cement in compliance with this subsection. The district director or the director's delegate will determine whether such a request warrants approval. If the district director or the director's delegate refuses to administratively approve this request, the operator may request a hearing on its request.
   7. (7) The district director may require additional cement plugs to cover and contain any productive horizon or to separate any water stratum from any other water stratum if the water qualities or hydrostatic pressures differ sufficiently to justify separation. The tagging and/or pressure testing of any such plugs, or any other plugs, and respotting may be required if necessary to insure that the well does not pose a potential threat of harm to natural resources.
   8. (8) For onshore or inland wells, a 10-foot cement plug shall be placed in the top of the well, and casing shall be cut off three feet below the ground surface.
   9. (9) Mud-laden fluid of at least 9 1/2 pounds per gallon with a minimum funnel viscosity of 40 seconds shall be placed in all portions of the well not filled with cement. The hole shall be in static condition at the time the cement plugs are placed. The district director may grant exceptions to the requirements of this paragraph if a deviation from the prescribed minimums for fluid weight or viscosity is necessary to insure that the well does not pose a potential threat of harm to natural resources.
   10. (10) Non-drillable material that would hamper or prevent reentry of a well shall not be placed in any wellbore during plugging operations, except in the case of a well plugged and abandoned under the provisions of §3.35 or §3.94(e) of this title (relating to Procedures for Identification and Control of Wellbores in Which Certain Logging Tools Have Been Abandoned (Statewide Rule 35); and Disposal of Oil and Gas NORM Waste (Statewide Rule 94), respectively). Pipe and unretrievable junk shall not be cemented in the hole during plugging operations without prior approval by the district director.
   11. (11) All cement plugs, except the top plug, shall have sufficient slurry volume to fill 100 feet of hole, plus 10% for each 1,000 feet of depth from the ground surface to the bottom of the plug.
   12. (12) The operator shall fill the rathole, mouse hole, and cellar, and shall empty all tanks, vessels, related piping and flowlines that will not be actively used in the continuing operation of the lease within 120 days after plugging work is completed. Within the same 120 day period, the operator shall remove all such tanks, vessels, related surface piping, and all subsurface piping that is less than three feet beneath the ground surface, remove all loose junk and trash from the location, and contour the location to discourage pooling of surface water at or around the facility site. The operator shall close all pits in accordance with the provisions of §3.8 of this title (relating to Water Protection (Statewide Rule 8)). The district director may grant a reasonable extension of time of not more than an additional 120 days for the removal of tanks, vessels and related piping.

5. (e) Plugging requirements for wells with surface casing.

   1. (1) When insufficient surface casing is set to protect all usable quality water strata and such usable quality water strata are exposed to the wellbore when production or intermediate casing is pulled from the well or as a result of such casing not being run, a cement plug shall be placed from 50 feet below the base of the deepest usable quality water stratum to 50 feet above the top of the stratum. This plug shall be evidenced by tagging with tubing or drill pipe. The plug must be respotted if it has not been properly placed. In addition, a cement plug must be set across the shoe of the surface casing. This plug must be a minimum of 100 feet in length and shall extend at least 50 feet above and below the shoe.
   2. (2) When sufficient surface casing has been set to protect all usable quality water strata, a cement plug shall be placed across the shoe of the surface casing. This plug shall be a minimum of 100 feet in length and shall extend at least 50 feet above the shoe and at least 50 feet below the shoe.
   3. (3) If surface casing has been set deeper than 200 feet below the base of the deepest usable quality water stratum, an additional cement plug shall be placed inside the surface casing across the base of the deepest usable quality water stratum. This plug shall be a minimum of 100 feet in length and shall extend from 50 feet below the base of the deepest usable quality water stratum to 50 feet above the top of the stratum.

6. (f) Plugging requirements for wells with intermediate casing.

   1. (1) For wells in which the intermediate casing has been cemented through all usable quality water strata and all productive horizons, a cement plug meeting the requirements of subsection (d)(11) of this section shall be placed inside the casing and centered opposite the base of the deepest usable quality water stratum, but extend no less than 50 feet above and below the stratum.
   2. (2) For wells in which intermediate casing is not cemented through all usable quality water strata and all productive horizons, and if the casing will not be pulled, the intermediate casing shall be perforated at the required depths to place cement outside of the casing by squeeze cementing through casing perforations.

7. (g) Plugging requirements for wells with production casing.

   1. (1) For wells in which the production casing has been cemented through all usable quality water strata and all productive horizons, a cement plug meeting the requirements of subsection (d)(11) of this section shall be placed inside the casing and centered opposite the base of the deepest usable quality water stratum and across any multi-stage cementing tool.
   2. (2) For wells in which the production casing has not been cemented through all usable quality water strata and all productive horizons and if the casing will not be pulled, the production casing shall be perforated at the required depths to place cement outside of the casing by squeeze cementing through casing perforations.
   3. (3) The district director may approve a cast iron bridge plug to be placed immediately above each perforated interval, provided at least 20 feet of cement is placed on top of each bridge plug. A bridge plug shall not be set in any well at a depth where the pressure or temperature exceeds the ratings recommended by the bridge plug manufacturer.

8. (h) Plugging requirements for well with screen or liner.

   1. (1) If practical, the screen or liner shall be removed from the well.
   2. (2) If the screen or liner is not removed, a cement plug in accordance with subsection (d)(11) of this section shall be placed at the top of the liner.

9. (i) Plugging requirements for wells without production casing and open-hole completions.

   1. (1) Any productive horizon or any formation in which a pressure or formation water problem is known to exist shall be isolated by cement plugs centered at the top and bottom of the formation. Each cement plug shall have sufficient slurry volume to fill a calculated height as specified in subsection (d)(11) of this section.
   2. (2) If the gross thickness of any such formation is less than 100 feet, the tubing or drill pipe shall be suspended 50 feet below the base of the formation. Sufficient slurry volume shall be pumped to fill the calculated height from the bottom of the tubing or drill pipe up to a point at least 50 feet above the top of the formation, plus 10% for each 1,000 feet of depth from the ground surface to the bottom of the plug.
10. (j) The district director shall review and approve the notification of intention to plug in a manner so as to accomplish the purposes of this section. The district director may approve, modify, or reject the operator's notification of intention to plug. If the proposal is modified or rejected, the operator may request a review by the director of field operations. If the proposal is not administratively approved, the operator may request a hearing on the matter. After hearing, the examiner shall recommend final action by the commission.
11. (k) Plugging horizontal drainhole wells. All plugs in horizontal drainhole wells shall be set in accordance with subsection (d)(11) of this section. The productive horizon isolation plug shall be set from a depth 50 feet below the top of the productive horizon to a depth either 50 feet above the top of the productive horizon, or 50 feet above the production casing shoe if the production casing is set above the top of the productive horizon. If the production casing shoe is set below the top of the productive horizon, then the productive horizon isolation plug shall be set from a depth 50 feet below the production casing shoe to a depth that is 50 feet above the top of the productive horizon. In accordance with subsection (d)(7) of this section, the commission or its delegate may require additional plugs.

Source Note:The provisions of this §3.14 adopted to be effective January 1, 1976; amended to be effective February 29, 1980, 5 TexReg 499; amended to be effective January 1, 1983, 7 TexReg 3989; amended to be effective March 10, 1986, 11 TexReg 901; amended to be effective September 8, 1986, 11 TexReg 3792; amended to be effective November 9, 1987, 12 TexReg 3959; amended to be effective May 9, 1988, 13 TexReg 2026; amended to be effective March 1, 1992, 17 TexReg 1227; amended to be effective September 1, 1992, 17 TexReg 5283; amended to be effective September 20, 1995, 20 TexReg 6931; amended to be effective September 14, 1998, 23 TexReg 9300; amended to be effective December 28, 1999, 24 TexReg 11711.