1. (a) Evidence proving that a well is a discovery must be received in the commission's Austin office prior to the assignment of a new field designation and/or discovery allowable. Evidence other than horizontal distance is required. An application must include the following:

   1. (1) a legible area map, drawn to scale, preferably on white paper which shows the following:

      1. (A) all oil, gas, and abandoned wells within at least a 2 1/2-mile radius of the well claimed to be a discovery well;
      2. (B) the producing intervals of all pertinent oil and gas wells identified in subparagraph (A) of this paragraph;
      3. (C) all commission-recognized fields within a 2 1/2-mile radius of the well claimed to be a discovery well, that are presently active or were active in the past, identified by commission-assigned field names, names of the producing formations, and approximate average depth of the producing interval;
      4. (D) the total depth of all wells identified in subparagraph (A) of this paragraph that penetrated the subject zone;
      5. (E) scale, legend, and name of person who prepared the map;
   2. (2) a complete, legible electric log of the well. The filing of an electric log is not necessary provided that all other required data is submitted and satisfactorily proves discovery as a new reservoir. Any electric log filed will be considered public information pursuant to §3.16 of this title (relating to Log and Completion or Plugging Report) Statewide Rule 16.
   3. (3) If separation is based on structural differences, including faulting and pinch-outs, submit a subsurface structure map or cross section(s), or preferably both. The structure map should show the contour of the top of the producing formation and the line(s) of cross section. The cross section(s) must be prepared from comparable electric logs (not tracings) with the wells, producing formation, and hydrocarbon reservoir identified. Both the map and cross section must be signed by the engineer or geologist who prepared it.
   4. (4) If separation is based on pressure differentials, submit reservoir pressure measurements or calculations.
   5. (5) If separation is based on differences in fluid levels, submit core data, drillstem test data, cross sections of nearby wells, or production data estimating the fluid level. Fluid level data should be recently dated.
2. (b) The staff may require additional data deemed necessary to make a determination. Deviation from the requirements of subsection (a) of this section may be allowed at the staff's discretion.
3. (c) The director, oil and gas, may administratively grant an application if all required data is submitted with the form prescribed, and the evidence proves that the new reservoir is effectively separated from any other reservoir previously shown to be productive.
4. (d) If the director, oil and gas, declines administratively to grant an application, the operator may request a hearing. If an application is protested within 10 days of notice, it will be set for hearing. After hearing, the examiner shall recommend final commission action.

Source Note:The provisions of this §3.41 adopted to effective January 1, 1976; amended to be effective July 24, 1980, 5 TexReg 2859; amended to be effective February 28, 1986, 11 TexReg 545.