1. 1. For purposes of qualifying for a severance tax exemption under Section 59-5-102(2)(b)(ii)(B), an operator must file an application with the division for designation of a wildcat well.

   1.1. The application may be filed prior to drilling the well, and a tentative determination of the wildcat designation will be issued at that time. An application or request for final designation of wildcat status as appropriate, must be filed at the time of filing of Form 8, Well Completion or Recompletion Report and Log.

   1.2. The application shall contain, where applicable, the following information:

   1.2.1. A plat map showing the location of the well in relation to producing wells within a one mile radius of the wellsite.

   1.2.2. A statement concerning the producing formation or formations in the wildcat well and also the producing formation or formations of the producing wells in the designated area, including completion reports and other appropriate data.

   1.2.3. Stratigraphic cross sections through the producing wells in the designated area and the proposed wildcat well.

   1.2.4. A statement as to whether the well is in a known geologic structure. However, whether the well is in a known geologic structure shall not be the sole basis of determining whether the well is a wildcat.

   1.2.5. Bottomhole pressures, as applicable, in a wildcat well compared to the wells producing in the designated area from the same zone.

   1.2.6. Any other information deemed relevant by the applicant or requested by the division.

2. 2. Information derived from well logs, including certain information in completion reports, stratigraphic cross sections, bottomhole pressure data, and other appropriate data provided in Subsection R649-3-35-1 will be held confidential in accordance with Subsection R649-2-11 at the request of the operator.
3. 3. The division shall review the submitted information and advise the operator and the State Tax Commission of its decision regarding the wildcat well designation as related to Section 59-5-102(2)(b)(ii)(B).
4. 4. The division is responsible for approval of a request for designation of a well as a wildcat well. If the operator disagrees with the decision of the division, the decision maybe appealed to the board. Appeals of any other tax-related decisions concerning wildcat wells should be made to the State Tax Commission.

KEY: oil and gas law

Date of Last Change: December 3, 2025

Notice of Continuation: June 30, 2025

Authorizing, and Implemented or Interpreted Law: 40-6-1 et seq.; 40-6-5; 40-6-20; 40-6-21