RAILROAD COMMISSION OF TEXAS Regulatory Conference San Antonio 2014 Drilling Permits and Online Filings Advanced Valerie Atkins-Team Leader

What is this class? This class is giving you step by step instructions on how to file an Online W-1 Application from A-Z. 2

Online Drilling Permits Application Filing What you need to know about the online permitting system: System has built in checks to help validate information that is being provided If you are applying for a horizontal well in a field that has special rules the validations that the system normally runs for spacing and density exceptions are turned off

Online Drilling Permits Application Filing If you know you are in violation of SWR 37 or SWR 38, the OPERATOR must manually flag these exceptions if permitting in a field with special horizontal rules There are links within the application that allow you to view your W-1 to proof before you hit submit

Online Drilling Permits Application Filing Where can I find the docket order for the special horizontal field rules? 5

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Online Drilling Permits Application Filing When filing your plat, make sure you are showing: Current Operator name Lease name Well number County Scale of plat 14

Online Drilling Permits Application Filing Con’t North line indicator Lease outline (1 st well on the lease must show entire lease clearly outlined) Well location Two nearest perpendicular survey and lease lines from the well

Online Drilling Permits Application Filing Certification of a Plat A certified plat is needed in two instances: When the well is going to be an Exception to SWR 37/38 When it is a pooled unit 16

Online Drilling Permits Application Filing *note* When making changes to a certified plat, you can not make any changes to the plat if it is certification by the surveyor. If you do make changes, you must erase the certification by the surveyor and certify the plat yourself. This is what is accepted as word certification: I certify that everything is true and correct to the best of my knowledge. Please sign and date the word certification

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Online Drilling Permits Application Filing At this point, if you are applying for a field that has special horizontal take point rules, you need to carefully examine your plat and know the field rules governing development in the field you’re attempting to permit in. 22

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Online Drilling Permits Application Filing Field List Screen Primary Field is the field where to change your header up top Primary Field prepopulates all other fields that come after it if you fill it out before adding the other fields

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Online Drilling Permits Application Filing Basic Details Box When filing out the Basic Details Box, it will be filled out based on whatever your wellbore profile will be…(ie, Vertical, Horizontal and Directional) 26

Online Drilling Permit Application Filings Vertical Well-everything comes from the surface location pertaining to distance to nearest lease line, nearest well. Surface lease lines are at the entry of the location

Online Drilling Permits Application Filing Directional Well-you will show the surface lease line location for your perpendicular calls but for nearest lease line and wells, it will be from the bottom hole location of the well

Online Drilling Permits Application Filing Horizontal Well-you will show the surface lease line location for your perpendicular calls but for nearest lease line and well, there are 3 areas of a regular SWR 86 well and the same for a special horizontal well. For the SWR 86 horizontal well-it is the penetration point, wellbore path and the terminus location For Special Horizontal wells-it is the 1 st take point/upper perforation, wellbore path and last take point/lower perforation

Online Drilling Permits Application Filing This box also determines if you are a Rule 37/38 based on the information you put in the nearest lease line box for Rule 37 lease line, Rule 37 between wells and Rule 38 for density (total acres in lease and total well count). So please make sure you are aware of the information you are putting in those 3 boxes so that you do not make yourself a Exception to SWR 37/38 if you are not. 30

Online Drilling Permits Application Filing If you are filing for a field that has special horizontal field rules and the wellbore profile is a vertical or directional well, you no longer have to do the manual check for Rule 37/38. The system will now read the regular field rules and deem the filing for whatever exception it may be.

Online Drilling Permits Application Filing If the field you are filing for has special field rules and you are applying for a horizontal well, all Rule Exceptions will be determined by the filer because the validation for the exceptions check has been taken off for that field. The system will also prompt you to do those checks so that you do not forget.

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Online Drilling Permits Application Filing When filing a P-12, please make sure that you are filling out the P-12 correctly. The instructions are shown at the bottom of the page. *note* When filling out the P-12, if either one of the tracts show to have a unleased or non-pooled tract box checked, you will have to determine if that tract is to close to a to the well because we have to look at that tract as a HARD lease line and any well that is to close to it is subject to SWR 37 lease line exception. Make sure the P-12 is signed and dated We must be able to clearly see the tracts shown on the P-12 on the plat as if they are mirror images of each other. 35

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Online Drilling Permits Application Filing Important things to know when filing attachments: Make sure that your scanner is set on 200x200 dpi (dots per inch) and the attachment is saved in black and white. Please do not scan colored or grey scale plats or attachments because it can make your attachment bigger than it is based on the dpi. This will result in most files being less than 100 KB and the system not accepting the attachment. Make sure that when selecting a file name after you have scanned the attachment in, you do not have any annotations in the file name because that will result in the system not accepting the attachment. 39

Online Drilling Permits Application Filing Make sure you give the proper paper size of the plat when uploading and make sure that all plats are to scale. Plat scales accepted are most sizes used in the Allen Engineering Scale system of feet (ie, 1’=500, 1000, 2000, 3000 etc). We accept letter, legal, ledger and oversize plats. ALL ATTACHMENTS MUST BE IN.TIF FORMAT. The service list can be filed as a.csv file.

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Online Drilling Permits Application Filing Filings paid with a Check When filing a check, you will get the prompts that have file information pertaining to a checking acct…ie, Routing Number, Account Number, Bank Name, Name on Account and Driver’s License number. Where it says “Driver’s License number”, you may use your Company’s Federal ID number. Please make sure that you put in any all numbers correctly because if not, this can in turn cause your permit to not be accepted. *note* If you are “kicked or timed out AFTER you have put in your payment information but your filing still shows to be in your work in progress queue, please call us because the payment may have been taken but the filing was not moved into the RRC queue to start approval. Please call or /call Lorenzo or Valerie. Please make sure you have the tracking number. 44

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Contact Information Lorenzo Garza (Mgr.) Phone: Valerie Atkins (Team Lead) Phone: N. Congress Ave. P.O. Box Austin, TX

THANK YOU AND I HOPE YOU ENJOYED THE CLASS