RAILROAD COMMISSION OF TEXAS How to Submit Oil Online Completions – Online (Form W-2) Austin Regulatory Conference September 2013 Katie McNally 1

Class Synopsis This presentation is a general overview of how to file Oil/W-2 Completion Reports utilizing the RRC Online Completion Filing System. By the end of this PowerPoint you will learn how to properly file online completions for oil wells in Texas. During the class we will also review common problems that delay the processing & approving of these filings. 2

Logging In 3

Log In 4

Online Applications Important messages and upcoming events 5

Completion Application 6

Select Filing Operator If you are filing as an Consultant/ Agent -you will enter the appropriate Operator information here. If you are filing as an Operator, then the online system will recognize you and you will skip this step. 7

Filing Options 8

Create a New Packet You can use either option but use the drilling permit # if you have one. 9

Select a Well Select the field you completed in, if the well is downhole commingled you would need to select the primary reporting field – refer to SWR 10 Approval Letter 10

Packet Data-Create Packet 11

Packet Data- Create Packet Cont’d Type Of Completion The options available are: New Well Deepening Plug Back Sidetrack Reentry Other Well Type The options available are: Producing Shut-in Producer UIC Shut-in UIC Type of Completion Packet The options available are: G-1 - Select G-1 for gas wells or oil wells being reclassed to gas. W-2 - Select W-2 for oil wells or gas wells being reclassed to oil. 12

Packet Data/ Oil W-2 13 Tracking #Current Packet Status

Packet Data/ Oil W-2 Cont’d Make sure to click Save after completed ! Completion Date = date the well is capable of production by the flipping of a switch or turning of a valve Required Items 14

W-2 Oil Well Potential Test * * Enter Pump Size, if pumping. Indicate Pump Type. Enter Choke Size, if Production Method is 'Flowing'. Test Date must be equal to or newer than the completion date and prior to the submittal date. * * Optional Items 15

W-2 Page 2 If Initial Filing this is the SPUD date If Initial Filing this may be the Rig Release Date Lease Line distances and directions should match the permit exactly – if they don’t you may need an amended permit 16 The number of total lease acres dedicated to this specific lease in this field. No other leases should be listed as claiming any portion of this lease acreage in this field { See SWR 40(d)} The Total Drilled Depth of the well, this depth can only exceed the permitted depth by 2% or 100’, whichever is greater, otherwise you may need an amended permit

W-2 Page 3 This is the Date Found on your GAU Letter Be Sure to select Yes if there are any additional surveys attached Only complete if Multiple Completion – not for workovers or downhole commingled wells * 17

W-2 Page 4 Depth found on GAU Letter * Per SWR 13(b)(5)(a) All Flowing Oil wells must have Tubing Set unless an EXTENSION is granted by field rules. If the question is answered no you must provide an explanation and your allowable may be withheld. Optional 18

W-2 Page 5 19 List all perforations that are currently open. If Open Hole check open hole, if horizontal or directional then select the appropriate lateral label. Mark this question yes if there are no perforations and/or all perforations are isolated and incapable of production List any acidizing/shot/fracturing/ cement squeezes/CIBP’s here with the affected depths. It is very important to list old perforations and how they were isolated here if recompleting a well to prevent a violation of SWR 10. Preferably list 3 formations tops, at minimum you should be listing tops for the formations you are producing out of List any important information here, SWR 10 remarks are required.

W-2 Page 6 (Certification Page) 20 If this is marked No and there are no remarks then the well may be processed incorrectly and permit will be closed out. A Recompletion permit will be required to correct the well status and completion data.

Complete Additional Forms 21

L-1 Electric Log Status Report 22 The Railroad Commission of Texas is working on a system capable of accepting digital logs in the very near future. See website for future updates.

P-4 Certificate of Compliance & Transportation Authority It is ideal to use the search boxes on this page – the search feature will validate that the selected gatherer/purchaser has the proper codes and requirements for the activity you are listing them for 23

P-4Certification Page 24 You can only mark authorized agent if you are listed on the P-5A or on the operator’s P-5

Online W-12 Inclination Report These items and questions must match the attached W-12 Exactly 25

Load Attachments W-12’s, W-15’s, and the GAU letter are the most common REQUIRED forms. Refer to field rules for requirements on proration plats, P-15’s/acreage lists/lease plats etc. Attach a SWR 10 letter if downhole commingling and a L-1 log header if requesting confidentiality 26

Submittal Page 27 You can validate your completion for any errors or missing forms prior to submittal.

Submittal Page Cont’d 28 Once submitted you must contact the Railroad Commission Proration Department to add any attachments, complete any additional forms or make any corrections to the existing packet.

Finished ! 29

MY MESSAGES/OPERATOR MESSAGES My Messages All Messages Issued to Currently Logged in User Only Operator Messages All Messages Issued to the Associated P-5 Operator Number Ideal to use if someone has left your company or you have multiple filers! Recent Notifications All Messages issued within the selected time frame -- i.e. the last 7 days 30 ***Once your packet has been submitted it is of the utmost importance to check your messages and respond to messages once the items have been corrected. The packet is brought to the RRC staff’s attention much more quickly in an internal “messages response” queue that is checked every morning.*** Use this option to update existing packets you have created or you will have access to update existing completions that were submitted hardcopy.

Top 30 Problems That Can Delay A Completion Packet’s Final Approval 1.Failing to respond to messages online from the RRC Analyst, even if you have corrected the problem. 2. Not filing all required forms with the packet. 3.Over-assigning acreage. 4.Log headers do not have all the required information. 5.Amending Drilling Permit ASAP and follow-up for approval. 31

Top 30 Problems That Can Delay A Completion Packet’s Final Approval 6.Make sure all questions are answered correctly and completely. 7.Adding a second/another P4 when an initial P4 has already been filed. 8.Make sure that P4 gatherers and purchasers have an active P5. 9. Make sure all electronic forms are completed, certified, and submitted. 32

Top 30 Problems That Can Delay A Completion Packet’s Final Approval 10.Filing information that is not needed. 11.Properly labeling attachments. 12. Make sure that all of the following are correct: – Type of Completion – Purpose of Filing – Well Type 13.File drilling permit prior to drilling the well. 33

Top 30 Problems That Can Delay A Completion Packet’s Final Approval 14.If the information on the G5 does not meet the requirements, be sure to file a PVT Analysis or Compositional Analysis. 15.Lease lines measurements should be the same as drilling permit lease line measurements, if not explain 16.Use the remarks section of the completion forms (G1/W2) to explain any changes or amendments. Also use this section for any information that you want the analyst or the RRC to know. 34

Top 30 Problems That Can Delay A Completion Packet’s Final Approval 17.Make sure that any attached files display properly (P12’s, plats). 18.W-12 not filled out correctly or is incomplete. 19.No change in completed, commenced, and completion dates when the well is worked over or re- completed 20.Not addressing remarks related to SWR10 information (i.e. remarks, perfs, formations). 35

Top 30 Problems That Can Delay A Completion Packet’s Final Approval 21. If a well is worked over or recompleted, showing how the perfs were isolated. 22.Hard copy filings that are filed with incomplete or missing information. 23. Operators adding zeros in the extra spaces linked to the well numbers. 24. If acreage assignment changes as wells are drilled, filing revised P15’s, proration plats, and or acreage list for all wells on the lease that have revised acreage. 36

Top 30 Problems That Can Delay A Completion Packet’s Final Approval 25. Shut-In/Time of Run for G1’s (1 Point Test) should be 1440 minutes (24 hours). 26. The well is completed in formations that are outside the designated correlative interval for the completed field and a SWR 10 has not been filed. 27. The formation record section on the G-1/W-2 should show the formation names that define each completed field. 37

Top 30 Problems That Can Delay A Completion Packet’s Final Approval 28. Not Filing proration acreage plats when field rules require that acreage be assigned to each well 29.Not checking the field rules before filing 30.Not utilizing the RRC website to retrieve well information 38

CONTACT US – To provide better customer service, we have instituted a phone queue. Individual Analyst may not be able to immediately respond to your calls. For immediate assistance call the Well Compliance’s (Proration) new phone number: