1. Directional Surveys and Associated Issues
Keith May Technical Permitting Engineering Unit

2. Presentation Overview
Introduction Survey Requirements Submission Procedures Engineering Review Special Field Rules/SWR 86 changes

3. Directional Drilling
Advancements in drilling technology give drillers incredible control and precision
Bolstered by Shale plays, and frack technology

4. Directional Drilling
Measurement while drilling or MWD tools allow driller to “steer” the drill bit
Positional data transmitted up the wellbore
Gives us X, Y, and Z coordinates

5. Where does the RRC come in?
RRC requires survey and inclination data be reported.
Insures lease line and wellbore spacing rules are followed
Protection of oil and gas reservoirs

6. Applicable Rules SWR 11 SWR 12 Rule 86
Outlines requirements for surveys
SWR 12
Requirements for Survey certification
Rule 86
Horizontal wells

7. Where can I find the Rules?

8. Where can I find the Rules?

9. Where can I find the Rules?

10. Where can I find the Rules?

11. Presentation Overview
Introduction Survey Requirements Submission Procedures Engineering Review Special Field Rules/SWR 86 changes

12. Relevant Rule: SWR 3.11
Statewide Rule(SWR) 11 outlines requirements for surveys
The purpose is to accurately depict wellbore’s location in 3-D space
Different wellbore profiles require different survey types

13. Survey Types Inclination Surveys Directional Surveys
Inclination and offset data only
No coordinates or directional data
Directional Surveys
Provide coordinate data (X, Y, and Z)
Give most accurate picture of wellbore path

14. Inclination Surveys
Required for any well drilled/deepened with rotary tools
Data point requirements:
First data point less than 500’ deep
Data points need to be less than 1000’ apart
Last point within 1000’ of Total depth (TD)
There are some exceptions provided by the rule. For example:
Inclination surveys are not required for wells that are less than <2000’ deep provided the well is located at least 150’ from nearest lease line and the well is not intentionally deviated from the vertical.
The well is deepened no more than 300’ or the distance from the well location to the nearest lease line, whichever is lesser, again, provided the well was not intentionally deviated from the vertical at any time.
Also, inclination surveys are not required for wells that are completed as dry holes and permanently PA’d . However if the well is reentered at a latter date and completed as a producer or injector, the inclination survey will be required.

15. Form W-12

16. Inclination Surveys Submitted on Form W-12 by operator
Performed by drilling company
Certified by both
The questions on Form give the operator and Commission a indication of whether or not the well may be in compliance.
Item 18 is the data summary or “accumulative total displacement at the total depth of the well”.
The number in 18 is compared to the numbers in items nos. 20 and/or 21 which are “distance from the well location to the nearest lease line”, and “the minimum distance to lease line prescribed by field rules”
If the number in 18 is greater than the number in 20 or 21, that is an indication that the well may or may not be in compliance because the bottom hole location is too close to, or crossing, the lease line. But being the inclination survey provides the accumulative displacement, which is usually greater than the true, and it doesn’t provide direction, a more accurate direction survey will be required to know for sure.

17. Form W-12
Accumulative displacement is given without a compass direction, must not exceed distance to nearest lease line.

18. Ideal Vertical Well
150’
300’

19. Actual Vertical Well 45’ 85’ 25’ 300’ Cumulative Total Displacement:
150’
300’
45’
85’
25’
Cumulative Total Displacement:
45’+85’+25’=155’
155’
Cumulative total displacement is greater than the nearest lease line by 5’. Will require a directional survey to be run, since we have to assume the displacement was in the least favorable position.

20. Directional Surveys Required for any intentionally-deviated well
Data points less than 200’ apart
Also required if W-12 shows possibility of crossing lease line

21. Horizontal Well W-12 acceptable through surface casing
Gyro or MWD required for rest of well

22. Directional Well Gyro or MWD required through entirety
S-Curve is a special case, requires permission

23. Survey Common Mistakes
WRONG SURVEYS for wellbore profile
Surveys missing completely
Surveys lacking certification
Surveys don’t tie-in
Surveys attached for wrong well
Solution
Survey Company must correct and Resubmit

24. Certification Requirements
Survey Company Name
Name and title of individual performing survey
Date survey was performed
Type of survey conducted
Complete well identification
Depths surveyed
Drilling permit plat with bottom hole location

25. Example Certification
I, name, an authorized employee of THE SURVEY COMPANY, have verified the GYRO/MWD survey performed on 04/01/2013 to 04/02/2013, from 200’ to 15000’. The data are true, correct, complete and within the limitations of the tool. This survey was conducted at the request of OPERATOR for LEASE WELL# (API#) drilled in TRAVIS COUNTY, Texas.

26. Certification Common Mistakes
Uploading cover letter instead
Double-certifying another company’s interval
Certification completely missing
Solution:
Survey company must correct and resubmit

27. Presentation Overview
Introduction Survey Requirements Submission Procedures Engineering Review Special Field Rules/SWR 86 changes

28. Submission Procedures
Submission of directional surveys done by survey company
Survey Companies:
Must appear on list of approved survey companies
Must have active P-5
Must upload certification letter as separate file

29. Submission Procedures
Surveys may be submitted hardcopy through the mail or through RRC Online System
Hard copy submittals may take up to 2 weeks
Online submittals are immediately available for review

30. Submission Procedures

31. Submission Procedures

32. Submission Procedures

33. Submission Procedures

34. Presentation Overview
Introduction Survey Requirements Submission Procedures Engineering Review Special Field Rules/SWR 86 changes

35. Reviewed Items Survey Completeness Spacing
Entirety of wellbore covered
Tie-ins line up correctly*
Certification statements
Spacing
Lease line spacing*
Between well spacing*
Permitted Location*
NPZ’s

36. Reviewed Items Well Construction Wellbore Profile Abandoned wellbore*
Required plugs and cementing*
Off-lease Penetration points

37. Survey Completeness: Tie-Ins
RRC accepts combination of surveys that represent complete picture of wellbore
Surveys must tie in at given depths, with identical coordinates

38. Survey Completeness: Tie-Ins
Last shot point of the shallow survey must match the first shot of the next survey
MD: 6296’ N/S: 24.56’ E/W: 14.42’

39. Survey Completeness: Tie-Ins
Compare to proceeding survey
Last shot point
MD: 6296’ N/S: 24.56’ E/W: 14.42’
Exactly the same, therefore proper tie-ins

40. Spacing Considerations
SHL

41. Lease line Spacing
All points of well must satisfy spacing rule
SHL

42. Between Well Spacing
Vertical as well as horizontal
SHL

43. Permitted location Submitted surveys used to plot the well location
Compared against the As-drilled plat
Surface hole location must be within 10’ of permitted location

44. Wellbore Construction
Occasionally surveys indicate abandoned sections of wellbore which may require plugs
Crucial to communicate to the D.O. intentions to abandon portions of wellbore in advance

45. Wellbore Construction
FTP PP
LTP
BHL

46. Wellbore Construction
Situation when a plug would not be required
Penetration point above the Kickoff Point (KOP) PP
FTP
LTP
BHL
KOP

47. Wellbore Construction
Situation when a plug would be required
Penetration point below the Kickoff Point (KOP) PP
FTP
LTP
BHL
KOP

48. Plugging Requirements
Goal is to isolate and protect usable water and productions formations from migration
Minimum plug dimensions
100’ think, centered on penetration point
Additional 10’ per 1000’ TVD

49. W-15 Plug Plugging record on page 2 of the W-15
Used to calculate plug thickness

50. Wellbore Construction
Appropriate plug?
KOP
Plug

51. SWR 14 Violation Contact District Office:
Acknowledge/advise of SWR 14 violation
Explain circumstances of violation
Make a case for adequate isolation
Formally request an exception to the rule
Forward District Office response to Engineering
Letter from operator to District may not resolve issue
Repeat violations may result in recommendation for administrative penalty action
Here’s a list of information the District might want when an exception is requested. Notification and requests should be timely. It hard to do anything with an abandoned section of wellbore after the well is completed. So you want contact the District ASAP whether you plan to plug or request an exception.

52. SWR 14 Violation Contact District Office
Acknowledge and notify D.O.
Explain circumstances of violation
Make a case for adequate isolation
Formally request exception
Forward D.O. response to Engineering
Repeat violations may result in recommendation for Administrative penalty action

53. SWR 14 Exceptions 10 9 8A 7B 5 6 7C 8 3 1 2 4 Oil and Gas Division
District Offices:
Abilene
Corpus Christi
Houston
Kilgore
Midland
Pampa
San Angelo
San Antonio
Wichita Falls 9 8A 7B 5 6 7C 8 3 1 2 4

54. Contacting the District Office

55. Contacting the District Office

56. Contacting the District Office

57. Engineering Review Online Messages Attached if an issue arises
Dispatched at end of day
No notification is sent when operators respond

58. Presentation Overview
Introduction Survey Requirements Submission Procedures Engineering Review Special Field Rules/SWR 86 changes

59. Special Field Rules
Custom created rules approved by the Commission for various fields
Due to wide array of geologies, industry need and other factors, “one size doesn’t fit all”

60. Where to find Special Field Rules

61. Where to find Special Field Rules
Shows key information, and link to Docket

62. Statewide Rule 86
SWR 86 outlines requirements for horizontal drainhole wells
ADP requires for all horizontal wells
Off-lease PP (if permitted)
Box rule
Take point provision

63. Spacing Requirements (SWR 86)
1200’ between well spacing
467’ from take points to lease line
FTP
467’
LTP
SHL
BHL

64. Off-Lease Penetration Points
Enables operators to have SHL and penetration points off lease
Must be permitted as such
Involves notice to offset operators
SHL/PP
FTP
LTP
BHL
467’

65. Box/Rectangle Rule
Box is created around FTP and LTP, width 50ft or 10% of spacing rule, whichever is greater
If wellbore stays within the box, no SWR 37 issues
50’
FTP
LTP

66. Heel and Toe Provisions
Reduces spacing requirements of take points parallel to the drainhole
Not added to SWR 86, only a special field rule
FTP
467’
200’
LTP
SHL

67. Common Online Messages

68. In Summation Know your required surveys Certify and submit accordingly
Remarks are helpful
Special Field Rules are your friend
Notify the D.O. for any plugging/abandoned sections of wellbore

69. Contact Information

70. How is Max Acreage Calculated?
Engineering Unit calculates max possible acreage for drainholes
Standard calculation is based on the attached graphic

71. An Example
Well in Eagleville (Eagle Ford-1) field with an 7000’ lateral.
Eagleville (Eagle Ford-1) is 80 acres per unit
Therefore we use bottom table. Each 827 ft increment equals 40 acres 40
7000’ Lateral

72. Example Continues Divide the drainhole length by 827 7000 827 =8.46
Round up to 9 additional increments
Additional acreage=9x40 acres
Therefore total acreage=9x40+80
Max acreage=440 acres