1. RAILROAD COMMISSION OF TEXAS WELL COMPLIANCE FORMS AND PROCEDURES Austin Regulatory Conference September 2013 1

2. CLASS OVERVIEW This class will focus on the forms that make up both a gas and an oil completion packet. We will also cover the important information on those forms that The Railroad Commission reviews prior to approving the completion packet. It is important that the information provided by the operator is accurate in order to facilitate the timely processing of the completion packet. 2

3. GAS COMPLETIONS How and When to File with The Railroad Commission of Texas 3

4. FORM G-1 – GAS WELL COMPLETION REPORT  Required by Statewide Rules 28 and 31  Effective February 2011, Completion forms for All Districts in Texas should be filed on-line or mailed directly to the Austin Office within 30 days of completion (Statewide Rule 16) 4

5. GAS ALLOWABLE EFFECTIVE DATE  Allowable is set based on the date of receipt of all required forms  Will be backdated 15 days from when the last form needed for an allowable was received in Austin.  Completion date (Item 14 on G-1) is the date the well is capable of producing by the opening of a valve or flipping of a switch. 5

6. FORM G-1, FRONT 6 Date well capable of being produced Field must be on drill permit

7. FORM G-1, FRONT (CONTINUED) 7 Last day of test Entire line must be completed

8. FORM G-1, FRONT (CONTINUED) 8 Only these two sections need to be completed

9. FORM G-1, BACK 9 Must provide True Vertical Depth and Measured Depth Date drill/workover rig moves off lease

10. FORM G-1, BACK (CONTINUED) 10 Reported in Measured Depth You must report what occurred at specific depths. This includes how producing intervals were opened.

11. FORM G-5 – GAS WELL CLASSIFICATION REPORT 11 If less than 100,000 mcf gas/1 bbls oil

12. FORM G-10 – GAS WELL STATUS REPORT 12 These 4 boxes must be filled out for a gas test

13. FORM P-15 – STATEMENT OF PRODUCTIVITY OF ACREAGE AND PRORATION PLAT 13

14. OIL COMPLETIONS How and When to File with the Railroad Commission of Texas 14

15. FORM W-2 – OIL WELL POTENTIAL TEST  Required by Statewide Rules 16 & 51  Effective February 2011, Completion forms for All Districts in Texas should be filed on-line or mailed directly to the Austin Office within 30 days of completion (Statewide Rule 16)  Include Lease number, if the well will be added to an existing lease  File potential test information within 10 days of the test date (Statewide Rule 51)  Wells needing an allowable must include a test  Non-producing wells and service wells, no test required 15

16. OIL ALLOWABLE EFFECTIVE DATE  Allowable set based on date of receipt of all required forms  Allowable effective date may be backdated to the completion date if the forms are received within 10 days of the test date (test information needs to include a 24 hour test)  Item 14 - Completion date is the date the well was capable of producing by the opening of a valve or flipping of a switch 16

17. FORM W-2, FRONT 17 Date well capable of being produced Field must be on drill permit

18. FORM W-2, FRONT (CONTINUED) 18 Must be at least 1 day later than completion date

19. FORM W-2, BACK 19 Must Provide both True Vertical Depth and Measured Depth Date drill/workover rig moves off lease

20. FORM W-2, BACK (CONTINUED) 20 Must be reported in Measured Depth You must report what occurred at specific depths. This includes how producing intervals were opened.

21. PRORATION PLAT  Proration plats are required in fields that have special field rules  Plats need to outline the proration unit, show the lease line distances, and the distances to the nearest well  Plats are to be certified and to scale  Please identify the plat with a district and lease number, if lease already exists 21

22. FORM W-10 - OIL WELL STATUS REPORT 22 Not required with Initial Potential. Will use test from W-2. Report to nearest 1/10 of a barrel. Whole numbers on rest of form

23. FORMS FOR BOTH GAS AND OIL W-12 Inclination Report W-15 Cementing Report L-1 Electric Log Status Report P-4 Producer’s Transportation Authority and Certificate of Compliance P-8 Request for Clearance 23

24. W-12 - Inclination Report 24 W-12 must cover entire wellbore. If horizontal or directional well, W-12 and/or directional survey(s) must cover entire wellbore.

25. W-12 – Inclination Report (Bottom) 25 From last shot point From drill permit If Yes, then must have directional surveys Must be signed by company performing test

26. FORM W-15 - CEMENTING REPORT  Statewide Rules 13 & 14  Filed with all new completions and dry hole completions  District Office has primary audit responsibility & approval  Must be signed by cementing company 26

27. FORM L-1 - ELECTRIC LOG STATUS REPORT  Statewide Rule 16  File with all new gas, oil, deepened wells and dry holes  If no log was run check Box A  Indicate if confidentiality is requested  Log header required with request for confidentiality  If log is attached indicate to what form 27

28. FORM P-4 - CERTIFICATE OF COMPLIANCE  Statewide Rule 58  Form P-4 is a certificate of compliance as well as authorization for gathering the product  Same form used for oil leases and gas wells  One form per oil lease and one for each gas well  File directly to the Austin Office 28

29. FORM P-4 (CONTINUED)  Fill out the P-4 in its entirety - listing complete company names (even if information is not being changed)  Item 12 – check all appropriate box for changes being made  All percentages need to add up to 100%  Always show a system code for the gas purchaser  Show the company that actually moves the stock; purchaser is not required for liquid gatherer  MUST have original signatures for operator changes 29

30. FORM P-8 - REQUEST FOR CLEARANCE  Statewide Rule 80  Filed before the well is assigned an ID/Lease number  An allowable will be needed to cover this production  P-8’s can be filed on-line  District office handles all P-8 approvals  Copy of Form P-4 must be attached 30

31. CONTACT INFORMATION Please take advantage of the Well Compliance Phone Queue System for immediate assistance with general proration questions, online filings, opening packets, etc. A knowledgeable member of the Well Compliance staff will assist you. E-mail: prorationunit@rrc.state.tx.usprorationunit@rrc.state.tx.us Phone: 512-463-6975 31