1. Railroad Commission of Texas Surface Commingling P-17 Applications Darlene Williams 1

2. Class Description In the class today we will be discussing how to properly file the P-17 report. The P-17 form is used by an operator when they are surface commingling. We will be discussing the amounts needed to process a P-17 and also when a P-17 fee is not required. 2

3. Statewide Rules 26, 27 & 55 Revised P17 Effective Jan 2008 3

4. Why file Surface Commingle and Exception to Metering Reports (P-17’s)? Statewide Rules (SWR) SWR 26 SWR 27 SWR 55 4 4

5. P-17 Instruction 5 When to File Who needs to File Compliance Where and What to File Purpose of Filing Fees 5

6. P-17 Form Instructions Off-Lease 6 7 RRC Identifier Location plat Effective month of deletion

7. P-17 Terms Common Separation and Storage 7 7 Deduct Metering District and County

8. Fee Requirements $375 for each meter exception WHEN IS A FEE REQUIRED? WHEN FEE IS NOT REQUIRED? 8

9. Filling out the P-17 Check New# /Amended# Check existing, add or delete” Which ever is applicable Effective Date Month/Year Driving Force of the form P-17 FEE $375 (Filing Fee $150 + $225 Surcharge Fee) DISTRICT COUNTY 9

10. Section 1 10

11. Section 2 Gatherer 11

12. Section 3  OIL  CASING HEAD GAS  GAS WELL GAS  CONDENSATE 12

13. Section 3 Application Applies 13

14. Turbine or Coriolis Meter 14

15. 15

16. 16

17. Section 4 Notice Requirements 17

18. Section 4 Notice MUST be sent by Certified Mail to Royalty Interest and Working Interest Application will be held for 21 days from the date NOA was mailed If mail is returned, then you MUST Publish the application in the newspaper of the county where the tank is located for 4 consecutive weeks. The affidavit must then be sent to Austin 18

19. Example of a 21-day Notice 19

20. Example of Affidavit of Publication 20

21. Copy of a Protest Letter 21

22. P-17 Section 5 & 6 22 Use section 5 if the wells proposed for commingling have an operator’s name other than the applicant listed in Section 1. Check the box in Section 6 if all the oil wells are being commingled DO NOT check box if well numbers are listed in the well no section of Section 7. Identify leases as shown on Commission Records IF # IS NOT ASSIGNED USE DRILLING PERMIT NUMBER Certification P-17 Section 7

23. P-17 Certificate 23

24. Example of Delete 24

25. Example of Add 25

26. Example of Pending 26

27. Example of a Plat 27

28. New Lease IDs Built Query

32. Special (9999)

33. P-17 Quick Tips COMPLETED FORM FEE INCLUDED ORIGINAL COPY 33

34. QUESTIONS?? 34

35. Production Audit Darlene Williams (512) 463-6873 darlene.williams@rrc.state.tx.us Contact Information 35