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 when a P-17 fee is not required. 2

3. Overview THIS SESSION WILL EXPLAIN HOW TO FILL OUT THE P17 FORM 3

4. Statewide Rules 26, 27 & 55 Revised P17 Effective Jan 2008 4

5. Why file Surface Commingle and an Exception to Metering Reports (P-17’s)? Statewide Rules (SWR) SWR 26 SWR 27 SWR 55 5 5

6. P-17 Instruction 6 When to File Who needs to File Compliance Where and What to File Purpose of Filing Fees 6

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

8. P-17 Terms Common Separation and Storage 8 8 Deduct Metering District and County

9. Fee Requirements $375 for each meter exception WHEN IS A FEE REQUIRED? WHEN IS A FEE NOT REQUIRED? 9

10. 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 10

11. Section 1 Operator 11

12. Section 2 Gatherer 12

13. Section 3 Application that Applies  OIL  CASING HEAD GAS  GAS WELL GAS  CONDENSATE 13

14. Section 3 Application Applies 14

15. Section 3 15

16. Turbine or Coriolis Meter 16

17. Turbine Meter 17

18. Coriolis Meter 18

19. Section 4 Notice Requirements 19

20. 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 20

21. Example of a 21-day Notice 21

22. Example of Affidavit of Publication 22

23. P-17 Section 5 & 6 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

24. Example of Delete 24

25. Example of Add 25

26. Example of Pending 26

27. Copy of a Protest Letter 27

28. Example of a Plat 28

29. Frequently asked questions 29

30. Continued questions 30

31. P-17 Certificate 31

32. P-17 Quick Tips COMPLETED FORM FEE INCLUDED ORIGINAL COPY 32

33. QUESTIONS?? 33

34. P-17 Darlene Williams (512) 463-6873 darlene.williams@rrc.state.tx.us Production General Phone Line (512) 463-6726 info@rrc.state.tx.us Contact Information 34