Natural Resources, Oil, Gas and Mining; Oil and Gas

Rule R649-4

Determination of Well Categories Under the Natural Gas Policy Act of 1978.

Notice of Proposed Rule

(Repeal)

DAR File No.: 34010
Filed: 08/25/2010 01:53:45 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The Board and Division of Oil, Gas and Mining seek to repeal this rule since no further applications for natural gas well category determinations are allowed under the Natural Gas Policy Act of 1978. The Federal Energy Regulatory Commission has discontinued accepting docketed matters from states on this topic, thus the rule can be repealed.

Summary of the rule or change:

This rule established the procedures for natural gas well operators to seek classification of certain wells under the 1978 Natural Gas Policy Act from Oil, Gas and Mining. This rule is repealed in its entirety, since it is no longer necessary.

State statutory or constitutional authorization for this rule:

• Subsection 40-6-5(3)

Anticipated cost or savings to:

the state budget:

There are no costs or savings to the state budget since over seven years have passed since the last application under this rule was processed, and no further applications will occur.

local governments:

There is no impact to local government by repeal of this rule, since this rule applied to certain natural gas well operators and the Division.

small businesses:

Operators of certain natural gas wells, some of which were small business, submitted applications for determination of well categories through January 2003, but no further applications have occurred or will occur. Thus, there are no costs or savings to small business from this rule repeal.

persons other than small businesses, businesses, or local governmental entities:

Persons other than small businesses, businesses, or local government entities are not impacted by this rule repeal. This rule previously impacted certain natural gas well operators and the Division.

Compliance costs for affected persons:

Operators of certain natural gas wells submitted applications for determination of well categories through January 2003, but no further applications have occurred or will occur. Thus, there are no compliance costs to affected persons from this rule repeal.

Comments by the department head on the fiscal impact the rule may have on businesses:

No fiscal impact upon businesses is expected from this rule repeal.

Michael Styler, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Natural Resources
Oil, Gas and Mining; Oil and Gas
1594 W NORTH TEMPLE
SALT LAKE CITY, UT 84116-3154

Direct questions regarding this rule to:

• Steve Schneider at the above address, by phone at 801-538-5328, by FAX at 801-359-3940, or by Internet E-mail at [email protected]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

10/15/2010

Interested persons may attend a public hearing regarding this rule:

• 09/22/2010 09:00 AM, UBATC, 1100 E Lagoon St, Roosevelt, UT

This rule may become effective on:

10/27/2010

Authorized by:

John Baza, Director

R649. Natural Resources; Oil, Gas and Mining; Oil and Gas.

[R649-4. Determination of Well Categories Under the Natural Gas Policy Act of 1978.

R649-4-1. Definitions.

1. Unless the context specifically requires otherwise, any special words, terms, or phrases used in the Section and not defined in Section 1 have the meanings defined under the Natural Gas Policy Act of 1978 (NGPA), and applicable Federal Energy Regulatory Commission (FERC) rules and regulations.

 

R649-4-2. Applications.

An operator requesting the classification of a well or reservoir pursuant to the authority granted to the Board by Section 503 of the NGPA, in order to enable the Board to determine the applicable category for any such well or reservoir pursuant to Title 1 of the NGPA, shall:

1. File the original and two copies of a written application made upon forms prescribed by the Board together with supporting documentation, including all information, data, forms, plats, maps, exhibits, and evidence as may be required by the applicable statutes, rules, and regulations. An application may be amended, supplemented, or withdrawn by the applicant at any time prior to the Board determination.

1.1. Complete an individual application as to each well for which a status determination is being requested. If more than one status determination is being requested for a single well, all forms and information required for each requested determination shall be submitted jointly under one application, with notice to the Board that multiple determinations for one well are being sought under the application.

1.2. File an affidavit as to the truthfulness and correctness of all information contained in the application, including all documents, testimony, and evidence attached to or submitted with the application.

1.3. Certify that the purchaser and owners of the natural gas for which the determination is being submitted, have been served by personal delivery or by mail, postage prepaid, with a copy of the application, including a complete FERC Form 121, excluding required supporting documents.

 

R649-4-3. Notice and Hearing.

1. Upon receipt of an application for a well status determination under the NGPA, the Board shall:

1.1. Notify the applicant of the receipt of the application;

1.2. Determine the completeness of the application. If the application is incomplete in any respect, the Board shall indicate to the applicant the items to be filed which would make the application complete;

1.3. Assign a cause number to each application, determine a hearing date for each complete application, and notify the applicant of the cause number and hearing date;

1.4. Cause notice of hearing to be given.

2. If the same applicant has filed for multiple well determinations or for multiple determinations as to any well, the published notice of hearing may include more than one well or reservoir in one notice.

 

R649-4-4. Determination and Orders.

1. Following notice and hearing, the Board shall issue a determination and order for each complete application.

2. If no response or protest to the application is filed with the Board, an application may be considered and a determination may be made by the Director or a designated hearing examiner on the basis of sworn testimony, depositions, or affidavits, together with all exhibits, forms, and other matters properly filed with the Board. Such matters shall comprise the transcript of the hearing on which the determination is based.

3. An applicant may also request consideration and a determination by the Director or a designated hearing examiner by filing a letter with the Board agreeing that the determination can be made by the Director without the necessity of an appearance by the applicant. The Board may, however, upon its own motion, require an evidentiary hearing with sworn testimony to be held upon any application following proper notice. In the event the Board determines that a hearing is required, the Board shall notify the applicant at least ten days prior to the scheduled hearing date.

 

R649-4-5. Notice of Determination.

Within five days after the last day for filing a motion for rehearing, or, if such a motion is filed, within 15 days after it is denied or overruled by operation of law, the Board shall give written notice to the FERC of its determination and order.

 

KEY: oil and gas law

Date of Enactment or Last Substantive Amendment: January 3, 2001

Notice of Continuation: November 8, 2005

Authorizing, and Implemented or Interpreted Law: 40-6-1 et seq. ]