18 C.F.R. § 270.305   Determination of tight formation areas.


Title 18 - Conservation of Power and Water Resources


Title 18: Conservation of Power and Water Resources
PART 270—DETERMINATION PROCEDURES
Subpart C—Requirements for Filings With Jurisdictional Agencies

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§ 270.305   Determination of tight formation areas.

(a) General requirement. A jurisdictional agency determination designating a portion of a formation as a tight formation must be made in the form and manner prescribed in this subpart.

(b) Guidelines for designating tight formations. A jurisdictional agency determination designating a portion of a formation as a tight formation must be made in accordance with the following guidelines:

(1) Within the geographic boundaries of the portion of the formation being recommended for tight formation designation, the estimated in situ gas permeability, throughout the pay section, is expected to be 0.1 millidarcy (md) or less. The expected in situ permeability is to be determined through an arithmetic mean averaging of the known permeabilities obtained from the wells that penetrate, and have a pay section in, such portion of such formation.

(2) Within the geographic boundaries of the portion of the formation being recommended for tight formation designation, the stabilized production rate of natural gas, against atmospheric pressure, of wells completed for production in such portion of such formation, without stimulation, is not expected to exceed the production rate determined in accordance with the table in this paragraph (b)(2). Such expected stabilized, pre-stimulation production rate is to be determined through an arithmetic mean averaging of the known stabilized, pre-stimulation production rates obtained from the wells that penetrate, and have a pay section in, such portion of such formation.

 ------------------------------------------------------------------------  If the average depth to the top of the formation (in      The maximum                          feet)                              allowable---------------------------------------------------------   production                                                              rate of                                                            natural gas                                                            (in Mcf per                exceeds_                   but does not        day)                                              exceed_    ---------------                                                              may not                                                              exceed_------------------------------------------------------------------------0.......................................           1,000              441,000...................................           1,500              511,500...................................           2,000              592,000...................................           2,500              682,500...................................           3,000              793,000...................................           3,500              913,500...................................           4,000             1054,000...................................           4,500             1224,500...................................           5,000             1415,000...................................           5,500             1635,500...................................           6,000             1886,000...................................           6,500             2176,500...................................           7,000             2517,000...................................           7,500             2907,500...................................           8,000             3368,000...................................           8,500             3888,500...................................           9,000             4499,000...................................           9,500             5199,500...................................          10,000             60010,000..................................          10,500             69310,500..................................          11,000             80211,000..................................          11,500             92711,500..................................          12,000           1,07112,000..................................          12,500           1,23812,500..................................          13,000           1,43213,000..................................          13,500           1,65513,500..................................          14,000           1,91314,000..................................          14,500           2,21214,500..................................          15,000           2,557------------------------------------------------------------------------

(c) Notice to the Commission. Any jurisdictional agency making a determination that a formation, or portion thereof, qualifies as a tight formation will provide timely notice, in writing, of such determination, to the Commission. Such notice shall include the following to substantiate the jurisdictional agency's findings:

(1) Geological and geographical descriptions of the formation, or portion thereof, which is determined to qualify as a tight formation; and

(2) Geological and engineering data to support the determination, including (but not limited to):

(i) A map of the area for which a tight formation determination is being sought that clearly locates and identifies all data wells and all dry holes that penetrate the subject formation and all wells that are currently producing from the subject formation.

(ii) A well-by-well table of each in situ permeability value (in millidarcies), pre-stimulation stabilized production rate (in Mcf per day), and depth to the top of the formation (in feet) for each well, and the arithmetic mean of each set of data.

(iii) For any data that the jurisdictional agency excludes from the above calculations, a statement explaining why the data was excluded.

(iv) The underlying well test, well logs, cross-sections, or other data sources, and all calculations performed to derive the formation tops, permeability values, and pre-stimulation stabilized production rates shown in the well-by-well table.

(v) Any other information that the jurisdictional agency deems relevant and/or that the jurisdictional agency relied upon in making its determination.

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