20 AAC 25.105. Abandonment of wells

(a) All wells that have been permitted on a property under 20 AAC 25.005 must be abandoned before expiration of the owner's rights in that property or if, after notice and hearing, the commission orders abandonment for safety reasons or because the operator has effectively abandoned operations prior to the expiration of the lease. If the owner is the landowner, all wells that have been permitted on a property by 20 AAC 25.005 must be abandoned within one year following permanent cessation of the operator's oil and gas activity within the field where the wells are located or according to an abandonment schedule approved by the commission, unless the wells are earlier abandoned for safety reasons.

(b) A well drilled onshore or from a fixed offshore platform must be abandoned before removal of the drill rig unless the well is completed as an oil, gas, or service well or is suspended, or unless well operations are shut down in accordance with 20 AAC 25.072. Each well drilled from a fixed offshore platform must be abandoned before the platform is removed or dismantled.

(c) A well drilled offshore from a mobile bottom-founded structure, jack-up rig, or floating drilling vessel must be abandoned before removal of the drill rig unless

(1) the well is completed as an oil, gas, or service well; or

(2) subsea equipment for well re-entry is properly installed and either the well is suspended or well operations are shut down in accordance with 20 AAC 25.072.

(d) A well drilled from a beach, artificial island, or shifting natural island must be abandoned before removal of the drill rig unless the well is completed as an oil, gas, or service well or is suspended, or unless well operations are shut down in accordance with 20 AAC 25.072 and plans for maintaining the integrity of the location are approved by the commission.

(e) An Application for Sundry Approvals (Form 10-403) must be submitted to and approved by the commission before work is begun to abandon a well, except that oral approval may be obtained from the commission if it is followed within three days by the submission of an Application for Sundry Approvals for final approval by the commission. The commission will attach conditions to its approval as necessary to protect freshwater and hydrocarbon resources. The Application for Sundry Approvals must include

(1) the reason for abandoning the well; and

(2) a statement of proposed work, including

(A) information on abnormally geo-pressured strata;

(B) the manner of placement, kind, size, and location, by measured depth, of existing and proposed plugs;

(D) if the Application for Sundry Approvals is submitted after beginning work, the name of the representative of the commission who provided oral approval, and the date of the approval; and

(E) other information pertinent to abandonment of the well.

History: Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am 11/7/99, Register 152

Authority: AS 31.05.030

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