20 AAC 25.110. Suspended wells

(a) If allowed under 20 AAC 25.105, the commission will, upon application by the operator under (b) of this section, approve the suspension of a well if

(1) the well

(A) encounters hydrocarbons of sufficient quality and quantity to indicate that the well is capable of producing in paying quantities, as reasonably demonstrated by well tests or interpretive formation evaluation data; for purposes of this paragraph, "paying quantities" means quantities sufficient to yield a return in excess of operating costs;

(B) is a candidate for redrilling;

(D) is located on a pad or platform with active producing or service wells; and

(2) the operator justifies to the commission's satisfaction why the well should not be abandoned, and, if the well is not completed, why the well should not be completed; sufficient reasons include the

(A) unavailability of surface production or transportation facilities;

(B) imprudence of security maintenance of a completed well in a shut-in status;

(b) An Application for Sundry Approvals (Form 10-403) must be submitted to and approved by the commission before plugging operations are begun in a well for which suspension is proposed, 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. Approval will be conditioned as necessary to protect freshwater and hydrocarbon resources. An Application for Sundry Approvals must include

(1) the reason for suspending the well and information showing that the applicable criteria for suspension under (a) of this section have been met; 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 suspension of the well.

(c) At the operator's request accompanying the submission, information submitted to show that the applicable criteria for well suspension under (a) of this section have been met will be kept confidential

(1) for the period specified under AS 31.05.035 (c), if the information is described in 20 AAC 25.071(b) ; or

(2) for the time that the information has value as a trade secret, if the information is not described in 20 AAC 25.071(b) but is determined by the commission to constitute a trade secret under AS 45.50.940 .

(d) A well approved for suspension must be plugged in accordance with the requirements of 20 AAC 25.112, except that the requirements of 20 AAC 25.112(d) do not apply if

(1) a wellhead is installed or the well is capped with a mechanical device to seal the opening; and

(2) a bridge plug capped with 50 feet of cement or a continuous cement plug extending 200 feet within the interior casing string is placed at or above 300 feet below the surface; the commission will waive the requirement of this paragraph for a development well drilled from a pad or platform, if the commission determines that the level of activity on the pad or platform assures adequate surveillance of that development well.

(e) Until a suspended well has been abandoned or re-entered, the operator shall maintain the integrity of the location, provide the commission with a well status report every five years, and clear the location in accordance with 20 AAC 25.170(a) (2) or (b) or with 20 AAC 25.172(c) (2) or (d), as applicable.

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

Authority: AS 31.05.030

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