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Well Designations
*Guidance Disclaimer
The definitions set out in this document are intended solely as guidance. This document does not contain rules or otherwise binding requirements.
These definitions are taken from the CECMC Draft Financial Assurance Rules Dated 03/01/2022 under Definitions - 100 Series. Please download the latest rules to make sure you have the most updated data.

A Well may have more than one designation.
A Single Primary Designation must be assigned to a Well to prevent counting the same well multiple times in certain situations.
The hierarchy used to determine the Primary Designation of a Well is: Reported Plugged, Out of Service Repurposed, Out of Service, Inactive Exception, Noticed Inactive, Defined Inactive, and Low Producing.
 
Defined Inactive:
The Well meets one of the criteria in the CECMC Rules 100 Series Definition of Inactive Well.
(See Rule 434.c.(2).B.)

INACTIVE WELL means:
     a. An oil or gas Well that has been shut-in and has not produced for a period of 12 consecutive months; or
     b. An oil or gas Well that has been temporarily abandoned for a period of 6 consecutive months; or
     c. A Class II UIC Well which has not been utilized for a period of 12 consecutive months; or
     d. A Suspended Operations Well or a Waiting on Completion Well with no activity other than monthly Bradenhead monitoring for more than 24 consecutive months.
     e. An Inactive Well does not mean:
          (1) An oil Or gas Well that Is completed For fewer than 12 months;
          (2) A Class II UIC Well that is completed for fewer than 12 months;
          (3) A Well used for the purpose of monitoring or observing an oil or gas reservoir, or a Stratigraphic Well.
A coalbed methane Well that produces only water, resulting in gas production in offset Gas Wells, is considered producing for purposes of this definition.

NOTES:
The criteria the Well meets is identified by the status code or well type in parentheses:
     a. The shut-in criteria Is SI.
     b. The temporarily abandoned criteria Is TA.
     c. The UIC Well criteria Is UIC.
     d. The Suspended Operations criteria Is SO.
     e. The Waiting on Completion criteria Is WO.

The designation effective date is the date the Well met the criteria.
Noticed Inactive   (See Rule 434.c.(1).B. & Rule 434.c.(2).A.)
A Form 5B, Inactive Well Notice has been submitted and approved for the Inactive Well.
If required, Single Well Financial Assurance has been provided.
The designation effective date is the Form 5B approval date.
Inactive Exception   (See Rule 434.c.(2).C.)
A Form 5C, Inactive Exception Request has been submitted and approved for the Well.
The exception was requested And granted for good cause.
The designation effective date Is the Form 5C approval date.
Low Producing: The Well meets the criteria in the CECMC Rules 100 Series Definition of Low Producing Well.

LOW PRODUCING WELL means an oil or gas Well that produces a daily average of less than 2 barrels of oil equivalent ("BOE") or 10 thousand cubic feet of natural gas equivalent ("MCFE") of gas over the previous 12 months. An Inactive Well Is also a Low Producing Well. For purposes of this definition, BOE applies to Wells with a gas-to-oil ratio ("GOR") equal to Or less than 15,000 standard cubic feet ("SCF")/barrels of oil ("BBL") And MCFE applies to Wells with a GOR greater than 15,000 SCF/BBL. GOR Is calculated by dividing the Well's gas production (in thousand cubic feet ("MCF")) over the previous 12 months by the Well's oil production (in BBL) over the previous 12 months and multiplying by 1,000. Operators will use the conversion factor of 5.8 to convert MCF to BBL And vice versa.
     a. A Low Producing Well does not mean a Class II UIC Well that is not an Inactive Well.
     b. A Low Producing Well does not mean a Well used for the purpose of monitoring or observing an oil or gas reservoir, or a Stratigraphic Well.

Notes:
For accuracy, these Wells are not designated as Low Producing:
          (1) An oil or gas Well that is completed for fewer than 12 months
          (2) A Class II UIC Well that is completed for fewer than 12 months

The designation effective date is the date the Well met the criteria.
Out of Service   (See Rule 434.d.)
A Form 6A, Out of Service Designation has been submitted for the Well.
The plugging due date Is assigned per Rules 434.d.(4).B & C.
The designation effective date Is the Form 6A submit date.
Out of Service Repurposed   (See Rule 434.d.(9).B.)
After the Well has been designated as Out of Service, a Revised Form 6A, Repurpose has been submitted and approved for the Well.
The Well Is repurposed for beneficial use other than hydrocarbon production.
The designation effective date is the Revised Form 6A, Repurpose approval date.
Reported Plugged
A Form 6, Subsequent Report of Abandonment (SRA) has been submitted for the Well.
The form has not been approved by CECMC staff yet; the form is pending.
The designation effective date is the Plugging Date (Cut and Cap Date) reported on the pending Form 6, Subsequent Report of Abandonment.