The Department of Mineral Resources was directed today by the North Dakota Industrial Commission to immediately reinstate guidelines that promote the prevention of waste of the state’s natural resources of oil and gas during the current economic climate.
The Not Completed Well Waiver guidelines allow operators to apply for Not Completed Well Status.
- Not Completed Well (NCW) Status: May only be given to wells that have been drilled but whose casing has not yet been perforated (i.e. the well is incapable of producing oil or gas because completion operations have not yet been performed).
The Inactive Well Waiver guidelines allow operators to apply for Inactive Well Status.
- Inactive Well (IAW) Status: May only be given to wells that have met certain criteria which includes documentation stating why the well is inactive and a statement that it is uneconomic to produce at current crude oil prices in addition to several additional criteria.
The Suspension of Drilling Waiver guidelines allow operators to apply for Temporary Abandoned Surface Casing Status.
- Temporary Abandoned Surface Casing (TASC) Status: May only be given to wells that have had surface casing set and properly cemented and are properly secured until time for a large drilling rig to drill the remaining portion of the well and equip it for completion operations.
Each waiver is good for one year and operators will be allowed to apply for renewal until WTI oil price exceeds $50 per barrel for 90 days.
Guidelines will be posted online at https://www.dmr.nd.gov/oilgas/policies.asp.