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http://www.platts.com/weblog/oilblog/2012/08/21/wildcat_or_not.html

I have 3 wells on the confidential list and find it so frustrating to not be able to get any kind of answers. How can we get the law to change?

Shannon

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Shannon, I wouldn't worry about this rule too much. If the operators did not have confidential status, they simply would not report at all. Many of the wellfiles that I have read through have friendly reminder letters from the state that required paperwork is very late. If the operator ignored the state long enough, the eventual fine would probably be smaller than the fine you would receive for driving 10 miles an hour over the speed limit. I think most operators request confidential status when they drill to total depth and the 6 months begins when the request is made. All permits are considered confidential and the 6 months of confidentiality does not truly begin until the operator requests it. I have heard of companies extending the confidential period by not reporting anything to the state and not asking for confidential status until they have fracked the well. Shannon, I understand the frustration and you have my sympathy but I don't think we can make an effective change in this area since we don't even live in the state and the people who make and enforce the rules are bureaucrats and not even elected officials.

Dear Bob,

I was under the impression that the six months began tolling after the date of first production.  Is that right?

Buddy



r w kennedy said:

Shannon, I wouldn't worry about this rule too much. If the operators did not have confidential status, they simply would not report at all. Many of the wellfiles that I have read through have friendly reminder letters from the state that required paperwork is very late. If the operator ignored the state long enough, the eventual fine would probably be smaller than the fine you would receive for driving 10 miles an hour over the speed limit. I think most operators request confidential status when they drill to total depth and the 6 months begins when the request is made. All permits are considered confidential and the 6 months of confidentiality does not truly begin until the operator requests it. I have heard of companies extending the confidential period by not reporting anything to the state and not asking for confidential status until they have fracked the well. Shannon, I understand the frustration and you have my sympathy but I don't think we can make an effective change in this area since we don't even live in the state and the people who make and enforce the rules are bureaucrats and not even elected officials.

Dear Buddy, in North Dakota all O&G well permits are confidential and my best understanding is that the true six month confidential period does not begin until it is requested and it is up to the operator to decide when to request confidential status. From what I have seen most operators request confidential status when total depth is reached and the backlog on getting wells fracked means that the confidential period frequently expires before wells are completed. I think there may be an interesting loophole there as the state does not expect reports since the operator has not even requested confidential status. Monthly production is public record, but to find monthly production for confidential wells you have to go to general statistics on the NDIC O&G site and search monthly production reports which usually run 45 days behind. General Statistics and the Monthly Production Reports open very slow for me, I have to really want to know before I am willing to wait that long. I have seen wells where the status is confidential AND for which the state has posted production numbers under a normal well search, this is unusual. My theory is that these wells are still being classed as confidential under the automatic confidentiality of permitted wells and that the operator has not requested that the confidential period begin. If you are just looking for raw production figures for a confidential well, General Statistics and the Monthly Production Report will probably serve your needs. I hope this helps, as I wouldn't want to have to count the number of times you have helped me Buddy! Bob

RW is correct as the rule states the 6 month confidential period shall commence on the date the well is completed or the date that the written request by the operator is recieved , whichever is earlier.  This is generally when the well is completed.  If the written request accompanies the application for the permit to drill or is filed after permitting but prior to spudding, the 6 month period shall commence on the date the well is spudded.  As RW states, many wells confidential period expires prior to being fracked.  The well will indicate "DRL" on the NDIC records when this occurs.

Thank you for the information. I am really just learning to use the NDIC O&G website!

Shannon

I'm trying to understand the ND website as well. On the Monthly Production Report - the headings appear clear to me...Oil, Wtr., Days, Gas, Gas Sold. Except this one: Runs. What does that mean?

Karen:

I believe that refers to the number of loads of oil taken from the lease to market.

 

Charles

Karen Bunting said:

I'm trying to understand the ND website as well. On the Monthly Production Report - the headings appear clear to me...Oil, Wtr., Days, Gas, Gas Sold. Except this one: Runs. What does that mean?

The runs is barrels of oil transported from the lease, which is what you are paid for when you receive the check for that months production. Some of the production stays in the tank, and some months they sell more than was produced and there is less left in the tank. It wouldn't make sense to ship half a truckload of oil if you don't have to because the cost would be the same as a full truckload.
 
Karen Bunting said:

I'm trying to understand the ND website as well. On the Monthly Production Report - the headings appear clear to me...Oil, Wtr., Days, Gas, Gas Sold. Except this one: Runs. What does that mean?

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