The RRC field rules do not necessarily adhere to statutory definition of an oil well versus a gas well. For example, an operator has the option of designating a well as either an oil well or a gas well if it is completed in the Phantom (Wolfcamp) field which covers multiple counties. All wells completed in the Ford, West (Wolfcamp) field are classified as gas wells, regardless as to the relative volumes of gas and oil produced. If a horizontal well is classified as a gas well, then it usually qualifies for a reduced severance tax rate on the gas and products as a high-cost gas well. Many operators in Reeves, Loving and Ward counties are filing to reclassify oil wells as gas wells to take advantage of this savings. Therefore, the “condensate” on your check is most likely oil and the price should be the same as oil from other oil wells. On the other hand, Apache’s wells are all in other formations and truly gas wells. If you identify the well (name, api number, RRC lease number, operator), then you can get a more definite answer.
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