R649-3-23. Well Workover and Recompletion

  1. Requests for approval of a notice of intention to perform a workover or recompletion shall be filed by an operator with the division on Form 9, Sundry Notices and Reports on Wells, or if the operation includes substantial redrilling, deepening, or plugging back of an existing well, on Form 3, Application for Permit to Drill, Deepen or Plug Back.

  2. The division shall review the proposed workover or recompletion for conformance with the Oil and Gas Conservation General Rules and advise the operator of its decision and any necessary conditions of approval.

  3. Recompletions shall be conducted in a manner to protect the original completion interval(s) and any other known productive intervals.

  4. The same tests and reports are required for any well recompletion as are required following an original well completion.

  5. The applicant shall file a subsequent report of workover on Form 9, Sundry Notices and Reports, or a subsequent report of recompletion on Form 8, Well Completion or Recompletion Report and Log, within 30 days after completing the workover or recompletion operations.

  6. For the purpose of qualifying for a tax credit under Utah Code Ann. Section 59-5-102(7), the operator on his behalf and on behalf of each working interest owner must file a request with the division on Form 15, Designation of Workover or Recompletion. The request must be filed within 90 days after completing the workover or recompletion operations.

  7. A workover which may qualify under Utah Code Ann. Section 59-5-102(7) shall be downhole operations conducted to maintain, restore or increase the producibility or serviceability of a well in the geologic interval(s) that the well is currently completed in, but shall not include:

  7.1. Routine maintenance operations such as pump changes, artificial lift equipment or tubing repair, or other operations that do not involve changes to the wellbore configuration or the geologic interval(s) that it penetrates and that do not stimulate production beyond that which would be anticipated as the result of routine maintenance.

  7.2. Operations to convert any well for use as a disposal well or other use not associated with enhancing the recovery of hydrocarbons.

  7.3. Operations to convert a well to a Class II injection well for enhanced recovery purposes may qualify if the secondary or enhanced recovery project has received the necessary board approval.

  8. A recompletion that may qualify under Utah Code Ann. Section 59-5-102(7) shall be downhole operations conducted to reestablish producibility or serviceability of a well in any geologic interval(s).

  9. The division shall review the request for designation of a workover or recompletion and advise the operator and the State Tax Commission of its decision to approve or deny the operations for the purposes of Utah Code Ann. Section 59-5-102(7).

  10. The division is responsible for approval of workover and recompletion operations that qualify for the tax credit.

  10.1. If the operator disagrees with the decision of the division, the decision may be appealed to the board.

  10.2. Appeals of all other workover and recompletion tax credit decisions should be made to the State Tax Commission.