§121. Production, Production Records, Production Tests

           A. All oil tendered to any transportation system shall be gauged and tested for B.S. and W. and temperature. For each and every transfer of oil from the lease tanks, the number of the on-seal and off-seal observed temperature, and the percent of B.S. and W. shall be recorded on each and every run ticket, and each party of any transfer of oil from lease tanks shall receive a copy of the run or delivery ticket or tickets.

           B.1. There shall not be any simultaneous movement of oil into and out of any lease tank that is being used for delivering oil to a gatherer or transporter. Transfer of oil or gas from the possession of one lease to the possession of another lease, except when properly accounted for, is hereby prohibited.

           2. The possession of improper mechanical means for transferring oil from one lease tank or well to the lease tank or well of another lease is hereby prohibited.

           3. All pipeline outlets from lease tanks shall be kept sealed at all times except when a pipeline run is being made from the tank, and the number of the on-seal and off-seal shall be recorded on each and every run ticket.

           4. B.S. and W. bleed-off lines of lease tanks shall be sealed or locked at the time any pipeline run is being made.

           5. Oil produced from separately-owned leases, not pooled, unitized or consolidated shall not be commingled in lease tanks.

           6. All leases having more than one producing well shall be equipped with a test line, so as to obviate the necessity of spudding in wells when taking individual well tests.

           C. Producers shall keep the following records in the main office for a period of three years and the current records in the field office for three months:

           1. the monthly production in gross barrels produced from each lease and tank into which the oil was produced. A record of choke, percent B.S. and W., tubing pressures, and casing pressures of each oil well on that particular lease shall be recorded on a monthly basis, and if a choke is changed, the date of such change shall be recorded on the monthly record. If a well is put on production, either initially or returned to production after cessation of production, during the monthly period preceding the date of the record, the date the well was put on production shall also be recorded on the monthly record;

           2. a record of stock on hand on the first day of each month;

           3. a record of all deliveries of oil from the lease, to whom made, and the identity of the means of transportation, and the transporter; and

           4. gauge tickets, and run tickets, as made by the employees actually performing or directing the operations recorded on such records.

           D.1. Each operator shall conduct semi-annual tests on all producing/service wells and shall report the results on the approved forms DM-1-R, oil well deliverability test or DT-1, gas well deliverability test or other method prescribed by the Office of Conservation no later than the first day of May and November of each year. Well tests shall be conducted a minimum of 60 days prior to the required filing date. All wells which are shut in shall also be shown on this form and the date of last production or date the service well ceased to be used shall be indicated.

           2. The requirements of LAC 43:XIX.121.D.1 shall not be applicable for wells drilled to or completed in the Monroe gas rock or stripper oil lease wells in the Monroe or Shreveport districts.

           AUTHORITY NOTE: Promulgated in accordance with R.S. 30:4 et seq.

           HISTORICAL NOTE: Adopted by the Department of Conservation (August 1943), amended (January 1963), (July 1959), amended by the Department of Natural Resources, Office of Conservation, LR 40:2597 (December 2014).