Wednesday, August 29, 2018

A Reader Has A Question About The Confidential List -- August 29, 2018


August 30, 2018: a reader provided this link to the NDIC that might help answer the question --
All information furnished to the director on permits, except the operator name, well name, location, permit date, confidentiality period, spacing or drilling unit description, spud date, rig contractor, central tank battery number, any production runs, or volumes injected into an injection well, shall be kept confidential for not more than six months if requested by the operator in writing. The six-month period shall commence on the date the well is completed or the date the written request is received, whichever is earlier. If the written request accompanies the application for permit to drill or is filed after permitting but prior to spudding, the six-month period shall commence on the date the well is spudded.
Original Post 

A reader noted that two wells that came off the confidential list (after being SI/NC) and were producing (albeit very little) were now back on confidential list.

The reader asked:
Why does a well suddenly go on confidential status?
The Kennedy 5-8 and Miles 5-8 are all confidential as of today.
My reply, not ready for prime time:

1. In fact all of these wells are now on confidential status. They were once on the SI/NC list but are now back on the confidential list:

  • 33220, 1,111, Miles 8-6H1, Dimmick Lake, t7/18; cum --
  • 33221, 1,696, Miles 7-6H, Dimmick Lake, t7/18; cum --
  • 33222, 1,173, Miles 6-6H2, Dimmick Lake, t8/18; cum -- 
  • 33223, IA, Miles 5-6H, Dimmick Lake, t--;
  • 33224, 1,133, Kennedy 8-31H1, Dimmick Lake, t7/18; cum --
  • 33225, 1,592, Kennedy 7-31H, Dimmick Lake, t8/18; cum --
  • 33226, 962, Kennedy 6-31H2, Dimmick Lake, t8/18; cum -- 
  • 33227, A, Kennedy 5-31H, Dimmick Lake, t--; cum --
2.  One can still access the information for all these wells that was previously published, so all the old information is still there but any new information after today is now confidential.

3. I didn't check them all, but #33223 and #33227 did not yet publish their frack data; I think the rest did.

4. So my hunch is that CLR put all these wells back on confidential while before releasing frack data on the last two wells (#33223 and #33227). It's been my experience that this is quite common. Wells can only be on the confidential list for 6 months. In the old days when they drilled and completed all at once, the wells were usually on confidential from time of spud to time of completion because they could get everything done within 6 months.

5. Now, with the new rule that companies have two years to complete a well after first spud, they find it more important to put the wells on confidential list when they are getting ready to frack. There's not much information that is new to anyone with regard to drilling. However, everyone is trying different ways to frack, and it now makes sense to put the wells on confidential (or back on confidential) once they start fracking.

6. The rules regarding when the clock starts ticking may have changed with the other rule change (two years to complete) -- I don't follow the rules that closely. But I've seen this often and in fact, I have many examples on the blog where a well was confidential, then went to SI/NC, and then back to confidential.

7. "Teague" once said that wells couldn't do this but that was before the 2-year rule. That was just before I was voted off the island.

8. So, my hunch is that the last two wells being fracked (or already fracked -- I'll check FracFocus later -- I bet they are already fracked) are now on confidential, not wanting others to know what the completion strategy was. [Yes, I just checked FracFocus: #33227 was indeed fracked, 1/21/18 - 2/11/18. I assume #33223 has also been fracked.]

1 comment:

  1. Bruce, will this from NDIC help.. don