Form OW-3 "Application for Payment for Reactivating or Plugging an Orphaned Oil or Gas Well" - Texas

What Is Form OW-3?

This is a legal form that was released by the Railroad Commission of Texas - a government authority operating within Texas. As of today, no separate filing guidelines for the form are provided by the issuing department.

Form Details:

  • Released on April 1, 2006;
  • The latest edition provided by the Railroad Commission of Texas;
  • Easy to use and ready to print;
  • Quick to customize;
  • Compatible with most PDF-viewing applications;
  • Fill out the form in our online filing application.

Download a printable version of Form OW-3 by clicking the link below or browse more documents and templates provided by the Railroad Commission of Texas.

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Download Form OW-3 "Application for Payment for Reactivating or Plugging an Orphaned Oil or Gas Well" - Texas

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RAILROAD COMMISSION OF
APPLICATION FOR PAYMENT FOR
FORM OW-3
TEXAS
EFF. 04-2006
REACTIVATING OR PLUGGING
Oil and Gas Division
AN ORPHANED OIL OR GAS WELL
SEE INSTRUCTIONS ON REVERSE SIDE
1. Operator name (exactly as shown on P-5 Organization Report) OR Surface Estate Owner Name:
2. Operator P-5 No. (if applicable):
3. Operator OR Surface Estate Owner address (including city, state, and zip code):
4. Phone No.:
5. Field Name:
6. Field No.:
7. County:
8. Lease Name
9. Lease No./Gas ID
10. Well No.:
11. API No.:
No.:
42-
OPERATOR REQUEST FOR PAYMENT
I hereby request payment in accordance with Tex. Nat. Res. Code, §89.047, Orphan Well Reduction Program.
I was designated as the operator of the above-listed orphan well. [ATTACH a copy of the Commission’s Certificate of
Designation as Operator of Orphaned Oil or Gas Wells (approved Form OW-2), for the subject well.]
I have plugged the orphaned well in accordance with Commission’s rules. [ATTACH a copy of Form W-3, Plugging Record, for
the subject well.]
I have brought the well back into continuous active operation by:
producing well and the well has produced at least 10 barrels of oil or 100 mcf of gas per month for at least three
consecutive months as shown in Commission records and as authorized by a permit issued by the Commission. ATTACH
documentation.
OR
using the well as a service well for the disposal or injection of oil and gas wastes or another purpose related to the
production of oil or gas for at least three (3) consecutive months as shown in Commission records and as authorized by a permit
issued by the Commission. [ATTACH a copy of Form H-10 or other information demonstrating use of the well as a service well for at
least three (3) consecutive months.]
SURFACE ESTATE OWNER REQUEST FOR PAYMENT
I hereby request payment in accordance with Tex. Nat. Res. Code, §89.048, Plugging of a Well by Surface Estate Owner.
The above-listed well has been plugged by a Commission-approved plugger in accordance with Commission rules.
[ATTACH a copy of the Form W-3 and documentation of the cost of the well-plugging operation.]
CERTIFICATION: I declare under penalties in §91.143, Tex. Nat. Res. Code, that I am authorized to file this application, that this
application was prepared by me or under my supervision and direction, and that the data and facts stated therein are true, correct and
complete to the best of my knowledge.
____________________________________________
_____________________________________________
_______________________
Name of Representative (Print)
Signature of Representative
Date (mm/dd/yy)
PAYMENT TO OPERATOR OF AN
PAYMENT TO SURFACE ESTATE OWNER FOR
R
ORPHANED WELL
PLUGGING ORPHANED WELL
R
C
Total Depth of the Well:
___________________ Feet
Total Depth of Well:
_________________ Feet
Total Financial Security:
$ ___________________
Average cost of
U
Total Previous Payments: $ ___________________
S
plugging last 24 months: $ __________________
E
PAYMENT:
$ ___________________
PAYMENT:
$ __________________
O
N
L
Y
APPROVED BY: _________________________________________________
DATE: _________________________
RAILROAD COMMISSION OF
APPLICATION FOR PAYMENT FOR
FORM OW-3
TEXAS
EFF. 04-2006
REACTIVATING OR PLUGGING
Oil and Gas Division
AN ORPHANED OIL OR GAS WELL
SEE INSTRUCTIONS ON REVERSE SIDE
1. Operator name (exactly as shown on P-5 Organization Report) OR Surface Estate Owner Name:
2. Operator P-5 No. (if applicable):
3. Operator OR Surface Estate Owner address (including city, state, and zip code):
4. Phone No.:
5. Field Name:
6. Field No.:
7. County:
8. Lease Name
9. Lease No./Gas ID
10. Well No.:
11. API No.:
No.:
42-
OPERATOR REQUEST FOR PAYMENT
I hereby request payment in accordance with Tex. Nat. Res. Code, §89.047, Orphan Well Reduction Program.
I was designated as the operator of the above-listed orphan well. [ATTACH a copy of the Commission’s Certificate of
Designation as Operator of Orphaned Oil or Gas Wells (approved Form OW-2), for the subject well.]
I have plugged the orphaned well in accordance with Commission’s rules. [ATTACH a copy of Form W-3, Plugging Record, for
the subject well.]
I have brought the well back into continuous active operation by:
producing well and the well has produced at least 10 barrels of oil or 100 mcf of gas per month for at least three
consecutive months as shown in Commission records and as authorized by a permit issued by the Commission. ATTACH
documentation.
OR
using the well as a service well for the disposal or injection of oil and gas wastes or another purpose related to the
production of oil or gas for at least three (3) consecutive months as shown in Commission records and as authorized by a permit
issued by the Commission. [ATTACH a copy of Form H-10 or other information demonstrating use of the well as a service well for at
least three (3) consecutive months.]
SURFACE ESTATE OWNER REQUEST FOR PAYMENT
I hereby request payment in accordance with Tex. Nat. Res. Code, §89.048, Plugging of a Well by Surface Estate Owner.
The above-listed well has been plugged by a Commission-approved plugger in accordance with Commission rules.
[ATTACH a copy of the Form W-3 and documentation of the cost of the well-plugging operation.]
CERTIFICATION: I declare under penalties in §91.143, Tex. Nat. Res. Code, that I am authorized to file this application, that this
application was prepared by me or under my supervision and direction, and that the data and facts stated therein are true, correct and
complete to the best of my knowledge.
____________________________________________
_____________________________________________
_______________________
Name of Representative (Print)
Signature of Representative
Date (mm/dd/yy)
PAYMENT TO OPERATOR OF AN
PAYMENT TO SURFACE ESTATE OWNER FOR
R
ORPHANED WELL
PLUGGING ORPHANED WELL
R
C
Total Depth of the Well:
___________________ Feet
Total Depth of Well:
_________________ Feet
Total Financial Security:
$ ___________________
Average cost of
U
Total Previous Payments: $ ___________________
S
plugging last 24 months: $ __________________
E
PAYMENT:
$ ___________________
PAYMENT:
$ __________________
O
N
L
Y
APPROVED BY: _________________________________________________
DATE: _________________________
INSTRUCTIONS
FORM OW-3
APPLICATION FOR PAYMENT FOR REACTIVATING OR PLUGGING AN ORPHANED OIL OR GAS WELL
EFF. 04-2006
th
Through House Bill 2161, the 79
Texas Legislature (2005) created two programs to encourage the plugging or re-activation of “Orphaned
Wells,” which are defined as wells issued a permit by Commission with no reported production or activity for the preceding twelve months and
whose designated operator's organization report has lapsed. One program provides for “adoption” of such wells by oil and gas operators (the
Orphaned Well Reduction Program). The second program provides for payments to surface owners who contract with Commission-approved
pluggers to plug orphaned wells on their surface estate.
OPERATORS - ORPHANED WELL REDUCTION PROGRAM
Under HB 2161, Tex. Nat. Res. Code, §89.047, relating to Orphaned Well Reduction Program, establishes procedures, requirements, and
incentives for a person to assume operatorship and regulatory responsibility for an orphaned oil or gas well. If the operator is designated as the
operator of the orphaned well, in addition to certain tax exemptions, the operator also may be entitled to a payment of 50 cents per foot of well
depth if the operator plugs the well or brings the well back into continuous service (produces 10 barrels of oil or 100 mcf of gas for at least three
consecutive months.)
ELIGIBILITY: In order for an operator to receive payment under the Orphan Well Reduction Program, the operator and the adopted orphan well
must meet certain eligibility requirements:
(1) The operator must have been designated the operator of the orphaned well on or after January 1, 2006, and on or before December
31, 2007, in order to be entitled to receive the payment under the Orphan Well Reduction Program.
(2) A well is considered to be in continuous active operation for purposes of payment if:
(a) the well is a producing well (a well classified by the Commission as an oil or gas well in accordance with Commission rules)
and the well has produced at least 10 barrels of oil or 100 mcf of gas per month for at least three consecutive months as shown in Commission
records and as authorized by a permit issued by the Commission; or
(b) the well is a service well and the well has been used for the disposal or injection of oil and gas wastes or another purpose
related to the production of oil or gas for at least three consecutive months as shown in Commission records and as authorized by a permit
issued by the Commission. "Service well" means a well for which the Commission has issued a permit that is not a producing well. The term
includes an injection, disposal, or brine mining well.
WHERE AND WHAT TO FILE: File FORM OW-3 and all required attachments with:
Field Operations
Oil and Gas Division
Railroad Commission of Texas
P. O. Box 12967
Austin, Texas 78711-2967
LIMITS ON PAYMENTS: Please note that in accordance with §89.047, Tex. Nat. Res. Code, the Commission must make payments to operators
annually in the same order the Commission determines the operators to be entitled to the payments. The aggregate amount of payments in any
state fiscal year (September 1 through August 31) may not exceed $500,000. An operator may not receive more than one payment for the same
well; or cumulative payments in an amount that exceeds the total amount of financial security the operator has filed with the Commission under
16 TAC §3.78. In addition, the payment is nontransferable; therefore, the Commission may make the payment ONLY to the operator who was
designated as the operator of the orphaned well.
PLUGGING OF AN ORPHANED WELL - SURFACE ESTATE OWNER
Under HB 2161, if an orphaned well were plugged by a plugger under contract to the surface owner, the Commission may use funds from the Oil
Field Cleanup Fund to reimburse the surface owner for those plugging costs in an amount not to exceed 50% of the lesser of actual costs or the
average cost incurred by Commission in the preceding 24 months in plugging similar wells. Under Section 89.048, Tex. Nat. Res. Code, the
owner of an interest in the surface estate of a tract of land on which an orphaned well is located may contract with a Commission-approved well
plugger to plug the well.
If the surface estate owner enters into a plugging contract under §89.048, the well plugger must:
(1) not later than the 30th day before the date the well is plugged, mail notice of its intent to plug the well to the operator of the well at
the operator's address as shown by the records of Commission;
(2) assume responsibility for the physical operation and control of the well as shown by a form the person files with the
Commission and the Commission approves;
(3) file a bond, letter of credit, or cash deposit covering the well as required by §91.107; and
(4) plug the well in accordance with Commission rules in effect at the time of plugging.
On successful plugging of the well by the well plugger, the surface estate owner may submit documentation to the Commission of the cost of the
well-plugging operation. The Commission will reimburse the surface estate owner from money in the Oil Field Cleanup Fund in an amount not to
exceed 50 percent of the lesser of:
(1) the documented well-plugging costs; or
(2) the average cost incurred by the Commission in the preceding 24 months in plugging similar wells located in the same general
area.
A
list
of
Commission-approved
cementers
(pluggers)
can
be
found
on
the
Commission’s
webpage at
http://www.rrc.texas.gov/oil-gas/environmental-cleanup-programs/state-managed-plugging/
under "Approved Cementers List." This list is updated
periodically. Or, you may contact the appropriate Railroad Commission District Office.
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