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Suspended  wells  and  their  associated  well-­‐sites,  pipelines,  and  access  routes  must  be  tested  and/or  maintained  at  least  annually,  until  they  are   returned  to  production  or  abandoned.  Pipelines  with  no  flow  are  known  as  dead  legs  and  have  a  much  higher  corrosion  risk  than  lines  with  flow,   because  water  accumulates  in  them  and  new  corrosion  inhibitors  cannot  be  injected.  In  addition,  suspended  facilities  significantly  impact  the   Licensee  Liability  Rating  (LLR)  program  in  AER  Directive  06  (which  assesses  a  licensee’s  ability  to  address  its  abandonment  and  reclamation  liabilities   based  on  a  comparison  of  its  deemed  asset  value  to  its  deemed  liability)  and  the  obligation  to  abandon  or  return  to  production  defined   percentages  of  suspended  wells  in  AER  Directive  13.

It  is  important  to  note  that  statuses  in  Petrinex  are  set  by  the  Production  Accountant  and  are  not  monitored  for  accuracy,  other  than  via  the  rule   that  only  allows  production  to  be  reported  to  an  Active  well,  which  forces  wells  off  suspended  status,  if  production  is  to  be  reported.  Generally  this   results  in  the  statuses  in  Petrinex  having  too  many  shut-­‐in  events,  and  not  enough  suspended  wells.  Using  these  counts  for  tasks  such  as  DD&A   calculations  or  management  reporting  can  thus  cause  inaccuracies,  unless  they  are  tightly  managed.

It  is  also  important  to  know  that  the  status  of  wells  and  pipelines  is  provided  to  municipalities  and  counties  to  be  used  in  the  calculation  of  local   property  taxes,  and  that  the  tax  rates  are  higher  on  active  wells  and  facilities  than  on  suspended  wells  and  facilities.

How  FacilityStudio  provides  value  

If  your  company  displays  suspended  wells  on  your  measurement  schematics,  FacilityStudio  marks  them  with  a  “SUSP”  at  the  end  of  the  UWI  line.

When  Shut  In  wells  goes  to  suspended  wells,  make  sure  to  change  the  status  of  these  wells  in  Petrinex  to  “Suspended”,  which  will  reduce  the   property  taxes  payable  in  subsequent  years.  If  you  are  confident  that  wells  will  not  return  to  production  in  the  foreseeable  future,  review  if  the   pipeline  segments  are  downstream  of  the  well  to  check  if  they  are  still  used,  or  if  they  have  become  dead  legs.  If  the  wells  are  dead  legs,  they  may   need  to  be  suspended,  both  physically  and  in  DDS(Digital  Data  System)/Petrinex.

The  image  below  represents  how  Suspended  “SUSP”  and  Shut  In  “S.I.”  wells  are  displayed  in  FacilityStudio’s  measurement  schematics.  A  shut-­‐in  tag   is  assigned  automatically  by  FacilityStudio  to  each  active  well  that  had  no  reported  production  or  injection  in  the  most  recent  pull  from  Petrinex.

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