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.