Well Inventory Frequently Asked Questions
- What is the KCC well inventory, and what does it require of operators?
The KCC well inventory is a complete list of all unplugged wells of any kind operated in Kansas, including but not limited to: oil; gas; injection; saltwater disposal; cathodic protection; and gas storage wells. Operators are responsible for providing the KCC with a complete list of the operator's wells, which will provide information for the KCC database.
- What is the purpose of the well inventory?
The purpose of the well inventory is to populate the KCC database with well information that is complete, correct, and current. The well inventory will assist the KCC in regulating the Kansas oil and gas industry and providing effective service to both industry and the public. The KCC is authorized, and has a duty, to collect this data pursuant to K.S.A. 55-165.
- Which operators are required to file a well inventory?
All operators must provide a complete inventory of their wells.
- What is the due date for submitting the well inventory?
Each operator's well inventory must be submitted with the operator's license renewal. Due to the large amount of data involved, operator's well inventories will be submitted over the next three (3) years. See schedule below for details.
Year Well Inventory Must be Submitted Month of Operator License Renewal (For June Renewals, by First Letter of Operator Name) 2010 January, April, June (A through D), September, November 2011 February, May, June (E through N), August, October 2012 March, June (O through Z), July, December
- What form should I use?
The well inventory form, named the OWI-1, is available at the KCC Conservation Division central office, all district offices, and on the web.
- How do I file a well inventory?
Operators may file well inventories 1) through KOLAR, after becoming a certified USER or 2) by a typed paper filing, mailed to the Kansas Corporation Commission, Conservation Division, at 266 N. Main St., Ste. 220, Wichita, KS 67202-1513. Instructions on how to sign up for KOLAR are available on the web.
- Does the well inventory need to be approved before my license will be issued or renewed?
The well inventory must be received with the license renewal, and KCC staff must acknowledge its receipt, before an operator's license will be issued or renewed. However, the verification and approval process will not delay license issuance/renewal. Licenses will be issued/renewed after KCC staff has received, and acknowledged receipt of, well inventories, and operators will be contacted later concerning any deficiencies in the well inventory.
- I am in good standing with the KCC. Why am I subject to this new requirement?
All operators are subject to this requirement, regardless of standing with the KCC. The Commission wishes to verify and update all well information in the KCC database, to ensure the KCC is able to continue to effectively provide quality service to industry and the public.
- Can the failure to comply with the rules related to well inventory submission result in the assessment of a penalty?
At this time, there is little chance the failure to submit a complete, correct, and timely well inventory would result in a monetary penalty. The major consequence of failing to submit a well inventory would be a potential delay in the issuance or renewal of an operator's license. It should be noted the intentional falsification of a well inventory could result in a monetary penalty pursuant to KCC regulations.
- I understand I must submit a well inventory when I apply for license issuance or renewal. What will be the well inventory process next year, and other years following the initial submission?
In years following the initial submission of the well inventory form, the well inventory process will be somewhat more simplified. The KCC will provide an operator what the agency believes is their complete well inventory when the operator applies for license renewal. The operator must then certify the well inventory provided is correct and complete by returning the well inventory to the KCC. If any changes have occurred which make the well inventory incorrect or incomplete, the operator must submit an amended well inventory reflecting those changes.
- How do I obtain the information necessary to complete a well inventory?
- Assuming I fail to file a well inventory with my license application, will this delay my license issuance or renewal?
The delay in license issuance/renewal depends on how long an operator has been licensed. Licenses of new operators, which have been licensed for less than three years, will be held until the KCC receives a well inventory. Licenses of operators that have been licensed for three years or more will be delayed, and production may be affected.
- What if the KCC finds an error in the well inventory I submitted?
If the KCC finds an error in an operator's well inventory, the operator will be required to make the necessary corrections and resubmit the well inventory. It will always be the operator's responsibility to obtain and provide correct and complete information.
- Is there an example of a completed form I can use as a guide?
The KCC will provide an example of a completed form with instructions, which will be available at the KCC Conservation Division central office, all district offices, and on the web.
- What if I do not know the exact depth of a well?
If you do not know the exact depth of a well, and are unable to obtain such information, please give an approximate depth for the well.
- What should I do if a well does not appear in either the Kansas Geological Society well information database or the KCC library?
If a well does not appear in either of these databases, please provide all known information concerning the year the well was drilled and well depth, and if unknown, please estimate these numbers. The operator must survey or GPS the well and provide an exact location.
- Do I need to include well API numbers?
API numbers must be included on the well inventory for wells drilled after 1966. It is the operator's responsibility to determine a well's API number. Several sources should be consulted, including but not limited to the: 1) KCC library; 2) Kansas Geological Survey website; and 3) Kansas Geological Society website. For wells drilled prior to 1967, if an API number has not been assigned, submit the inventory without an API number. The year the well was drilled is still required. The API number will be assigned or reconciled during the approval process, and the operator will be provided with an updated well inventory.
- How can I obtain the exact legal description for a well? Do I need to GPS all of the wells in the inventory? What should I do if they still do not match the data in the KCC database?
To obtain the exact legal description for a well, consult the available resources at the KCC library and the Kansas Geological Survey. Operators must determine and provide the quarter where the well is located and determine the footage location from the outside section lines. In addition, operators may obtain the GPS location of the well, although this is not required at this time. LEO7, an application to convert legal land grid descriptions to geographic coordinates can be downloaded from the Kansas Geological Survey. If, after determining the location of the well, the data does not match that of the KCC database, the operator should file the well inventory with the most accurate data available. Reconciliation with the KCC data will occur through the approval process.
- Will my financial assurance increase after I submit a well inventory?
An operator's financial assurance may potentially change, but only if the well inventory shows quantities or depths of wells operated that are different from the quantities or depths of wells previously contemplated when determining financial assurance.
- How and when will I know if my well inventory has been accepted by the KCC?
After the KCC has received an operator's well inventory, KCC Staff will notify the operator within two (2) weeks of filing whether the well inventory has been "accepted". Well inventories will be accepted unless there are immediate errors apparent from a cursory glance at the submitted form. If the well inventory was filed in paper form, KCC Staff will notify the operator by mail. If the well inventory was filed through KOLAR, KCC Staff will notify the operator by email immediately after the well inventory is filed.
- How and when will I know if my well inventory has been approved by the KCC?
"Approval" of a well inventory requires more time than the "acceptance" explained above. Due to the amount of data being received from operators, it is impossible to say how long the approval process will take at this time. However, license issuance or renewal would only be delayed if well inventory is not received or accepted by KCC Staff. A delay in the final approval of an operator's well inventory will not delay license issuance or renewal.
- How can I be certain a well's information is correct, if a previous operator transferred the well to me?
If a well has been transferred to an operator by a previous operator, the well's information can be verified through research in the KCC library; the Kansas Geological Survey website; or the Kansas Geological Society website.
- Are new operators, who have been operating for fewer than three (3) years, required to submit a well inventory?
All operators must file a well inventory, without exception.
It is understood a new operator may have recently submitted a well inventory and financial assurance when applying for a license. This does not absolve an operator from the well inventory requirement, and a well inventory must again be submitted.
- What computer hardware or software is necessary for submission of a well inventory?
Operators can use either a PC or Macintosh to prepare the well inventory, through use of a Microsoft Excel spreadsheet. Online capabilities are required to file a well inventory through KOLAR or email. More information on KOLAR requirements can be found at kcc.ks.gov.
- My computer is a Wang, with Lotus software. Can KOLAR convert the file format, to allow use of this equipment?
At this time, electronic filing through KOLAR is only possible through the use of an Excel file. KOLAR cannot convert the file format of another type of file.
- How will I be informed about discrepancies in my submitted well inventory?
If filing through KOLAR, each discrepancy will be highlighted, and an operator will not be able to submit the inventory until discrepancies highlighted in red are corrected. If filing on paper, a copy of the well inventory will be mailed to the address on your license, with the discrepancy highlighted.
- Which lease name and well number should I provide on the well inventory, if there is more than one lease name and well number for a well? What if I do not know the original lease name and well number?
If the lease name or well number has changed from the original drilling, list the current lease name and well number with the prior lease name and well number following in parentheses (e.g. WICT LKC UT (Wagner) 1 (32)). Operators should provide lease name and well numbers that are associated with the API number when possible. If this is impossible, or if you do not know the original name of the well, verify the footage location is accurate and supply the new lease name and well number.
- In KOLAR, I am unable to submit my well inventory, because the program states my footage measurements are incorrect. I have verified the footages are correct. What should I do?
Occasionally, KOLAR will report an error when footage measurements are entered. This is because the footages must be measured from the outside section lines, and not from a half section, quarter section, or lease boundary line. This problem can be resolved by entering footage measurements from the outside section lines and verifying the footages place the well in the correct quarter section.
- I did not timely renew my license this year, and now I must get a new license. Can I transfer the well inventory from my old license to the new license?
Well inventories cannot be transferred. A complete well inventory must be filed with the application for a new operator's license. In addition, Operators receiving a new license number must transfer wells from the old license to the new license, by filing a well transfer form (T-1).
- Do I need to take any additional steps (with regard to the well inventory) if my company has changed its name but has kept the same license number?
If a company has changed names, but has retained the same license number, the operator must inform the KCC about the name change. However, if only the name of the company and not the KCC license number has changed, the well inventory will continue to be linked to the operator, and no additional steps to transfer the well inventory are necessary.
- How should I enter the "Year Drilled" field for a recompleted well?
For recompleted wells, provide the year the well was recompleted.
- How do I find county codes for API Numbers and their corresponding county name and abbreviations?
A list of counties, codes and abbreviations can be found on the web.