American Oil and Gas Reporter - August 2016 - 89

have to change."
At the very least, Bleakley argues, a
company that sells wells that comply
with state regulations to a licensed operator
should not, years later, be forced to plug
those wells should the purchaser default
on that responsibility.
To that Hoffman responds that it is
the Conservation Division staff's position
that plugging liability doesn't begin until
a well is abandoned. "If a well is in compliance with our regulations when a transaction takes place, it isn't abandoned and
the provisions of § 55-179 don't apply,"
he states.
Injection Well Reports
Several years ago, faced with increased
public concern about injection wells
driven at least in part by fears of induced
seismicity, Hoffman says the Conservation
Division began a careful review of its
Class II injection well records. "Frankly,"
he admits, "we hadn't done a very good
job in the past. We weren't getting all the
information we were supposed to."
In 2013, he says, the division sent out
its first batch of notices of violations for
incorrect or incomplete records. In many
cases, he allows, the problems were of a
clerical nature. "We have more than
16,000 active Class II permits. We are
bound to have some mistakes in our
files," Hoffman observes, adding that in
other instances information may not have
been updated properly when properties
changed hands.
"We try to work through those issues
with operators as best we can," he says.
But where companies clearly were injecting at pressures or volumes in excess
of their permitted levels, Hoffman continues, an NOV isn't appropriate. "Those
go straight to a penalty recommendation,"
he emphasizes. "You can't go back and
undo it."
Nevertheless, Bleakley says, it created
some consternation not only in eastern
Kansas, but throughout the state's oil
patch. "That has been kind of a big deal
with operators the past couple years, although I think we are finally getting those
worked out," he surmises. "Operators are
paying a lot more attention to their dockets
on pressure and water volumes."
Noting that the deadline for filing annual U3C injection reports is March,
Hoffman says operators can anticipate
continued careful scrutiny. "Check your
form before you submit it and make sure
it says what you did," he advises.
Inactive Wells
Somewhat similarly, Bleakley mentions, this year operators have been re-

ceiving reminders from the KCC that
wells listed as inactive on their inventories
submitted with annual license renewals
either must be temporarily abandoned,
plugged, or put back into production. He
remarks, "People have kind of taken for
granted they can leave a well out there
and then come back later if they need it,
but nobody has been pressing them to do
something, least of all plug it."
This has left some companies scrambling to take the necessary action, comments EKOGA Chairman Jim Cornish.
"We have had a number come in with
pretty short time frames to get things
done," he says. "In a down market such
as this, it sometimes gets hard to get
things done. The services simply aren't
available."
Under Kansas' regulations, Hoffman
details, an operator has 90 days to either
plug an inactive well, place it back in
service, or file the proper forms to temporarily abandon it. TA status may be renewed annually for up to 10 years as
long as the operator can demonstrate
wellbore integrity. "Even after 10 years
there is a special application process to
extend that," he adds.
One exception to that rule, Hoffman
mentions, is a well that is completely
hooked up with an available power supply

that literally can be turned on with the
flip of switch. "Then you don't have to
file a TA," he says. "That is good for 364
days."
As with injection well reports, Hoffman
says the KCC's emphasis on operators'
well inventories is a result of public pressure. "Something I have picked up on in
talking with my counterparts (in other
states) is a general desire by the public to
access information," he relates. "It has
caused a lot of states to look at their well
databases."
The positive outgrowth Hoffman says
he has seen is better communication between operators and the KCC's district
offices about options for properly dealing
with marginal wells during difficult economic times.
Bleakley credits the KCC with being
reasonable and working with companies
to devise schedules by which they can
perform the necessary plugging operations
over time. "(Hoffman) has provided us
really good access to talk over problems
and has given us warnings that these
issues are coming," he praises. "I know
some people aren't too thrilled about the
enforcement part, but it probably needs
to be done, to an extent, to comply with
the rules and regulations."
❒

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AUGUST 2016 89

American Oil and Gas Reporter - August 2016

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