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CHAPTER 2 (General Rules) Code Document

001 EFFECTIVE SCOPE OF RULES AND REGULATIONS All rules and regulations of a general nature herein promulgated to prevent waste and to conserve oil and gas in the State of Nebraska shall be effective throughout the State of Nebraska and be in force in all pools and fields except as they may be amended, modified, altered or enlarged generally or in specific individual pools or fields by orders issued by the Commission and except where special field rules apply, in which case the special field rules shall govern to the extent of any conflict.

002 RIGHT TO INSPECT The Director and his authorized deputies shall have the right at all reasonable times to go upon and inspect any oil or gas properties and wells for the purpose of making any investigation or tests to ascertain whether the provisions of the statutes or these rules or any special field rules are being complied with, and shall report any violation thereof to the Commission.

003 ACCESS TO RECORDS All producers, operators, drilling contractors, well service companies and initial purchasers of oil and gas within this State, shall make and keep appropriate books and records covering their operations in the State from which they may be able to make and substantiate the reports required by the Commission. Such books, records and copies of said reports and notices required by the Commission shall be kept on file and available for inspection by the Director or his authorized deputies for a period of at least five (5) years. The Director and his authorized deputies shall have access to all well records wherever located. All owners or operators shall permit the Director or authorized deputy, at their risk, in the absence of negligence on the part of the owner, to come upon any lease, property or well operated or controlled by them, and to inspect the record and operation of such wells and to have access at all times to any and all records of wells; provided that information so obtained shall be kept confidential, unless the owner gives written permission to release such information, and shall be reported only to the Commission or its authorized deputies.

004 REPORTS All producers, operators, drilling contractors, well service companies and initial purchasers of oil and gas within the State shall from time to time file such reports containing such information and covering such periods as the Commission shall require.

005 TESTS AND SURVEYS The Commission is authorized to require that special tests or surveys be made to determine physical waste of oil or gas. The Commission, in calling for reports under Rule 2-004 and tests or surveys to be made as provided in this Rule, shall designate the time allowed the operator for compliance, and which provisions as to time shall prevail over any other time provisions in these rules.

006 PROTECTION OF WATER-BEARING FORMATIONS In the conduct of oil and gas operations, each owner shall exercise due care in the protection of water-bearing formations as required by the applicable statutes of the State of Nebraska
   Special precautions shall be taken in drilling and abandoning wells to guard against any loss of artesian water from the stratum in which it occurs and the contamination of potable water by objectionable water, oil or gas. Before any oil or gas well is completed as a producer, all oil, gas and water strata above and below the producing horizon shall be sealed or separated in order to prevent the intermingling of their contents.

007 CONVERSION TO WATER WELLS In the case of a well which is capable of producing potable water which may be beneficially used by an individual or a community, the owner shall have the right to dispose of the well to responsible parties providing that written approval of the owner of the surface rights to the land on which the well is located is secured and filed with the Commission and written notice is given to the Director and approved by him subject to the approval of the Commission. A release from responsibility incurred by this action should be secured from the individual or community by the owner of the well and a copy of said release filed with the Director. The State Department of Natural Resources and Natural Resources District Offices should be consulted to determine if the water well that results is under the jurisdiction of said agencies.

008 WELL AND TANK BATTERY DESIGNATIONS The owner shall mark each and every well in a conspicuous place, with his name, name of lease, number of the well and legal description of the well and shall take all necessary means and precautions to preserve these markings.
   The tank battery shall be marked with operator name, name of lease, legal description, and phone number.

009 NAMING OF FIELDS All oil and gas fields discovered in the State subsequent to the adoption of these rules and regulations shall be named by the Director or his authorized deputies.

010 FORMS UPON REQUEST Forms required by the Commission will be furnished upon request and will be available for download on the commission website. Operators may reproduce forms required by the Commission, provided the blank forms are printed on an equivalent size, color and quality of paper.

   Statute: 57-905