A. An owner or operator of an oil or gas well shall, before connecting with an oil or gas pipe line, secure from the commissioner a certificate showing compliance with the conservation laws of the state and the conservation rules, regulations and orders of the commissioner. No operator of a pipe line shall connect with a well until the owner or operator furnishes a certificate of compliance.

Terms Used In Arizona Laws 27-509

  • Certificate of compliance: means a certificate issued by the commission prior to connection of an oil or gas well with a pipeline, showing compliance with the conservation laws of this state and conservation rules and orders of the commission. See Arizona Laws 27-501
  • commissioner: means the oil and gas conservation commission. See Arizona Laws 27-501
  • Gas: means natural gas, casinghead gas, all other hydrocarbons not defined as oil, carbon dioxide and helium or other substances of a gaseous nature. See Arizona Laws 27-501
  • Oil: means crude petroleum oil and all other hydrocarbons, regardless of gravity, which are produced at a well in liquid form by ordinary production methods and which are not the result of condensation of gas. See Arizona Laws 27-501
  • Owner: means the person having the right to drill into, produce and appropriate production of oil or gas, or both, from a pool. See Arizona Laws 27-501
  • Waste: includes :

    (a) Physical waste, as that term is generally understood in the oil and gas industry. See Arizona Laws 27-501

  • Well: includes any hole drilled or spudded in for the purpose, with the intention or under the representation of penetrating oil or gas bearing strata or of penetrating any strata in search of stratigraphic data pertinent to the location of oil or gas bearing strata, whether or not in either case oil or gas is actually discovered, any hole used in connection with the underground storage of hydrocarbon substances, whether liquid or gaseous, any hole used in connection with a process to inject any substance for purposes of disposal or to increase recovery, any hole used for the purpose of secondary or tertiary recovery and any hole used for the purpose of pressure maintenance. See Arizona Laws 27-501

B. The commissioner may cancel a certificate of compliance issued under this section when it appears, after due notice and hearing, that the owner or operator of a well has violated or is violating an oil or gas conservation law of the state, or a rule, regulation or order of the commissioner promulgated thereunder. Upon notice from the commissioner to the operator of a pipe line connected to any such oil or gas well that the certificate of compliance has been cancelled, the operator of the pipe line shall disconnect from the well, and it shall be unlawful for the operator of the pipe line to transport oil or gas therefrom until a new certificate of compliance has been issued by the commissioner. The owner or operator of a well shall not produce oil or gas therefrom unless a certificate of compliance is in effect covering the well.

C. This section shall not be construed to prevent a temporary connection of not more than ten days’ duration with a well in order to take care of production and prevent waste until opportunity has been given the owner or operator of the well to secure a certificate of compliance. If the certificate of compliance is not secured within the ten-day period, the well shall be shut in until such time as a certificate of compliance is secured.