(a) Definitions and application to plug.
  (1) The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise:
    (A) Approved cementer--A cementing company, service company, or operator approved by the Commission or its delegate to mix and pump cement for the purpose of plugging a well in accordance with the provisions of this section. The term shall also apply to a cementing company, service company, or operator authorized by the Commission or its delegate to use an alternate material other than cement to plug a well.
    (B) Funnel viscosity--Viscosity as measured by the Marsh funnel, based on the number of seconds required for 1,000 cubic centimeters of fluid to flow through the funnel.
    (C) Groundwater conservation district--Any district or authority created under §52, Article III, or §59, Article XVI, Texas Constitution, that has the authority to regulate the spacing of water wells, the production from water wells, or both.
    (D) Operator designation form--A certificate of compliance and transportation authority or an application to drill, deepen, recomplete, plug back, or reenter that has been completed, signed, and filed with the Commission or its delegate.
    (E) Productive horizon--Any stratum known to contain oil, gas, or geothermal resources in producible quantities in the vicinity of an unplugged well.
    (F) Related piping--The surface piping and subsurface piping that is less than three feet beneath the ground surface between pieces of equipment located at any collection or treatment facility. Such piping would include piping between and among headers, manifolds, separators, storage tanks, gun barrels, heater treaters, dehydrators, and any other equipment located at a collection or treatment facility. The term is not intended to refer to lines, such as flowlines, gathering lines, and injection lines that lead up to and away from any such collection or treatment facility.
    (G) Reported production--Production of oil or gas, excluding production attributable to well tests, accurately reported to the Commission or its delegate on Form PR, Monthly Production Report.
    (H) Serve notice on the surface owner or resident--To hand deliver a written notice identifying the well or wells to be plugged and the projected date the well or wells will be plugged to the surface owner, or resident if the owner is absent, at least three days prior to the day of plugging or to mail the notice by first class mail, postage pre-paid, to the last known address of the surface owner or resident at least seven days prior to the day of plugging.
    (I) Usable quality water strata--All strata determined by the Groundwater Advisory Unit of the Oil and Gas Division to contain usable quality water.
    (J) Written notice--Notice actually received by the intended recipient in tangible or retrievable form, including notice set out on paper and hand-delivered, facsimile transmissions, and electronic mail transmissions.
  (2) The operator shall give the Commission notice of its intention to plug any well or wells drilled for oil, gas, or geothermal resources or for any other purpose over which the Commission has jurisdiction, except those specifically addressed in §3.100(e)(1) of this title (relating to Seismic Holes and Core Holes) (Statewide Rule 100), prior to plugging. The operator shall deliver or transmit the written notice to the district office on the appropriate form.
  (3) The operator shall cause the notice of its intention to plug to be delivered to the district office at least five days prior to the beginning of plugging operations. The notice shall set out the proposed plugging procedure as well as the complete casing record. The operator shall not commence the work of plugging the well or wells until the proposed procedure has been approved by the district director or the director's delegate. The operator shall not initiate approved plugging operations before the date set out in the notification for the beginning of plugging operations unless authorized by the district director or the director's delegate. The operator shall notify the district office at least four hours before commencing plugging operations and proceed with the work as approved. The district director or the director's delegate may grant exceptions to the requirements of this paragraph concerning the timing of notices when a workover or drilling rig is already at work on location, and ready to commence plugging operations. Operations shall not be suspended prior to plugging the well unless the hole is cased and casing is cemented in place in compliance with Commission rules. The Commission's approval of a notice of intent to plug and abandon a well shall not relieve an operator of the requirement to comply with subsection (b)(2) of this section, nor does such approval constitute an extension of time to comply with subsection (b)(2) of this section.
  (4) The surface owner and the operator may file an application to condition an abandoned well located on the surface owner's tract for usable quality water production operations. The application shall be made on Commission Form P-13, the Application of Landowner to Condition an Abandoned Well for Fresh Water Production.
    (A) Standard for Commission Approval. Before the Commission will consider approval of an application:
      (i) the surface owner shall assume responsibility for plugging the well and obligate himself, his heirs, successors, and assignees to complete the plugging operations;
      (ii) the operator responsible for plugging the well shall place all cement plugs required by this rule up to the base of the usable quality water strata; and
      (iii) the surface owner shall submit:
        (I) a signed statement attesting to the fact that:
          (-a-) there is no groundwater conservation district for the area in which the well is located; or
          (-b-) there is a groundwater conservation district for the area where the well is located, but the groundwater conservation district does not require that the well be permitted or registered; or
          (-c-) the surface owner has registered the well with the groundwater conservation district for the area where the well is located; or
        (II) a copy of the permit from the groundwater conservation district for the area where the well is located.
    (B) The duty of the operator to properly plug ends only when:
      (i) the operator has properly plugged the well in accordance with Commission requirements up to the base of the usable quality water stratum;
      (ii) the surface owner has registered the well with, or has obtained a permit for the well from, the groundwater conservation district, if applicable; and
      (iii) the Commission has approved the application of surface owner to condition an abandoned well for fresh water production.
  (5) The operator of a well shall serve notice on the surface owner of the well site tract, or the resident if the owner is absent, before the scheduled date for beginning the plugging operations. A representative of the surface owner may be present to witness the plugging of the well. Plugging shall not be delayed because of the lack of actual notice to the surface owner or resident if the operator has served notice as required by this paragraph. The district director or the director's delegate may grant exceptions to the requirements of this paragraph concerning the timing of notices when a workover or drilling rig is already at work on location and ready to commence plugging operations.
(b) Commencement of plugging operations, extensions, and testing.
  (1) The operator shall complete and file in the district office a duly verified plugging record, in duplicate, on the appropriate form within 30 days after plugging operations are completed. A cementing report made by the party cementing the well shall be attached to, or made a part of, the plugging report. If the well the operator is plugging is a dry hole, an electric log status report shall be filed with the plugging record.
  (2) Plugging operations on each dry or inactive well shall be commenced within a period of one year after drilling or operations cease and shall proceed with due diligence until completed unless the Commission or its delegate approves a plugging extension under §3.15 of this title (relating to Surface Equipment Removal Requirements and Inactive Wells).
  (3) The Commission may plug or replug any dry or inactive well as follows:
    (A) After notice and hearing, if the well is causing or is likely to cause the pollution of surface or subsurface water or if oil, gas, or other formation fluid is leaking from the well, and:
      (i) neither the operator nor any other entity responsible for plugging the well can be found; or
Cont'd...