EOR Positive Production Response Certification Application (Form H-13)

Per Statewide Rule 50, the Form H-13 needs to be received by the Railroad Commission within three years of the Form H-12 approval date for secondary recovery (waterflood) projects and within five years of the Form H-12 approval date for all tertiary recovery projects.

Any amendments to the Form H-12 application must be approved prior to the submittal of the Form H-13.

The Form H-13 will state when the start of operations began, the date positive production response first occurred (when the production rate is greater than the rate would have occurred without the project) and the requested certification date (this can be any date after the date positive production response first occurred). The oil produced after the certification date is eligible for the recovered oil tax rate. 

Required documents that need to be submitted with the Form H-13 are: 

1. An updated certified plat with the project area outlined, that clearly identifies:  
• Lease name, lease number, and project area boundaries and Northerly direction and scale.
2. Include well numbers and API numbers for the following:
• All active producing wells with completion dates, all active injection wells with completion dates, and
• All other unplugged wells (include status such as shut-in, 14(b)(2) extension, etc.)
3. Updated lease production, injection history and supporting data sheets in both graph and tabular format for five years prior to the Form H-13 submittal. This should include oil, gas and water production and all injection, along with well counts for both producing and injection wells. The increase in production (or lessening of the decline in production) should be clearly identifiable after the start or expansion of the project.

If the application is administratively denied, the operator may request a hearing.

Additional forms and reports are required to be submitted to the Office of the Comptroller of Public Accounts to receive the reduced oil severance tax rate, including the Texas Crude Oil Lease Tax Exemption Application (AP-216). These forms can be viewed on their website www.cpa.texas.gov and their Texas Crude Oil Tax Forms webpage. Additional information about how to apply to the Comptroller for a reduced tax rate can be found in Title 34, Texas Administrative Code § 3.37 - Enhanced Oil Recovery Projects.