Section 1. Raising or Lowering Derrick or Mast.

(a) A complete inspection of hoisting components shall be made by the tool pusher (or other qualified employee) before a derrick or mast is raised or lowered.

(b) The mast crown shall be equipped with sheave guards which shall prevent the hoisting lines from being displaced from the sheaves during operations or when being raised or lowered from the operating position.

(c) The tool pusher (or other qualified employee) shall be in charge and present during the operation of raising or lowering a derrick.

(d) No employee shall be under a derrick being raised or lowered.

(e) Truck-mounted derricks or masts shall not be moved while in a raised position. This does not apply to the skidding of a drilling rig.

Section 2. Anchoring and Guy Wires.

(a) Every rig shall be equipped with the number and size of guy wires as recommended by the manufacturer. In the case of truck or trailer mounted rigs where manufacturer’s recommendations are made, appropriate guy wires shall be used.

(b) Every guy wire recommended by the manufacturer shall be utilized according to the manufacturer’s specifications.

(c) Where the number, size and utilization of guy wires are recommended by the derrick manufacturer, anchors shall be used to secure the guy wires, except when other means or methods of anchoring the guy wires are recommended by the manufacturer which are at least as effective as these Rules and Regulations.

(i) Expanding anchors, pipe anchors, concrete anchors, or other approved techniques shall be used, except that temporary, moveable, or driven stakes shall not be used.

(ii) Anchor placement and pull test.

(A) With respect to anchors installed, reinstalled or relocated on or before September 24, 1970 anchors shall be proof-tested along an angle that approximates the wind guys working plane within 12 months prior to the use of the anchors. Such tests will be made at the poundage determined by the anchors location (per Figure 2a) within sector A, B, or C, and computed according to the appropriate sector curve on Figure I. If either of the two (2) front anchors falls in a sector which requires a higher test pull, both front anchors shall be tested as if they were located in the sector requiring the higher pull test. If ground is frozen at the time of the test and anchors are to be used again when the ground is not frozen, the anchors must be retested before use. If any anchor is more than three (3) feet above or below the well ground level, Figure 3 shall be used to determine the adjusted distance for which the pull test requirement will be established using Figure 2a. Anchors to be used for singles derricks only shall be proof tested to 10,000 pounds and must be located within sector A, B or C of Figure 2a.

(B) With respect to anchors installed, reinstalled or relocated from and after September 25, 1970, anchors shall be proof tested along an angle that approximates the wind-guys working plane within 12 months prior to the use of the anchors. Such tests will be made at the poundage determined by the anchors location (per Figure 2b) within sector A, B or C, and computed according to the appropriate sector curve on Figure 1. If any anchor falls in a sector which requires a higher test pull, all four (4) anchors shall be tested as if they were located in the sector requiring the higher pull test. If ground is frozen at the time of the test and anchors are to be used again when the ground is not frozen, the anchors must be retested before use. If any anchor is more than three (3) feet above or below the well ground level, Figure 3 shall be used to determine the adjusted distance for which the pull test requirements will be established using Figure 1. Anchors to be used for singles derricks only shall be proof tested to 10,000 pounds and must be located within sector A, B or C of Figure 2b.

(iii) Each well site shall have available a such well site in an accessible weather-proof container an anchor record. Such anchor record shall state whether the anchor was installed prior or subsequent to September 24, 1970, the date of any relocation or reinstallation of any anchor at the well site after September 24, 1970, each anchors pull test (sector) from Figure 2a or 2b, and the date, amount of such pull test, and identification of the tester.

(A) Each anchor shall be pulled and held for a period of two (2) minutes after all movement (creep) has stopped.

(B) The anchor record shall state “FOR SINGLES DERRICKS ONLY” if the anchors are only tested to 10,000 pounds.

CLARIFICATION OF SECTIONS 2.(c) (ii) and 2.(c) (iii)

1970, would not require the remaining anchors at the same well site to be tested and installed according

(iv) No derrick shall be rigged up on a work site unless the anchors have been installed and tested in accordance with this subsection.

(v) All anchor testing units shall be certified by the Workers’ Safety and Compensation Division.

(vi) Guy wire anchors and drilling unit placement.

(A) Guy wire anchors shall be positioned in accordance with Figure 2a or 2b of this Chapter.

(B) The well operator shall provide a visible marker in such a position that a straight line through the marker and through the well head will form an angle with a line through any anchor and the well head which complies with the minimum angle requirements as follows:

*Minimum Angle Distances

From Well Centerline

Sector Each Quadrant Minimum Angle Front & Rear Sides

A 20° 35° 14 10

B 30° 30° 17 10

C 45° 22.5° 24 10

*In the use of Figure 2b, if any anchor in the pattern falls within Sector “C”, the minimum angle on all anchors is 22.5°. One or more anchors located in Section “B”, with the remaining anchors in Sector “A”, requires the minimum angle to be 30° on all anchors. In the use of Figure 2a, the minimum angle of any anchor is 22.5°. A field determination of the minimum angle can be found by measuring these distances in convenient units such as feet, yards or paces in reference to the well centerline, the anchors and the longitudinal axis of the unit. (Example: With a single anchor in the pattern located in Sector “C”, one could take 24 paces from the well head on an imaginary line which bisects the two adjacent anchors between which the unit will be placed. At this point there would be placed a marker or a stake. He would then take 10 paces to the left and turn so he was aligned with the well head. If anchors “A” and “C”

(Diagram A) are “outside” his alignment, these anchors would be satisfactory. Going back to the center marker, he would repeat this procedure to the right. If anchors “B” and “D” are outside his alignment, the center marker is satisfactory. If alignment to either the left or right was not satisfactory, the center marker or stake would be moved to the left or right as needed and the alignment rechecked until the center marker is located properly.)

(I) The visible marker shall be placed on a direct line from the well head which passes through the center marker at least 100 feet from the head.

(C) The drilling unit operator shall center his unit in line with the marker and the well head.

(vii) Guy wires shall not be any closer than 10 feet from power lines, and in no case shall a guy wire be extended above or below a power line.

(viii) Installation, testing and maintenance of guy wire anchors shall be the responsibility of the party issuing the contract for the drilling.

(ix) All chains, boomers, clamps and tensioning devices that will remain in the working guy line must have as much strength as the guy line. Those chains, boomers, clamps and tensioning devices not of sufficient strength shall be bypassed by continuing the guy line through or around the anchor, then back to the guy line again. The guy line shall be properly secured with at least three (3) Ubolt clamps of proper size, or their equivalent.

(A) A fairlead (sheave) may be attached to the eye of the anchor and used to pass the wind guy back to itself.

Diagram “A”.

ANCHOR ELEVATION ADJUSTMENT CHART

Directions for the use of Figure 3. After determining the elevation difference between the well bore ground level and the anchor ground level, find that difference on the chart at “Anchor Elevation Above or Below Well Ground Level”. Follow that difference line horizontally until it meets the vertical line which represents the actual distance from the well head or bore to the anchor. Then follow the slanted line, either up or down as applicable, until “0” (Well Ground Level) is reached. Read vertically down and find the “Horizontal Distance From Well Feet”. This adjusted distance is then applied to Figure 1 to determine the required pull test according to the Sector in which the anchor is located. (Example: An anchor located 10 feet above well ground level 100 feet from the well head or well bore, using Figure 3, requires the same pull test as though it was 110 feet from the well head or well bore. An anchor 15 feet below well ground level 80 feet from the well head or well bore would require the same pull test as though the anchor was 70 feet from the well head or well bore.)

Section 3. Blowout Equipment.

(a) Requirements.

(i) Blowout prevention equipment in all drilling operations shall be:

(A) in accordance with recognized safe practice,

(B) reasonably adequate to keep the well under control at all times,

(C) inclusive of blowout preventers, choke and kill lines, as necessary,

(D) maintained in good working condition at all times.

(ii) All blowout preventers, choke line and manifold shall be installed above ground level. Casing heads and optional spools may be installed below ground level provided they are visible and accessible.

(iii) All pipe fittings and valves placed on, or connected with a blowout preventer, well casing, casing head, or the drill pipe or tubing, shall be of a type suitable for the purpose for which they are to be used and adequate to withstand the pressure which may be encountered.

(iv) All ram type blowout preventers and related equipment, including casing, shall be tested to the full working pressure rating of said equipment upon installation, provided that components need not be tested to levels higher than the lowest working pressure rated component. Annular type blowout preventers shall be tested in conformance with the manufacturer’s published recommendations. If, for any reason, a pressure seal in the assembly is disassembled, a test to a full working pressure rating of that seal shall be conducted prior to the resumption of any drilling operation.

In addition to the initial pressure tests, ram type preventers shall be checked for physical operation each trip and all components, again with exception of the annular type blowout preventer, tested monthly to

at least 50 percent of the rated pressure of the blowout preventer equipment and/or to the maximum anticipated pressure of the blowout preventer equipment and/or to the maximum anticipated pressure to be contained at the surface, whichever is greater.

(v) The working pressure rating of all blowout preventers and related equipment shall equal or exceed the maximum anticipated pressure to be contained at the surface.

(vi) Studs on all well head and blowout preventer flanges shall he checked weekly for tightness. Where locking screws are provided on blowout preventers, hand wheels shall be kept installed and operational, and readily accessible. The entire blowout preventer and well head assembly shall be kept reasonably clean of mud and ice.

(vii) A drillstem safety valve shall be available on the rig floor at all times.

(viii) While a well is being drilled, tested, completed or reconditioned:

(A) The appropriate blowout equipment shall be mechanically tested periodically, and (B) the blind rams shall be mechanically tested daily (provided that this requirement does not necessitate a special trip of the tools from the hole) and if found defective, any such equipment or rams shall be made serviceable before operations are resumed.

(ix) All tests shall be reported with full particulars on the daily drilling 1og book, and in the case of a pressure test, the pressure applied and the duration shall be recorded.

(x) One (1) or more employees employed on the rig shall have an adequate understanding of, and be able to operate, the blowout preventer system. At least one (1) person who is trained in blowout prevention and well control procedures shall be on the well site. Blowout preventer controls shall be readily accessible on the floor and/or at least 20 feet from the well bore and outside the substructure.

(xi) BOP equipment installed on wells in which formation pressures to be encountered are abnormal or unknown shall consist of a double-gate, hydraulically operated preventer with pipe and blind rams or two single-ram type preventers, one equipped with pipe rams, the other with blind rams and an annular type preventer. In addition, upper and lower kelly cocks, pit level indicators with alarms and/or flow sensors with alarms, and surface facilities to handle pressure kicks shall be installed prior to drilling any formation with known abnormal pressure. Accumulators shall maintain a pressure capacity reserve at all times to provide for operation of the hydraulic preventer and valves with no outside source. Areas in which abnormal pressures are likely to be encountered are those as defined by the Oil and Gas Conservation Commission’s staff and posted on a map to be available in the State Oil and Gas supervisor’s office. This map, to be updated as information becomes available, will also segregate, vertically, formations where abnormal pressures are likely to be encountered.

(A) In all other drilling operations, BOP equipment shall consist of at least one double-gate preventer with pipe and blind rams or two single-ram type preventers, one equipped with pipe rams, the other with blind rams, and sufficient valving to permit fluid circulation at the surface, or shall be as approved by the State Oil and Gas Supervisor’s Office and/or the U.S. Geological Survey District Engineer’s Office, as filed on the drilling permit.

(B) Blowout preventer equipment and related casing heads and spools shall have a vertical bore no smaller than the inside diameter of the casing to which they are attached.

Section 4. Operational Specifics.

(a) Requirements.

(i) Spudding shall not commence until:

(A) All guards are in place on all equipment to be operated,

(B) All platforms, stairways and handrails are secured in position,

(C) The escape line with buggy is installed, and

(D) A-leg pins are inserted in their proper A-leg holes and secured by safety pins to prevent their displacement.

(ii) An escape line shall be a wire rope of suitable diameter and type. It shall be kept free of obstructions.

(iii) An approved safety buggy with an adequate braking device shall be installed on the escape line and kept at the derrickman’s working platform.

(iv) The safety buggy and escape (geronimo) line shall be checked by the derrickman each trip.

(v) Tension on the escape line shall be such that a 180 pound worker sitting in the safety buggy will touch the ground at least 20 feet from the anchor.

(vi) The minimum length of the escape line, which shall be securely anchored both at the ground and to the rig, shall be adequate to assure no less than 45° descent from the vertical plane.

(vii) Every person, when engaged in work at six (6) feet or more above the derrick floor or other working surfaces, shall wear a body harness with an attached safety line secured to a suitable anchor except where infeasible during rig up and rig down.

(viii) Where these regulations prescribe the use of body harnesses:

(A) The employee shall use an approved body harness suitable for the particular job, be in good condition, and shall be provided by the employer;

(B) The body harness shall be attached by means of a personal fall arrest system to a suitable anchor and adjusted to allow a minimum of drop no greater than six (6) feet;

(C) A separate life line shall be provided for each employee requiring a life line; and

(D) Body harnesses and life lines shall be checked before each use, be maintained in good condition, and shall be repaired or replaced if found to be defective.

(ix) Every automatic cathead shall have a separate control. Where dual-purpose controls are used, a positive locking device shall be installed to prevent one automatic cathead from accidentally engaging while the other is in operation.

(x) Wherever practical, every drawworks master control shall be effectively locked out when not in use.

(xi) Guards shall be installed so that controls may not be accidentally engaged through contact by catlines or other equipment.

(xii) The engine room, pump house, derrick floor and fourble board shall be enclosed to a sufficient height to provide protection against inclement weather.

(xiii) Exits shall be provided to the outside on at least three sides of the derrick floor.

(xiv) The pump house shall have two doors leading in different directions to the outside.

(xv) No exit door of a derrick, including all doors of the dog house, shall be held closed with a lock or outside latch while anyone is on the derrick floor.

(xvi) The suction pit or tanks used for the circulation of flammable materials shall not be located inside the pup house.

(xvii) No employee shall handle a traveling hoisting line unless he uses a suitable hand guard, which shall be secured to the derrick.

(xviii) No employee shall slide down any pipe, kelly hose, cable or rope line except in the event of an extreme emergency. No employee shall ride a traveling block except in an emergency.

Anyone riding the traveling blocks shall wear an approved personal fall arrest system that is adjusted so as to allow the minimum fall distance possible.

(xix) No employee shall use the catline as a means of ascending to or descending from any point in the derrick except in an emergency. Even then the rotary table shall be locked out and qualified employees shall operate the cathead and controls.

(xx) When working on hydraulic tong heads, the input pressure line shall be disconnected.

(xxi) High pressure lines (hydraulic or air) shall have a safety pressure relief valve which shall never be set higher than manufacturer’s specifications for the working pressure of the lines or valve.

(xxii) Hydraulic tongs shall be backed up with a safety device able to withstand the full torque of the power tool.

(xxiii) Auxiliary power tong units which employ internal combustion engines shall have the power unit placed 75 feet upwind of the well bore, considering the normal prevailing wind at the rig location, where location and terrain permit.

(xxiv) The rotary table shall not be used for the final making up or initial breaking out of a pipe connection.

(xxv) All pipe and drill collars racked in a derrick shall be secured with rope or otherwise adequately secured to prevent them from falling across the derrick.

(xxvi) Safety clamps, used on drill collars, flush joint pipe, or similar equipment for the purpose of preventing its falling in the well when not held by the elevator, shall be removed from the drill collars, pipe, or similar equipment before being hoisted up into the derrick.

(xxvii) Racking foundations shall be designed to withstand the load of racked pipe and drill collars and be secured to prevent turnover.

Section 5. Mud Pits and Tanks.

(a) Requirements.

(i) Portable tanks shall be located where it is not possible for employees or equipment to come into contact with overhead power lines.

(ii) All discharge lines shall be properly secured.

(iii) No employee shall jump from one tank top to another.

(iv) All fixed mud guns used for jetting, shall be pinned or hobbled when unattended.

(v) Hoses used for jetting operations shal1 be manned and an employee stationed at the pump control to shut do the pressure in the event of an emergency.

(vii) Standard railings shall be provided on the inside of all mud tank walkways. Where such walkways are four (4) feet or more above ground level, both sides shall he provided with standard railings.

Section 6. General Drilling Rules.

(a) Surface casing shall he run to reach a depth to prevent blowouts or uncontrolled wells. In areas where pressures and formations are unknown, surface casing shall be of sufficient size to permit the use of an intermediate string, or strings of casing. Surface casing shall be set in or through an impervious formation and shall be cemented by the pump and plug or displacement or other approved method with sufficient cement to fill annulus to the top of the hole. If cement is not circulated to surface during the primary operation, supplemental cemented operations shall be performed to assure that the annular space from the casing shoe to the surface is filled with cement.

(b) The cemented casing string shall stand under pressure until the cement has reached a compressive strength of 300 pounds per square inch: providing, however, that no further operation shall be commenced until the cement has been in place for at least eight (8) hours. The term “under pressure” as used herein shall be complied with if one float valve is used or if pressure is otherwise held.

(c) Setting depths of all casing strings shall be determined by taking into account formation fracture gradients and the maximum anticipated pressure to be maintained within the well bore.

(d) If and when it becomes necessary to run a production string, such string shall be cemented by the pump and plug method and shall be properly tested by the pressure method before cement plugs are drilled.