How-To Guide

How to Obtain Approval for Commingling on State Leases

The basic procedures for approval of commingling operations on State leases are set forth below.

Should you have any questions, please contact  Charles Bradbury at (225)-342-9199, Charles.Bradbury@la.gov.

Basic Procedures
  1. Cover letter should be submitted that includes information identifying:

    1. Field Name and Parish,
    2. State Leases and properties affected by this application,
    3. Short explanation of the commingling proposal, and
    4. Facility name and the Office of Conservation facility code number.

  2. Attach a copy of any application for commingling submitted to the Office of Conservation or Mineral Management Service and any other subsequent correspondence received in response to the application.

  3. Attached to the cover letter should be a complete explanation of flow which discusses the separation, treating measurement, allocations, and sales of all hydrocarbons that flow through the facility. The discussion should also clearly illustrate how the product is allocated back to the individual properties that produce to the subject commingling facility.

  4. Attach a flow schematic that shows:

    1. Sources of all production, including wells, oil recovery systems from salt water disposal systems, and compressor facilities.
    2. Locate and identify liquid and gas meters used in measurement and allocation of production.
    3. Illustrate the connection between all of the equipment necessary for the separation, measurement, storage, allocation and sale of hydrocarbons.
    4. Illustrate the location of all LACT units and other sales points.

  5. List of well(s) and/or unit(s) involved and identify each respective lease.

  6. List of all interested owners.

  7. Affidavit as to the equitable means of allocation of production.

  8. The staff will review the information provided and ask for additional information or issue a letter of no objection.