Arkansas Authorization For Expenditure - "AFE"

• Category: Oil Gas and Minerals - Authorizations
• State: Multi-State
• Control #: US-OG-628
• Format: Word; Rich Text

Description

This form is for approval of costs and expenses. Arkansas Authorization For Expenditure (AFE) is a legal document utilized in the oil and gas industry to approve and allocate funds for various exploration and production activities in Arkansas. It acts as a means of getting the necessary permission and financial clearance before undertaking any significant projects related to drilling, well completion, or facility construction. Keywords: — Arkansas: The document is specific to the state of Arkansas and caters to its unique regulations and requirements. — Authorization for Expenditure: The purpose of the AFE is to grant authorization to spend funds for oil and gas projects. — AFE: An abbreviation often used to refer to the Arkansas Authorization For Expenditure. Types of Arkansas Authorization For Expenditure (AFE): 1. Drilling AFE: This type of AFE focuses on authorizing expenditures related to drilling activities, including the costs of leasing land, drilling equipment, personnel, supplies, and initial testing. 2. Completion AFE: Once the drilling phase is completed, a separate AFE may be required for well completion activities, such as cementing, perforating, and installing production casing. 3. Facility AFE: In cases where additional infrastructure is needed, such as pipelines, storage tanks, or processing facilities, a facility AFE may be created to allocate funds specifically for such construction projects. 4. Work over AFE: If an existing well requires maintenance, remedial work, or stimulation, a work over AFE may be prepared to specify the expenditures needed for these operations. 5. Abandonment AFE: When a well reaches the end of its economic life or is deemed unproductive, an abandonment AFE lays out the costs associated with properly sealing and abandoning the well to ensure environmental safety. In summary, an Arkansas Authorization For Expenditure (AFE) is a crucial document used in the oil and gas industry to authorize and allocate financial resources for drilling, completion, facility construction, work over, and abandonment projects specific to Arkansas.

Arkansas Authorization For Expenditure (AFE) is a legal document utilized in the oil and gas industry to approve and allocate funds for various exploration and production activities in Arkansas. It acts as a means of getting the necessary permission and financial clearance before undertaking any significant projects related to drilling, well completion, or facility construction. Keywords: — Arkansas: The document is specific to the state of Arkansas and caters to its unique regulations and requirements. — Authorization for Expenditure: The purpose of the AFE is to grant authorization to spend funds for oil and gas projects. — AFE: An abbreviation often used to refer to the Arkansas Authorization For Expenditure. Types of Arkansas Authorization For Expenditure (AFE): 1. Drilling AFE: This type of AFE focuses on authorizing expenditures related to drilling activities, including the costs of leasing land, drilling equipment, personnel, supplies, and initial testing. 2. Completion AFE: Once the drilling phase is completed, a separate AFE may be required for well completion activities, such as cementing, perforating, and installing production casing. 3. Facility AFE: In cases where additional infrastructure is needed, such as pipelines, storage tanks, or processing facilities, a facility AFE may be created to allocate funds specifically for such construction projects. 4. Work over AFE: If an existing well requires maintenance, remedial work, or stimulation, a work over AFE may be prepared to specify the expenditures needed for these operations. 5. Abandonment AFE: When a well reaches the end of its economic life or is deemed unproductive, an abandonment AFE lays out the costs associated with properly sealing and abandoning the well to ensure environmental safety. In summary, an Arkansas Authorization For Expenditure (AFE) is a crucial document used in the oil and gas industry to authorize and allocate financial resources for drilling, completion, facility construction, work over, and abandonment projects specific to Arkansas.