How to Fill Out Texas Railroad Commission Form SWR-38 (w/Examples) + FAQs

A Statewide Rule 38 (SWR-38) exception is the request a Texas oil and gas operator files when they want to drill more wells on a lease or unit than the field rules allow. You do not fill out a stand-alone paper form called “SWR-38.” Instead, you request the SWR-38 exception inside your Form W-1 drilling permit on the Railroad Commission of Texas (RRC) online system, and you support it with a certified plat, a service list, and the right resolution method.

This matters because well density controls how Texas protects correlative rights and prevents waste. The Drilling Permits staff at the RRC report that unlabeled offsets on the plat are the single most common reason a W-1 carrying a Rule 37 or 38 exception gets kicked back, which can delay a permit by weeks. This guide walks you through the SWR-38 request line by line, using the current July 2025 RRC training material so you can confirm you are working from the latest guidance.

Here is what you will learn:

  • 🛢️ What triggers a Statewide Rule 38 density exception and when you can skip it.
  • 📐 How to read perpendicular calls, notice areas, and adjacent-tract rules the right way.
  • ✍️ Exactly what to enter on the W-1 fields, the plat, and the service list that carry your SWR-38 request.
  • 🤝 The three ways to resolve the exception: own offset, signed waivers, and notice or publication.
  • ⏱️ The 21-day notice clock, the filing fee, and what happens after you hit submit.

What the SWR-38 Exception Is and Who Must File It

Statewide Rule 38, found at 16 TAC §3.38, is the Railroad Commission of Texas density rule. It limits how many wells you can complete on a given lease, pooled unit, or proration unit in a specific field. When you plan a well that pushes the lease past the well count the field rules allow, you trigger a Rule 38 exception, and you must ask the Commission for permission before the permit can issue.

The RRC sums up the trigger in plain terms: too much oil, not enough space. A SWR-38 is triggered when there are more wells on the lease than the field rules allow. The Commission receives the request through the Form W-1 drilling permit, which is the application that carries every spacing and density exception in Texas. The legal backbone for which forms you use and how you file them sits in 16 TAC §3.80.

Any organization that operates a well in Texas can file. That includes large operators, small independents, and the consultants or landmen who file on their behalf. You must hold an active organization report (Form P-5) in good standing, because §3.80 lets the Commission refuse an application from an organization with unresolved safety or pollution violations.

Not every dense lease needs an exception. If your field is classified as UFT (Unconventional Fracture Treated), an exception may not be required at all. In some cases, the Stacked Lateral provisions approved for your field, or relief under Statewide Rule 86, can erase the need for a SWR-38 exception on a lease developed with horizontal wells. Check your field rules first, because filing an exception you do not need wastes a fee and adds delay.

Before You Start: Documents and Information You Need

Gather everything below before you open the W-1. A SWR-38 request fails fast when one piece is missing, and the system will not let you submit a clean application without these items in hand.

  • Active P-5 organization report. Your organization must be in good standing, because the Commission rejects applications from operators with unresolved violations under §3.80. Without it, the W-1 will not process.
  • Certified plat. The plat must carry a surveyor’s stamp or signature. If it is not certified, the staff returns the filing and your 21-day clock never starts.
  • Field rules for your field. You need the well-count limit and density spacing for your exact field, because that number tells you whether you even have a Rule 38 trigger.
  • Lease, unit, or pooling documents. These prove how much acreage you control and which tracts are leased to you, which decides whether you can claim “own offset.”
  • List of offset operators and unleased mineral owners. You need names and addresses for every party inside the notice area, because the service list is built from this.
  • Form P-16 acreage designation. This ties your acreage to the proration unit and supports the density math the staff may review.
  • Signed waivers (if you have them). A waiver from each affected party lets you resolve the exception without waiting on notice.
  • Filing fee payment method. A drilling permit with an exception carries a fee, so have a credit card or escrow account ready inside the RRC Online System.

If any item is missing, the most common result is a returned application. A returned W-1 means your priority date can move, your notice never starts, and a competitor’s nearby filing could be processed ahead of yours.

Where to Get the Form and How to Access It

You request the SWR-38 exception through the electronic Form W-1, not a paper SWR-38. The W-1 lives inside the RRC Online System, the Commission’s web portal for drilling permits. You sign in with the username and password tied to your P-5 organization.

The Commission strongly prefers online filing, and 16 TAC §3.80 authorizes electronic submission for any form that has an electronic version. When you file online, the Commission treats your authorized representative’s electronic signature as if it were handwritten, and it holds your organization responsible for every entry under the penalties in Texas Natural Resources Code §91.143.

To start, open the Online W-1 filing application, create a new drilling permit, and enter your well and lease data. The exception request appears once your spacing and density data show a violation; the system flags the Rule 38 trigger and opens the fields and attachment slots you need. The full Drilling Permits W-1 Online Filing User Guide walks through each screen with screenshots.

You can still file on paper if you must, since §3.80 allows it, but paper filings are slower and more error-prone. Whichever channel you pick, you build the same record: the W-1 data, the certified plat, the service list, and the resolution documents that clear the exception.

Step-by-Step: How to Fill Out the SWR-38 Exception on Form W-1 Line by Line

The SWR-38 request is built from several W-1 fields and attachments working together. Each subsection below is one field, box, or document that carries the exception. Use the exact labels printed on the W-1 and its tabs as you go.

1. Operator (Organization) Field

What it asks in plain English: This field asks which company is applying for the permit and the exception.

How to answer it: Enter your P-5 organization name and number exactly as they appear on your active organization report. The system pulls this from your login, so confirm it matches.

Example entry: Carlos Mendez, who files for Lone Star Basin Operating, P-5 No. 555123, confirms the name auto-fills as LONE STAR BASIN OPERATING.

Nuance or edge case: If a consultant files for the operator, the consultant still files under the operator’s P-5 credentials, not their own.

Common mistake and consequence: Filing under the wrong P-5 number ties the permit to the wrong company, and the Commission can reject it under §3.80 if that organization has unresolved violations.

Misconception: Some filers think the operator field is just a label. It is the legal applicant, and the named organization carries full responsibility for every entry under Natural Resources Code §91.143.

2. Field Name and Field Number

What it asks in plain English: This field asks which field your new well will produce from.

How to answer it: Enter the exact RRC field name and field number. The field controls which rules apply, including the density limit that triggers Rule 38.

Example entry: Carlos enters SPRABERRY (TREND AREA) and its field number for his Midland County well.

Nuance or edge case: If your field is classified UFT or has approved special rules, a Rule 38 exception may not be required at all, so confirm the classification before assuming you have a trigger.

Common mistake and consequence: Picking the wrong field pulls the wrong density rules, and the system either flags a false trigger or misses a real one, which delays the permit.

Misconception: Filers think statewide spacing always governs. Special field rules often override statewide density, so the field you pick decides whether you have an exception at all.

3. Well Type and Wellbore Profile (Vertical, Directional, Horizontal)

What it asks in plain English: This field asks what shape the wellbore takes underground.

How to answer it: Select vertical, directional, or horizontal. For a horizontal well, the system asks for the surface location, penetration point, first take point, last take point, and terminus.

Example entry: Carlos selects Horizontal and enters his first and last take points along the drainhole.

Nuance or edge case: For horizontal wells, density counts the producing wellbore, not the surface hole. Stacked lateral provisions can change whether a second lateral counts against your well limit.

Common mistake and consequence: Entering take points in the wrong order, or omitting one, makes the density math wrong and can mask or invent a Rule 38 trigger.

Misconception: Many filers think an off-lease penetration point or surface location triggers density. It does not. Only the producing portion of the well counts toward well density.

4. Number of Wells and Density Trigger

What it asks in plain English: This part asks how many wells you already have, plus the new one, against the field’s allowed count.

How to answer it: Enter your existing well count for the field on the lease or unit, then add the applied-for well. The system compares this to the field’s density limit and flags the Rule 38 exception if you go over.

Example entry: Aisha Rahman, filing for a 320-acre unit that allows two wells, enters her two existing wells plus a third, and the system flags a SWR 38 exception.

Nuance or edge case: In UFT fields or fields with approved special rules, the SWR-38 data review is not required unless you choose to provide it, so the trigger may not fire even on a dense lease.

Common mistake and consequence: Undercounting existing wells hides a real trigger, and a permit issued on bad density data can be challenged or voided later.

Misconception: Filers assume any extra well needs an exception. If your field is UFT or uses stacked laterals under SWR 86, the extra well may need no exception at all.

5. Acreage and Proration Unit (Form P-16 Link)

What it asks in plain English: This part asks how much acreage supports the wells and how it is assigned.

How to answer it: Tie the well to its acreage using the Form P-16 Acreage Designation. The acreage and the field’s density rule together set how many wells the unit can hold.

Example entry: Aisha designates 320 acres on her P-16 to support the unit and its well count.

Nuance or edge case: For Pooled, PSA, or Allocation wells, the acreage designation and the plat must show all tracts being developed, not just the home tract.

Common mistake and consequence: A P-16 that does not match the plat acreage creates a density mismatch, and the staff sends the filing back for correction.

Misconception: Filers think acreage is only about royalty. Here it directly sets your allowed well count, so the acreage math is a density question, not just a payment one.

6. The Certified Plat

What it asks in plain English: This document is the map that proves your spacing and density and shows who is affected.

How to answer it: Attach a plat certified with a surveyor’s stamp or signature. Label every offset clearly inside the notice area, and for PSA or Allocation wells show all tracts being developed.

Example entry: Carlos attaches a stamped plat that labels each adjacent operator’s name in its tract and circles the unit boundary.

Nuance or edge case: Even when you resolve the exception by claiming “own offset,” you must still clearly label your own company’s name in every affected tract on the plat.

Common mistake and consequence: Failing to label affected offsets on the plat is the single most common reason a W-1 with a Rule 37 or 38 exception is returned, which restarts your review.

Misconception: Filers think a plat from any survey works. The plat must be certified and must match the W-1 data exactly, or the staff will not accept it.

7. Identifying the SWR-38 Notice Area and Affected Parties

What it asks in plain English: This step asks who is close enough to be entitled to notice of your density exception.

How to answer it: For a SWR-38 exception, the notice area is the offsets within the lease line spacing AND each adjacent tract. Identify every operator, lessee, and unleased mineral owner inside that area.

Example entry: Janet Cole, filing for an operator, lists three adjacent leaseholders and one unleased mineral owner inside her unit’s notice area.

Nuance or edge case: It is possible to have an affected offset that is not adjacent but is still within the notice area, so do not rely on adjacency alone. For SWR-38, an affected offset more than one mile from the producing portion of the well may be deemed unaffected, and tracts in another state or country can be classified unaffected.

Common mistake and consequence: Leaving an affected party off the list means the exception is not properly noticed, and a missed party can force re-notification or a protest later.

Misconception: Filers think only the directly adjacent tract matters. Both the lease-line spacing area and every adjacent tract count, and some non-adjacent tracts fall inside the area too.

8. The Service List

What it asks in plain English: This is the list of names and addresses the Commission uses to mail your 21-day notice.

How to answer it: Build the service list in the new required format, either from the Excel template in the RRC Forms Library saved as a CSV, or with the built-in utility on the W-1 Attachments tab. Do not use any other source.

Example entry: Janet uses the built-in W-1 utility and checks each address against the character limits before saving.

Nuance or edge case: Working interests and NPRI owners are not required to be noticed for a SWR-38. If you do notice them and they protest, you must work through the process and, if needed, a hearing.

Common mistake and consequence: Using an old or homemade list format breaks the Xerox central print system, and the notices do not go out, stalling the whole filing.

Misconception: Filers think any spreadsheet of names works. Only the official RRC format or the built-in utility matches the print system, so other formats are rejected.

9. Choosing the Resolution Method

What it asks in plain English: This step asks how you will clear the exception so the permit can issue.

How to answer it: Pick one of the resolution paths the W-1 offers: own offset, signed waivers, notice of application, or publication. The plat must support whichever path you choose.

Example entry: Carlos selects Own Offset because every affected tract is 100% leased to his company.

Nuance or edge case: To claim own offset, all affected tracts must be 100% leased to you and your name must be labeled in each affected tract on the plat. If less than 100% is under lease, you need another path for the rest. Some fields, including UFT fields, allow reduced notification parameters, so check the box if you qualify.

Common mistake and consequence: Claiming own offset when a tract is only partly leased leaves part of the exception unresolved, and the permit stalls until you notice the rest.

Misconception: Filers think one waiver covers a joint venture. Waivers from JOA partners may need extra language about acreage assignments, so a generic waiver can fall short.

10. Notice, Waivers, and Publication

What it asks in plain English: This step covers the documents that prove affected parties were notified or agreed.

How to answer it: Attach signed waivers from affected parties, or let the Commission generate the 21-day notice of application to the service list. If you cannot locate a party, use publication with a due-diligence letter explaining your search.

Example entry: Janet attaches two signed waivers and lets the Commission mail a 21-day notice to the one party she could not get to sign.

Nuance or edge case: The Commission generates and mails the notice for SWR-38; you do not mail it yourself. If a notice is returned, the Commission sends a supplemental notice to a new address you must provide.

Common mistake and consequence: Submitting a waiver that is not signed by every affected party leaves a gap, and the exception cannot resolve until that party signs or is noticed.

Misconception: Filers think they must mail the notices. For SWR-38, the Commission’s central print team handles mailing once you submit a proper service list.

11. Publisher’s Affidavit (If You Publish)

What it asks in plain English: This is your proof that you ran the legal notice in a newspaper when you used publication.

How to answer it: After the notice runs, email the affidavit to SWR37@rrc.texas.gov only, with the status number in the subject line and one affidavit per email.

Example entry: When publication is required, the filer sends one affidavit with subject line showing only the status number, such as Status 1234567.

Nuance or edge case: Under Statewide Rule 86 / §3.86, standard publication runs four consecutive weeks, though some fields have changed it to two weeks. Field rule requirements always control.

Common mistake and consequence: Putting extra text in the subject line or attaching several affidavits at once confuses the intake, and the affidavit can be missed, delaying resolution.

Misconception: Filers think any proof of publication is fine. Only the publisher’s affidavit, sent to the right inbox with the right subject line, clears the publication path.

Three Filled-Out Examples Using Real Scenarios

Each scenario below follows one named filer through the SWR-38 request from start to finish.

Scenario 1: Carlos Mendez, own-offset density exception on a fully leased unit. Carlos wants a third Spraberry well on a unit his company leases 100%.

Form Section What Carlos Enters
Operator LONE STAR BASIN OPERATING, P-5 No. 555123
Field SPRABERRY (TREND AREA) with field number
Well type Horizontal, with take points entered
Well count Two existing plus one new, system flags SWR 38
Acreage / P-16 640 acres, all tracts shown
Plat Certified, his company labeled in every affected tract
Notice area All offsets within lease-line spacing and adjacent tracts
Resolution Own Offset
Attachments Certified plat only, no service list needed

Scenario 2: Aisha Rahman, density exception resolved by signed waivers. Aisha needs a fourth well on a unit with two outside leaseholders.

Form Section What Aisha Enters
Operator Permian Edge Resources, active P-5
Field Her producing field name and number
Well count Three existing plus one new, SWR 38 triggered
Acreage / P-16 320 acres designated on P-16
Plat Certified, each affected party labeled in its tract
Notice area Adjacent tracts plus lease-line spacing area
Service list Built with the W-1 built-in utility
Resolution Waiver, two signed waivers attached
Result No 21-day notice needed once waivers clear

Scenario 3: Janet Cole, density exception requiring 21-day notice and publication. Janet has one party who will not sign and one she cannot locate.

Form Section What Janet Enters
Operator Her company’s name and active P-5
Field Field name and number
Well count Existing wells plus new well, SWR 38 flagged
Plat Certified, all affected parties labeled
Notice area Lease-line spacing plus each adjacent tract
Service list Official RRC format saved as CSV
Resolution Notice of Application plus Publication
Notice Commission mails 21-day notice to service list
Publication Due-diligence letter filed; publisher’s affidavit emailed after run

How to File the Completed SWR-38 Request

The SWR-38 exception files with the W-1 through one main channel, with paper as a fallback. Keep proof of everything you submit.

  • Online (preferred). File through the RRC Online W-1 system. Pay the drilling permit fee with a credit card or escrow account inside the RRC Online System. The system confirms receipt and assigns a status number; processing for a clean, resolved exception is typically a few business days, while a noticed exception waits out the 21-day clock. Save the confirmation screen and status number as your proof of filing.
  • By mail (fallback). Paper W-1 packages go to the Railroad Commission of Texas, Oil and Gas Division, Drilling Permits, P.O. Box 12967, Austin, TX 78711-2967. Include a check for the fee. Processing is slower because staff must key the data. Keep a copy of the full package and your certified mail receipt as proof.
  • Publisher’s affidavit (if publishing). Email the affidavit to SWR37@rrc.texas.gov with only the status number in the subject line and a single affidavit attached. Keep the sent email as proof.

For any channel, retain your certified plat, service list, signed waivers, and the RRC status number. Those documents are your record if the Commission asks a question or a party later protests.

What Happens After You File

Once you submit, the Commission assigns a status number and the Drilling Permits staff review the exception, the plat, and the resolution path. If you chose own offset or attached complete waivers, and the plat labels every affected tract, the staff can approve the permit without notice. The whole point of a clean filing is to skip the waiting period.

If you resolve by notice, the Commission generates and mails a 21-day notice to every party on your service list. The exception is considered resolved when that 21-day notice of application terms out and no protests are received. If you publish, the exception resolves once you file the publisher’s affidavit showing the notice ran for the required period.

If a notice comes back undelivered, the Commission sends a supplemental notice to a new address you must provide, which can restart part of the clock. If an affected party protests, the matter can move to a hearing before the Commission, where you may need to present density data and testimony to justify the extra well.

When you later file an amended W-1 on a permit with a previously approved exception, attach the prior service lists, waivers, and affidavits, choose the same resolution methods, and add a comment requesting no additional notification. The staff review that request, and they may still require new notice if a producing point moved closer to a lease line or a new exception point was created.

Mistakes to Avoid When Filling Out the SWR-38 Request

  • Not labeling affected offsets on the plat. This is the most common return reason, and it restarts your review.
  • Submitting an uncertified plat. Without a surveyor’s stamp or signature, the staff reject the plat and your clock never starts.
  • Filing under the wrong P-5. The permit ties to the wrong organization and can be refused under §3.80.
  • Undercounting existing wells. A false or missed density trigger can void or expose the permit to challenge later.
  • Using the wrong field name. The wrong field pulls the wrong density rules and creates a false trigger or misses a real one.
  • Claiming own offset on a partly leased tract. The exception stays unresolved for the unleased portion and stalls the permit.
  • Using a homemade service list format. The central print system cannot read it, so notices never mail.
  • Forgetting to label your own name in own-offset tracts. Even with own offset, the plat must show your company in every affected tract or it is returned.
  • Missing a non-adjacent party inside the notice area. An un-noticed party can force re-notification or trigger a protest.
  • Assuming an off-lease penetration point triggers density. It does not, and chasing the wrong trigger wastes time and fees.
  • Sending a messy publisher’s affidavit. Extra subject-line text or multiple affidavits per email can cause the proof to be missed.
  • Filing an exception in a UFT field that did not need one. You spend a fee and add delay for relief the field rules already grant.

Do’s and Don’ts

Do’s

  • Do confirm your field classification first, because UFT or special-rule fields may need no exception at all.
  • Do certify your plat, because an uncertified plat is rejected on sight.
  • Do label every affected tract on the plat, because unlabeled offsets are the top return reason.
  • Do use the official service list format, because only it works with the Commission’s print system.
  • Do keep your status number and confirmations, because they are your proof of filing.
  • Do check whether stacked laterals or SWR 86 apply, because they can remove the trigger entirely.

Don’ts

  • Don’t undercount your wells, because a bad density count can void the permit.
  • Don’t mail notices yourself for a SWR-38, because the Commission’s central print team handles that.
  • Don’t claim own offset on partly leased tracts, because the unleased part stays unresolved.
  • Don’t add extra text to the affidavit email subject, because it can cause your proof to be missed.
  • Don’t notice working interests or NPRIs unless needed, because a protest from them can force a hearing.
  • Don’t reuse an old form version blindly, because §3.80 only accepts earlier versions that meet all current requirements.

Pros and Cons of Filing the SWR-38 Yourself vs. With Help

Pros of filing it yourself

  • Lower cost, because you avoid consultant fees on a routine own-offset filing.
  • Speed on simple cases, because a fully leased own-offset request can clear without notice.
  • Direct control, because you see every entry and attachment before you submit.
  • Learning value, because you build in-house knowledge of the W-1 and field rules.
  • Faster fixes, because you can correct a returned filing without waiting on a third party.

Cons of filing it yourself

  • Plat and notice errors, because the labeling and notice-area rules are easy to get wrong.
  • Density math risk, because miscounting wells or acreage can void the permit.
  • Hearing exposure, because a mishandled protest can force you into a contested case unprepared.
  • Time cost, because building service lists and tracking the 21-day clock takes staff hours.
  • Field-rule complexity, because special and UFT rules require expertise a consultant brings.

Statewide Rule 38 vs. Statewide Rule 37

These two rules travel together on the W-1 but solve different problems. Use the table to keep them straight.

Statewide Rule 38 (Density) Statewide Rule 37 (Spacing)
Triggered by more wells on the lease than allowed Triggered by a well too close to a lease line or another well
Notice area: lease-line spacing plus each adjacent tract Notice area: greater of lease-line spacing or half the between-well spacing
Cannot be resolved with a Non-Perforation Zone Lease-line exceptions can be resolved with a Non-Perforation Zone
UFT and special-rule fields may need no exception Spacing still checked even in many special-rule fields
Data review waived in UFT fields unless you provide it Spacing math always checked on the plat

FAQs

Do I file a separate paper form called “SWR-38”?

No. You request the SWR-38 density exception inside the Form W-1 drilling permit on the RRC online system, supported by a certified plat, a service list, and a resolution method.

Do I always need a Rule 38 exception when I add a well?

No. UFT fields, fields with approved special rules, and stacked lateral provisions under SWR 86 can remove the need for a SWR-38 exception entirely, so check your field rules first.

Do I have to label affected offsets on the plat for a SWR-38?

Yes. You must clearly label every affected party in its tract on the certified plat, because unlabeled offsets are the most common reason a Rule 37 or 38 W-1 is returned.

Do I still label my own company on the plat if I claim own offset?

Yes. Even with the own-offset resolution, you must clearly label your company’s name in every affected tract on the plat, or the staff return the filing.

Do I mail the 21-day notice myself for a SWR-38?

No. The Commission generates and mails the notice to the parties on your service list, and its central print team handles the envelopes, so you only build a proper service list.

Do I need to notice working interest owners and NPRIs?

No. Working interests and NPRIs are not required to be noticed for a SWR-38, but if you notice them and they protest, you must work through the process and possibly a hearing.

Do affected tracts in another state count?

No. For a SWR-38, affected tracts in another state or country can be classified as unaffected, and offsets more than one mile from the producing portion of the well may be deemed unaffected.

Do I count the surface location or penetration point toward density?

No. Only the producing portion of the well counts toward density, so an off-lease surface location or penetration point does not by itself trigger a Rule 38 exception.

Do I use a Non-Perforation Zone to resolve a SWR-38?

No. NPZs can be used only for lease-line Rule 37 exceptions, not for Rule 37 between-well or for SWR-38 density exceptions.

Do I build the service list in any spreadsheet format?

No. You must use the official RRC service list from the Forms Library saved as a CSV, or the built-in utility on the W-1 Attachments tab, because the print system reads only those.

Do I need to provide SWR-38 data in a UFT field?

No. The SWR-38 data review is not required for exceptions in UFT fields or fields with approved special rules unless you choose to provide it.

Do I email the publisher’s affidavit anywhere specific?

Yes. Email it to SWR37@rrc.texas.gov only, with just the status number in the subject line and one affidavit per email, after the notice has run.

Do I have to re-notice when I file an amended W-1?

Yes. You re-notice if a producing point moved closer to a lease line, a new exception point was created, or an offset was missed before, even though you can request no additional notice.

Do JOA partner waivers need special language?

Yes. Waivers from JOA partners may need extra language about acreage assignments, so a generic waiver can leave the exception partly unresolved.