Directive 065 - Energy Resources Conservation Board

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Requirements Comments 7) Where drainage is alleged, a discussion including a) evidence showing that the reserves underlying your lands have been drained subsequent to the completion of your well in the pool, and b) an estimate of the total amount of inequitable drainage that has occurred from your lands since your well was completed in the pool, together with details of how the drainage was calculated. 8) A discussion of your proposal as to how the ERCB should restrict or distribute production from the pool that includes a) a tabulation of the proportion of production or rate of production that each well or group of wells should be allowed to produce, together with the details of how the proposed production scheme was obtained, and b) if considered appropriate, the total production rate proposed for the pool, together with the details of how this rate was determined and why such a rate should be set, and c) if specific rates are proposed under item 8(a), i) an indication of why rates, rather than a percentage allocation, are being proposed, ii) whether the proposed rates are economic for each well or group of wells, and iii) whether each well or group of wells would be capable of producing at the proposed rate. 1-4 • ERCB Directive 065: Resources Applications / Rateable Take (March 2012) In cases where a well has remained shut in, drainage may be confirmed by summarizing at least two pressure tests taken on the well. If you are arguing that your currently producing well is not producing at sufficient rates to recover an equitable share of production, a comparison may be made between the actual produced volume from the well and the volume the well should have produced to obtain an equitable share of production. You should present a detailed calculation showing how you determined your equitable share of production. The ERCB usually distributes production among wells in a pool on a percentage basis, rather than setting any specific rate or volume. The proportion of production allocated to each well is commonly based on the following formula: Percentage of pool production for specific well = 100 x (wellbore net pay x porosity x gas saturation x area of spacing unit or validated area for specific well)/(sum of wellbore net pay x porosity x gas saturation x area of spacing units or validated areas for all wells) Directive 032 and Decision 91-8 discuss the ERCB’s commonly used allocation formula and the validated area concept. The ERCB has not commonly used mapping as a means to determine hydrocarbon pore volume in a spacing unit because in many cases such mapping is highly interpretative. The ERCB has not normally factored the deliverability of a well into an allocation formula to avoid disputes on what constitutes appropriate well testing. You may propose an allocation formula other than the commonly used one; however, you should include detailed justification as to why the ERCB should deviate from its usual practice in determining an allocation formula.
Requirements Comments It is not usually necessary to limit the total rate of production (item 8(b)), but this remains an option. In respect of item 8(c), it is not the ERCB’s usual practice to set specific rates, but this also remains an option. In some cases it may be useful to set minimum rates, with a percentage allocation above the minimum rate. If a well falls below the minimum rate, other wells are restricted only to their minimum rates and not below. Items 8(c)(ii) and 8(c)(iii) should be addressed only when there is likely to be a dispute about the economics of a proposed rate or about the capability of a well to produce at a specified rate. ERCB Directive 065: Resources Applications / Rateable Take (March 2012) • 1-5
Page 1 and 2: Directive 065 Revised edition March
Page 3 and 4: Unit 6 - Gas and Ethane Removal ...
Page 5 and 6: How to Use This Directive Introduct
Page 7 and 8: − The decision tree criterion tha
Page 9 and 10: Resolving significant differences,
Page 11 and 12: Figure 1. Resources Applications Pr
Page 13: Figure 3. Well Spacing Applications
Page 16 and 17: SUBMISSION STATUS SUBMISSION ID CRE
Page 18 and 19: Consequences of Incomplete Notifica
Page 20 and 21: Table 2. Minimum notification requi
Page 22 and 23: 1.1.4 Requirements for an Applicati
Page 26 and 27: 1.2 Application for a Common Purcha
Page 28 and 29: Requirements Comments a) the point
Page 30 and 31: Requirements Comments c) estimates
Page 32 and 33: Requirements Comments 14) If you ar
Page 34 and 35: If there is a dispute as to the tar
Page 36 and 37: Requirements Comments b) an outline
Page 38 and 39: Requirements Comments b) an estimat
Page 40 and 41: Requirements Comments 15) If you ar
Page 42 and 43: typically also includes requests un
Page 44 and 45: Requirements Comments 5) A map show
Page 46 and 47: Requirements Comments production, y
Page 48 and 49: Requirements Comments a) the steps
Page 50 and 51: Except in cases involving missing a
Page 52 and 53: Requirements Comments 8) If there i
Page 54 and 55: Requirements Comments costs within
Page 56 and 57: No Is this a waterflood scheme? (Qu
Page 58 and 59: confirmation that both the ER schem
Page 60 and 61: B) Design Stage • In waterfloods,
Page 62 and 63: • Resources Applications Schedule
Page 64 and 65: Proposed Injection Well Locations a
Page 66 and 67: NO means that the proposed approval
Page 68 and 69: NO means that an associated gas cap
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Page 72 and 73: 2) interpretation of fluid interfac
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) a correlation of injection fluid
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2.4 Application for Concurrent Prod
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Requirements Comments d) the suppor
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2.5 Application for Pool Delineatio
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Requirements Comments c) an interpr
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• a good understanding of the res
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• qualify to use the DE or SD pro
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3.1.4 Determination of Commingling
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Figure 3.2. Decision Tree for the C
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For additional information, refer t
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Figure 3.4. Decision Tree to Determ
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If it is anticipated that water vol
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contact the ERCB for resolution. Af
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commingling must remain segregated
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An application for approval to comm
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Requirements Comments mineral owner
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Requirements Comments a) a net pay
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Requirements Comments • 90 per ce
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Requirements Comments pressures, to
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3.3 Application for Good Production
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Requirements Comments 4) Analysis,
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3.4 Application for Gas-Oil Ratio P
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3.6 Application to Amend or Rescind
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Conservation Requirements Comments
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Requirements Comments c) the effect
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3-42 • ERCB Directive 065: Resour
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Requirements Comments d) disposal f
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Requirements Comments 3) Discussion
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Requirements Comments d) a copy of
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Oilfield or Industrial Waste Fluid
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4.2 Application for Acid Gas Dispos
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Requirements Comments 4) Migration
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Requirements Comments 3) If request
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4.3 Application for Underground Gas
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Requirements Comments a) for the st
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Equity Equity is an important issue
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Requirements Comments 4) When submi
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5.2 Change of Approval Holder 5.2.1
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6.3.1 Short-Term Gas Removal Applic
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company holding the permit, or its
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Requirements Comments d) For a requ
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Requirements Comments 3) Permit(s)
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Requirements Comments 10) Attach a
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Requirements Comments b) If a third
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Requirements Comments 7) Are transp
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Unit 7 Application for Special Well
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Oil The baseline well density for o
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A well that was drilled in accordan
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The ERCB validates all applications
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zone for the area. This type of req
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7.3.1.6 Common Ownership As defined
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formation-specific production infor
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Figure 7.5. Quick application path
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7.4.4 Processing Paths for Differen
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7.5 Attachments Required for a Spec
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4) Are there any outstanding object
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production data for each applied-fo
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Table 7.2. Production and volumetri
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Unit 2—Conservation 2.1 Enhanced
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A-4 • ERCB Directive 065: Resourc
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Sample Template of Company-to-Compa
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Application for Gas-Oil Ratio (GOR)
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A-10 • ERCB Directive 065: Resour
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A-12 • ERCB Directive 65: Resourc
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2 OWNERSHIP AND NOTIFICATION INFORM
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4 PROPOSED APPROVAL AREA 13. Is the
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5. Term of permit Existing term and
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Long-Term Gas Removal Application (
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Short-Term Ethane Removal Applicati
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DATE YR/MO/DAY │ │ │ │ │
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6) Is the proposed well density les
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4a) If YES, enter the interwell dis
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• 1 Legal Subdivision • 2 Legal
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Lessees and Unleased Freehold Notif
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Leased Individual Freehold Notifica
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Lessor Map and Notification Area Sh
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Mineral Rights Ownership and Notifi
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Examples of Development on Multiple
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DECLARATION OF COMMON OWNERSHIP ___
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Directive 065 - Energy Resources Conservation Board

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