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Directive 065 - Energy Resources Conservation Board

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51(4)(b), 55(2), and 56, although each option is available if there is a dispute on each issue.<br />

For example, an application for the declaration of a common purchaser under Section 51(1)<br />

typically also includes requests under Section 51(4)(b) for allocation of production among<br />

wells in a pool and under Section 56 respecting the effective date of an order. Requests made<br />

under Sections 51 and 56 should be included in the same application. A request under Section<br />

55(2) for the ERCB to set prices may be filed together with the initial request for the<br />

declaration of the common purchaser or after the common purchaser order has been issued<br />

and the parties have attempted but failed to reach an agreement on the price to be paid for the<br />

gas.<br />

1.2.4 How the ERCB Processes the Application<br />

In evaluating an application for a common purchaser order, the ERCB considers<br />

• whether drainage has occurred subsequent to the completion of a well on the applicant’s<br />

property and, if so, to what extent,<br />

• whether opportunities have existed for the marketing of production from the applicant’s<br />

property and, if so, when and the nature of them,<br />

• future prospects for marketing the production, and<br />

• if application is being made under Sections 51(4)(a), 51(4)(b), and/or 55(2) for the<br />

designation of a delivery point, the proportion of production to be purchased and/or the<br />

setting of the price to paid, if the applicant could not make reasonable arrangements on<br />

these matters.<br />

Each application for a common purchaser order proceeds to a public hearing.<br />

1.2.5 Requirements for an Application for a Common Purchaser Order (file 12 copies)<br />

Requirements Comments<br />

1) A statement of what you are requesting,<br />

including<br />

a) the purchasers proposed as the common<br />

purchasers,<br />

b) the pool to which the common purchaser<br />

declaration would apply, and<br />

c) the proposed effective date of the order.<br />

2) A statement of whether you are requesting,<br />

pursuant to Section 51(4) or 55(2) of the<br />

OGCA, that the ERCB, to give effect to the<br />

common purchaser declaration, direct<br />

For example, Company X applies, pursuant to<br />

Section 51(1) of the OGCA, for an order<br />

declaring Company Z as a common purchaser<br />

of gas produced from the Woodward Viking A<br />

Pool. Company X also requests, pursuant to<br />

Section 56 of the OGCA, that the order be<br />

effective as of the date of the application and<br />

that, pursuant to Section 51(4)(b), the ERCB<br />

direct the proportion of gas that the common<br />

purchaser shall purchase from each producer or<br />

owner offering gas for sale.<br />

ERCB <strong>Directive</strong> <strong>065</strong>: <strong>Resources</strong> Applications / Common Purchaser (March 2012) • 1-7

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