Directive 065: Resources Applications for Oil and Gas Reservoirs ...

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3.4 Application for Gas-Oil Ratio Penalty Relief GOR penalties are applied to an oil well’s MRL when the producing GOR exceeds the base GOR. The penalty factor is calculated by taking the ratio of the base GOR to the producing GOR. The MRL is then multiplied by this penalty factor to determine the adjusted MRL (the permitted production rate). GOR penalty relief is applied for under Section 10.060 of the Oil and Gas Conservation Regulations. GOR penalty relief applications face the same issues as GPP. For this reason, when processing a GOR penalty relief application, the ERCB will often grant GPP, with full gas conservation as a condition. GOR penalty relief is approved through the application of a net GOR penalty factor, which reduces the GOR penalty by subtracting out any fuel gas or gas delivered to an approved gas gathering system. GOR penalty relief is not automatic when gas is conserved. When GORs rise significantly above the solution GOR of the oil, this indicates that pressure depletion and/or gas cap coning is occurring, neither of which is desirable for optimum oil recovery. These issues must be addressed before an application can be approved, despite ongoing gas conservation. 3.4.1 Using the O-33 Form To apply for GOR penalty relief, operators often use the O-33 form, which was introduced in 1989 as part of Informational Letter (IL) 89-14. The O-33 form is specifically targeted at small (one or two wells), low-quality pools (rates below minimum allowable initial highwater cuts). Directive 065 supersedes the requirements set out in IL 89-14, but the ERCB will continue to accept the O-33 form for small, low-quality oil pools if the conservation and equity issues are not complex. See Appendix C for a copy of the O-33 form. 3.4.2 Requirements for an Application for GOR Penalty Relief For GOR penalty relief application requirements, please use the GPP application requirements and comments (Section 3.3.1). Note that CCP must also be applied for (see Section 2.4) if the high GORs are a result of production from a gas cap. You should also state in your application why you are applying for GOR penalty relief rather than GPP. 3.5 Application for Special Maximum Rate Limitation (MRL) A Special MRL is an MRL approved by the ERCB that is greater than the reserves-based MRL. Special MRLs can be applied to entire pools or individual wells. Relatively few Special MRL applications are received or approved each year because, like GOR penalty relief, Special MRL applications have the same issues involved as GPP. For this reason, when processing a Special MRL application, the ERCB will often grant GPP. A Special MRL is applied for under Section 10.060 of the Oil and Gas Conservation Regulations. 3-36 • ERCB Directive 065: Resources Applications / GOR Penalty Relief (October 2011)
3.5.1 Requirements for an Application for a Special MRL For Special MRL application requirements, please use the GPP application requirements and comments (Section 3.3.1). You should also state in your application why you are applying for Special MRL rather than GPP. ERCB Directive 065: Resources Applications / Special MRL (October 2011) • 3-37
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Directive 065 Revised edition Octob
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6.2 When to Make This Application .
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How to Use This Directive Introduct
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filing applications All other secti
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Gas Conservation Act, Oil and Gas C
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Figure 2. Resources Applications Ev
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DAY MONTH YEAR Resources Applicatio
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Resources Applications Notification
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Table 1. Minimum notification requi
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Unit 1 Equity 1.1 Application for a
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Requirements Comments ii) interpret
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Requirements Comments It is not usu
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51(4)(b), 55(2), and 56, although e
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Requirements Comments vi) the scale
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Requirements b) a statement of the
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1.3 Application for a Common Carrie
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Requirements b) the name of the com
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Requirements Comments iii) completi
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Requirements b) a statement of the
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1.4 Application for a Common Proces
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Requirements 2) A statement of whet
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Requirements wellbore(s), with date
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Requirements Comments into an alloc
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1.5 Application for a Compulsory Po
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Requirements 3) A statement of the
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Requirements ii) interpretation of
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Unit 2 Conservation 2.1 Application
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The ERCB will issue its disposition
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• The holder of the ER approval m
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• The proposed injection wells ha
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3) What is the existing ERCB approv
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important to enter the correct iden
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YES means that your pool interpreta
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Page 69 and 70: Along with the stage of reserves re
Page 71 and 72: If the proposed ER scheme is for a
Page 73 and 74: 3) the forecast annual gas injectio
Page 75 and 76: 2.4 Application for Concurrent Prod
Page 77 and 78: Requirements d) the supporting data
Page 79 and 80: 2.5 Application for Pool Delineatio
Page 81 and 82: Requirements c) an interpreted and
Page 83 and 84: Unit 3 Production Control 3.1 Commi
Page 85 and 86: 3.1.3.4 Compliance Assurance With t
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Page 89 and 90: 3.1.4 Determination of Commingling
Page 91 and 92: Figure 3.2 Decision Tree for the Co
Page 93 and 94: Figure 3.3. Decision Tree to Determ
Page 95 and 96: Figure 3.4. Decision Tree to Determ
Page 97 and 98: If it is anticipated that water vol
Page 99 and 100: commingling a minimum of 15 working
Page 101 and 102: If commingling is desired for pools
Page 103 and 104: Table 3.2 Summary of Requirements f
Page 105 and 106: Requirements • an evaluation of t
Page 107 and 108: Requirements 4) If there are perfor
Page 109 and 110: Requirements c) a tabulation of the
Page 111 and 112: Requirements 18) Identification of
Page 113 and 114: 3.2 Background to Good Production P
Page 115 and 116: Requirements Comments d) a tabulati
Page 117: Requirements Comments more informat
Page 121 and 122: 3.6.3 How the ERCB Processes the Ap
Page 123 and 124: Requirements Comments b) the predic
Page 125 and 126: Requirements Comments considered to
Page 127 and 128: Unit 4 Disposal/Storage 4.1 Applica
Page 129 and 130: Requirements Comments c) porosity a
Page 131 and 132: Requirements 11) A tabulation of yo
Page 133 and 134: Equity—Class II-IV Only Disposal
Page 135 and 136: Requirements Comments 5) A discussi
Page 137 and 138: Requirements porosity, and water sa
Page 139 and 140: Requirements 2) For non-H 2 S gas d
Page 141 and 142: Notification—Equity and Safety Re
Page 143 and 144: Requirements Comments i) stratigrap
Page 145 and 146: Pool Reserves and Deliverability In
Page 147 and 148: Environment and Safety The ERCB is
Page 149 and 150: Unit 5 Corporate Changes 5.1 Change
Page 151 and 152: Unit 6 Gas and Ethane Removal 6.1 B
Page 153 and 154: 6.3.3 Short-Term Ethane Removal App
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Page 159 and 160: Requirements • the zone or zones
Page 161 and 162: Requirements Comments 3) Permit(s)
Page 163 and 164: Unit 7 Application for Special Well
Page 165 and 166: Oil The baseline well density for o
Page 167 and 168: If the ownership within a holding i
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7.2.6 When to File a Spacing Applic
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ack to the Crown. Applications to r
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7.3.1.5 Outstanding Objections All
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• In the case of a commingled wel
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3) The applied-for well density mus
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7.4.6 ERCB Spacing Application Deci
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7.6 Explanatory Notes for Applicati
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7.6.2.4 Application Details 1) What
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Table 7.2. Production and volumetri
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Appendix A References How to Use Th
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Unit 4—Disposal/Storage 4.1 Class
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Appendix B Notification Templates S
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Sample Notice Letters for Commingli
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Sample Template of Notification Let
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Appendix C Application for Gas-Oil
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Appendix D Transfer of Approval AGR
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Appendix E ERCB Staff Contacts* UNI
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Appendix F Enhanced Recovery (ER) S
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Resources Enhanced Recovery (ER) Sc
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10. Provide the following for the p
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Appendix G Gas and Ethane Removal F
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Short-Term Gas Removal Application
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This application is made under Sect
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Long-Term Gas Removal Application (
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Short-Term Ethane Removal Applicati
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Appendix H Gas Reserve Data Sheet E
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Appendix I EAS Well Spacing Applica
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New Spacing Application—Holdings
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Completing the New Spacing Applicat
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• 1 Section • Limited by Buffer
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New Spacing Application—Special D
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Completing the New Spacing Applicat
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Rescind Spacing Application—Holdi
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Completing the Rescind Spacing Appl
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Rescind Spacing Application—Speci
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Completing the Rescind Spacing Appl
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Modify Spacing Application—Holdin
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Completing the Modify Spacing Appli
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Appendix J Special Well Spacing Not
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ERCB that you do not want to appear
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OR As [Company] is the lessee of yo
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Appendix K Special Well Spacing Att
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Lessee Map and Notification Area Sh
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Appendix L Standard Target Areas an
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Appendix M Target Area Descriptions
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Appendix N Special Well Spacing Dec
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DECLARATION OF NOTIFICATION _______
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