Directive 065: Resources Applications for Oil and Gas Reservoirs ...
Directive 065: Resources Applications for Oil and Gas Reservoirs ...
Directive 065: Resources Applications for Oil and Gas Reservoirs ...
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Unit 6 <strong>Gas</strong> <strong>and</strong> Ethane Removal<br />
6.1 Background<br />
The removal of natural gas from the province of Alberta is governed by the <strong>Gas</strong> <strong>Resources</strong><br />
Preservation Act (GRPA). A major reason <strong>for</strong> gas removal permits is to control the amount of<br />
gas leaving the province <strong>and</strong> thereby ensure that Albertans have an adequate supply. The<br />
ERCB completes an annual calculation that indicates whether or not there is gas available <strong>for</strong><br />
inclusion in gas removal permits, taking into account a 15-year supply <strong>for</strong> the core Alberta<br />
market <strong>and</strong> obligations resulting from existing gas removal permits. Report 87-A: <strong>Gas</strong> Supply<br />
Protection <strong>for</strong> Alberta, available from ERCB In<strong>for</strong>mation Services, presents the ERCB’s<br />
policies on gas supply matters. While the <strong>for</strong>ms <strong>and</strong> procedures in this document have been<br />
superseded, the report continues to provide valid in<strong>for</strong>mation regarding gas supply protection<br />
<strong>for</strong> Alberta.<br />
As set out in the GRPA, there are two types of gas removal permits:<br />
• Short-term gas removal permits involve the removal of not more than 3 billion cubic<br />
metres (m 3 ) of gas over a period of not more than two years. These permits may be used<br />
<strong>for</strong> any market.<br />
• Long-term gas removal permits involve the removal of gas in volumes greater than<br />
3 billion m 3 of gas or permit terms longer than two years. These permits are market<br />
specific <strong>and</strong> may be used only to serve the market(s) described in the applications that<br />
resulted in the permits.<br />
This directive replaces In<strong>for</strong>mational Letter (IL) 96-5: Requirements <strong>for</strong> <strong>Applications</strong> <strong>for</strong><br />
Permits to Remove <strong>Gas</strong> from Alberta. The directive updates existing requirements but does<br />
not introduce any changes in gas removal policy or new requirements <strong>for</strong> applications <strong>for</strong> the<br />
removal of natural gas. Additionally, the directive sets out the requirements <strong>for</strong> ethane<br />
removal permits. These requirements were not previously set out in any document but were<br />
h<strong>and</strong>led on an ad hoc basis.<br />
6.2 When to Make This Application<br />
Under the GRPA, any party wishing to remove natural gas or ethane out of Alberta must<br />
apply to the ERCB under Section 2 of the GRPA <strong>for</strong> a permit to authorize such removal of<br />
gas. No ERCB permits are required to take propanes, butanes, pentanes, other natural gas<br />
liquids, or oil out of Alberta. No permits from the ERCB are required to import gas into the<br />
province.<br />
If there are corporate changes such that the party desiring to use a permit is not the permittee<br />
named in the permit, an application must be filed to amend the permit holder name in the<br />
permit.<br />
6.3 How the ERCB Processes the Application<br />
<strong>Applications</strong> <strong>for</strong> gas <strong>and</strong> ethane removal permits <strong>and</strong> <strong>for</strong> amendments of existing<br />
gas removal permits must be filed using one of the application <strong>for</strong>ms included in<br />
Appendix G.<br />
ERCB <strong>Directive</strong> <strong>065</strong>: <strong>Resources</strong> <strong>Applications</strong> / <strong>Gas</strong> <strong>and</strong> Ethane Removal (October 2011) • 6-1