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

Requirements
6) Name of proposed market(s), and the
location and type of end-use customer(s) to
be served under the permit
Comments
The name of the proposed market is the
company to which the gas would initially be
sold, as well as the names of any other
companies that would acquire the gas prior to
the final sale of the gas to the end-use
customer. The location of the end-use customer
is province(s) in Canada and/or or state(s) in
the United States. The type of end-use
customer could be industrial, commercial,
residential, and electrical generation markets.
7) Are arrangements in place for transporting
the applied-for gas from the Alberta receipt
point(s) to the intended end-use customer(s)?
If all transportation arrangements are in place,
check the Yes box, and proceed to the next
item.
However, if some or all of the transportation
arrangements are not in place, check the No
box, and explain what arrangements have been
made and when it is anticipated that any new
facilities required would be completed. Name
the pipelines ultimately leading to the end-use
market, and state what has been done to ensure
that transportation arrangements will be in
place. While transportation arrangements do
not have to be complete in order to obtain a
long-term gas removal application, steps
should have been taken to acquire them.
8) Provide a summary of the pricing
arrangements and how they were determined
for the applied-for gas. Comment on any
provisions to ensure that prices continue to
reflect market conditions throughout the term
of the permit.
The ERCB does not require specific price
information; however, the method of
determining the price reflects whether such
arrangements are in the public interest of
Albertans. The ERCB considers prices that
adapt to constantly changing conditions and
reflect a fair market value throughout the term
of a permit regardless of the absolute market
price to be in the public interest.
9) Discuss how the applied-for removal of gas
would be in the Alberta public interest.
This should be a general discussion on
provincial public interest matters.
10) Attach a table in the required format of the
lands/zones that would supply the permit or
amended permit, including
• the legal description of all of the lands
involved,
The ERCB’s policy is that a party holding a
long-term permit must have sufficient gas
reserves under control to supply the entire
requested volume of the permit.
6-8 • ERCB Directive 065: Resources Applications / Gas and Ethane Removal (October 2011)