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

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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)
Requirements • the zone or zones under your company’s control for the lands in question, and • the working interest ownership under your company’s control for the lands/zones. Comments You must supply a list of lands and zones that will supply the requested permit. Typically, a company files one corporate reserves pool (CRP) with the ERCB that lists the lands and zones that supply all of its ERCB permits. To simplify this step of the application process, an electronic file of the CRP should be set up with the ERCB prior to filing a long-term gas removal application. To obtain the specific format required for the CRP to be filed, contact the ERCB’s Business Operations and Development Group at 403-297-2884. After setting up a CRP with the ERCB, request an ERCB Reserves Under Control Table that lists the volume of gas reserves that the ERCB recognizes for the specific land, zone, and working interest information provided. Review this table carefully. If you disagree with the gas volumes listed on the ERCB table associated with a specific section or note that no volumes have been listed for a section, you may request that the ERCB review the reserves associated with the specific section. This may be done by completing the form EG-31(b)-83- 1, included in Appendix H. Attach appropriate isopach maps and supporting information to the form. You should have the results of any requests made in this regard on a revised ERCB Reserves Under Control Table prior to filing any long- term gas removal application. If you already have filed with the ERCB a CPR that is serving a permit and you are applying to amend an existing long-term permit to add a new market, the CRP must have been updated within the last calendar year. Attach the ERCB Reserves Under Control Table to the application. This table must contain up-to-date data and have been produced shortly before the filing of the longterm gas removal application. The table will serve as a public record of the location of the lands that will supply the applied-for gas removal. ERCB Directive 065: Resources Applications / Gas and Ethane Removal (October 2011) • 6-9
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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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2) the expected sweep efficiencies
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Along with the stage of reserves re
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If the proposed ER scheme is for a
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3) the forecast annual gas injectio
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2.4 Application for Concurrent Prod
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Requirements d) the supporting data
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2.5 Application for Pool Delineatio
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Requirements c) an interpreted and
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Unit 3 Production Control 3.1 Commi
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3.1.3.4 Compliance Assurance With t
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• varying interests, and • off-
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3.1.4 Determination of Commingling
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Figure 3.2 Decision Tree for the Co
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Figure 3.3. Decision Tree to Determ
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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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commingling a minimum of 15 working
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If commingling is desired for pools
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Table 3.2 Summary of Requirements f
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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 and 118: Requirements Comments more informat
Page 119 and 120: 3.5.1 Requirements for an Applicati
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
Page 155 and 156: Requirements Comments If an existin
Page 157: Requirements Comments authorized”
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
Page 169 and 170: 7.2.6 When to File a Spacing Applic
Page 171 and 172: ack to the Crown. Applications to r
Page 173 and 174: 7.3.1.5 Outstanding Objections All
Page 175 and 176: • In the case of a commingled wel
Page 177 and 178: 3) The applied-for well density mus
Page 179 and 180: 7.4.6 ERCB Spacing Application Deci
Page 181 and 182: 7.6 Explanatory Notes for Applicati
Page 183 and 184: 7.6.2.4 Application Details 1) What
Page 185 and 186: Table 7.2. Production and volumetri
Page 187 and 188: Appendix A References How to Use Th
Page 189 and 190: Unit 4—Disposal/Storage 4.1 Class
Page 191 and 192: Appendix B Notification Templates S
Page 193 and 194: Sample Notice Letters for Commingli
Page 195 and 196: Sample Template of Notification Let
Page 197 and 198: Appendix C Application for Gas-Oil
Page 199 and 200: Appendix D Transfer of Approval AGR
Page 201 and 202: Appendix E ERCB Staff Contacts* UNI
Page 203 and 204: Appendix F Enhanced Recovery (ER) S
Page 205 and 206: Resources Enhanced Recovery (ER) Sc
Page 207 and 208: 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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