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

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Unit 7<br />

Application <strong>for</strong> Special Well Spacing<br />

7.1 Introduction<br />

Well spacing defines the number of subsurface drainage locations necessary to maximize oil<br />

or gas recovery from a specific pool or <strong>for</strong>mation. The objectives of spacing regulations are<br />

to promote conservation through efficient <strong>and</strong> orderly development of reservoirs <strong>and</strong> to<br />

protect the equity of mineral rights owners.<br />

In accordance with Section 16(1) of the <strong>Oil</strong> <strong>and</strong> <strong>Gas</strong> Conservation Act (OGCA), a working<br />

interest participant with the right to produce may, <strong>for</strong> one or more of the following reasons,<br />

apply <strong>for</strong> special well spacing that would allow <strong>for</strong> an increase in well density with more<br />

flexibility <strong>for</strong> well placement in a drilling spacing unit (DSU):<br />

• recovery would be improved,<br />

• additional wells are necessary to provide capacity to drain the pool at a reasonable rate<br />

without adversely affecting recovery from the pool,<br />

• the spacing has already been substantially established in a pool, <strong>and</strong> the proposed spacing<br />

provisions are equal to or more restrictive than the established pool spacing.<br />

Well spacing applications that do not clearly meet one of the above criteria to establish<br />

special well spacing will be closed. All applications <strong>for</strong> special well spacing must be made in<br />

accordance with <strong>Directive</strong> <strong>065</strong> <strong>and</strong> must be supported by proper engineering arguments <strong>and</strong><br />

analysis <strong>and</strong> by associated production, geological, <strong>and</strong> other engineering data.<br />

Well spacing applications approved by the ERCB are displayed on the Well Spacing Map.<br />

The disposition documents <strong>for</strong> all spacing applications can be viewed <strong>for</strong> 30 days after they<br />

have been issued using the Integrated Application Registry (IAR) Query. Both the Well<br />

Spacing Map <strong>and</strong> the IAR Query can be accessed through Quick Links or the DDS system on<br />

the ERCB Web site www.ercb.ca.<br />

7.2 Background<br />

7.2.1 St<strong>and</strong>ard Drilling Spacing Units, Target Areas, <strong>and</strong> Baseline Well Densities<br />

The ERCB has authority under the OGCA to designate drilling spacing units (DSUs) <strong>and</strong><br />

target areas <strong>and</strong> to make or amend regulations pertaining to them.<br />

As described in Part 4 of the <strong>Oil</strong> <strong>and</strong> <strong>Gas</strong> Conservation Regulations (OGCR), the st<strong>and</strong>ard<br />

DSU is one section <strong>for</strong> a gas well <strong>and</strong> one quarter section <strong>for</strong> an oil well. St<strong>and</strong>ard target area<br />

orientation—consistent throughout the province—is the central part of the DSU, except in gas<br />

DSUs in the area identified in Schedule 13A of the OGCR <strong>and</strong> shown in Figure 7.1. Target<br />

areas <strong>for</strong> st<strong>and</strong>ard oil <strong>and</strong> gas DSUs are as follows:<br />

• For a gas well producing from the area shown in Schedule 13A, the target area is at least<br />

150 m from the south <strong>and</strong> west boundaries of the section.<br />

• For a gas well producing from areas not included in Schedule 13A, the target area is at<br />

least 150 m from all boundaries of the section.<br />

• For an oil well producing from all areas of the province, the target area is at least<br />

100 m from all boundaries of the quarter section.<br />

Note that a well originally drilled on target in a DSU will always be considered on target<br />

regardless of any subsequent spacing approvals.<br />

ERCB <strong>Directive</strong> <strong>065</strong>: <strong>Resources</strong> <strong>Applications</strong> / Application <strong>for</strong> Special Well Spacing (October 2011) • 7-1

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