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

ownership. Failure to realign holding boundaries to reflect common ownership is a high risk
noncompliance event (see Directive 019: Compliance Assurance).
Note that wells drilled in accordance with the holding boundaries could be considered offtarget
if the holding is rescinded and they were not drilled in accordance to the DSU and
target areas, or they could be in noncompliance if the holding boundaries are realigned and
they are now producing from a buffer zone. For these reasons it is very important that an
applicant only file holding applications for lands that they have immediate plans to develop.
7.2.8.2 Special DSU Application
The use of holdings provides for maximum flexibility to support development plans. If a need
for increased well density is identified, holding applications should be filed. However, DSUs
that are subject to a compulsory pooling order do not qualify for a holding, and in these very
unique cases a special DSU application may be filed to increase well densities beyond those
prescribed in the OGCR.
Divided mineral ownership within a DSU is not a reason to file a special DSU application. If
the mineral owners are unable to voluntarily negotiate a pooling arrangement, a Compulsory
Pooling application may be filed with the ERCB.
Applications for special DSUs will only be considered by the ERCB in unique situations.
Therefore, an applicant wishing to file a special DSU application should contact the ERCB
Resources Applications Group before filing.
Standard target areas must be requested when filing a Special DSU application.
7.2.8.3 Rescinding a Special DSU
Under Section 4.040(5) of the OGCR, an applicant may apply to rescind an existing approved
special DSU. A request to rescind a special DSU must be made using the Rescind form.
Rescinding a special DSU may be necessary if an applicant wishes to develop its minerals in
accordance with the OGCR.
All mineral owners (excepting the Crown) within the area of application must be notified
before filing a Rescind Special DSU application.
A Rescind Special DSU application must create whole contiguous standard drilling spacing
units.
7.2.8.4 Rescinding a Holding
Under Section 5.220(b) of the OGCR, an applicant may apply to rescind all or part of an
existing approved holding. A request to rescind a holding must be made using the Rescind
form. Rescinding all or part of a holding may be necessary if common ownership no longer
exists (also see Section 7.2.4). A common example of such a situation is when a lease for a
DSU within a holding boundary has expired and reverted back to the Crown. All of an
existing approved holding may also be rescinded if the standard spacing prescribed in Part 4
of the OGCR is sufficient.
Applications to remove DSUs from holdings may only be filed for areas where the applicant
has a working interest and wishes to rescind all or part of the holding in favour of the
standard spacing specified in Part 4 of the OGCR or where a lease has expired and reverted
7-8 • ERCB Directive 065: Resources Applications / Application for Special Well Spacing (October 2011)