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

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ack to the Crown. <strong>Applications</strong> to rescind holdings must be filed on behalf of all working<br />

interest owners except where the l<strong>and</strong>s have reverted to the Crown.<br />

There are no notification requirements <strong>for</strong> an application to rescind a holding.<br />

Note that failure to realign holding boundaries to reflect common ownership is a high risk<br />

noncompliance event (see <strong>Directive</strong> 019).<br />

7.2.8.5 Modify Holdings<br />

A Modify application <strong>for</strong>m must be filed when mineral ownership within an approved<br />

holding boundary is no longer common <strong>and</strong> the boundaries of the holding need to be<br />

realigned to reflect the new area of common ownership. Notification is not required when realigning<br />

holding boundaries. Applicants applying to realign holding boundaries are required<br />

to submit a Declaration of Common Ownership <strong>for</strong>m. Note that l<strong>and</strong>s that have reverted back<br />

to Crown cannot be rescinded using the Modify <strong>for</strong>m, rather they must be rescinded using the<br />

Rescind application <strong>for</strong>m. Applicants applying to realign the boundaries of a holding to<br />

reflect common ownership <strong>and</strong> to rescind l<strong>and</strong>s that have reverted back to Crown must file<br />

two applications <strong>and</strong> relate them on Schedule 1 of the EAS <strong>for</strong>ms.<br />

A Modify application <strong>for</strong>m should be used to remove an interwell distance provision from an<br />

existing holding <strong>and</strong>/or to amend the buffer zone of a holding to reflect the st<strong>and</strong>ard buffer<br />

zone <strong>for</strong> the area. This type of request would have to meet the minimum notification<br />

requirements of <strong>Directive</strong> <strong>065</strong>, Section 7.3.1.<br />

Note that Modify spacing applications that are requesting a st<strong>and</strong>ard buffer zone <strong>and</strong> <strong>for</strong><br />

which the approved well density is less than or equal to the well density allowed <strong>for</strong> by the<br />

OCGR will be closed. In such situations, the holding should be rescinded.<br />

7.3 Application Requirements <strong>and</strong> Expectations<br />

7.3.1 Minimum Notification Requirements<br />

Well spacing applications that have not met all applicable notification requirements will be<br />

closed <strong>and</strong> removed from the ERCB’s agenda. <strong>Applications</strong> to rescind holdings or re-align<br />

holding boundaries have no notification requirements.<br />

Refer to the Notification Guidelines section of <strong>Directive</strong> <strong>065</strong> <strong>for</strong> a detailed discussion on the<br />

objective, purpose, <strong>and</strong> guidelines of the notification process.<br />

7.3.1.1 Preapplication Notification<br />

Applicants must conduct preapplication notification. A minimum 15-business-day response<br />

period from the date the notification letter is mailed is required. An application filed with the<br />

ERCB be<strong>for</strong>e this notification period has expired will be closed.<br />

7.3.1.2 How to Notify<br />

Applicants must use applicable notification template letters (see Appendix J: Spacing<br />

Notification Templates) <strong>and</strong> must provide an accurate description of the entire area of<br />

application, proposed <strong>for</strong>mations/pools, <strong>and</strong> requested provisions.<br />

ERCB <strong>Directive</strong> <strong>065</strong>: <strong>Resources</strong> <strong>Applications</strong> / Application <strong>for</strong> Special Well Spacing (October 2011) • 7-9

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