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

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7.3.1.3 Whom to Notify At a minimum, applicants must notify the following: • All mineral lessees of oil, gas, and coal that are within the applied-for formations/pools in the application area and within one quarter section of the application area for oil applications and within one section for gas applications surrounding, regardless of provincial boundaries. Notification must be conducted using the Lessees and Unleased Freehold Notification Letter Template in Appendix J. • Any leased individual Freehold mineral owners of oil, gas, and coal that is within the applied-for formations/pools in the application area and within one quarter section of the application area for oil applications and within one section for gas applications, regardless of provincial boundaries. (This notification is for information purposes only, and to support ongoing dialogue between the lessee and the Freehold mineral rights owner.) Notification must be conducted using the Leased Individual Freehold Notification Letter Template in Appendix J. • Any Freehold mineral owners of oil, gas, and coal for which mineral rights in the applied-for formations/pools are unleased within one quarter section of the application area for oil applications and within one section for gas applications surrounding the application area regardless of provincial boundaries. Notification must be conducted using the Lessees and Unleased Freehold Notification Letter Template in Appendix J. Note that for applications to rescind a special DSU, mineral owners notification must be conducted within the area of application only. If any of the above applicable parties are not notified, the applicant must provide an explanation in the Reason for Incomplete Notification attachment. 7.3.1.4 Evidence of Notification Applicants are not required to provide evidence of notification upon registration of a well spacing application, but they are required to attach a Declaration of Notification (see Appendix N). The ERCB may request evidence of notification for any well spacing application. It is the responsibility of the working interest owner who filed the application to keep the evidence on file. Evidence would include the following: • Letters used for notification of the application. • A list of the mineral owners notified (do not provide names of individual Freehold mineral owners in this list unless requested by the ERCB; see the Mineral Rights Ownership and Notification List example in Appendix K: Special Well Spacing Attachment Examples). The percentage of working interests must be specified for mineral owners within the area of application. Applications that include evidence of notification other than the required Declaration of Notification form will be closed except where that information has been specifically requested by the ERCB for an application. Notification that is more than a year old is not considered valid, and re-notification must be conducted for those areas before an application is filed with the ERCB. 7-10 • ERCB Directive 065: Resources Applications / Application for Special Well Spacing (October 2011)
7.3.1.5 Outstanding Objections All outstanding objections, written and verbal, must be included in the application filed with the ERCB. In the case of a Freehold individual, the objection and any related material filed must not contain confidential or sensitive personal information (e.g., medical history, financial or family issues) unless the individual whom the information is about has consented to it being provided to the ERCB for filing on the public record. If an individual does not provide consent, applicants should discuss with ERCB staff what information should be included with the application to reflect the concerns of that individual. In collecting personal information and providing it to the ERCB, applicants must also comply with all personal information protection legislation to which they are subject. The application must include an explanation of how the applicant has addressed the unresolved concerns and the applicant’s view of how the ERCB should proceed with the application. In accordance with Directive 019 and the ERCB Risk Assessed Noncompliances list (available on the ERCB Web site www.ercb.ca under Industry Zone : Compliance and Enforcement : Risk Assessed Noncompliance), failure to attempt to resolve concerns or to notify the ERCB of outstanding issues is a High Risk noncompliance event. 7.3.2 Minimum Equity and Conservation Requirements An application for new holdings or increased well density within a DSU must include the following: • A detailed discussion of how current spacing does not fit near-term development plans. • A detailed discussion on how the proposed spacing will affect hydrocarbon recovery. • A detailed discussion and analysis of how the well information provided in the Well Productivity and Volumetric Reserves Form supports the proposed spacing (see Section 7.6.3). Note that if an applicant plans to develop using horizontal wells, the information provided must be from horizontal wells, or explain how the vertical well data provided in the application supports the proposed horizontal development. • In areas for which limited production data is available, the applicant must provide geological evidence of the resource being present throughout the entire area of application and of the quality of the reservoir (e.g., geological cross sections, geological analysis, and structural and net pay isopach mapping). • When filing a holding application, a statement citing on what basis the ownership is common (see Section 7.2.4, Common Ownership). • If the application is for heavy oil, a fluid analysis specifying the oil density of the native reservoir fluid. Any additional information to fully support the well spacing application should also be included, such as • pressure information, • geological discussion, • geological cross-sections, • topographical mapping, • net pay isopach mapping, and • development plans (specific locations and timing to drill; type of drilling—pad, horizontal, vertical). ERCB Directive 065: Resources Applications / Application for Special Well Spacing (October 2011) • 7-11
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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
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Requirements 4) If there are perfor
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Requirements c) a tabulation of the
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Requirements 18) Identification of
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3.2 Background to Good Production P
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Requirements Comments d) a tabulati
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Requirements Comments more informat
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3.5.1 Requirements for an Applicati
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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 and 158: Requirements Comments authorized”
Page 159 and 160: Requirements • the zone or zones
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
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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
Page 209 and 210: Appendix G Gas and Ethane Removal F
Page 211 and 212: Short-Term Gas Removal Application
Page 213 and 214: This application is made under Sect
Page 215 and 216: Long-Term Gas Removal Application (
Page 217 and 218: Short-Term Ethane Removal Applicati
Page 219 and 220: Appendix H Gas Reserve Data Sheet E
Page 221 and 222: 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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