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

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7.3.1.5 Outst<strong>and</strong>ing Objections<br />

All outst<strong>and</strong>ing objections, written <strong>and</strong> verbal, must be included in the application filed with<br />

the ERCB. In the case of a Freehold individual, the objection <strong>and</strong> any related material filed<br />

must not contain confidential or sensitive personal in<strong>for</strong>mation (e.g., medical history,<br />

financial or family issues) unless the individual whom the in<strong>for</strong>mation is about has consented<br />

to it being provided to the ERCB <strong>for</strong> filing on the public record. If an individual does not<br />

provide consent, applicants should discuss with ERCB staff what in<strong>for</strong>mation should be<br />

included with the application to reflect the concerns of that individual. In collecting personal<br />

in<strong>for</strong>mation <strong>and</strong> providing it to the ERCB, applicants must also comply with all personal<br />

in<strong>for</strong>mation protection legislation to which they are subject.<br />

The application must include an explanation of how the applicant has addressed the<br />

unresolved concerns <strong>and</strong> the applicant’s view of how the ERCB should proceed with the<br />

application. In accordance with <strong>Directive</strong> 019 <strong>and</strong> the ERCB Risk Assessed Noncompliances<br />

list (available on the ERCB Web site www.ercb.ca under Industry Zone : Compliance <strong>and</strong><br />

En<strong>for</strong>cement : Risk Assessed Noncompliance), failure to attempt to resolve concerns or to<br />

notify the ERCB of outst<strong>and</strong>ing issues is a High Risk noncompliance event.<br />

7.3.2 Minimum Equity <strong>and</strong> Conservation Requirements<br />

An application <strong>for</strong> new holdings or increased well density within a DSU must include the<br />

following:<br />

• A detailed discussion of how current spacing does not fit near-term development plans.<br />

• A detailed discussion on how the proposed spacing will affect hydrocarbon recovery.<br />

• A detailed discussion <strong>and</strong> analysis of how the well in<strong>for</strong>mation provided in the Well<br />

Productivity <strong>and</strong> Volumetric Reserves Form supports the proposed spacing (see Section<br />

7.6.3). Note that if an applicant plans to develop using horizontal wells, the in<strong>for</strong>mation<br />

provided must be from horizontal wells, or explain how the vertical well data provided in<br />

the application supports the proposed horizontal development.<br />

• In areas <strong>for</strong> which limited production data is available, the applicant must provide<br />

geological evidence of the resource being present throughout the entire area of<br />

application <strong>and</strong> of the quality of the reservoir (e.g., geological cross sections, geological<br />

analysis, <strong>and</strong> structural <strong>and</strong> net pay isopach mapping).<br />

• When filing a holding application, a statement citing on what basis the ownership is<br />

common (see Section 7.2.4, Common Ownership).<br />

• If the application is <strong>for</strong> heavy oil, a fluid analysis specifying the oil density of the native<br />

reservoir fluid.<br />

Any additional in<strong>for</strong>mation to fully support the well spacing application should also be<br />

included, such as<br />

• pressure in<strong>for</strong>mation,<br />

• geological discussion,<br />

• geological cross-sections,<br />

• topographical mapping,<br />

• net pay isopach mapping, <strong>and</strong><br />

• development plans (specific locations <strong>and</strong> timing to drill; type of drilling—pad,<br />

horizontal, vertical).<br />

ERCB <strong>Directive</strong> <strong>065</strong>: <strong>Resources</strong> <strong>Applications</strong> / Application <strong>for</strong> Special Well Spacing (October 2011) • 7-11

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