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

Requirements
Comments
7) Where drainage is alleged, a discussion
including
a) evidence showing that the reserves
underlying your lands have been drained
subsequent to the completion of your
well in the pool, and
b) an estimate of the total amount of
inequitable drainage that has occurred
from your lands since your well was
completed in the pool, together with
details of how the drainage was
calculated.
In cases where a well has remained shut in,
drainage may be confirmed by summarizing
at least two pressure tests taken on the well.
If you are arguing that your currently
producing well is not producing at sufficient
rates to recover an equitable share of
production, a
comparison may be made between the actual
produced volume from the well and the
volume the well should have produced to
obtain an equitable share of production. You
should present a detailed calculation showing
how you determined your equitable share of
production.
8) A discussion of your proposal as to how the
ERCB should restrict or distribute
production from the pool that includes
a) a tabulation of the proportion of
production or rate of production that
each well or group of wells should be
allowed to produce, together with the
details of how the proposed
production scheme was obtained, and
b) if considered appropriate, the total
production rate proposed for the pool,
together with the details of how this
rate was determined and why such a
rate should be set, and
c) if specific rates are proposed under item
8(a),
i) an indication of why rates, rather
than a percentage allocation, are
being proposed,
ii) whether the proposed rates are
economic for each well or group of
wells, and
iii) whether each well or group of wells
would be capable of producing at
the proposed rate.
The ERCB usually distributes production
among wells in a pool on a percentage basis,
rather than setting any specific rate or
volume. The proportion of production
allocated to each well is commonly based on
the following formula:
Percentage of pool production for specific
well = 100 x (wellbore net pay x porosity x
gas saturation x area of spacing unit or
validated area for specific well)/(sum of
wellbore net pay x porosity x gas saturation x
area of spacing units or validated areas for
all wells)
Directive 032 and Decision 91-8 discuss the
ERCB’s commonly used allocation formula
and the validated area concept.
The ERCB has not commonly used mapping
as a means to determine hydrocarbon pore
volume in a spacing unit because in many
cases such mapping is highly interpretative.
The ERCB has not normally factored the
deliverability of a well into an allocation
formula to avoid disputes on what constitutes
appropriate well testing. You may propose an
allocation formula other than the commonly
used one; however, you should include
detailed justification as to why the ERCB
should deviate from its usual practice in
determining an allocation formula.
1-4 • ERCB Directive 065: Resources Applications / Rateable Take (October 2011)