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

Completing the New Spacing Application—Holdings or Units
For information on filling in Sections 1–5, refer to Unit 7, Section 7.6.2: Spacing Form.
Section 5: Holdings or Units
1) Does your area of application include entire DSUs?
Select YES if each area of application contains whole DSUs.
If you select NO, the application cannot be filed as the area of application must contain whole
DSUs.
2) Does each applied-for holding have common ownership at the lessor and lessee levels?
Select YES if each applied-for holding has common mineral rights ownership at both the lessor
and lessee levels as defined in Section 1.020(2)(4) of the OGCR or ownership is considered
common under Directive 065, Section 7.2.4.
If you select NO, the application cannot be filed as common mineral rights ownership is a
prerequisite to establish a holding (see Section 7.2.4).
This question is not applicable if the application subtype is “Unit.”
3) Is each applied-for holding/unit adjacent to a previously approved area for the same
formation(s)/pool(s)?
Select YES if each applied-for holding or unit in the application area is adjacent to a previously
approved area for the same formation(s) or pool(s). Diagonal DSUs are considered to be adjacent.
Select NO if each applied-for holding or unit area is not adjacent to a previously approved area
for the same formation(s)/pool(s).
4) Does every DSU in each applied-for holding/unit have an adjacent DSU with production data?
Select YES if every DSU in each applied-for holding or unit has an adjacent DSU with well
production data for all applied-for formation(s) or pool(s) within the previously approved area.
(See Figure 7.6: Quick Application Path.)
Select NO if every DSU in each applied-for holding or unit does not have an adjacent DSU with
well production data for all applied-for formation(s)/pool(s) within a previously approved area.
5) Is any part of each applied-for holding/unit within 3 standard DSUs of a previously approved
area for the same formation(s)/pool(s)?
Three standard DSUs is the distance from any boundary of the applied-for holding/unit to any
boundary of a previously approved area. This includes diagonal DSUs. (See Figure 7.6: Standard
Application Path.)
Select YES if any part of each applied-for holding/unit is within 3 standard DSUs of any
boundary of a previously approved holding/unit or reduced DSU for the same formation(s) or
pool(s).
Select NO if any holding within the area of application does not have a boundary that is within 3
standard DSUs of an approval for the same formation(s)/pool(s).
ERCB Directive 065: Resources Applications / Appendix I: EAS Well Spacing Application Forms (October 2011) • A-39