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

If there is a dispute as to the tariff to be paid to the common carrier, either the common carrier
or an owner may also apply for the ERCB to set the price under Sections 55(1) or 55(3) of the
OGCA. An applicant may choose to file an application for the ERCB to set tariffs at the same
time as it files an application under Section 48. However, in most cases where the ERCB is
prepared to grant a common carrier order, the application for the setting of tariffs may be
deferred to allow for additional negotiations.
Usually it would not be necessary for an applicant making a request under Section 48(1) of
the OGCA for the declaration of a common carrier to also make requests under each of
Sections 48(4)(a), 48(4)(b), 55(1) or (3), and 56, although each option is available if there is a
dispute on each issue. For example, an application for the declaration of a common carrier
under Section 48(1) typically also includes requests under Section 48(4)(b) for allocation of
production among wells in a pool and under Section 56 respecting the effective date of an
order. Requests under Sections 48 and 56 should be included in the same application. A
request under Section 55(1) or (3) for the ERCB to set a transportation fee may be filed
together with the initial request for the declaration of the common carrier or after the common
carrier order has been issued and the parties have attempted but failed to reach an agreement
on the fee to be paid.
1.3.4 How the ERCB Processes the Application
In evaluating an application for a common carrier order, the ERCB considers whether the
applicant has demonstrated that
• producible reserves are available for transportation through an existing pipeline,
• there is a reasonable expectation of a market for the substance that is proposed to be
transported by the common carrier operation,
• the applicant could not make reasonable arrangements to use the existing pipeline,
• the proposed common carrier operation is the only economically feasible way, the most
practical way to transport the substance in question, or clearly superior environmentally,
and
• where application is being made under Sections 48(4)(a), 48(4)(b), or 55(1) or (3) of the
OGCA for the designation of a delivery point, the proportion of production to be
delivered to the pipeline, and/or the setting of the transportation fee to be paid, the
applicant could not make reasonable arrangements on these matters.
Each common carrier application proceeds to a public hearing.
1.3.5 Requirements for an Application for a Common Carrier Order (file 12 copies)
Requirements
1) A statement of what is being requested,
including
a) a reference that you are making the
application under Section 48 of the
OGCA,
Comments
For example, Company X applies under
Section 48 of the OGCA for an order
declaring Company Z to be a common carrier
of gas produced from the Woodward Viking
A Pool through a pipeline extending from
LSD x to LSD y and including a field
compressor located in LSD z. Company X
1-14 • ERCB Directive 065: Resources Applications / Common Carrier (October 2011)