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

Requirements
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.
Comments
In cases where a well has remained shut in,
you may confirm drainage by summarizing a
minimum of 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, you may make a comparison
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.
11) A discussion of the practicability,
economics, and any environmental concerns
of
a) the proposed common carrier operation,
b) the alternative of building new facilities,
For each case, the economic analysis should
include a detailed itemization of all costs
used (excluding sunk costs), forecasts of
production and revenue streams, and
tabulations of before-tax rate of return,
payback, and present value analyses.
c) the alternative of using other facilities
(such as taking the gas to another
existing plant), and
d) any other alternatives available.
12) A discussion of the availability or the
reasonable expectation of a market for the
oil, gas, or synthetic crude oil that would be
transported in the common carrier operation.
13) If you are requesting, pursuant to Section
48(4)(a) of the OGCA, that the ERCB, to
give effect to the common carrier
declaration, direct the point at which the
common carrier shall take delivery of any
production to be gathered, transported,
handled, or delivered by means of the
subject pipeline,
a) a discussion and documentation
indicating what negotiations were
carried out in regard to a delivery point
and where the impasse lies,
1-18 • ERCB Directive 065: Resources Applications / Common Carrier (October 2011)