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

Requirements
15) If you are requesting, pursuant to Section 56
of the OGCA, that the proposed order be
effective prior to the date the order is issued
but not prior to the date the application for
the order was made to the ERCB, a
discussion as to why the order should be
effective on the requested date, including
Comments
a) the steps that you have taken to market
your production, and
b) an indication of whether your well is
tied into a gathering system and, if not,
why the order should be made on a
retroactive basis.
16) If you are requesting, pursuant to Section
55(1) or (3) of the OGCA, that the ERCB set
the fee to be paid to the common carrier for
the transportation of the gas or oil,
a) a discussion and documentation
indicating what negotiations were
carried out respecting the fee to be paid
and where the impasse lies,
b) a statement of the fee you propose be
paid for the transportation of the gas or
oil under the common carrier order,
together with a discussion of why you
believe the fee proposed is fair in
comparison to the fee offered,
c) if you have calculated the fee you
propose be paid using the JP-05
formulas,
i) a tabulation of the values used in the
calculations, and
ii) a discussion of the basis and/or
source for each value used in the
calculation, and
d) if you have calculated the fee you
propose be paid using a methodology
other than the JP-05 formulas (see
Comments column), a detailed
discussion of how the fee was obtained
and why the ERCB should used the
methodology proposed rather than the
JP-05 formula.
If you are not asking the ERCB to set the
tariff to be charged by the common carrier
for the transportation of the gas under the
common carrier order, you do not need to
include the information noted in item 16.
Your response to item 16(a) may be
combined with your response to item 4.
Normally, the ERCB would consider setting
the fee to be paid under a common carrier
order only if there were a specific dispute on
the fee issue. Therefore, if you are requesting
the ERCB to set the fee, you must show that
this is a specific area of dispute and that you
have made substantial efforts to negotiate a
resolution to the matter prior to making this
request.
Decision 2006-021 confirms the ERCB’s
support for the setting of tariffs and fees
using the formula and principles set out in
JP-05: A Recommended Practice for the
Negotiation of Processing Fees (JP-05).
You may propose an alternative way of
calculating a fair fee other than the JP-05
formula; however, you should offer detailed
justification as to why the ERCB should not
use the JP-05 formula for the case in
question.
1-20 • ERCB Directive 065: Resources Applications / Common Carrier (October 2011)