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

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4 • ERCB Directive 065: Resources Applications / Contents (October 2011)
How to Use This Directive Introduction Directive 065 details the process to apply to the Energy Resources Conservation Board (ERCB) for all necessary approvals to establish the strategy and plan to deplete a pool or portion of a pool using one resource application. Previously, the requirements were mainly found in Part 15 of the Oil and Gas Conservation Regulations. This directive also enables you to review in a single document the application requirements and the explanations for those requirements for most conventional oil and gas reservoir topics considered in an application for ERCB approval. “Must” indicates a requirement for which compliance is required and is subject to ERCB enforcement, while “recommends” indicates a best practice that can be used but is not an ERCB requirement and does not carry an enforcement consequence. The ERCB will conduct periodic reviews of this directive’s continued usefulness for applicants and conduct updates based on feedback received and reengineering reviews. Specific resource applications are required to allow the ERCB and potentially affected parties, often with competing interests, to understand and test the appropriateness or impact of depletion plans at critical milestones. Other resource applications may address revisions to the baseline set of depletion or equity rules and reservoir descriptions. Some resource applications address known equity disputes arising from different ownership, limited opportunity to produce, or access constraints to established facilities. If such issues are not resolved, these applications go directly to a hearing. The ERCB reviews all resource applications to ensure that the appropriate level of reservoir engineering and geological science is applied in managing poolwide depletion and that potential impacts on other stakeholders are identified and dealt with fairly. Because individual reservoirs are unique, detailed assessments may be necessary to ensure that the depletion plan is appropriate and recovery is in the public interest. You must provide sufficient up-front information and analysis to support the reasonableness of your applications. The ERCB has compiled this comprehensive directive to support a level playing field for all applicants. Applicants are expected to know and understand requirements and file accurate and complete applications. ERCB staff will not complete missing application requirements, such as raw data collection and supporting analytical discussion. Instead, ERCB staff will test assumptions, check completeness and accuracy of data and assessments, and test alternatives. What This Directive Contains This directive includes Resources Applications – Schedule 1 registration form, guidelines on notification requirements, and seven units that address detailed information requirements for specific regulatory topics, as well as appendices giving reference sources and other support information. Applicants must prepare the following resources applications using the on-line Schedule 1 form. This will provide the ERCB with key information about the applicant, the type of application, the area of application, and details of notice to potentially affected parties undertaken by the applicant. The resources applications for which this directive applies are divided into units as follows: 1) Equity: rateable take, common purchaser, common carrier, common processor, and ERCB Directive 065: Resources Applications / How to Use This Directive (October 2011) • 5
Page 1 and 2: Directive 065 Revised edition Octob
Page 3: 6.2 When to Make This Application .
Page 7 and 8: filing applications All other secti
Page 9 and 10: Gas Conservation Act, Oil and Gas C
Page 11 and 12: Figure 2. Resources Applications Ev
Page 13 and 14: DAY MONTH YEAR Resources Applicatio
Page 15 and 16: Resources Applications Notification
Page 17 and 18: Table 1. Minimum notification requi
Page 19 and 20: Unit 1 Equity 1.1 Application for a
Page 21 and 22: Requirements Comments ii) interpret
Page 23 and 24: Requirements Comments It is not usu
Page 25 and 26: 51(4)(b), 55(2), and 56, although e
Page 27 and 28: Requirements Comments vi) the scale
Page 29 and 30: Requirements b) a statement of the
Page 31 and 32: 1.3 Application for a Common Carrie
Page 33 and 34: Requirements b) the name of the com
Page 35 and 36: Requirements Comments iii) completi
Page 37 and 38: Requirements b) a statement of the
Page 39 and 40: 1.4 Application for a Common Proces
Page 41 and 42: Requirements 2) A statement of whet
Page 43 and 44: Requirements wellbore(s), with date
Page 45 and 46: Requirements Comments into an alloc
Page 47 and 48: 1.5 Application for a Compulsory Po
Page 49 and 50: Requirements 3) A statement of the
Page 51 and 52: Requirements ii) interpretation of
Page 53 and 54: Unit 2 Conservation 2.1 Application
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The ERCB will issue its disposition
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• The holder of the ER approval m
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• The proposed injection wells ha
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3) What is the existing ERCB approv
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important to enter the correct iden
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YES means that your pool interpreta
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2) the expected sweep efficiencies
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Along with the stage of reserves re
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If the proposed ER scheme is for a
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3) the forecast annual gas injectio
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2.4 Application for Concurrent Prod
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Requirements d) the supporting data
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2.5 Application for Pool Delineatio
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Requirements c) an interpreted and
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Unit 3 Production Control 3.1 Commi
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3.1.3.4 Compliance Assurance With t
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• varying interests, and • off-
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3.1.4 Determination of Commingling
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Figure 3.2 Decision Tree for the Co
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Figure 3.3. Decision Tree to Determ
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Figure 3.4. Decision Tree to Determ
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If it is anticipated that water vol
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commingling a minimum of 15 working
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If commingling is desired for pools
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Table 3.2 Summary of Requirements f
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Requirements • an evaluation of t
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Requirements 4) If there are perfor
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Requirements c) a tabulation of the
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Requirements 18) Identification of
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3.2 Background to Good Production P
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Requirements Comments d) a tabulati
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Requirements Comments more informat
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3.5.1 Requirements for an Applicati
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3.6.3 How the ERCB Processes the Ap
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Requirements Comments b) the predic
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Requirements Comments considered to
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Unit 4 Disposal/Storage 4.1 Applica
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Requirements Comments c) porosity a
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Requirements 11) A tabulation of yo
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Equity—Class II-IV Only Disposal
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Requirements Comments 5) A discussi
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Requirements porosity, and water sa
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Requirements 2) For non-H 2 S gas d
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Notification—Equity and Safety Re
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Requirements Comments i) stratigrap
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Pool Reserves and Deliverability In
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Environment and Safety The ERCB is
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Unit 5 Corporate Changes 5.1 Change
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Unit 6 Gas and Ethane Removal 6.1 B
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6.3.3 Short-Term Ethane Removal App
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Requirements Comments If an existin
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Requirements Comments authorized”
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Requirements • the zone or zones
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Requirements Comments 3) Permit(s)
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Unit 7 Application for Special Well
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Oil The baseline well density for o
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If the ownership within a holding i
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7.2.6 When to File a Spacing Applic
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ack to the Crown. Applications to r
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7.3.1.5 Outstanding Objections All
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• In the case of a commingled wel
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3) The applied-for well density mus
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7.4.6 ERCB Spacing Application Deci
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7.6 Explanatory Notes for Applicati
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7.6.2.4 Application Details 1) What
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Table 7.2. Production and volumetri
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Appendix A References How to Use Th
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Unit 4—Disposal/Storage 4.1 Class
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Appendix B Notification Templates S
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Sample Notice Letters for Commingli
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Sample Template of Notification Let
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Appendix C Application for Gas-Oil
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Appendix D Transfer of Approval AGR
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Appendix E ERCB Staff Contacts* UNI
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Appendix F Enhanced Recovery (ER) S
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Resources Enhanced Recovery (ER) Sc
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10. Provide the following for the p
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Appendix G Gas and Ethane Removal F
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Short-Term Gas Removal Application
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This application is made under Sect
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Long-Term Gas Removal Application (
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Short-Term Ethane Removal Applicati
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Appendix H Gas Reserve Data Sheet E
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Appendix I EAS Well Spacing Applica
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New Spacing Application—Holdings
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Completing the New Spacing Applicat
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• 1 Section • Limited by Buffer
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New Spacing Application—Special D
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Completing the New Spacing Applicat
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Rescind Spacing Application—Holdi
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Completing the Rescind Spacing Appl
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Rescind Spacing Application—Speci
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Completing the Rescind Spacing Appl
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Modify Spacing Application—Holdin
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Completing the Modify Spacing Appli
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Appendix J Special Well Spacing Not
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ERCB that you do not want to appear
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OR As [Company] is the lessee of yo
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Appendix K Special Well Spacing Att
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Lessee Map and Notification Area Sh
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Appendix L Standard Target Areas an
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Appendix M Target Area Descriptions
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Appendix N Special Well Spacing Dec
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DECLARATION OF NOTIFICATION _______
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