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

typically also includes requests under Section 53(5)(a) for allocation of production among
wells in a pool and under Section 56 respecting the effective date of an order. Requests under
Sections 53 and 56 should be included in the same application. A request under Section 55(2)
for the ERCB to set a processing fee may be filed together with the initial request for the
declaration of the common processor or after the common processor order has been issued
and the parties have attempted but failed to reach an agreement on the fee to be paid.
1.4.4 How the ERCB Processes the Application
In evaluating an application for a common processor order, the ERCB considers whether the
applicant has demonstrated that
• producible reserves are available for processing and processing facilities are needed,
• reasonable arrangements for use of processing capacity in the subject processing plant
could not be agreed upon by the parties,
• the proposed common processor operation is either the only economically feasible or
most practical way to process the gas in question or is clearly superior environmentally,
and
• when an application is being made under Sections 42(5)(a), 42(5)(b), and/or 55(2) of the
OGCA for the allocation of production, a direction of the total volume of gas from the
pool to be processed at the plant, and/or the setting of a processing fee, the applicant
could not make reasonable arrangements on these matters.
Each application for a common processor order proceeds to a public hearing.
1.4.5 Requirements for an Application for a Common Processor 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 53 of the
OGCA,
b) the name of the company to be
designated as the common processor,
c) a reference to the pool or pools to which
the proposed common processor
declaration would apply,
d) the name and the location of the
processing plant to which the proposed
common processor order would apply,
and
Comments
For example, Company X applies under
Section 53 of the OGCA for an order
declaring Company Z to be a common
processor of gas produced from the
Woodward Viking A Pool through the
Grande Coulee Gas Plant located at LSD.
Company X also requests, pursuant to
Section 45 of the OGCA, that the order be
effective as of the date of the application and
that, pursuant to Section 42(5)(a) of the
OGCA, the ERCB direct the proportion of
production to be taken by the common
processor from each producer or owner in the
Woodward Viking A Pool.
e) the proposed effective date of the order.
1-22 • ERCB Directive 065: Resources Applications / Common Processor (October 2011)