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

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

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How to Use This <strong>Directive</strong><br />

Introduction<br />

<strong>Directive</strong> <strong>065</strong> details the process to apply to the Energy <strong>Resources</strong> Conservation Board<br />

(ERCB) <strong>for</strong> all necessary approvals to establish the strategy <strong>and</strong> plan to deplete a pool or<br />

portion of a pool using one resource application. Previously, the requirements were mainly<br />

found in Part 15 of the <strong>Oil</strong> <strong>and</strong> <strong>Gas</strong> Conservation Regulations.<br />

This directive also enables you to review in a single document the application requirements<br />

<strong>and</strong> the explanations <strong>for</strong> those requirements <strong>for</strong> most conventional oil <strong>and</strong> gas reservoir topics<br />

considered in an application <strong>for</strong> ERCB approval. “Must” indicates a requirement <strong>for</strong> which<br />

compliance is required <strong>and</strong> is subject to ERCB en<strong>for</strong>cement, while “recommends” indicates a<br />

best practice that can be used but is not an ERCB requirement <strong>and</strong> does not carry an<br />

en<strong>for</strong>cement consequence. The ERCB will conduct periodic reviews of this directive’s<br />

continued usefulness <strong>for</strong> applicants <strong>and</strong> conduct updates based on feedback received <strong>and</strong> reengineering<br />

reviews.<br />

Specific resource applications are required to allow the ERCB <strong>and</strong> potentially affected<br />

parties, often with competing interests, to underst<strong>and</strong> <strong>and</strong> test the appropriateness or impact<br />

of depletion plans at critical milestones. Other resource applications may address revisions to<br />

the baseline set of depletion or equity rules <strong>and</strong> reservoir descriptions. Some resource<br />

applications address known equity disputes arising from different ownership, limited<br />

opportunity to produce, or access constraints to established facilities. If such issues are not<br />

resolved, these applications go directly to a hearing.<br />

The ERCB reviews all resource applications to ensure that the appropriate level of reservoir<br />

engineering <strong>and</strong> geological science is applied in managing poolwide depletion <strong>and</strong> that<br />

potential impacts on other stakeholders are identified <strong>and</strong> dealt with fairly. Because<br />

individual reservoirs are unique, detailed assessments may be necessary to ensure that the<br />

depletion plan is appropriate <strong>and</strong> recovery is in the public interest. You must provide<br />

sufficient up-front in<strong>for</strong>mation <strong>and</strong> analysis to support the reasonableness of your<br />

applications.<br />

The ERCB has compiled this comprehensive directive to support a level playing field <strong>for</strong> all<br />

applicants. Applicants are expected to know <strong>and</strong> underst<strong>and</strong> requirements <strong>and</strong> file accurate<br />

<strong>and</strong> complete applications. ERCB staff will not complete missing application requirements,<br />

such as raw data collection <strong>and</strong> supporting analytical discussion. Instead, ERCB staff will test<br />

assumptions, check completeness <strong>and</strong> accuracy of data <strong>and</strong> assessments, <strong>and</strong> test alternatives.<br />

What This <strong>Directive</strong> Contains<br />

This directive includes <strong>Resources</strong> <strong>Applications</strong> – Schedule 1 registration <strong>for</strong>m, guidelines on<br />

notification requirements, <strong>and</strong> seven units that address detailed in<strong>for</strong>mation requirements <strong>for</strong><br />

specific regulatory topics, as well as appendices giving reference sources <strong>and</strong> other support<br />

in<strong>for</strong>mation.<br />

Applicants must prepare the following resources applications using the on-line Schedule 1<br />

<strong>for</strong>m. This will provide the ERCB with key in<strong>for</strong>mation about the applicant, the type of<br />

application, the area of application, <strong>and</strong> details of notice to potentially affected parties<br />

undertaken by the applicant.<br />

The resources applications <strong>for</strong> which this directive applies are divided into units as follows:<br />

1) Equity: rateable take, common purchaser, common carrier, common processor, <strong>and</strong><br />

ERCB <strong>Directive</strong> <strong>065</strong>: <strong>Resources</strong> <strong>Applications</strong> / How to Use This <strong>Directive</strong> (October 2011) • 5

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