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

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Requirements<br />

Comments<br />

8) If there is not a well on the DSU drilled to<br />

the <strong>for</strong>mation(s) referred to in item 3, a<br />

statement that if an order is made by the<br />

ERCB, you are prepared to drill a well to the<br />

<strong>for</strong>mation(s) in question, <strong>and</strong> in the event<br />

that no production of gas or oil is obtained,<br />

you will pay all costs incurred in the drilling<br />

<strong>and</strong> ab<strong>and</strong>onment of the well in accordance<br />

with Section 80(2)(f) of the OGCA.<br />

9) If there is not a well drilled on the DSU, an<br />

indication of whether you would see any<br />

difficulty in drilling the well within six<br />

months of the date of the proposed order if<br />

issued, <strong>and</strong> if so, an indication of what<br />

would be a more appropriate time limit to<br />

drill.<br />

Section 82(2)(b) of the OGCA implies that a<br />

well should be drilled within six months of<br />

the date of the order.<br />

10) A statement of the operator to be appointed<br />

<strong>for</strong> the well of interest in the proposed<br />

pooling order.<br />

All pooling orders normally include a clause<br />

that names the operator of the well subject to<br />

the pooling order.<br />

11) A statement that the allocation of costs <strong>and</strong><br />

revenues under the pooling order would be<br />

on a tract area basis, or if allocation is<br />

proposed to be on a basis other than an area<br />

basis, the proposed allocation <strong>and</strong> the details<br />

of how the allocation was determined,<br />

including<br />

a) a net pay isopach map of the pool,<br />

including both oil <strong>and</strong> gas if there is an<br />

associated pool,<br />

Section 80(4)(c) of the OGCA indicates that<br />

allocation shall be on an area basis unless it<br />

can be shown to the ERCB that this is<br />

inequitable. Thus, allocation on an area basis<br />

is the normal provision of a pooling order,<br />

<strong>and</strong> an applicant would not need to justify<br />

why it has chosen to request an area-based<br />

allocation.<br />

b) if pool delineation or fluid interfaces<br />

are based on structural interpretation, a<br />

structure contour map of the pool <strong>and</strong><br />

offsetting area,<br />

c) an interpreted <strong>and</strong> annotated log crosssection<br />

or representative well log(s)<br />

showing<br />

i) stratigraphic interpretation of the<br />

zone(s) of interest,<br />

If there is a dispute among the parties<br />

involved regarding the delineation of the<br />

pool(s) in question, you should include an<br />

annotated cross-section in the application; if<br />

there is no dispute respecting this issue, an<br />

annotated representative well log is<br />

sufficient.<br />

1-32 • ERCB <strong>Directive</strong> <strong>065</strong>: <strong>Resources</strong> <strong>Applications</strong> / Compulsory Pooling (October 2011)

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