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

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compulsory pooling 2) Conservation: enhanced recovery scheme (gas cycling, waterflood, immiscible gas flood, miscible flood), concurrent production, and pool delineation and ultimate reserves 3) Production Control: commingled production, good production practice (primary depletion pools), gas-oil ratio penalty relief, special maximum rate limitation, and gas allowable 4) Disposal/Storage: disposal (water and waste), acid gas disposal, and underground gas storage 5) Corporate Changes: change in name of the holder of an ERCB approval and change in holder of an ERCB approval 6) Gas and Ethane Removal: short and long-term natural gas removal, short-term ethane removal. 7) Special Well Spacing: holdings or units, special drilling spacing units, rescind a special drilling spacing unit, rescind a holding or unit, and modify spacing. The appendices include • list of references • notification templates • Application for Gas-Oil Ratio Penalty Relief (Form O-33) • Transfer of Approval form • list of ERCB contacts • Enhanced Recovery Scheme application form • gas and ethane removal application forms • Gas Reserves Data Sheet • EAS well spacing application forms and explanatory notes • special well spacing notification templates • special well spacing attachment examples • standard target areas and buffer zones • target area descriptions for special well spacing before October 6, 2011 You are strongly encouraged to become familiar with the references listed in Appendix A before completing your applications. What’s New in Directive 065 In this October 2011 edition of Directive 065: • Section 1.5.2 has been amended to reflect how the ERCB currently processes applications for compulsory pooling orders • Unit 7: Application for Special Well Spacing, Section 7.2, has been updated to incorporate changes to the provincial well spacing framework for conventional and unconventional oil and gas reservoirs, as announced in Bulletin 2011-29: Changes to the Province-Wide Framework for Well Spacing for Conventional and Unconventional Oil and Gas Reservoirs, and detail revisions to the application processes • Multiple references to the OGCR have been updated in response to the provincial framework changes • Appendix M and N on special well spacing have been added to further assist applicants in 6 • ERCB Directive 065: Resources Applications / How to Use This Directive (October 2011)
filing applications All other sections from the August 2010 edition remain unchanged. Procedure for Reviewing Application Figure 1 shows the overall oil and gas resources applications process, Figure 2 shows the oil and gas resources applications evaluation process, and Figure 3 shows well spacing applications evaluation. Step 1: Application Registration All resources applications contained in this directive must be submitted electronically through DDS on the ERCB Web site www.ercb.ca. The ERCB assigns each application package a unique application number. Applicants are encouraged to confirm the registration and contact information of their application by checking the Integrated Application Registry (IAR), accessible from the Applications page on the ERCB’s Web site www.ercb.ca. Note that all data must be submitted using metric units (SI). Step 2: Corporate Record Check All applications are subject to a corporate check to verify acceptable performance records and other information in ERCB files. Applicants seeking formal approval must hold a valid company code issued by the ERCB’s Corporate Compliance Group. If you are a first-time applicant, you must obtain a company code by filing a corporate profile with the ERCB’s Corporate Compliance Group. Information packages are available from the Corporate Compliance Group at (403) 297-8320. You must update your corporate profile when asked to do so by the ERCB. ERCB approvals identify the applicant as the holder of the approval, and this party is responsible and accountable for compliance with all regulations and the approval conditions. Applicants requesting changes to a general order of the ERCB, reservoir description, and operational practices not requiring a change to an approval do not need to have a company code but must have a valid interest in the pool. If you are on “refer” status due to an unresolved serious noncompliance problem, the ERCB may ask additional questions, including questions related to corporate accountability, technical competency, and corporate commitment to compliance with provincial standards, as part of the ERCB enforcement policy detailed in Directive 019: Compliance Assurance. In the case of a “refer” status, ERCB Board members are directly involved in the consideration of any application, which may include a decision to go to a hearing. Otherwise, the application is normally reviewed and, if appropriate, approved by the delegated work groups within the ERCB. Step 3: Application Returned or Delayed if Incomplete Effective October 1, 2000, the ERCB will no longer process an application identified in this directive if it is substantially incomplete (i.e., has a major deficiency). It will be returned to you with an explanation. An example of such a major deficiency is the complete omission of an entire key information segment of any unit requirements, such as the geological description. If the application has minor deficiencies, such as lacking specific information needed to make a decision, you will be provided with a clear explanation and given 5 working days to respond. Failure to respond in this time frame will result in the ERCB ERCB Directive 065: Resources Applications / How to Use This Directive (October 2011) • 7
Page 1 and 2: Directive 065 Revised edition Octob
Page 3 and 4: 6.2 When to Make This Application .
Page 5: How to Use This Directive Introduct
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
Page 55 and 56: 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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