NEW EDITION OF DIRECTIVE 065 ISSUED - INCLUDING WELL SPACING NOTIFICATION REQUIREMENTS REGARDING CHANGES TO RESERVOIR-RELATED WELL SPACING REGULATIONS, APPLICATION REQUIREMENTS AND APPLICATION REVIEW PROCESS

In Bulletin 2006-05: Changes to Reservoir-Related Well Spacing Regulations, Application Requirements, and Application Review Process, the Alberta Energy and Utilities Board (EUB) announced its decision on staff recommendations for changes to well spacing regulations, application requirements, and application review process as well as an implementation schedule.

Bulletin 2006-29 announces a new edition of Directive 065: Resources Applications for Conventional Oil and Gas Reservoirs, which includes changes to notification requirements for Well Spacing Applications. Effective August 11, 2006, notification of a well spacing application must be conducted and the notification period completed prior to filing an application with the EUB. Further, parties requiring notification have been broadened to include Freehold mineral owners whose mineral rights have been leased.

In addition, the Notification Guidelines section and Appendix B have been revised to reflect current notification practices and requirements for all resources application types. Appendix B now includes notification templates for well spacing applications, and it is a Directive 065 requirement that these templates be used for notification of a well spacing application. Section 1.6 has also been revised to provide clarification of requirements respecting spacing applications. More changes to well spacing application requirements are currently being worked on, and additional revisions to Directive 065 should be expected in the future.

The new edition of Directive 065 is available on the EUB Web site at www.ercb.ca/docs/documents/directives/Directive065.pdf.

Background information on the well spacing initiative is in Bulletins 2005-08, 2006-05, and 2006-24, which are available on the EUB Web site at www.ercb.ca.

Questions and concerns regarding this bulletin may also be directed to the EUB Customer Contact Centre at (403) 297-8311 or by e-mail to EUB.Spacing@gov.ab.ca.

The EUB will continue to maintain its Spacing Initiative Web page as new information becomes available.

[Original signed by]

Michael J. Bruni, Q.C.
Executive Manager
Energy Team