NOTICE OF PREHEARING MEETING
APPLICATIONS NO. 1614134, 1614144, 1614145, 1614198, 1614210, 1617916, 1617921, 1617944, 1620647, AND 1618012
SHELL CANADA LIMITED
WATERTON FIELD

Shell Canada Limited (Shell) applied to the Energy Resources Conservation Board (ERCB/Board) for a licence to drill a well, referred to by Shell as the Waterton 68 well. There are four related applications to construct and operate two pipelines and one facility and to amend an existing facility licence. 

Shell also applied to the ERCB for licences to drill three wells, referred to by Shell as the Castle River 73, Castle River 74, and Castle River 75 wells. There are two related applications for licences to construct and operate two facilities.

All of the above applications are described in detail under the next heading.

The ERCB has decided to hold public hearing(s) respecting the above applications. In addition, the ERCB will hold a prehearing meeting concerning the above applications at Pincher Creek Community Hall, 287 Canyon Drive, Pincher Creek, Alberta, on February 10, 2010, commencing at 9:00 a.m. The matters to be considered include, but are not limited to,

• establishing the scope and purpose of the hearing, and relevant issues to be examined,
• obtaining input from parties about the ERCB holding a single hearing or two separate hearings to consider the Waterton 68 and Castle River Applications,
• discussing group representation and the use of expert witnesses,
• establishing the timing and location of the public hearing,
• discussing motions received by the Board from interested parties,
• identifying the procedures to be used in the hearing,
• identifying the participants and their roles in the hearing,
• discussing the funding of the participants, and
• any other matters as necessary.

The purpose of the prehearing meeting is to obtain parties’ views on the matters listed above. Please note, the prehearing meeting will not hear evidence or argument pertaining to the merits of the applications or objections. Parties will have an opportunity to present evidence, cross-examine witnesses, and make arguments regarding the merits of the applications at the public hearing(s) of the applications.

The ERCB will confirm actual hearing(s) dates after the prehearing meeting.

Description of the Waterton 68 Applications

Application No. 1614134 (WT68)
Shell applied, pursuant to Section 2.020 of the Oil and Gas Conservation Regulations (OGCR), for a licence to drill a directional well from surface location Legal Subdivison (LSD) 10, Section 1, Township 6, Range 3, West of the 5th Meridian, about 5.8 kilometres (km) southwest of Beaver Mines, Alberta, to bottomhole location LSD 12-36-5-3W5M to obtain gas with a maximum hydrogen sulphide (H2S) concentration of 35.6 per cent from the Rundle Group Formation. The well would be operated as a level-3 well.

Application No. 1614145
Shell applied, pursuant to Section 7.002(1) of the OGCR, for approval to construct and operate a single-well gas battery at LSD 10-1-6-3W5M to handle production from the proposed well at LSD 10-1-6-3W5M. The maximum H2S concentration would be 32.0 per cent.

Application No. 1614144
Shell applied, pursuant to Section 7.002(1) of the OGCR, for approval to amend the existing Facility Licence No. 28757 to install and operate a 71 kilowatt (kW) fuel gas compressor at LSD 6-12-6-3W5M to provide high-pressure gas for maintenance and other operations. The maximum H2S concentration at the existing facility is 32.0 per cent.

Application No. 1614210
Shell applied, pursuant to Part 4 of the Pipeline Act, for approval to construct and operate a pipeline to transport natural gas with a maximum H2S concentration of 32.0 per cent from LSD 10-1-6-3W5M to LSD 6-12-6-3W5M. The proposed pipeline would be about 1200 metres (m) in length, with a maximum outside diameter of 168.3 millimetres (mm), and would operate as a level-2 pipeline.

Application No. 1614198
Shell applied, pursuant to Part 4 of the Pipeline Act, for approval to construct and operate a pipeline to transport fuel gas with no H2S from LSD 6-12-6-3W5M to LSD 10-1-6-3W5M. The proposed pipeline would be about 1200 m in length, with a maximum outside diameter of 60.3 mm.

Description of the Castle River Applications

Application No. 1617916 (CR73)
Shell applied, pursuant to Section 2.020 of the OGCR, for a licence to drill a directional well from surface location LSD 5-20-6-2W5M, about 4.3 km northwest of Beaver Mines to bottomhole location LSD 5-16-6-2W5M to obtain gas with a maximum H2S concentration of 35.6 per cent from the Rundle Group Formation. The well would operate as a level-3 well.

Application No. 1617944 (CR75)
Shell applied, pursuant to Section 2.020 of the OGCR, for a licence to drill a directional well from surface location LSD 5-20-6-2W5M, about 4.3 km northwest of Beaver Mines to bottomhole location LSD 1-17-6-2W5M to obtain gas with a maximum H2S concentration of 25.0 per cent from the Wabamun Group Formation. The well would also penetrate the Rundle Group Formation with a maximum H2S concentration of 35.6 per cent, however, the Rundle Group Formation would not be targeted for gas production. The well would operate as a level-3 well.

Application No. 1617921 (CR74)
Shell applied, pursuant to Section 2.020 of the OGCR for a resumption of existing Well Licence No. 0235273 to re-enter an existing wellbore and sidetrack drill at surface location LSD 6-17-6-2W5M, about 3.3 km west of Beaver Mines to bottomhole location LSD 4-20-6-2W5M to obtain gas with a maximum H2S concentration of 25.0 per cent from the Wabamun Group Formation. The well would operate as a level-3 well.

Application No. 1620647
Shell applied, pursuant to Section 7.002(1) of the OGCR, for approval to construct and operate two compressors at LSD 5-20-6-2W5M; a 71 kW gas-driven fuel gas compressor to provide high-pressure gas for maintenance and other operations and a 6115 kW electric-driven gas compressor to increase the pressure of the gas for transportation. The maximum H2S concentration of the gas to be processed at this facility would be 32.0 per cent and would operate as a level-3 facility.

Application No. 1618012
Shell applied, pursuant to Section 7.002(1) of the OGCR, for approval to construct and operate a 71 kW fuel gas compressor at LSD 6-17-6-2W5M to provide high-pressure gas for maintenance and other operations. The maximum H2S concentration of the gas to be processed at this facility would be 32.0 per cent, and it would operate as a level-3 facility.

To obtain a copy of the applications, contact

Shell Canada Limited
400–4 Avenue SW
P.O Box 100, Station M
Calgary, Alberta  T2P 2H5
Attention: Greg Krauss, Regulatory Coordinator
Telephone: 403-691-2971
Fax: 403-691-2379

To view a copy of the applications and supporting documents, contact

ERCB Information Services
Main floor, 640–5 Avenue SW
Calgary, Alberta  T2P 3G4
Telephone: 403-297-8311 (Option 2)
Viewing hours: 9:00 a.m. to 3:00 p.m. 

Midnapore Field Centre
320, 295 Midpark Way SE
Calgary, Alberta  T2X 2A8
Telephone: 403-297-8303

Filing of Submissions Respecting the Prehearing Meeting
It is not necessary to file any written views prior to the prehearing meeting. Presentations may be made verbally at the prehearing meeting. However, if you wish to file a written submission to the prehearing meeting, please provide 12 copies of the submission to the Application Coordinator, Dean Campbell, at the address noted below and one copy to Shell at the address noted above prior to January 18, 2010.

Applications for Confidentiality
In accordance with Section 13 of the Energy Resources Conservation Board Rules of Practice (Rules of Practice), all documents filed in respect of this proceeding must be placed on the public record. However, any party may apply for confidentiality of information under Section 13(2). Any application under Section 13(2) that is to be considered during a public hearing of the application must be copied to the other parties to the proceeding. The Board may grant a request for confidentiality on any terms it considers appropriate, subject to the Freedom of Information and Protection of Privacy Act.

Questions of Constitutional Law
Under Section 25 of the Rules of Practice, a person who intends to raise a question of constitutional law before the Board must give notice in accordance with Section 12 of the Administrative Procedures and Jurisdiction Act and its regulation.

For information about ERCB procedures, contact
Applications Branch, Facilities Applications Group
Attention: Dean Campbell, Applications Coordinator
Telephone: 403-297-8474
Fax: 403-297-4117
E-mail: dean.campbell@ercb.ca

Issued at Calgary, Alberta, on December 31, 2009.
ENERGY RESOURCES CONSERVATION BOARD
Patricia M. Johnston, Q.C., General Counsel
 
Figure 1 Proposed Waterton 68 and Castle River Applications