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Bulletin 2010-09

February 17, 2010

Interim Relief from Annual Pressure Testing Requirements for Coalbed Methane Pressure and Flow Control Wells for 2010

In July 2009, the Energy Resources Conservation Board (ERCB) established an initiative to develop a new regulatory framework for unconventional gas. This initiative is consistent with the ERCB’s commitment to improve its regulatory processes. As part of this initiative, the ERCB announces interim relief from annual pressure testing requirements for the 2010 calendar year for all coalbed methane (CBM) pressure and flow control wells.

Section 11.145(1) of the Oil and Gas Conservation Regulations and Directive 040: Pressure and Deliverability Testing Oil and Gas Wells require annual pressure testing and reporting for each coal zone in CBM pressure and flow control wells.  The ERCB hereby grants interim relief from this requirement for calendar year 2010.

The ERCB is reviewing testing requirements for CBM control wells, including annual pressure testing requirements, and views interim relief from annual pressure testing for 2010 to be justified given the uncertainty around the quality and use of these data and the cost associated with their collection.

Pressure and flow control wells continue to be required for all CBM production, and initial pressures and initial and annual flow data continue to be required for all control wells. Desorption control well requirements are not affected by this relief. The results of all pressure tests conducted must still be submitted to the ERCB.

This change reflects the ongoing commitment to improve the ERCB’s unconventional gas regulatory framework.

Questions regarding the interim relief can be directed to
Curtis Evans
Energy Resources Conservation Board
640 - 5 Avenue SW
Calgary, Alberta  T2P 3G4
Telephone: 403-297-8386
Fax:  403-297-8122
E-mail:  curtis.evans@ercb.ca

<original signed by>

Stephen Smith
Executive Manager
Applications Branch