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News Release

FOR IMMEDIATE RELEASE

EUB BULLETIN STRENGTHENS COMMINGLING REGULATIONS
Scientific Panel to examine Ardley commingling production

Calgary, Alberta (August 8, 2006) The Alberta Energy and Utilities Board (EUB) has released Bulletin 2006 – 28: Changes to the Management of Commingling of Production from Two or More Pools in the Wellbore announcing changes to the regulation of commingled production in Alberta.

Commingling is the production of oil and gas from multiple pools in one well bore.  This long-standing practice is used to recover low productivity resources in a wide range of formations and depths throughout Alberta . Most commingling has typically involved deeper pools that do not contain non-saline water. 

Under the new regulations, industry is broadly restricted from the commingling of pools where there is any water production and the well contains perforations above the base of groundwater protection.

New measures also increase regulatory surveillance of all wells completed above the base of groundwater protection, and enhanced data collection and reporting for new resources.  EUB technical and field surveillance staff will ensure compliance with the revised requirements and regulations. 

Failure to meet EUB requirements will result in escalating enforcement action that can include full suspension of operations.

These changes include the commingling of a portion of the gas-bearing Ardley coals in central Alberta , which are anticipated to be dry. To ensure continued groundwater protection, the EUB in association with Alberta Environment will conduct periodic reviews of operational data. This data review will be supported by a scientific panel to be convened in the near future. A public report detailing the Panel’s findings will be issued within two years of the commingling Bulletin’s implementation.

The changes further support the EUB’s commitment to continue to work cooperatively with Alberta Environment on important issues of shared responsibility. 

Stakeholder input on commingling was received from individual Albertans, organizations, government agencies and industry during May and June 2006 and is addressed in the revised requirements and regulations.

The EUB ensures that the discovery, development, and delivery of Alberta 's resources take place in a manner that is fair, responsible, and in the public interest.

Note to editors:  A copy of Bulletin 2006 – 28 can be found at www.ercb.ca/ News & Releases

For more information, please contact:

Darin Barter
EUB Communications
Tel: (403) 297-4116
Cell: (403) 651-9487
Email: darin.barter@gov.ab.ca

NR2006-034