Preliminary Listing of Acid Gas Content (AGC) Values for Select Large Oil and Gas Pools used by Alberta’s Royalty Framework

In support of Alberta’s Royalty Framework (ARF), the Energy Resources Conservation Board (ERCB) is implementing changes to calculate and disseminate Acid Gas Content (AGC) to the Department of Energy (DoE) for royalty calculation purposes.  AGC is the sum of the Hydrogen Sulphide (H2S) and the Carbon Dioxide (CO2 ) content (expressed in mole fraction) of the raw gas being produced at a well event level. 

The ERCB plan to disseminate AGC data has incorporated an incremental data load strategy, with the final data load to be completed in the fall of 2009.  As part of this process, the ERCB has initiated a review of pools requiring analysis to determine an initial AGC value.  This review has targeted large pools where ARF gas analysis guidelines have been met, but variations in the associated gas analysis require manual review to establish the correct AGC pool average.

AGC is a key component in the determination of natural gas royalty rates under ARF.  As such, the ERCB is providing Industry members with AGC information resulting from the manual review process in advance of the final data load.  We expect this proactive approach will help Industry prepare for the changes to come.

• This is a preliminary list of AGC values for large pools requiring manual analysis to establish the AGC pool average. 
• This list is not a complete list of all AGC values that will be disseminated in the final ERCB AGC data load, but represents those resulting from the manual review process. 
• The list will be updated to include additional analysis results until the final data load has been completed.
• Industry members are encouraged to review the list in advance of the final data load and submit inquiries or change requests to the ERCB.  Although these AGC values have not yet been published to the PRA, the ERCB will accept change requests for the AGC values identified in this list.
• This information is subject to change as new information is made available.

Inquiries

Before submitting an Inquiry

• Please ensure you have read and understood the above explanation of the information provided in this publication.
• Please be aware that response time for processing submissions will be dependant on the volume of submissions.

Submitting an Inquiry

• For instructions on submitting an inquiry or request to change to a AGC value identified in the preliminary list, please refer to the AGC Change Request Process.