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Bulletin 2007-07

March 28, 2007

Processing of Applications Involving Objections Relating to the Legal Entitlement of Coalbed Methane

By Bulletin 2006-19: Applications Involving Objections Relating to the Legal Entitlement of Coalbed Methane, the Alberta Energy and Utilities Board (EUB/Board) indicated that all applications in which legal entitlement to coalbed methane (CBM) were at issue would be held in abeyance pending the Board’s decision on Proceeding No. 1457147.

In Proceeding No. 1457147 the Board considered review and variance requests in connection with 26 well licences, one order establishing special well spacing (holding), and one order for compulsory pooling, granted by the Board in 2005 and 2006. This proceeding considered the issue of legal entitlement to CBM being produced or intended to be produced on split-title lands.

The Board has now issued Decision 2007-024 respecting Proceeding No. 1457147.  In that report the Board indicated that it sets aside the directions in Bulletin 2006-19 effective immediately. Processing of applications held in abeyance in accordance with Bulletin 2006-19 will now proceed. All processing will be subject to normal processing practices and current policies and rules.

The conclusions in Decision 2007-024 provide a sound basis for the EUB’s consideration of pending and future well licence, special well spacing, compulsory pooling, and any other applications that involve the right to produce CBM from split-title lands where objections based on disputed entitlement or ownership to CBM are filed. In each case, the EUB will have consideration of the unique facts and circumstances of the particular objection. However, the EUB will, where appropriate, consider such objections in light of the conclusions made in Decision 2007-024.

The directions in Bulletin 2006-19 are hereby set aside effective as of the date of this bulletin.

<original signed by>

Douglas A. Larder, Q.C.
General Counsel