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Bulletin 2009-33

October 7, 2009

Changes to Special Well Spacing Application Process in Directive 065: Resources Applications for Conventional Oil and Gas Reservoirs 

The Energy Resources Conservation Board (ERCB) has issued a revised edition of Directive 065: Resources Applications for Conventional Oil and Gas Reservoirs. It introduces the release of new electronic well spacing application forms and clarifies minimum well spacing application requirements, having regard for risk-based application processing pathways. An industry focus group organized in cooperation with the Canadian Association of Petroleum Producers (CAPP) and the Small Explorers and Producers Association of Canada (SEPAC) provided feedback and gave strong support to the new spacing forms, decision trees defining the application processing paths, and associated application requirements. The focus group also provided feedback on the revised edition of Directive 065.

New Well Spacing Application Forms and Requirements
Effective November 1, 2009, Section 1.6 of Directive 065 will be replaced with the new Unit 7, which includes decision tree criteria for application processing pathways, clarification of application requirements for each defined application processing pathway, and more comprehensive information regarding standards for well spacing in the province.

Application processing paths are based on decision tree criteria, having regard for well spacing standards, proposed spacing relative to previously approved spacing for the formation being applied for, proposed spacing provisions, and available production information. The new electronic spacing application forms include messaging to advise an applicant of the possible processing path prior to registering an application with the ERCB and have built-in validation to assist in the filing of applications that meet minimum Directive 065 application requirements. Further, the special well spacing application section of Directive 065 has been enhanced by providing examples of required information and formats to standardize application information.

The new edition of Directive 065 is available on the ERCB Web site at www.ercb.ca and in print from ERCB Information Services, 640 – 5 Avenue SW, main floor; telephone: 403-297-8311; fax: 403-297-7040; e-mail: infoservices@ercb.ca.

Background information on the well spacing initiative is in Bulletins 2005-08, 2006-05, and 2007-36, which are available on the ERCB Web site at www.ercb.ca. Bulletins 2006-24, 2006-29, and 2007-27 are superseded by the November 2009 edition of Directive 065.

Updates to the Well Spacing Map
The Well Spacing Map has been integrated with the new Electronic Application Submission (EAS) forms. Applicants will select their area of application electronically on the map. The applied-for special well spacing will be displayed on the map one day after an application is registered with the ERCB. This integration will permit full picture analysis by both external and internal stakeholders. Approval of a special well spacing application will also be displayed on the Well Spacing Map on the day following the approval date.

Submission Process
The integration of spacing systems can no longer support paper applications. Accordingly, effective November 1, 2009, all applications for special well spacing must be submitted electronically using the EAS system via the Digital Data Submission (DDS) on the ERCB Web site www.ercb.ca. For information on the DDS system, contact your company administrator for login IDs to the DDS system. If your company is not using the DDS system, a DDS account can be obtained by contacting the ERCB Administrator at 403-297-5802 or by e-mail at DDSAdministrator@ercb.ca.

In the transition to the new application process, the ERCB will not be accepting well spacing applications using the present EAS forms, nor will it be registering any spacing applications filed in paper format during the interim period of October 27 - 31, 2009. All well spacing applications registered prior to October 27, 2009, will continue to be processed. Applicants for special well spacing applications are encouraged to file applications once the new spacing forms are available.

Training
Training sessions on how to use the new spacing EAS forms and how to select application areas on the Well Spacing Map will be held at the ERCB Calgary Offices 640-5 Avenue SW, in Govier Hall as follows:

 Date  Time
Monday, October 19, 2009    9:00 a.m..- 11:30 a.m.
  1:00 p.m. –3:30 p.m.
Tuesday, October 20, 20099:00 a.m. – 11:30 a.m.
 1:00 p.m. – 3:30 p.m.

If you plan to attend one of these sessions, you are encouraged to become familiar with the new edition of Directive 065 beforehand so that any specific questions might be addressed at that time.
To register for a session, please send an e-mail to Rsc-Appl.Admin@ercb.ca indicating the day and time you prefer.

Contacts
Questions relating to Unit 7 of Directive 065 may be directed to

<original signed by>

Stephen Smith
Executive Manager
Applications Branch

Page Last Updated: October 7, 2009