Application 1696915

NOTICE OF RESCHEDULING OF HEARING
APPLICATIONS NO. 1696915, 1700028, 1700029, AND 1700127
SURGE ENERGY INC.
VALHALLA FIELD

NOTICE OF RESCHEDULING OF REVIEW HEARING
PROCEEDING NO. 1736970
SURGE ENERGY INC.
VALHALLA FIELD

The Energy Resources Conservation Board (ERCB/Board) will hold a public hearing of
Applications No. 1696915, 1700028, 1700029, and 1700127 (Applications) and Proceeding No.
1736970 (Proceedings) at the ERCB Head Office, 3rd Floor, Govier Hall, 250 – 5 Street SW, Calgary, Alberta, commencing on May 21, 2013, at 1:00 p.m. All interveners to this proceeding must be present at the commencement of the hearing to register their appearance.

The ERCB had scheduled a public hearing of the Applications and Proceeding at Govier Hall, 250 – 5 Street SW, Calgary, Alberta, commencing on February 26, 2013, at 9:00 a.m. The Board decided to broaden the scope of the hearing to include all issues related to the development and management of the reservoirs involved, so decided to reschedule the hearing.

Description of the Applications
Surge Energy Inc. (Surge) has applied, pursuant to Section 79(4) of the Oil and Gas Conservation Act and Section 5.190 of the Oil and Gas Conservation Regulations, to suspend the drilling spacing units and target areas and establish holdings for the production of oil from the Doig Formation in the following areas:

  • north half of Section 29, east half of Section 31, and Section 32, in Township 73, Range 8,
    West of the 6th Meridian;
  • west half of Section 5, east half of Section 6, Section 7, Section 8, Section 18, Section 19,
    west half of Section 30, and the west half of Section 31, in Township 74, Range 8, West of
    the 6th Meridian;
  • northeast quarter of Section 25 and east half of Section 36, in Township 74, Range 9, West of the 6th Meridian.

Surge proposes that a producing well must be at least 100 metres from the boundaries of each
holding and that the well density be four wells per pool per quarter section, the exception being
the west half of Section 30, Township 74, Range 8, West of the 6th Meridian, which would have
a well density of two wells per pool per quarter section.

Description of Proceedings
On April 11, 2012, the ERCB received a letter from Canadian Natural Resources Limited
(CNRL) requesting that the Board conduct a review hearing relating to Surge’s Well Licence No.
0444964, pursuant to Section 40 of the Energy Resources Conservation Act (ERCA). On August
22, 2012, the Board granted the request for a review hearing. The purpose of the review hearing is to determine whether the Board should vary or rescind its decision to grant Licence No.
0444964.

On October 26, 2012, the ERCB received a letter from CNRL requesting that the Board conduct a review hearing relating to Surge’s Well Licence No. 0448799, pursuant to Section 40 of the ERCA. On February 4, 2013, the Board granted the request for a review hearing. The purpose of the review hearing is to determine whether the Board should vary or rescind its decision to grant Licence No. 0448799.

On November 20, 2012, the ERCB received a letter from CNRL requesting that the Board conduct a review hearing relating to Surge’s Well Licence No. 0450169, pursuant to Section 40 of the ERCA. On February 4, 2013, the Board granted the request for a review hearing. The purpose of the review hearing is to determine whether the Board should vary or rescind its decision to grant Licence No. 0450169.

On January 28, 2013, the ERCB received a letter from CNRL requesting that the Board conduct a review hearing relating to Surge’s Well Licences No. 0449699 and 0447178, pursuant to Section 40 of the ERCA. On February 22, 2013, the Board granted the request for a review hearing. The purpose of the review hearing is to determine whether the Board should vary or rescind its decision to grant Licences No. 0449699 and 0447178.

On July 17, 2012, the ERCB received a letter from ConocoPhillips Canada Operations Ltd.
(Conoco) requesting that the Board conduct a review relating to the compliance of the production restrictions from Surge’s Well Licenses No. 0426658, 0434493, 0427529, and 0376398. Pursuant to Section 39 of the ERCA, the Board decided to initiate a review of the relevant well licenses in conjunction with the compliance matters.

To obtain a copy of the Application, contact
Surge Energy Inc.
2100, 635 – 8 Avenue SW
Calgary, Alberta T2P 3M3
Attention: Murray Bye
Telephone: 403-930-1031
Fax: 403-930-1011

To view a copy of the Applications, documents related to the proceeding, and supporting
documents, go to the ERCB website www.ercb.ca : Applications & Hearings : Hearings :
Proceeding Search, and enter Proceeding ID 284.

To view a copy of the Applications, Proceeding, and supporting documents, contact

ERCB Information Services
Suite 1000, 250 – 5 Street SW
Calgary, Alberta T2P 3G4
Telephone: 403-297-8311 (Option 2)
E-mail: infoservices@ercb.ca 
Viewing hours: 9:00 a.m. to 3:00 p.m.

To help expedite your request, please reference this notice when making any requests for information.

Requirement to File a Written Submission
If you have an interest in this matter and wish to make submissions or provide evidence at the hearing of the Applications and Proceedings, you must file a written submission with respect to the Applications or Proceeding even if you have previously filed a submission with the Board or with Surge on the Applications or Proceeding. Submissions must include photocopies of all documentary evidence that you intend to present and/or rely on at the hearing (including, but not limited to, copies of expert reports, PowerPoint presentations, photographs, articles, etc.) and a summary of all evidence you intend to present.

If you do not file a submission, the hearing may be cancelled and the ERCB will continue to process and may approve the Applications and disposition the Proceeding without a hearing and without further notice.

How to File a Submission
Any party intending to make submissions with respect to the hearing of the Applications and Proceedings must file by 4:00 p.m., on or before the filing dates below.
March 19, 2013 - Date by which you should register your intent to file submissions on EPS.
March 19, 2013 - Final date for submissions by all interested parties.
April 9, 2013 - Final date for response submissions from Surge.
April 23, 2013 - Final date for third round of information-request questions by all interested parties.
May 7, 2013 - Final date for response submissions from all interested parties to the third round of information requests.

Submissions are to be filed through the Digital Data Submission (DDS) System, Proceeding ID 284, as bookmarked and page-numbered PDF documents. For information on using DDS to file submissions, contact

Dean Campbell, Senior Applications Officer
Applications Branch
Energy Resources Conservation Board
Suite 1000, 250 – 5 Street SW
Calgary, Alberta T2P 0R4
Telephone: 403-476-4783

For submissions of maps and logs, file a copy through DDS and send one paper copy to the applicant at the name and address above and 10 complete paper copies to
Victoria Burnic, Application Coordinator
Applications Branch, Resources Applications Group
Energy Resources Conservation Board
Suite 1000, 250 – 5 Street SW
Calgary, Alberta T2P 0R4

Contents of a Submission
Under Section 24(2) of the Energy Resources Conservation Board Rules of Practice (Rules of Practice), submissions must contain
(a) a concise statement indicating
(i) the manner in which the intervener’s rights may be directly and adversely affected by a decision of the Board on the proceeding,
(ii) the nature and scope of the intervener’s intended participation,
(iii) the disposition of the proceeding that the intervener advocates, if any,
(iv) the facts the intervener proposes to show in evidence,
(v) the reasons why the intervener believes the Board should decide in the manner that the intervener advocates, and
(vi) the intervener’s efforts, if any, to resolve issues associated with the proceeding directly with the applicant;
(b) the name, address in Alberta, telephone number, fax number and, if available, e-mail address of the intervener;
(c) if the intervener is represented by a representative, the name, address in Alberta, telephone number, fax number and, if available, e-mail address of the representative; and
(d) if the intervener is an unincorporated organization, the nature of the intervener’s membership.

Any party intending to raise a question of constitutional law at the hearing must, pursuant to Section 25 of the Rules of Practice, also include the following in its submission:
(a) the constitutional question the person intends to raise,
(b) the legal argument the person intends to make, and
(c) the evidence the person intends to rely on in support of the person’s legal argument.

Compensation Issues
Submissions relating exclusively to compensation for land usage are not dealt with by the ERCB but may be referred to the Alberta Surface Rights Board.

Applications for Confidentiality
Section 13 of the Rules of Practice requires that all documents and information filed in respect of this proceeding be placed on the public record. However, any party may apply for confidentiality of information under Section 13(2). Any application under Section 13(2) that is to be considered during a public hearing of the application must be copied to the other parties to the proceeding. Any application seeking confidentiality under Section 13 of the Rules of Practice must include the reasons for the request, including the specific harm that would result if the information were placed on the public record. The Board may grant a request for confidentiality on any terms it considers appropriate, subject to the Freedom of Information and Protection of Privacy Act. Section 13 of the Rules of Practice is available on the ERCB website at www.ercb.ca.

Prehearing Applications and Motions
All prehearing applications to the Board that any party intends to make must be made and completed on or before 4:00 p.m., May 14, 2013.

For information about ERCB procedures, contact
Applications Branch, Resources Applications Group
Attention: Victoria Burnic
Telephone: 403-476-4521
E-mail: victoria.burnic@ercb.ca

Issued at Calgary, Alberta, on March 5, 2013.
ENERGY RESOURCES CONSERVATION BOARD
Patricia M. Johnston, Q.C., General Counsel