Application 1707770

NOTICE OF PREHEARING MEETING
APPLICATIONS NO. 1707770 (LEAD APPLICATION), 1723456, 1723458, 1723460, 1723486, 1723491, 1728964
GRIZZLY RESOURCES LTD.
SINOPEC DAYLIGHT ENERGY LTD.
PEMBINA FIELD

Grizzly Resources Ltd. has applied to the Energy Resources Conservation Board (ERCB/Board) for a well licence. Sinopec Daylight Energy Ltd. has applied to the ERCB for approvals for three new pipelines, one pipeline amendment, and one facility amendment. The ERCB has also decided to conduct a hearing to review a previous decision to issue a pipeline approval to Sinopec Daylight Energy Ltd.

The ERCB has decided to hold one public hearing with respect to all the above applications. Prior to that hearing, the ERCB will hold a prehearing meeting concerning the above applications at Causeway Bay Westwinds, 4225 – 50 Street, Drayton Valley Alberta, on March 6, 2013, commencing at 9:00 a.m. The matters to be considered include, but are not limited to,

  • identifying the hearing participants and their respective roles in the hearing;
  • the issues in question and the respective positions of the participants, including any outstanding matters relating to costs;
  • the procedures to be adopted with respect to the hearing;
  • whether the participants may benefit from a settlement meeting to discuss the issues;
  • the date, time and place for the hearing and to consider fixing the time to be allotted to each party to present evidence and argument; and
  • any other matters that may aid in the simplification or the fair and most expeditious disposition of the hearing.

The ERCB will confirm the actual hearing dates after the conclusion of the prehearing meeting.

This prehearing meeting is not being held to hear evidence or argument pertaining to the merits of these applications or objections. It is to obtain parties’ views on the matters listed above. Parties will be given an opportunity to present evidence, cross-examine witnesses, and make arguments regarding the merits of the applications at the public hearing of these applications.

Description of the Applications

Application No. 1707770
Grizzly Resources Ltd. (Grizzly) has applied pursuant to Section 2.020 of the Oil and Gas Conservation Regulations, for a licence to drill a directional well from a surface location in 7-5-50-6W5M to a projected bottomhole location in 1-8-50-6W5M. The purpose of the well would be to obtain oil production from the Nisku Formation. The maximum H2S concentration would be 211.5 mol/kmol (21.15 per cent) with a cumulative drilling H2S release rate of 1.51 cubic metres per second. The corresponding EPZ would be 1.02 km. The proposed well would be located about 6.9 km east of the Hamlet of Rocky Rapids.

Application No. 1723456
Sinopec Daylight Energy Ltd. (SDEL) has applied pursuant to Part 4 of the Pipeline Act for a licence to construct and operate a pipeline to transport saltwater from 6-3-50-6W5M to an existing multiwell pad site at 7-5-50-6W5M. The proposed pipeline would be about 4.32 km long with a maximum outside diameter (OD) of 112.5 mm and would transport saltwater with a H2S concentration of 500 moles per kilomole (50 per cent).

Application 1723458
SDEL has applied pursuant to Part 4 of the Pipeline Act for an amendment to an existing pipeline to increase its H2S concentration from 100 moles per kilomole (10 per cent) to 220 moles per kilomole (22 per cent) to accommodate existing wells. The existing pipeline transports oil effluent from 6-3-50-6W5M to an existing multiwell batter at 13-2-50-6W5M. The pipeline is about 2.42 km long with a maximum OD of 114.3 mm. The pipeline would be operated as a Level 1 pipeline.

Application 1723460
SDEL has applied pursuant to Part 4 of the Pipeline Act for approval to construct and operate a pipeline to transport fuel gas from 6-3-50-6W5M to an existing multiwell pad site at 7-5-50-6W5M. The proposed pipeline would be about 4.32 km long with a maximum OD of 60.3 mm and would transport fuel gas with a maximum H2S concentration of 0.00 moles per kilomole.

Application 1723486
SDEL has applied pursuant to Part 4 of the Pipeline Act for approval to construct and operate pipelines for the purpose of transporting oil effluent from an existing multiwell pad site at 7-5-50-6W5M to an existing multiwell battery at 13-2-50-6W5M and from 7-5-50-6W5M to an existing well at 6-3-50-6W5M. The proposed pipelines would be about 6.68 km and 4.32 km long with maximum OD’s of 168.3 mm and 114.3mm, respectively, and would transport oil effluent with a maximum H2S concentration of 220 moles per kilomole (22 per cent). The proposed pipelines would be operated as Level 1 pipelines.

Application 1723491
SDEL has applied pursuant to Section 7.001 of the Oil and Gas Conservation Regulations for an amendment to its existing multiwell oil battery at 13-2-50-6W5M. The proposed amendments are to increase the H2S concentration from 100 moles per kilomole (10 per cent) to 250 moles per kilomole (25 per cent) and to increase compression from 180 hp to 1600 hp. The amendment would also include the construction of a larger group separator.

Application 1728964 (Sinopec R&V)
On October 20, 2011, the ERCB approved the addition of Line 5 to pipeline Licence No. 52607 held by SDEL. Line 5 was constructed and has been operating since December 19, 2011. Line 5 is licensed to transport oil effluent with a H2S content of 90 moles per kilomole (9 per cent) from a well at 4-27-50-6W5M to a pipeline tie-in point at 16-14-50-6W5M.

On October 21, 2011, the ERCB received a review request under section 40 of the Energy Resources Conservation Act (ERCA) in connection with Line 5 of pipeline licence number 52607 held by SDEL. By letter dated May 25, 2012, the Board granted a review hearing, pursuant to Section 40 of the ERCA and Section 48(6) of the ERCB’s Rules of Practice. The purpose of the review hearing is to determine whether the Board should confirm, vary or rescind its decision to issue an approval for line 5. 

To obtain a copy of Application No. 1707770, contact
Grizzly Resources Ltd.
Suite 1000, Home Oil Tower
324 – 8 Ave SW
Calgary, AB  T2P 2Z2
Attention: Gil Hegel
Telephone: 403-237-9600
Fax: 403-237-0765
E-mail: ghegel@grizzlyresources.com

To obtain a copy of any of the other Applications, contact
Sinopec Daylight Energy Ltd.
Sun Life Plaza, East Tower
Suite 2700, 112 – 4 Ave SW
Calgary, AB T2P 0H3
Attention: Gord Lefebvre
Telephone: 403-213-5324
Fax: 403-266-6988
gordon.lefebvre@sinopecdaylight.com

To view a copy of the application 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.

Filing of Submissions Respecting the Prehearing Meeting
It is not necessary to file any written views prior to the prehearing meeting. Presentations may be made verbally at the prehearing meeting. However, if you wish to file a written submission to the prehearing meeting, please provide one copy of the submission to the Application Coordinator, Alanda Allum, at the address noted below and one copy to each of Grizzly Resources Ltd. and Sinopec Daylight Energy Ltd. at the address noted above on or prior to March 1, 2013.

Applications for Confidentiality
Section 13 of the Energy Resources Conservation Board Rules of Practice (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.

For information about ERCB procedures, contact
Applications Branch, Facilities Applications Group
Attention: Alanda Allum
Telephone: 403-297-8848
E-mail: alanda.allum@ercb.ca

Issued at Calgary, Alberta, on February 15, 2013.
ENERGY RESOURCES CONSERVATION BOARD
Patricia M. Johnston, Q.C., General Counsel