Application 1707770

NOTICE OF RESCHEDULING OF HEARING
APPLICATION NO. 1707770
GRIZZLY RESOURCES LTD.

NOTICE OF HEARING
APPLICATIONS NO. 1723456, 1723458, 1723460, 1723486, 1723491, 1728964, 1759037, 1759038, 1759044, 1759045
SINOPEC DAYLIGHT ENERGY LTD.
PEMBINA FIELD

The Energy Resources Conservation Board (ERCB/Board) will hold a public hearing of Applications No. 1707770, 1723456, 1723458, 1723460, 1723486, 1723491, 1728964, 1759037, 1759038, 1759044, and 1759045 (Applications) at The Max Center, 4801 – 43 Street, Drayton Valley, Alberta, commencing on July 2, 2013, at 9:00 a.m. All interveners to this proceeding must be present at the start of the hearing to register their appearance.

The ERCB had scheduled a public hearing of Application No. 1707770 from Grizzly Resources Ltd. (Grizzly) commencing September 18, 2012, at 9:00 a.m. The Board received a request from interested parties to reschedule the hearing and combine the Applications from Grizzly and Sinopec Daylight Energy Ltd. (SDEL) into one oral hearing. The Board agreed to the request.

Description of the Applications

Application No. 1707770
Grizzly 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 Legal Subdivision (LSD) 7, Section 5, Township 50, Range 6, West of the 5th Meridian, to a projected bottomhole location in LSD 1-8-50-6W5M. The well would produce oil from the Nisku Formation with a maximum hydrogen sulphide (H2S) concentration of 211.50 moles per kilomole (mol/kmol) (21.15 per cent) and have a cumulative drilling H2S release rate of 1.51 cubic metres per second (m3/s). The corresponding emergency planning zone (EPZ) would be 1.02 kilometers (km). The proposed well would be located about 6.9 km east of Rocky Rapids, Alberta.

Application No. 1723456
SDEL applied pursuant to Part 4 of the Pipeline Act for a licence to construct and operate a pipeline to transport saltwater from an existing well site at LSD 6-3-50-6W5M to an existing multiwell pad site at LSD 7-5-50-6W5M. The proposed pipeline would be about 4.32 km long with a maximum outside diameter of 112.5 millimetres (mm) and transport saltwater with a H2S concentration of 500.00 mol/kmol (50.00 per cent).

Application No. 1723458
SDEL applied pursuant to Part 4 of the Pipeline Act for an amendment to an existing pipeline to increase the H2S concentration from 100.00 mol/kmol (10.00 per cent) to 220.00 mol/kmol (22.00 per cent). The pipeline transports oil effluent from an existing well site at LSD 6-3-50-6W5M to an existing multiwell battery at LSD 13-2-50-6W5M. The pipeline is about 2.42 km long, has a maximum outside diameter of 114.3 mm, and would be operated as a Level 1 pipeline.

Application No. 1723460
SDEL applied pursuant to Part 4 of the Pipeline Act for approval to construct and operate a pipeline to transport fuel gas from an existing well site at LSD 6-3-50-6W5M to an existing multiwell pad site at LSD 7-5-50-6W5M. The proposed pipeline would be about 4.32 km long, have a maximum outside diameter of 60.3 mm, and transport fuel gas with no H2S.

Application No. 1723486
SDEL applied pursuant to Part 4 of the Pipeline Act for approval to construct and operate pipelines to transport oil effluent from an existing multiwell pad site at LSD 7-5-50-6W5M to an existing multiwell battery at LSD 13-2-50-6W5M and an existing well site at LSD 6-3-50-6W5M. The proposed pipelines would be about 6.68 km and 4.32 km long and have maximum outside diameters of 168.3 mm and 114.3 mm, respectively. They would transport oil effluent with a maximum H2S concentration of 220.00 mol/kmol (22.00 per cent) and be operated as Level 1 pipelines.

Application No. 1723491
SDEL applied pursuant to section 7.001 of the Oil and Gas Conservation Regulations for an amendment to its existing multiwell oil battery at LSD 13-2-50-6W5M. The proposed amendment would increase the H2S concentration from 100.00 mol/kmol (10.00 per cent) to 250.00 mol/kmol (25.00 per cent), change the maximum licensed inlet rate of water from 2000 metres cubed per day (m3/d) to 2500 m3/d, increase compression from 149 kilowatts (kW) to 1193 kW, and include construction of a larger group separator.

Application No. 1728964 (Review and Variance)
On October 20, 2011, the ERCB approved the addition of Line No. 5 to Pipeline Licence No. 52607 held by SDEL. Line No. 5 was then constructed and has been operating since December 19, 2011. On October 21, 2011, the ERCB received a review request pursuant to section 40 of the Energy Resources Conservation Act of its decision to approve Line No. 5. On May 25, 2012, the Board granted a review hearing to determine whether it should confirm, vary, or rescind its decision to issue an approval for Line No. 5. Line No. 5 is licensed to transport oil effluent with a maximum H2S content of 90.00 mol/kmol (9.00 per cent) from a well at LSD 4-27-50-6W5M to a pipeline tie-in at LSD 16-14-50-6W5M.

Application No. 1759037
SDEL applied pursuant to Part 4 of the Pipeline Act for an amendment to an existing pipeline licence for a line split. The line split would divide a currently discontinued pipeline into two pipelines: the first extending from an existing pipeline tie-in at LSD 4-2-50-6W5M to an existing pipeline tie-in at LSD 4-2-50-6W5M and the second extending from an existing pipeline tie-in at LSD 4-2-50-6W5M to an existing pipeline tie-in at LSD 13-35-49-6W5M. The proposed pipelines would be about 0.08 km and 0.20 km long, respectively, have a maximum outside diameter of 124.0 mm, and transport crude oil with no H2S.

Application No. 1759038
SDEL applied pursuant to Part 4 of the Pipeline Act for approval to construct and operate a pipeline to transport natural gas from an existing pipeline tie-in at LSD 3-2-50-6W5M to an existing pipeline tie-in at LSD 4-2-50-6W5M. The proposed pipeline would be about 0.10 km long, have a maximum outside diameter of 124.0 mm, and transport natural gas with no H2S.

Application No. 1759044
SDEL applied pursuant to Part 4 of the Pipeline Act for an amendment to a licence for two existing pipelines to resume operation of the lines and reverse the flow of production. The pipelines would transport crude oil from an existing pipeline tie-in at LSD 4-2-50-6W5M to an existing pipeline tie-in at LSD 4-2-50-6W5M and from an existing pipeline tie-in at LSD 4-2-50-6W5M to an existing battery at LSD 13-2-50-6W5M. The pipelines are about 0.08 and 1.29 km long, respectively, have a maximum outside diameter of 124.0 mm, and transport crude oil with no H2S.

Application No. 1759045
SDEL applied pursuant to Part 4 of the Pipeline Act for a substance change from crude oil to natural gas to move the two existing pipelines from existing Licence No. P49489 to a new licence number. The pipelines would transport natural gas from an existing pipeline tie-in at LSD 4-2-50-6W5M to an existing pipeline tie-in at LSD 4-2-50-6W5M and from an existing pipeline tie-in at LSD 4-2-50-6W5M to an existing battery at LSD 13-2-50-6W5M. The pipelines are about 0.08 and 1.29 km long, respectively, have a maximum outside diameter of 124.0 mm, and would transport natural gas with no H2S.

To obtain a copy of Application No. 1707770, contact
Grizzly Resources Ltd.
Suite 1000, Home Oil Tower
324 – 8 Avenue SW
Calgary, Alberta 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 Avenue SW
Calgary, Alberta T2P 0H3
Attention: Gord Lefebvre
Telephone: 403-213-5324
Fax: 403-266-6988
E-mail: gordon.lefebvre@sinopecdaylight.com

To view a copy of the Applications 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, you must file a written submission with respect to the Applications even if you have previously filed a submission with the Board, Grizzly, or SDEL on these Applications. 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 of the Applications may be cancelled and the ERCB will continue to process and may make a decision on the Applications 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 must file by 4:00 p.m., on or before the filing dates below.

May 21, 2013        Final date for submissions from interested parties and interveners.
June 14, 2013        Final date for response submissions from Grizzly/SDEL.
June 14, 2013        Final date for risk assessment reports from Grizzly/SDEL and interveners.
June 28, 2013        Final date for rebuttals to risk assessment reports from Grizzly/SDEL and interveners).

Send one copy of your submission to Grizzly and one copy to SDEL (at the names and addresses above), and one copy to

Alanda Allum, Application Coordinator
Applications Branch, Facilities Applications Group
Energy Resources Conservation Board
Suite 1000, 250 – 5 Street SW
Calgary, Alberta T2P 0R4
E-mail: alanda.allum@ercb.ca  
Telephone: 403-297-8848

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.

Eligibility for Hearing-Related Local Intervener Costs
A finding by the ERCB that a person is entitled to participate in a hearing under section 26(2) of the Energy Resources Conservation Act (ERCA) is not a decision on that person’s eligibility for an award of costs under section 28 of the ERCA. Persons intending to seek repayment of hearing-related costs must apply under section 28 and Directive 031: Guidelines for Energy Proceeding Cost Claims for a finding that they are local interveners. Applications for local intervener status can be made before the hearing or within 30 days following the close of the proceeding.

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., June 19, 2013.

Questions of Constitutional Law
Any person intending to raise a question of constitutional law in the proceeding must, pursuant to section 12 of the Administrative Procedure and Jurisdiction Act, complete and file a Notice of Question of Constitutional Law. All notices filed must be in the form and contain the information outlined in Schedule 2 of the Designation of Constitutional Decision Makers Regulation. Notices must be submitted to the Board at least 21 days before the hearing commences.

For information about ERCB procedures, contact Alanda Allum (Application Coordinator) at the address above.

Issued at Calgary, Alberta, on May 6, 2013.
ENERGY RESOURCES CONSERVATION BOARD

Patricia M. Johnston, Q.C., General Counsel