Our estimated processing time for this application is 65 business days. See our timeline spreadsheet for updates.
Purpose of the Application
Companies must use the gas-oil ratio (GOR) to help monitor and conserve oil and gas resources. The GOR is a measure of the relative volumes of gas and oil produced from hydrocarbon pools. With our approval, a company can gather enough information to make an informed decision on the optimal strategy to exploit a hydrocarbon pool.
Before submitting an application, producing intervals in the hydrocarbon pool must already be on stream, and the company must clearly understand its production performance.
Companies must follow our GOR penalty relief requirements listed in Directive 060: Upstream Petroleum Industry Flaring, Incinerating, and Venting. Applicants must also meet our requirements in Directive 065: Resources Applications for Oil and Gas Reservoirs.
In some cases, a company may want to exploit a hydrocarbon resource without the standard GOR penalty restriction. If so, the company must submit a Directive 065 application under section 10.060 of the Oil and Gas Conservation Rules.
Submit an Application
Companies must submit their applications through our Digital Data Submission (DDS) system. We will register each application and assign a reference number.
By submitting an application, the company accepts that its information is no longer confidential.
- We share all applications on our Public Notice of Application page to encourage public participation in the approval process.
- Anyone who believes they may be directly and adversely affected by an application can file a statement of concern (SOC). If we receive an SOC, it may take us longer to process the application.
- We will assign the application to a subject matter expert for initial review. If information is missing (e.g., Directive 065 requirements are not met), we will close the application. Otherwise, we will proceed with a full technical review. We look at
- the applicant’s reservoir fluid volumetric estimates and our database estimates;
- the saturated nature of the reservoir fluid;
- the possible sources of the excess gas being produced;
- the reservoir pressure depletion trend;
- the effect of reservoir energy depletion on the production performance trend; and
- the list of active producers in the pool and their perforation intervals relative to the reservoir gas-oil and oil-water contacts.
- We may request additional information (through a supplemental information request) to complete our technical review. For example, we might inquire about the expansion potential of the pool and whether there is an associated gas accumulation.
- We will decide to approve, close, or deny the application. If we close it, the applicant may reapply without prejudice. If we deny it, the applicant can file an appeal through our appeal process.
- We will provide the applicant with a link to the letter with our decision, which is accessible for 30 days through the Integrated Application Registry. We will also share our decision on our Publication of Decision page.