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Project Application

Timeline

Our estimated processing time for this application is 70 business days. See our timeline spreadsheet for updates.

Purpose of the Application

When a company begins to produce resources from a hydrocarbon pool, we expect it to produce without drawing down the gas in the gas-cap area. This caution must be taken until the company determines that the oil recovery will not result in wasted resources.

If a company wants to simultaneously produce the oil and free gas associated with an oil pool, it must apply for concurrent production (CCP) approval. We will grant approval when the company

  • can prove that the drawdown of the free gas will not result in wasted resources, or
  • has determined that the efficient exploitation of the resources cannot proceed without some drawdown of the gas-cap gas.

With our approval, a company can produce a high volume of associated free gas concurrently with the oil production. Our CCP approval may be granted for the production of gas-cap gas

  • from all wells in a pool, including gas wells;
  • from all wells in a pool, with the exclusion of gas wells;
  • from oil wells subject to a maximum gas rate limitation;
  • from oil wells subject to a maximum gas-oil ratio limitation;
  • from specific well intervals only;
  • with special operating conditions; and
  • with specific wells being exempt from the gas conservation requirement.

Process Checklist

Before Applying
Before applying for CCP for a hydrocarbon pool, the pool must have a long enough production performance history to allow for a technical assessment to be performed.

Submit an Application

Companies must submit a Directive 065: Resources Applications for Oil and Gas Reservoirsapplication under section 39(1)(e) of the Oil and Gas Conservation Rules.

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.

Review Process

  1. We share all applications on our Public Notice of Application page to encourage public participation in the approval process.
  2. 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.
  3. We will assign the application to a subject matter expert for initial review. If information is missing (i.e., the application is not complete and Directive 065 requirements are missing), we will close the application. Otherwise, we will proceed with a full technical review. We look at
    • the notification, according to Directive 065 guidelines, to all parties who may be affected by CCP approval for a pool;
    • the size of the gas cap relative to the oil pool and the average thickness of the reservoir rock (if applicable);
    • the reservoir fluid volumetric estimates compared with our database estimates;
    • the reservoir pressure depletion trend and the effect of reservoir energy depletion on the production performance trend;
    • the applicant’s evaluation of the enhanced oil recovery potential (e.g., waterflooding and gas flooding);
    • the list of active producers in the pool and their completion details; and
    • gas conservation according to Directive 060: Upstream Petroleum Industry Flaring, Incinerating, and Venting.
  4. We may request additional information (through a supplemental information request) to complete our technical review.
  5. 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.
  6. 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.