AER Bulletin 2014-20

AER Bulletin 2014-20: Proration Measurement of Liquids-Rich Gas Wells

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Proration Measurement of Liquids-Rich Gas Wells

Jul 08, 2014

The Alberta Energy Regulator (AER), based on feedback from industry and its own ongoing processes to improve regulations, has identified an opportunity for gas well operators to minimize equipment costs while ensuring adequate measurement of produced fluids.

The AER currently requires a measurement system with dedicated three-phase separation and single-phase measurement for gas, hydrocarbon liquids, and water at each gas well producing at a liquid-to-gas1 ratio of greater than 0.28 cubic metres (m3) of liquids per thousand (103) m3 of gas (50 barrels per million standard cubic feet).2

Under current rules,3 the AER can approve site-specific applications to allow proration measurement of production from multiwell pads. This measurement approach allows the use of a single group separator and measurement system to measure production from one or more multiwell pads. Each multiwell pad would have a test separator and measurement system that would allow wells to be regularly tested to provide information for prorating group production measurements to individual wells.

This bulletin explains how licensees can apply for proration measurement of liquids-rich gas wells, provides information on criteria that the AER uses in deciding on such applications, and illustrates typical conditions of approval for proration measurement.

Reservoir, Well, and Facility Criteria
The AER can consider applications for proration measurement for specific sites and will apply the following criteria in assessing the applications:

  • Production must be from liquids-rich gas reservoirs where the liquid-to-gas ratio for a well is greater than 0.28 m3 of liquids per 103 m3 of gas.
  • A multiwell pad development approach must be used where several wells are drilled at a single surface location.
  • Each test separator must have a maximum of eight wells. 

Typical conditions of approval are set out in appendix 1.


1 “Liquid” includes both water and hydrocarbon liquids.
2 Directive 017: Measurement Requirements for Oil and Gas Operations (May 2013), figure 7.10.
3 Directive 017: Measurement Requirements for Oil and Gas Operations (May 2013), section 5.2.


Applications for Proration Measurement of Liquids-Rich Gas Wells

Section 5.2 of Directive 017: Measurement Requirements for Oil and Gas Operations sets out current application requirements for using proration measurement for liquids-rich gas wells. These requirements are summarized as follows:

  1. The application must be submitted to Directive017Applications@aer.ca by e-mail with searchable attachments.
    1.1 Clearly indicate “Application for Liquids-Rich Gas Well Proration Measurement” in the e-mail subject line.
  2. The application must include information on the battery (well pad) as set out in section 5.2(1) of Directive 017.
  3. The application must describe proposed measurement systems and briefly explain how these systems will address the typical approval conditions set out in appendix 1.
  4. The application must include a contact name and information so that the AER can request additional information if required.

For more information, e-mail Directive017Applications@aer.ca or call the AER Customer Contact Centre at 1-855-297-8311 (toll free).

<original signed by>

Cal Hill
Executive Vice President
Strategy and Regulatory Division