Bulletin 2012-06

Bulletin 2012-06: Changes to Directive 065: Resources Applications for Oil and Gas Reservoirs, Unit 7: Application for Special Well Spacing

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Changes to Directive 065: Resources Applications for Oil and Gas Reservoirs, Unit 7: Application for Special Well Spacing

Mar 14, 2012

This bulletin announces the release of a revised edition of Directive 065, effective March 14, 2012. The revised directive clarifies ERCB policy for wells drilled or spud in accordance with holding provisions on or before October 6, 2011. Additional amendments to the revised directive are summarized in Bulletin 2012-04 and Bulletin 2012-05.

Changes to Unit 7, Section 7.2.3: Standard Buffer Zones for Holdings

The revised directive clarifies that a well producing from a buffer zone of a holding is not subject to enforcement if the well was drilled or spud on target on or before October 6, 2011, in accordance with the buffer zone provisions of a valid holding. Additionally, a request for a well exemption is not required in an application.

The directive further clarifies that a well that was drilled in accordance with the conditions of a holding but subsequently produces from the buffer zone due to changes in the area of a multi-DSU holding may be subject to enforcement for producing from within the buffer zone. See Section 7.2.3 for an explanation of how such a situation could arise and how to avoid noncompliance. The directive also stipulates that the recompletion of a formation in a well that is not in accordance with the buffer zone provisions for its holding would be deemed in noncompliance and subject to enforcement.

Additional Changes to Unit 7

The ERCB has clarified the well spacing requirements found in the following sections of the directive:

  • Section 7.2.1: Standard Drilling Spacing Units, Target Areas, and Baseline Well Densities
  • Section 7.2.6: How to Make a Spacing Application
  • Section 7.2.7.5: Modify Holdings
  • Section 7.3.1.3: Whom to Notify
  • Section 7.3.1.6: Common Ownership
  • Section 7.3.2: Minimum Equity and Conservation Requirements

The newly revised edition of Directive 065 is available on the ERCB website www.ercb.ca under Industry Zone : Rules, Regulations, and Requirements : Directives. Printed copies of the directive may be purchased from ERCB Information Services, 10 Floor, 250 – 5 Street SW, Calgary, Alberta; telephone: 403-297-8311 or 1-855-297-8311 (toll free); fax: 403-297-7040; e-mail: infoservices@ercb.ca.

Questions regarding this bulletin or the directive should be directed to the Resources Applications Helpline at 403-476-4967 or by e-mail to Resources.Applications@ercb.ca.

<original signed by>

Nancy Barnes
Acting Executive Manager
Applications Branch