IL 99-06

IL 99-06: Conventional Crude Oil Pools Granted Good Production Practice Status

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Conventional Crude Oil Pools Granted Good Production Practice Status

Dec 09, 1999

As part of its continuing effort to streamline allowable administration in conventional oil pools, the Alberta Energy and Utilities Board (EUB) has conducted an internal review of pools subject to maximum rate limitations (MRLs) to identify those pools which could be placed on good production practice (GPP). The review focused on pools that contain wells incapable of producing their penalized MRL and have limited potential for future development or enhanced recovery.

Therefore, effective 1 December 1999, the pools listed in Attachment 1 will be granted GPP status. Operators are advised that the EUB may rescind GPP where there is evidence that conservation is being compromised, or upon request where an operator believes that correlative rights are being violated. If it is determined that an off-target well in a GPP pool should be penalized in accordance with ID 94-2, the EUB will assign a well rate to which the off-target penalty would be applied.

Operators are further reminded that by 31 December 2002 gas conservation must be evaluated at all solution gas flares using the criteria set out in Sections 2.3 and 2.4 of EUB Guide 60: Upstream Petroleum Industry Flaring Guide. Where solution gas is tied in, only nonroutine flaring as defined in Section 2.6 of Guide 60 is expected to occur.

Any questions regarding this letter should be directed to Andy Burrowes at (403) 297-8566.

<original signed by>

A. Warren
Executive Manager
Resources Branch