November Regulatory Newsletter

November 2020

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Resumption of Public Offerings and Direct Purchase Requests of Petroleum and Natural Gas and Oil Sands Crown Mineral Rights

On October 23, Alberta Energy issued information Letter 2020-48 announcing the resumption of public offerings (land sales) for petroleum and natural gas (PNG) and oil sands Crown mineral rights. IL 2020-48 outlined the schedule for deferred land sales as well as the schedule for new postings to August 2021.

Furthermore, in an effort to make new lands available as quickly as possible, an accelerated sales resumption plan was developed.

In an effort to support Albertans receiving fair value for petroleum, natural gas and oil sands rights, the department has taken steps to modernize the land sales by adjusting the minimum bid price for all PNG and oil sands agreements (leases, licenses and permits) to $35 per hectare.

Additional information can be found here.

Well Testing Services at Benoit

To support Benoit's regulatory application and compliance related submissions, Benoit utilizes an in-house well test analysis expert, Mr. Reza Ali, C.E.T.

Mr. Ali has over 30 years of experience specializing in domestic and international Flow and Build-Up, Production Data and DFIT Analyses.

If you would like a well test analyzed or if you would simply like more information on our well testing services, please feel free to contact Robyn (at 403.263.3690) or Jason (at 403.874.6769). You may also contact Reza Ali directly at 403.454.0430

Enhanced Hydrocarbon Recovery Program guidelines: principles and procedures. Version 1.0

Guidelines describing the Alberta Energy’s application and administration process for the Enhanced Hydrocarbon Recovery Program (EHRP) were updated September 1, 2020. The program continues to offer royalty relief for both secondary and tertiary qualifying enhanced hydrocarbon recovery projects with an AER scheme approval effective January 1, 2017 or after.

Additional information can be found here.

Question from Alberta Clients: How do I Take Advantage of Cardium Subsurface Order No. 5?

Remember, to take advantage of Cardium Subsurface Order No. 5, all underlying spacing must first be rescinded.

We've put together a short video that discusses this topic which outlines this important distinction (free for Benoit+ subscribers).

Not a Benoit+ Subscriber? Join Now to receive our introductory offer by becoming a founding member. We're adding new content every week!

Invitation for Feedback on AER Review of Industry Levy Methodology

As announced in Bulletin 2019-31, the AER is undertaking a detailed review of the methodology used to calculate the industry levy. The AER is currently 100 per cent funded by industry and authorized to collect funds through administrative fees levied on energy development projects and activities. Feedback will be accepted until November 16, 2020.

Additional information can be found here.

Update to the Wetland Assessment and Impact Form

Alberta Environment and Parks has recently updated the Wetland Assessment and Impact Form (WAIF), which may impact some of the work undertaken by authenticating wetland professionals in the province.

The following activity has been added to the list of eligible low risk activities that now require a WAIF rather than a full Wetland Assessment and Impact Report (WAIR):

widening, improvements or maintenance of existing roads that take place within a registered road plan right of way

Additional information can be found here.

Sask: Mandatory Digital Submission of Multi-Spacing Unit Production Allocation

On June 19, 2020 an updated version of Directive PNG001: Facility Licence Requirements came into effect. Guideline PNG001: Facility Licensing Process has been created to support the new application process in IRIS.

A copy of BT 2020-018 can be found here.

Mandatory Digital Submission of Multi-Spacing Unit Production Allocation

The Manitoba Petroleum Branch released an informational notice 20-08 on October 14, 2020 that requires commencing May 23, 2011 the licensee of a horizontal well must submit digital files stating the production allocation for said well.

The Crown Royalty and Incentives Regulation states:

1(1) “drainage unit” means an area determined by the director in accordance with this regulation, that

is allocated to a horizontal well for the purpose of producing oil and gas, and
consists of all spacing units located within 100 m of the completed interval of the horizontal well.

The Oil and Gas Act defines a spacing unit as “the area allocated to a well for the purpose of producing oil and gas from a formation”.

Additional information can be found here.

Did you know?

Did you know you can access general well data through the AER’s General Well Data Report? Updated daily, the report provides basic drilling data for every oil, gas, oil sands, and water well in Alberta, including domestic water wells. Production numbers are not included in the report.

Users can search by license number or well identifier. Find the link here.

We've put together a short video that discusses this topic which outlines this important distinction (free for Benoit+ subscribers).

Not a Benoit+ Subscriber? Join Now to receive our introductory offer by becoming a founding member. We're adding new content every week!

Benoit's Well Spacing Course in Now Available On-line!

Robyn Swanson (P.Eng, C.E.T) has created a short-form Well Spacing Course specifically designed for the Benoit+ platform.

Benoit+ subscribers can access the course by clicking here.

Not a Benoit+ Subscriber? Join Now to receive our introductory offer by becoming a founding member. We're adding new content every week!

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