Bulletin – Subsurface Order
The AER announced the issuance of Subsurface Order No. 3 regarding the Duvernay Zone (“Order”), which became effective April 1, 2015. The Order sets out the following subsurface rules and regulatory processes within the Duvernay in the area specified:
(a) There are no well density restrictions for both oil and gas drilling spacing units (“DSU”).
(b) The target area for wells drilled within the standard drilling spacing unit for a gas or oil well must be the central area within the drilling spacing unit having sides 100 metres (m) from the sides of the DSU and parallel to them. Wells may be drilled across the boundaries of contiguous DSUs of common ownership.
(c) Defined pools within the order area will be subject to good production practice as reflected in the AER’s maximum rate limitation (“MRL”) order, provided that optimal depletion strategies are employed and wasteful operations are avoided.
(d) Initial pressure tests in accordance with Directive 040: Pressure and Deliverability Testing Oil and Gas Wells (“Directive 040”) are required to be taken at a minimum of one well per three section by three section area (square nine section area) measured from the wellhead location.
(e) Annual pressure tests in accordance with Directive 040 are not required.
(f) Initial deliverability testing in accordance with Directive 040 are not required.
(g) The requirements relating to the designation of a control well for production of gas from shale pursuant to section 7.025(2) of the Oil and Gas Conservation Regulation (“OGCR”) and the requirements for conducting and reporting information pursuant to section 11.145(4) and section 11.145(5) of the OGCR are suspended.
(h) When required to take drill cutting samples within the zone pursuant to section 11.010 of the OGCR and Directive 056: Energy Development Applications and Schedules, a licensee must take the samples at an interval frequency no greater than 30 m within the zone.
