On February 23, 2018, the AER issued Bulletin 2018-03, which outlines the expansion of Subsurface Order No. 1A ( Montney-Lower Doig) and Subsurface Order No. 3 ( Duvernay).  

These subsurface orders remove all well density restrictions, set the target areas for both oil and gas drilling spacing units to 100 meters from the sides of the drilling spacing unit and removes any requirement for good production practice applications in the future (if applicable).

To take advantage of a subsurface order well density relaxation, both the existing holding/unit spacing as well as the underlying special drilling spacing unit must be rescinded. Please contact us if you would like to discuss these new AER orders and/or if you would like some help rescinding the existing spacing on your company’s lands.

We’d be happy to help!

Below is a tabulation of a January 1, 2018 consensus forecast, provided by Gary Metcalfe (B.Sc., P.Eng.), President of Acipenser Resources Ltd. The table is a summary of the average crude oil, natural gas and currency exchange rates from several major Canadian Oil and Gas consulting firms. How does it compare to your price forecast?

On February 22, 2018, Alberta Environment and Parks issued Bulletin 2018-04, which outlines the issuance of Directive for Water Licensing of Hydraulic Fracturing Projects - Area Use Approach.

This new directive allows for the issuance of longer-term water diversion licences for up to 10 years.

A copy of Bulletin 2018-04 can be found here.

A reminder that the deadline for retiring 20% of your wells in the IWCP is March 31, 2018. An updated IWCP compliance report will be made available on April 1, 2018 by the AER. This report will contain the remaining noncompliant inventory and the target quota for the upcoming year for each operator. Operators who have not retired 20% of their IWCP inventory in the second year of the program may be subject to enforcement action and/or penalties by the AER. 

An updated Inactive Well Compliance List is available here for download.

The AER's deemed liability of a well may help you decide which wells to bring into compliance this year, particularly if doing so can reduce your company's LMR security deposit, which may even result in a refund from the AER.

The IWCP and LMR programs should not be considered mutually exclusive. While a reduction of your company's IWCP inventory may seem costly, any reduction in your LMR security deposit, by either a reduction in the deemed liabilities or an increase in the deemed assets, will help offset the economic burden.

If you would like to discuss your LMR options and understand how Benoit can help, please contact us or visit the LMR page on our website

A reminder that you will be receiving details of the AER's Orphan Well Fund Levy soon. 

The amount of each invoice is based on a company's licensed and approved properties. As noted in previous newsletters, any reduction in a company's deemed liabilities will reduce the amount of this levy.

A reminder that, on December 15, 2014, the AER issued Bulletin 2014-39, which outlined the new process for dealing with pre-application statements of concern (SOC). This process requires that all applications be posted on the AER's website for a period of 30 days, unless the application is granted an expedited approval (ie. Quick Path Holding Applications). 

In addition, upon submission of the application, the applicant MUST forward a copy of the public notice of application from the AER's website to any parties with known objections or concerns.

To support Benoit's evaluation services, H2S release rate assessments, LMR/IWCP services and Directive 065 regulatory application submissions, Benoit now utilizes an in-house geoscientist to bring both the regulatory and geosciences services together under one service package. 

In addition, Benoit's geological support services may include:  



For more information on this service, please contact us or visit our website.

On January 31, 2018, the AER released Bulletin 2018-02, which outlines the amendments made to Directive 036. Under Directive 036, if operators are to utilize a different training provider other than the IWCF, IADC or ESC for the purposes of well control methods or well control blowout prevention certification, a gap analysis of the training material must be submitted to the AER.

A copy of Bulletin 2018-02 can be found here.

On January 17, 2018, the BCOGC amended its process and format for submitting emergency response plans. 

A copy of Bulletin 2018-01 can be found here.

O&G Conservation Rules

Directive 065

Directive 051

Directive 007-1

AER Bulletin 2014-27

AER Well Spacing Map

Saskatchewan Guidelines

BC Guidelines

Manitoba Guidelines

BC Water Service Wells