February 2018
AER Bulletin 2018-03: Issuance of Subsurface Orders 1B and 3A
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relaxation, both the existing holding/unit spacing as well as the underlying special drilling spacing unit must be rescinded.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!
Commodity Price Forecast
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?
Acipenser prepares professional NI 51-101 reserves reports for Canadian regulators including:

  • Annual corporate reserves evaluations
  • Individual property reports for acquisition/divestment
  • Audit of company reserves to satisfy banking requirements
  • Assist with fair market value appraisals/estate valuations
  • Submissions to regulatory authorities regarding issues that require economic evaluations
  • Assessments of prospective undeveloped lands

Benoit's strategic alliance with Acipenser allows for the pooling of resources and expertise and enables both companies to deliver their respective services in a timely and cost effective manner.

Mr. Metcalfe has over 40 years of experience specializing in domestic and international reserve and resource evaluations as well as reservoir engineering studies. For more information on our evaluation services, you can contact Robyn or I or you may also contact Gary Metcalfe directly @403.829.9533.
Integrated Compliance Management Program (ICMP) at Benoit

Did you know that Benoit provides a service which covers our regulatory application, liability management ratio and evaluation services under one umbrella?

Under this program, Benoit acts as a “regulatory arm” for your company by receiving and responding to all compliance related matters on your company’s behalf.

As your regulatory designate, in addition to our regulatory application service, Benoit conducts a number of additional services including, but not limited to:

  • Inactive Well Compliance Program Monitoring
  • Liability Management Rating Forecasting
  • DDS Entry for Well/Completion Details
  • Flaring Notifications
  • Well Test Data Submissions
  • Gas Conservation Economic Analyses

If you're interested in this service or would like to discuss this further, please contact us or visit our website for more information.
AER: Industry Bulletin 2018-04:New Alberta Environment and Parks Water Directive
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.
LMR and IWCP Programs- There Are More Options Than Abandoning Wells!
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- AER Orphan Fund Levy's are Coming!
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.
AER Process Relating to Pre-application Statements of Concern
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.
Geotechnical Support Services at Benoit
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:  
  • Asset reviews of recently acquired, neglected, or underperforming oil and gas assets
  • Historical development reviews and troubleshooting
  • Reservoir characterization support services for secondary and tertiary recovery projects

For more information on this service, please contact us or visit our website.
AER Bulletin 2018-02: Amendments to Well Blowout Prevention and Well Control Certification
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.
BCOGC: Industry Bulletin 2018-01
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.
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phone: 403.263.0896 | email: questions@benoitregulatory.com