A reminder that a requirement for the submission and approval of a holding application is that ownership be common at both the lessee and lessor levels. This does not preclude an operator from drilling from FH to Crown lands. In these cases, separate holdings would be applied for and issued by the AER and the operator would apply to Alberta Energy for the issuance of a PAUA, allowing for the allocation of royalties payable on the production volumes between the lessors of the individual well.
For more information on PAUA's or if you would like some help with your PAUA/holding submission, please contact us. We'd be happy to help.