The Alberta Energy Regulator (AER) has received an application from Bearspaw Petroleum for Wayne-Rosedale field.
Description of the Application
Bearspaw Petroleum Ltd. (Bearspaw) has applied under section 80 of the Oil and Gas Conservation Act (OGCA) for a pooling order prescribing that all tracts within the drilling spacing unit comprising Section 15, Township 29, Range 20, West of the 4th Meridian, be operated as a unit to produce gas from the base of the Belly River Group to the base of the Upper Mannville Group, excluding the Viking Formation and the Glauconitic Sandstone, through the 00/06-15-029-20W4 well.
Bearspaw has requested, among other things, that costs and revenues under the pooling order be allocated on a tract-area basis and that Bearspaw be named operator of the well. Specifically, Bearspaw has asked that the actual costs of recompleting the well be split evenly among all tract owners. Bearspaw has also asked that a 200 per cent penalty, allowed under section 80(5) of the OGCA, be applied to a tract owner’s share of the costs of recompleting the well in the formation(s) if the tract owner does not pay within 30 days of whichever of the following happens last:
– the pooling order being issued.
– the tract owner being notified in writing of its share of the actual costs.
– the well beginning production.