Alberta EUB orders Athabasca oil sands gas shut-in

July 29, 2003
The Alberta Energy and Utilities Board ordered the interim shut-in of natural gas production in northeastern Alberta, effective Sept. 1, in an effort to stem pressure depletion in formations in the Athabasca oil sands.

By OGJ editors
HOUSTON, July 29 -- The Alberta Energy and Utilities Board ordered the interim shut-in of gas production in northeastern Alberta, effective Sept. 1, in an effort to stem pressure depletion in formations in the Athabasca oil sands.

The order applies to as many as 938 gas wells in the Wabiskaw-McMurray unless the operators file for exemptions (OGJ Online, June 17, 2003). Temporary exemptions might be available to producers who can provide evidence that a well's gas is not associated with potentially recoverable bitumen or that a well was approved since July 1, 1998.

The board said, "As this natural gas is extracted, there is a drop in pressure within the gas pools. The EUB believes this leads to an unacceptable risk to bitumen recovery using thermal techniques, such as steam assisted gravity drainage (SAGD).

"The EUB is of the view that there are currently no proven technologies that satisfactorily mitigate this risk. The EUB has also begun a regional geological study to assess where Wabiskaw-McMurray gas is not in contact with potentially recoverable bitumen."

The study is due for completion by yearend.

The 938 wells in the area of concern produce 240 MMcfd of gas, about 2% of the province's total. At least one producer has said it will petition the Alberta government for compensation, which was paid in at least one previous case.