Oilsands production rules altered

The Alberta Energy and Utilities Board (AEUB) has ruled it will allow associated gas production to continue from gas wells drilled in oilsands areas prior to July 1, 1998. The board held an inquiry in mid-1997 after several oilsands operators raised concerns that gas production could have potential negative effects on bitumen recovery or efficiency of operations. The inquiry assessed the effects on bitumen recovery and the broad implications of the issue.

April 20, 1998

2 min read

The Alberta Energy and Utilities Board (AEUB) has ruled it will allow associated gas production to continue from gas wells drilled in oilsands areas prior to July 1, 1998.

The board held an inquiry in mid-1997 after several oilsands operators raised concerns that gas production could have potential negative effects on bitumen recovery or efficiency of operations. The inquiry assessed the effects on bitumen recovery and the broad implications of the issue.

Initial concerns related to steam-assisted gravity drainage operations in Alberta's Surmont area, operated by Amoco Canada Ltd., but parties agreed there could be implications for all oilsands areas.

In its ruling the AEUB said:

"Associated gas production will be allowed to continue from wells drilled prior to July 1, 1998, unless compelling evidence is presented to curtail that production."

Effective July 1, 1998, however, all new wells in oilsands areas will have to be drilled to the base of the oilsands zone, ruled AEUB.

The board also will require operators to:

Develop a notification process, in consultation with affected parties, to advise leaseholders of prospective developments.
Support modifications to the existing lease tenure system in the oilsands areas, to reduce resource development conflicts.
Investigate the means of conducting further research on the effects of concurrent gas and bitumen production.