IN T E T T ISSIO A I THE ATT IO UPE LAND T . e P. E.
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A K. GUSTA ON R.L. SOLC D. MORLEY R. KLINE R. H w. J. ANT P.S. ATT IWA A R. S WART AUDI TRON EN R LTD. f h Br Ut i ies i f t e App ic nt, perts and Re o rces Co. td. e ri sh c lumbia leu Cor o ation f r Union 1 Company of Can a Li t e Off c 0 i St ff try Staff Cou R por er
F EXHIBITS E hib t Commission Or er No. -3- 2 da ed ptem r 1 8 1 Common Purchaser p ic tion, Rupertsl n s urces o. Lt . July 22, 1982 2 rodu on Test, Ma na1 E g n r n rch, 1982 .3 Wireline rvey, -88- well, Mach, 981 No ice of Pu lie Hea in reserve 5
R RTSLA RESOURCES CO. LTD. IN DUCTION On July 22, 1982, u ertslan Re ( II perts1an II ) mad p c i Act, to t e ritish 0 u Ut Commission") fo an Or er f Brit sh c l tr eu c pur as r f nat ral s i t lication et wn r 1 82, by Order - -8 lee pu ish t e li t d t e not ce 0 si n d int est d The plicati.on w e n u Room in ncouver, B.C. on 0 the Commis n comprised f r. Chairman, M P .. Jarv s, Comm Commis ne ur c t . n t Sect n 83 f t e i Co iss on ("t e issi e 1 ing the n "8 PC") 0 be common y II II Po l. Th on to er 1 f u 1 e s h s on d i s of a he Commis ion H aring 8' 982 a D v si n f t 0 v n 1 ner, and N. M
2 THE A N Rupertslan is the owne f t Willow b-88 A/94-H-2. T e 11 w s and pertsl nd t r ined the we pertsland as been una le to wi h B ecaus of a ck of Rup sland a leged that th b-88-A Hal y "A" pool n is e n d pool und r ex s n gas p ase cant act 0 her r uce s. The evi ence resented y t e Union Oil Company of Canada i the plicant's well is complete pool and s sufferin i age. In testimony, Union 01 r queste roduction be as n the v 1 (UO 's) as used in vious co el u s n et al ri 1 n Janu ry, 981 r ss re 0 e 11 IA. bt i g s rch se cant act a et f n t r as. el i w thi the Willow n y r uct 0 from t e tw n B PC n p ic nt n t e Interv n r e (" i n 1") co firms th t i t e Willa Ha fway "A" ha all c tion of Po et c y 1 s n u s r p cation .
3 Rupertsland ccepte this me od arrang ent. Union Oi lso req ste hat h produ i n be t date w i all h faci i i s requi to and r u ion f ec fie tio effective e h n up e Orders and Union Oil ar e tha recogni e t e indus not ns of compe it v vant In A urn nt, the cant no ed of sev r 1 mailer il and as firms th and those companies elieve t cas flo in e h rt r T contract th wil nsur t t ex stin r s rv und r t On the sis of evidenc ' t e omm ss on f Applicant's we 1 is in he Wi low H ained. The Com iss ion i 1 or purch ser of as from the Pool. the App i ant sha 1 be s on be n n equ a le haring ffe t date of h ng f t e ro c r h s compl ed ect the nee ssary c nnecti n as fro i s well. T s e Commis i n in rev 0 such i ing for roduc i n of a t r and h s ct on eh f a lo 0 c sh flow, el cou ner te d ion 1 Ap ican s se king a t il e 1 to rec ver 1 t. d the y II " po an ein r to e common T e sharing of produc on to he 1 m ric dai as
llowa les UD 's e hod n date when t App icant as com effect very of s e ifi i n Th respe ti e UDGA' f t e Wi fol ow : Un on HB illow -10- /94-H-2 Union HB Willow - 1-G Ruperts al Willow - I OAT D at the ity f Va c uver, i British Co umbi , t is D. P.E. J N. h ff ctive te s al e t a t d 1 qu f i t f om t e s t we Ha Y II II 00 as l 8.7 4 H--H- 25.7 the P ov n e f f Oct e , 19 2. . I T I K, v si n ai an VIS, mmiss on r M RTIN, C i i r
APPENDIX I BRITISH COLUMBIA UTILITIES COMMISSION ORDER NUMBER COM-5-82 IN THE MATTER OF the Utilities Commission Act, S.B.C. 1980, c. 60, as amended and IN THE MATTER OF an Application by Rupertsland Resources Co. Ltd. for an Order declaring the British Columbia Petroleum Corporation a common purchaser of natural gas in the Willow Halfway "A" Pool BEFORE: D.B. Kilpatrick, Division Chairman; P.E. Jarvis, October 28, 1982 Commissioner; and N. Martin, Commissioner WHEREAS Rupertsland Resources Co. Ltd. ("Rupertsland") applied July 22, 1982, to the British Columbia Utilities Commission ("the Commission") pursuant to Section 83 of the Act, for an Order of the Commission declaring the British Columbia Petroleum Corporation ("BCPC") a common purchaser of natural gas from the Willow Halfway "A" Pool; and WHEREAS pursuant to Order COM-3-82 the Commission considered the Application at a public hearing in Vancouver on October 18, 1982; and WHEREAS from the evidence with respect to well pressures and the geology of the area, the Commission concludes that the Applicant's well, Rupertsland et al Willow b-88-A/94-H-2, is capable of production of natural gas from the Willow Halfway "A" Pool; and ... /2
BRITISH COLUMBIA UTILITIES COMMISSION ORDER NUMBER COM-5-82 2 WHEREAS it appears that Rupertsland has made reasonable efforts to arrange a gas sales contract with BCPC for the subject well, without success; and WHEREAS the evidence further establishes that Rupertsland is suffering drainage of natural gas because of an inability to bring the subject well into production. NOW THEREFORE the Commission hereby orders as follows: 1. The British Columbia Petroleum Corporation is declared a common purchaser of natural gas from the Willow Halfway "A" Pool effective the date of this Order. 2. The Applicant's well, Rupertsland et al Willow b-88-A/94-H-2 is capable of production from the said pool. 3. The contract quantity applicable to the production of natural gas from the said well shall be the lesser of the volume determined on the basis of the ratio of the "daily gas allowable" of the said well for the Pool to the sum of the daily gas allowables determined for the Pool, or the actual production capability. The term daily gas allowable refers to the volumetric allowable for natural gas wells and designated areas approved and issued from time to time by the Ministry of Energy, Mines and Petroleum Resources, exclusive of the minimum of 60,000 m3 set for some wells. The gas pool boundary is that determined by the said Ministry. 4. The effective date on which the Applicant is entitled to share in the production and revenues from the Pool shall be the date on which the Applicant has completed all required of him to effect delivery of specification as from the new well. If within thirty ys of this effective date, the Applicant has failed to negotiate actual connection and makes a common carrier application, the said application, if successful, will establish his entitlement to share in the production and revenues from the Pool as of the effective date. . .. /3
BRITISH COLUMBIA UTILITIES COMMISSION ORDER 3 NUMBER COM-5-82 5. That portion of total Pool production allocated to the Applicant will be taken from the existing contracts in the Pool in such proportions as will maintain the relative share of Pool production of each existing producer prior to the effective date applicable to the Applicant, by such method and timing as may be agreed upon by the interested parties to achieve that result. 6. If, by the effective date of the Applicant, existing producers in the Pool and the BCPC are unable to agree on a satisfactory method of reducing the gas volume purchase obligation of each existing contract in the Pool, the obligation of BCPC to purchase gas from each contract providing for delivery of gas from the Pool shall be reduced. The reduction shall apply to each contract in force at that time and shall be a percentage of the maximum volume of gas which BCPC is obliged at the time of reduction to purchase each day or each year (whichever is specified in the contract) applicable to lands within the Pool. The percentage shall be the same as that which the daily gas allowables of the wells or designated areas of the contract of the new producer is of the total of the daily gas allowables for the Pool. The effective date for all reductions to contracted volumes shall be the effective date of entitlements determined for the new producer. 7. Where the new well, Rupertsland et al Willow b-88-A/94-H-2, proves unable to produce the gas volume allocated, the volume which the well fails to deliver shall be reallocated back to the producers whose contracts were reduced to accommodate the new well. Such reallocations will be made so as to maintain the relative share of Pool production of each existing producer prior to the effective date applicable to the new well, by such method and timing as may be agreed upon by the interested parties to achieve that result. 8. Compliance with this Order shall not require the British Columbia Petroleum Corporation to purchase natural gas from the Pool in a greater total amount or at a greater rate than required under gas purchase contracts for such Pool. DATED at the City of Vancouver, in the Province of British Columbia, this 28th day of October, 1982. BY ORDER J)/34~~ Division Chairman
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