IN THE MATTER OF THE UTILITIES COMMISSION ACT, SBC 1980, c. 60 and IN THE MATTER OF AN APPLICATION BY ORBIT OIL & GAS LTD. DECISION May 28, 1981 Before D.B. Kilpatrick, Division Chairman, J.D.V. Newlands and B.M. Sullivan, Commissioners
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~~iSlA UTILITIES COMMISSION ORDER NUMBER COM-8-81 PROVINCE OF BRITISH COLUMBIA BRITISH COLUHBIA UTILITIES Cotยท1MISSION IN Trill MATTER OF the Utilities Commission Act, SBC 1980, c. 60 and IN THE ~~TTER OF an Application by Orbit Oil & Gas Ltd. for an Order declaring the British Columbia Petroleum Corporation a common purchaser of natural gas in the Boundary Lake North Halfway E Pool BEFORE: D.B. Kilpatrick, Division Chairman; J.D.V. New1ands, Commissioner; and May 28, 1981 B.M. Sullivan, Commissioner WHEREAS Orbit Oil & Gas Ltd. ("Orbit") applied January 23, 1981 for an Order of the Commission declaring the British Columbia Petroleum Corporation ("B.C.P.C.") a common purchaser of natural gas from the Boundary Lake North Halfway E Pool; and WHEREAS pursuant to Order COH-4-81 the British Columbia Utilities Commission ("the Commission") considered the application at a public hearing in Vancouver on April 28, 1981; and WHEREAS from the evidence with respect to well pressures and the geology of the area, the Corrunission concludes that the Applicant's well, Orbit et al N. Boundary 7-22-87-14 W6M, is capable of production of natural gas from the Boundary Lake North Halfway E Pool; and ... /2
BRITISH COLUMBIA UTILITIES COMMISSION ORDER NUMBER COM-8-81 3 5. That portion of total pool production allocated to the new producer 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 to the effective date applicable to the new by such method and timing as may be the interested parties to achieve that 6. If within three months of the effective date, existing producers in the pool and the B.C.P.C. are unable to all agree on a satisfactory method of reducing the gas volume purchase obligation of existing contracts in the pool, the B.C.P.C. shall reduce each of the contracts providing for delivery of gas from pool by a percentage of the maximwn volume of gas which B.C.P.C. is obliged to purchase each day or each year (whichever is specified in the contract) applicable to the lands within the Pool. The percentage shall be the same as the percentage which the daily gas allowables of the well 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 same effective date as detennined for the new producer. 7. Where the new well, Orbit 7-22, 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 acconunodate the new well. Such reallocations will be made so as to maintain the relative share of pool production of each exi 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 t.o purchase natural gas from the Boundary Lake North Halfway E Pool in a greater total amount or at a greater rate than under gas purchase contracts for such Pool. DATED at the City of Vancouver, in the Province of f). British Columbia, this 28 day of May, 1981. BY OHDER ~/3-J:jf~ Division Chairman
UTILITIES COMMISSION ORDER COM-8-81 2 NUMBER WHEREAS it a~pears that Orbit has made reasonable efforts to arrange a gas sales contract for the subject well with B.C.P.C. without success; and WHEREAS the evidence further establishes that Orbit 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 Boundary Lake North Halfway E Pool effective the date of this Order. 2. The Applicant's well, Orbit et al N. Boundary 7-22-87-14 W6M is capable of production from the said pool. 3. The contract quantity applicable to the production of natural from the said well shall be the lesser of volume determined on the basis of the ratio of the gas allowable of the said well to the sum of daily allowables determined for the Boundary North Halfway E 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 said well is entitled to share in the production and revenues from the common pool shall be the date on which the Applicant has completed all required of him to effect delivery of ification gas from the new well. If within of this effective date, the has to negotiate actual connection makes a common carrier application, the said tion, if successful, will establish his entitlement to share in the production and revenues from the common pool as of the effective date. . .. /3
APPENDIX I BRITISH COLUHBIA UTILITIES COMMISSION IN THE MATTER OF the Utilities Commission Act, SBC 1980, c. 60 and IN THE MATTER OF an Application by Orbit Oil & Gas Ltd. for an Order declaring the British Columbia Petroleum Corporation a common purchaser of natural gas in the Boundary Lake North Halfway E Pool BEFORE: D.B. Kilpatrick, Division Chairman; J.D.V. Newlands, Commissioner; and B.M. Sullivan, Commissioner 0 R DE R WHEREAS Orbit Oil & Gas Ltd. ("Orbit") applied January 23, 1981 for an Order of the Commission declaring the British Columbia Petroleum Corporation ("B.C.P.C.") a common purchaser of natural gas from the Boundary Lake North Halfway E Pool; and WHEREAS pursuant to Order COH-4-81 the British Columbia Utilities Commission ( the application at a public hearing in Vancouver on April 28, 1981; and WHEREAS from the evidence with respect to well pressures and the geology of the area, the Co~uission concludes that the Applicant's well, Orbit et al N. Boundary 7-22-87-14 W6M, is capable of production of natural gas from the Boundary Lake North Halfway E Pool; and T\~Er>TY f'IRST FLOOR. 1177 ViEST HASfiNGS STREET V<.~.:;Cu;ER 8 C. V6E 2L7. CANI\DA. TELEPHCJr;E ยทf~~J tWl-1831. TfLEX 04 545-16 BRITISH COLUMBIA UTILITIES COMMISSION ORDER NUMBER COM-8-81 ) ) ) ) May 28, 1981 ) ) 11 the Corru-nission 11 ) considered ... /2
BRIT.ISH COLUMBIA UTILITIES COMMISSION ORDER COM-8-81 2 NUMBER WHEREAS it appears that Orbit has made reasonable efforts to arrange a gas sales contract for the subject well with B.C.P.C. without success; and WHEREAS the evidence further establishes that Orbit 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 Boundary Lake North Halfway E Pool effective the date of this Order. 2. The Applicant's well, Orbit et al N. Boundary 7-22-87-14 W6M 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 to the sum of the daily gas allowables determined for the Boundary Lake North Halfway E 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 said well is entitled to share in the production and revenues from the common pool shall be the date on which the Applicant has completed all required of him to effect delivery of specification gas from the new well. If within thirty days 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 common pool as of the effective date. . .. /3
BRITISH COLUMBIA UTILITIES COMMISSION ORDER NUMBER COM-8-81 3 5. That portion of total pool production allocated to the new producer 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 new producer, by such method and timing as may be agreed upon by the interested parties to achieve that result. 6. If within three months of the effective date, existing producers in the pool and the B.C.P.c. are unable to all agree on a satisfactory method of reducing the gas volume purchase obligation of existing contracts in the pool, the B.C.P.C. shall reduce each of the existing contracts providing for delivery of gas from the pool by a percentage of the maximum volume of gas which B.C.P.C. is obliged to purchase each day or each year (whichever is specified in the contract) applicable to the lands within the Pool. The percentage shall be the same as the percentage which the daily gas allowables of the well 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 same effective date as determined for the new producer. 7. Where the new well, Orbit 7-22, 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 ach~eve that result. 8. Compliance with this Order shall not require the British Columbia Petroleum Corporation to purchase natural gas from the Boundary Lake North Halfway E 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 n. British Columbia, this 28 day of May, 1981. BY ORDER J:)./3.~~ Division Cnairman
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