IN THE MATTER OF 'rHE U'riLITIES COMMISSION ACT, SBC 980, c. 60 IN THE MATTER OF AN APPLICATION BY HUSKY OI OPERATIONS LTD. M.a 82 Befo e D.B. Kilpat ck, D ision Ch i man, . • Sullivan, Comm ss er
TABLE OF APPEARANCES LIS'r OF EXHI ITS INTRODUCriON . . . . . . . . . APPLICATION . . . . . . . . . . . . . . . . . . . . DECISION . .. . . . . . . . . . APPENDIX I Commission Orde COM-1-82 i i . . . . . . . . . . . 1 2 . . . . . . . . . . . . . 2
APPEARANCES R. ,J. LUDGATE ,J .M. PASIEKA D. MORLEY R. GIROUX W. MUSCOBY D. ,JONES J. z D. LEACH W.J. GRANT B.T. BARBER R. STEWART AUDIOTRON ENTERPRISES LTD. for British Col ia Utilities s on icant Fo tish Columbia Petroleum Corpor tion For Westcoast Petroleum L for Texaco Can a Resources Ltd. for ro urn Hea ing Office Comrni s n Staff i ist y Staff Cou t rters
LIST OF EXHI I'rS Exhi it No. Designat of Divis on Cha rrnan D.B. Kil tr k 1 Comrniss No. COM-14-81 dated Dec 15, 1 8 2 Not e of Pu 1 Hea ing as Plac in B.C. Gazette, Vancouve Sun Ca ary Heral 3 Common Pur ase cation, Silver ield, Lower Cr aceou Bluesk Sandstone, 29, 1 8 , Hus Oil 4 face Pressur Measu erne t o Pemb na Silve . Prepa rs. 5 Inte vention of Dome Petroleum Ltd., ,Janua 2 , 1982 Silver Hus ina ilver c-92-K 1 Dual nduction - SFL, nsated Neutron Format n Densi 7 Ministry of Ener , M nes and Petroleum Resources, Dec r, 1980. G s Reserves - Maste Data t 8 c t GPD et al G , ,Janua y, 1973 9
HUSKY OI OPERATIONS LTD. IN'rRODUC'riON On Oct r 20, 1981, Husky Oil ( "Hus II ) made n, pu suant to Se tion 83 to the British olumb Uti itie Commiss on ("the Commission") fo an Or er of Comrn sion Petroleum orporat on ("BCPC") to natural gas in the Silver Blues was set down for public hearing on Feb ua y 8, 1982, COM-14-81. Notice of pu ic hea ing was pu lished licant and e ss on rna signa interested parties. The l ation was hear Hea ing Room in Vancouver, B.C. on Februa y 8, 1982 Divis on of e C ss on compr Divis n Cha rman, and rat ons I"td. f the Act, ecla B itish Co umbia a common rchaser of "A" Pool. The at n Order the es of e notice to public at e Commission a of M.r. • B. K t ick, . Su l van, Commi sioner. l
THE APPLICATION Hu e own of Silver c-92- 4-H-6. The 1 was tested in Ma ch, Hus determined e wel AOF' to aver e r s rvo r re su e of to obtai a gas rchas cant act of ma k t for natural s. Hus in the Silver lue y "A" oduction from l und tween BCPC ot uce Commiss on has eviewed rai e presented Husk Petroleum L ("Dome") . c se reement the final pressure from 506 kPa gauge) and e pr ssur (6515 kPa gauge) t l 35.1 m (CF) Pemb na Si ver c-92- 94-H- ev nee to overcome Dome's 2 e gas wel Husky na 980 and 110.8 X 10 3 ith an 3 Pa. Hus has una le ith BCPC use of a lack lleg c-92-K well s bei rai exi ti gas ase contracts e ev nee concerning o ect s raised Dome Commis ion has conclud at bu ld-up run from static gr ient run in well Hus n Ma c l 80 is suff ent e t ns to a single eco r
r ing. furth r i nee from Hu me as rement taken in cJanuar 1 82 s drainage of gas from spac ng occurr and is con nui Th s of gas 0 er we 1s in the Husky indica in the Blues pools in Silver, Blues "B" (Exhi it 4 , t on 3, metres ) . e "B" between 276.5 and 277.1 met es subsea and the Blues gas-wate contact at 28 . section 3, Bluesky show map). In c os -examinati n ina Silver c-92- 94-H- 1158.0 me res (274.7 to 27 .2 metes clean-up, produc ssen itional perforat and demonstra a del ver ili the well pr abou 15 test but the ana sis nd ated acid and KCl contamin tion (from et on f u s . 3 I S ssur rts vi that ea of the c-92-K we 1 rainage is ue to oduct n l. su ss at e e are two "A" pool anf'l Blues lues and stone roc bon 1 has gas-wate con act t "A" pool subs i t 4, u k t ted that e 11 us perfor ted from 1156.5 to ) and, after water-f ee. Fo lowing s tion, an AOF tes 3 f l .9 10 at 5 15 kPa~ of wate u ing c an-up
Dome cla in i ree Bluesky n S i ver: gas-water contact t 285.9 met No. 2 with a gas-water ontact at 276 subsea and an eastern 1 No. 1 with a g s-wat r conact at 276 metres su include the Hu ky wel c-92- 1 No. 1. er cross-ex ai to tisfac ion of the Comrnis wa pr uc n -9 -K i terva 7 .8 to 283.8 met es su of tu al gas. I v ew o c-9 -K and c- 4-K s Bluesk " " pool t i "A" i spect to c-16- claims gas-water on t Commiss note at a d ill test ove 283.2 pr 11.7 .1. 0 3 of g. as According t ace is well i i the B ky "A" poo . i espect to the has reviewed Dome' ev ence conce ning 4 ntervention at there are a ste pool No. 3 ith a s subsea, a no th-central pool ea. Dome and Texaco' c-94-K n ei na n Dome we e una le t o s 1 -water Ll t fl 8 • 2 ing e Comrniss n bel ves a included n as Hus 4-H-11 wel i whi Dome 281.3 metre subsea, the interva 275.2 to 1't no f_ ormat-'l on wa t er. s Hus 's interpretation t -9 - 4-H-6 well e Comm ssio e ecove of
formation water fr per fora that i 1 hould incl The ant r sen section 7 and testimo that t s to obtain as pu In 1 ht of ego ng at BCPC s a common aser of na B ue k "A" ill so n tes Hus ace allocatio of Pool uction a lowables (DGA) as ied n previous common pu applications and the e was no ss n refore oncl allowable bas s i the most pool produc n. espective a es of Blues " " 1 a e a fo Hus ina Silve c-92- Sum of l Virell 5 s at 278. m subsea a e Blues "B" l. te evidence (E i it 4, ey we e unsuccessful se contract. f su ect wel . Commiss on conclude ral a n Silve e . ed the formula the s on volumetric dai gas ser ection other part es. The t volumet g s ropr ate me od of allocat ng cont acts in Silver DGA 3 10 % 4-H- 22.6 . 4 352.1 100.0
DATED t the i f Vancouver, B tish Col D. . KILPATR 6 n Pr i of 0 ch, 1 2. .. SULLIVAN, C ss oner
APPENDIX I COM-1-82 PROVINCE OF BRITISH COLUMBIA BRITISH COLUMBIA UTILITIES COMMISSION IN THE MATTER OF the Utilities Commission Act, SBC 1980, c. 60 and IN THE MATTER OF an Application by Husky Oil Operations Ltd. for an Order declaring the British Columbia Petroleum Corporation a common purchaser of natural gas in the Silver Bluesky "A" Pool BEFORE: D.B. Kilpatrick, Division Chairman; and March 15, 1982 B.M. Sullivan, Commissioner 0 R D E R WHEREAS Husky Oil Operations Ltd. ("Husky") applied October 20, 1981, 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 Silver Bluesky "A" Pool; and WHEREAS pursuant to Order COM-14-81 the British Columbia Utilities Commission ("the Commission") considered the Application at a public hearing in Vancouver on February 8, 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, Husky Pembina Silver c-92-K/94-H-6, is capable of production of natural gas from the Silver Bluesky "A" Pool; and ... /2 TWENTY F!AST FLOOR, 1177 WEST HASTINGS STREET VANCOUVER B C V6E 2L7, CANADA TELEPHONE (6041 689--1831. TELEX 04-54536
COM-1-82 2 WHEREAS it appears that Husky has made reasonable efforts to arrange a gas sales contract for the subject well with BCPC without success; and WHEREAS the evidence further establishes that Husky 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 Silver Bluesky "A" Pool effective the date of this Order. 2. The Applicant's well, Husky et al Pembina Silver c-92-K/94-H-6 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 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 Pool as of the effective date . . . . /3
3 COM-1-82 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, Husky Pembina Silver c-92-K/94-H-6, 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 ..,-.n.. of British Columbia, this 1~ day of March, 1982. BY ORDER D~~:!c~~~
Document Id: 0 26A Document Name: DECISION - Hus y Oi S. ne D.B. Ki pa ick Comme t Ma 15, 8 OPERATION Crea Last Re ised Last Prin Last Ar ived Tot es: 12 Total Lines: 13 Pages to be pr ted: 2 SUMMARY S'rATI s·rrcs 'fi WORK TIME KEYSTROKES 09:02 : ll 7560 3:0 :04 74 3:08 14:10 onto Diskette 0036A Total Worktime: 1:48 Tota t oke 033
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