A',-,s-r. CO/..UA~ BRITISH COLUMBIA , ''7~ «' ~~ :,.." C:J ~ \~ ~,..." "9' UTILITIES COMMISSION c..A ~"", ~11;, c-or' 0~ ~ <" / 'SF'\" . ,,., . '''''Ii q-~.l'- ,e:, ...- S cot/l~ ORDER NUMBER COM-5-82 PROVINCE OF BRITISH COLUMBIA BRITISH COLUMBIA UTILITIES COMMISSION 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 ) ORO E R WHEREAS Rupertsland Resources Co. Ltd. ("Rupertsland") applied July 22, 1982, to the British Columbia Utilities Commission ("the Commission") pursuant to Section S3 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 th~t 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 itA" Pool; and ... /2 '7v.'El'r:y j:1PS~ FLOOR 1177 WEST t-'AST!NGS STREET VA"JCOUVEP E C V6E 2~_7 CANADA TELEPHONE 1604 689-18]; ;£:"'EX ~~S~53e
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 purthaser 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 ~he 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 m 3 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
BRITISH COLUMBIA UTILITIES COMMISSIOt ORDER 3 NUMBER COM-5-82 5. That portion of total Pool production ~llocated 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. OATED at the City of Vancouver, in the Province of British Columbia, this 28th day of October, 1982. BY ORDER J)/3/t£~ Division Chairman
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