. BRITISH COLUMBIA I UnUTlES COMMISSION ~ ORDER NUMBER M-6-82 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 Dome Petroleum Limited for an Order declaring the British Columbia Petroleum Corporation a common purchaser of natural gas in the Fireweed Area, Dunlevy Formation BEFORE: D.B. Kilpatrick, ) Division Chairman; ) N. Martin, ) November 19, 1982 Commissioner; and ) B.M. Sullivan, ) Commissioner ) ORO E R WHEREAS Dome Petroleum Limited ("Dome") applied September 3, 1982 for an Order of the Commission declaring the British Columbia Petroleum Corporation ("B.C.P.C.") a common purchaser of natural gas in the Fireweed Area, Dunlevy Formation from a Pool which is stratigraphically equivalent to the zone producing the wells located as follows: b-42-A/94-A-13; b-44-A/94-A-13; c-54-A/94-A-13; d-75-A/94-A-13; b-4-H/94-A-13j a-7-H/94-A-13; c-16-H/94-A-13; a-43-H/94-A-13; d-55-H/94-A-13 ... /2 TWENTY FIRST FLOOR 1177 WEST HAST!NGS STREET VANCOUVER Be V6E 2L7 CANADA TELEPHONE (604) 689-1831 TELEX 04-54536
BRITISH COLUMBIA UTILITIES COMMISSION ORDER NUMBER COM-6-B2 2 WHEREAS pursuant to Order COM-4-B2 the Commission considered the Application at a public hearing in Vancouver on October IB, 19B2; and WHEREAS from the evidence with respect to well pressures and the geology of the area, the Commission concludes that the Applicant's well, Dome Fireweed c-lB-H/94-A-13, is capable of production of natural gas from the Fireweed Area, Dunlevy Pool; and WHEREAS it appears that Dome 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 Dome 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 Fireweed Area, Dunlevy gas Pool effective the date of this Order. The Fireweed Area Dunlevy gas Pool includes the b-42-A, b-44-A, c-54-A, d-75-A, b-4-H, a-7-H, c-16-H and c-lB-H wells all in 94-A-13. 2. The Applicant's well, Dome Fireweed c-lB-H/94-A-13, 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 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. . .. /3
BRITISH COLUMBIA UTILITIES COMMISSlON ORDER NUMBER COM-6-82 3 ... 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. 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 SCPC 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 SCPC 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 SCPC 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, Dome Fireweed c-18-H/94-A-13, 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 . . . . /4
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 existing gas purchase contracts for such Pool. DATED at the City of Vancouver, in the Province of British Columbia, this 19~ day of November, 1982. BRITISH COLUMBIA UTILITIES COMMISSION ORDER NUMBER COM-6-82 4 BY ORDER J?'.~' ~~ Dlvlslon Chairman
You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.