Resource Conservation Branch
PO Box 9329 Stn Prov Gov’t
Victoria, BC V8W 9N3 		Phone: (250) 952-0310
Fax: (250) 952-0301
Alt: (250) 952-0311

GUIDELINE FOR APPLICATION FOR APPROVAL OF UNITIZATION

Unitization Agreements are approved according to Section 114 of the Petroleum and Natural Gas Act. The purpose of unitization is generally to allow enhanced development of pool hydrocarbon resources underlying leases operated by a diversity of leaseholders. The following additional features are present:

  • the pool underlies freehold and Crown lands or may extend into neighbouring jurisdictions;
  • the pool contains distinct economic substances (oil, gas);
  • there is a need for centrally-located facilities operated on behalf of, and for the benefit of, all interest holders (including the Crown);
  • there is a need for certain drilling locations to be used for non-production purposes (injection, water disposal, etc.).

The Crown will need to provide assurances of title continuation and will need assurances of safeguarding the royalty share. The Unitization Agreement must therefore be submitted to the Crown in accordance with Section 5 of the Petroleum and Natural Gas General Regulation. If the unitized operation includes a scheme for repressuring, recycling or pressure maintenance operations, Oil and Gas Commission approval will be required under Section 100 of the Petroleum and Natural Gas Act.

Unitization proposals are to be submitted to the Director, Oil and Gas Titles Branch of the Ministry of Energy, Mines and Petroleum Resources in Victoria, which will refer technical submissions and requests to the Resource Conservation Branch of the Oil and Gas Commission at the address noted above. Four copies of technical submissions are required.