Resource Conservation

RESOURCE CONSERVATION

MANDATE

Under the authority of the Petroleum and Natural Gas Act and the Drilling and Production Regulation, Resource Conservation has the duty to maximize the recovery of oil and gas for the benefit of the Province. The Province owns the resource and, through production royalties, is effectively a significant interest owner in all of the oil and gas pools in British Columbia.

We are the Provincial authority respecting resource conservation strategies and the reservoir engineering and geology of subsurface oil and gas pools. Responsibilities include:

1. Assess and map all of the oil and gas pools in the Province;

2. Compile and maintain an inventory of established reserves of oil, gas and hydrocarbon by-products and their distribution by field and pool;

3. Regulate and assist owners of oil and gas resources to participate equitably in the production of shared pools of oil and gas;

4. Capture and maintain sub-surface technical data that is vital to the industry in further exploration and development of the resource;

5. Review of applications related to reservoir management and geology.

General inquiries should be made to:

Resource Conservation
Richard Slocomb, P.Eng.
Supervisor, Reservoir Engineering
Resource Conservation
PO Box 9329 Stn. Prov. Gov't.
300, 398 Harbour Rd.
Victoria BC V9A 0B7
Phone: (250) 419-4421
Fax: (250) 419-4402

More contact information for the Resource Conservation can be found here.

More Resource Conservation Contact Information

Resource Conservation

Name	Title	Phone Number
Barker, June	Senior Petroleum Geologist	(250) 419-4428
Farr, Glynis	Senior Reservoir Technician	(250) 419-4427
Grieve, Chris	Reservoir Engineering Technician	(250) 419-4432
Hayes, Mark	Senior Petroleum Geologist	(250) 419-4431
Johnson, Jeff	Supervisor, Petroleum Geology	(250) 419-4422
Kazakoff, Verna	Reservoir Analyst	(250) 419-4446
Li, Sarah	Well Test Analyst	(250) 419-4442
McLean, Doug	Senior Petroleum Geologist	(250) 419-4429
Mercure, Travis	Reservoir Engineer	(250) 419-4448
Michaels, Kary	Executive Administrative Assistant	(250) 419-4445
Okuszko, Kelly	Reservoir Engineer	(250) 419-4433
Slocomb, Richard	Supervisor, Reservoir Engineering	(250) 419-4466
Stefik, Ron	Senior Reservoir Engineering Technologist	(250) 419-4430
Walker, Dan	Senior Petroleum Geologist	(250) 419-4426
Wang, Alvin	Engineering Technician	(250) 419-4443
Fax: (250) 419-4402

Oil and Gas Conservation Requirements
Reservoir Data Reporting Requirements
Well Classification and Spacing
Annual Reserves Data and Monthly Drilling Production Data

Oil and Gas Conservation Requirements

Item	Description	Form Required	OGC Contact	Reference
Daily Oil Allowable (DOA)	Each oil well must have an approved DOA before being placed on production.	Application for Daily Oil Allowable OGC 009 DOA or OGC 009a Proj DOA	Ron Stefik	Drilling and Production Regulation Sections 73 and 74
Production Allowable Report— Crude Oil	A report must be submitted monthly for each oil well or group of wells producing under a DOA.	Production Allowable Report—Crude Oil OGC 032 PROD RPT	Ron Stefik	Drilling and Production Regulation Sections 75, 80, 81 and 82
GOR Adjustment Factor for DOA	A base GOR factor of 177.3 m³/m³ is applied unless evidence is supplied of a higher pool solution GOR.	Letter with PVT analysis	Ron Stefik	Drilling and Production Regulation Section 73 and Schedule 2
Daily Gas Allowable (DGA)	Gas wells which meet specific criteria must have an approved DGA before being placed on production.	Application for Daily Gas Allowable OGC 038 DGA	Ron Stefik	Drilling and Production Regulation Sections 87 and 88
Report of Annual Gas Overproduction	A report must be submitted by December 16^th each year for gas wells which exceed their DGA.	Report of Annual Gas Overproduction OGC 040 DGA OP	Ron Stefik	Drilling and Production Regulation Section 89
Waiver of Off-Target Production Penalty (other than Discovery Wells)	Conditional waiver of the production penalty may be granted for an off-target well.	Letter with attached maps, data and supporting letters	Ron Stefik	Drilling and Production Regulation Sections 9 and 10
Well Product Type Classification	A well may be identified as an oil or gas well depending on producing GOR.	Letter with attached production plots	Ron Stefik	Petroleum and Natural Gas Act Section 1
Concurrent Production	Approval to produce oil and gas above solution GOR simultaneously from an oil pool.	Application as specified in Guideline for Application for Approval of a Scheme for Concurrent Production (S.12.6 of British Columbia Oil andGas Handbook)	Richard Slocomb	Petroleum and Natural Gas Act Section 97
Commingled Production	Prior approval is required to produce a well from more than one pool without segregation.	Application as specified in Guideline for Approval to Commingle Production from Two or More Zones (S.12.10 of British Columbia Oil and Gas Handbook)	Richard Slocomb	Drilling and Production Regulation Section 41
Pressure Maintenance or Improved Recovery	Approval for enhanced oil recovery through waterflood or gas injection.	Application as specified in Guideline for Application for Approval of a Scheme for Pressure Maintenance or Improved Recovery (S.12.1 of the British Columbia Oil and Gas Handbook)	Richard Slocomb	Petroleum and Natural Gas Act Section 100
Progress Report —Pressure Maintenance or Improved Recovery	Annual or semi-annual engineering report on project performance.	Formal engineering report with attachments	Richard Slocomb	Petroleum and Natural Gas General Regulation Section 8
Good Engineering Practice (GEP)	Approval of GEP area grants an operator relief of well spacing, target area and individual well allowable restrictions.	Application as specified in Guideline for Application for Approval of a Good Engineering Practice Area (S.12.7 of the British Columbia Oil and Gas Handbook)	Richard Slocomb	Drilling and Production Regulation Section 101
Underground Storage of Natural Gas	Approval for an underground hydrocarbon storage scheme.	Application as specified in Guideline for Application for a License for Underground Storage of Hydrocarbons (S.12.2 of the British Columbia Oil and Gas Handbook)	Richard Slocomb	Petroleum and Natural Gas Act Sections 126 –132 and Petroleum and Natural Gas Storage Reservoir Regulation
Unitization	Unitization Agreements are submitted to the Petroleum Lands Branch of the Ministry of Energy and Mines; technical details are reviewed by OGC Reservoir Engineering.	Application as specified in Guideline for Application for Approval of Unitization (S.12.8 of the British Columbia Oil and Gas Handbook)	Richard Slocomb	Petroleum and Natural Gas Act Section 114 Petroleum and Natural Gas General Regulation Section 5 Drilling and Production Regulation Section 105
Disposal of Produced Water	Approval to operate a well for the deep disposal of produced water into a formation	Application as specified in Guideline for Approval to Dispose of Produced Water (S.12.4 of the British Columbia Oil and Gas Handbook)	Richard Slocomb	Drilling and Production Regulation Section 94
Disposal of Acid Gas	Approval to operate a well for the deep disposal of waste gas (hydrogen sulfide and carbon dioxide) into a formation.	Application as specified in Guideline for Approval of a Scheme to Dispose of Acid Gas (S.12.3 of the British Columbia Oil and Gas Handbook)	Richard Slocomb	Petroleum and Natural Gas Act Section 100
Disposal of Non-Special Waste	Approval to operate a well for the deep disposal of upstream non-special waste into a formation.	Application as specified in Guideline for Application for Approval of a Deep Well Disposal of Non-Special Waste (S.12.5 of the British Columbia Oil and Gas Handbook)	Richard Slocomb	Petroleum and Natural Gas Act Section 100

Reservoir Data Reporting

Item	Description	Form Required	OGC Contact	Reference
Reservoir Pressure Survey Test (PST) Report	Summary report to be attached to all well pressure tests submitted.	Reservoir Pressure Survey Test (PST) Report OGC 061 PST	Ron Stefik	Drilling and Production Regulation Section 95
Reduced Reservoir Pressure Survey Testing Requirement	Producing pools require annual reservoir pressure testing, unless reduced frequency has been approved.	Letter with attached production and pressure history data	Ron Stefik	Drilling and Production Regulation Section 95
Well Deliverability Test Report	Summary report to be attached to all flowing well tests i.e., AOF, clean-up.	Well Deliverability Test Report OGC 062 AOF	Ron Stefik	Drilling and Production Regulation Section 84
Monthly Water Injection Statement	Monthly report of water injected into an approved waterflood scheme.	Monthly Injection/Disposal Statement BC S-18 and Instructions	Glynis Farr	Petroleum and Natural Gas General Regulation Section 8
Monthly Water Disposal Statement	Monthly report of water disposed into an approved produced water disposal well.	Monthly Injection/Disposal Statement BC S-18 and Instructions	Glynis Farr	Drilling and Production Regulation Section 94
Monthly Gas Injection Statement	Monthly report of gas injected into an approved gas pressure maintenance scheme.	Monthly Injection/Disposal Statement BC S-18 and Instructions	Glynis Farr	Petroleum and Natural Gas General Regulation Section 8
Monthly Acid Gas Disposal Statement	Monthly report of acid gas disposed into an approved acid gas disposal well.	Monthly Injection/Disposal Statement BC S-18 and Instructions	Glynis Farr	Petroleum and Natural Gas General Regulation Section 8

Well Classifications and Spacing Requirements

Item	Description	Form Required	OGC Contact	Reference
Well Classification/ Reclassification	A well can be reclassified if a new pool has been identified.	Letter of application and supporting documentation	Senior Petroleum Geologists: Jeff Johnson Doug McLean June Barker Dan Walker Mark Hayes	Drilling and Production Regulation Section 14 and 57
Extended Well Confidentiality	Follow-up wells to a discovery can be granted extended confidentiality.	Letter of application and supporting documentation	Senior Petroleum Geologists: Jeff Johnson Doug McLean June Barker Dan Walker Mark Hayes	Drilling and Production Regulation Section 57(16)
Other Than Normal Spacing	The assigned area for a well may be larger or smaller than a single spacing.	Application as specified in Guideline for Other than Normal Spacing for Wells (S.12.9 of the British Columbia Oil and Gas Handbook)	Ron Stefik	For Oil— Drilling and Production Regulation Section 9 For Gas— Petroleum and Natural Gas General Regulation Section 3
Waivers for: Sampling, Logging, and Coring Requirements	Waivers or variances from sampling, coring, and logging requirements need approval.	Phone request followed by letter outlining reasons for waiver	Senior Petroleum Geologists: Jeff Johnson Doug McLean June Barker Dan Walker Mark Hayes	Drilling and Production Regulation Sections 52 and 53
Field and Pool Designations	All pools are mapped to establish boundaries for engineering, geological, and land tenure purposes.	An operator may file an information package outlining proposed pool configuration. OGC may request information to aid in mapping (seismic)	Senior Petroleum Geologists: Jeff Johnson Doug McLean June Barker Dan Walker Mark Hayes	Petroleum and Natural Gas Act Section 97
Discovery Well Designation	Wells can be designated the discovery well for a pool. Discovery status can give off-target relief, a 36-month royalty holiday for oil wells, and extend confidentiality if reclassified to Exploratory Wildcat.	Letter of Application from operator and supporting documentation	Senior Petroleum Geologists: Jeff Johnson Doug McLean June Barker Dan Walker Mark Hayes	Drilling and Production Regulation Sections 1, 9 and 10
Waiver of Off-Target Production Penalty (Discovery Wells only)	An off target penalty can be waived for a discovery well.	Letter of application and supporting documentation	Senior Petroleum Geologists: Jeff Johnson Doug McLean June Barker Dan Walker Mark Hayes	Drilling and Production Regulation Sections 1, 9 and 10