ERCB issues interim shut-in order of natural gas wells
The Alberta Energy Resources Conservation Board (“ERCB”) issued Decision 2011-012, which concluded that the production of natural gas from 455 intervals in 321 wells located in northeast Alberta may present a significant risk to the ultimate recovery of Wabiskaw bitumen due to a potential decline in reservoir pressure.
The ERCB ordered an interim shut-in of gas production of these wells, plus an additional 152 intervals, effective May 31, 2011. Production from these intervals must remain shut-in pending the ERCB’s final hearing and decisions.
In discussing the test for an interim shut-in of gas production, the ERCB stated that the Board only considers whether the bitumen is potentially recoverable, and not whether it is commercially recoverable. An interim shut-in order will be issued if bitumen is potentially recoverable and gas production has the potential for significant wasting of bitumen during the time required to decide on an application for permanent shut-in.
