BRIT!SH COLUMBIA UTIUTIES CO ISSION <! ORDER NUMBER COM-12-8l PROVINCE OF BRITISH COLUMBIA BRITISH COLUNBIA UTILITIES CONMISSION IN THE MATTER OF the Utilities Commission Act, SBC 1980, c. 60 and IN THE MATTER OF an Application by West-growth Petroleums Ltd. for an Order declaring the British Columbia Petroleum Corporation a common purchaser of natural gas in the Jedney Baldonnel 'A' Pool BEFORE: D.B. Kilpatrick, Division Chairmanj and October 23, 1981. B.M. Sullivan, Commissioner o R D E R \, WHEREAS Westgrowth Petroleums Ltd. ("Westgrowth") applied June 18 , 1981 for an Order of the Commission declaring the British Columbia Petroleum Corporation ("BCPC") a common purchaser of natural gas from the Jedney Baldonnel 'A W Pool; and WHEREAS pursuant to Order COM-11-8l the British Columbia Utilities Commission ("the Commission") considered the application at a public hearing in Vancouver, on September 17, 1981; and .N;;~EREAS from the evidence with respect to well pressures and the geology of the ar~a, the Commission concludes that the Applicant's well, Westgrowth et al Jedney b-50-F/94-G-8, is capable of production of natural gas from the Jedney Baldonnel 'A' Pool; and . . . 2
i ORDER NUMBER COM-12-8l 2 WHEREAS it appears that Westgrowth has made reasonable efforts to arrange a gas sales contract for the subject well with BCPC without success; and WHEREAS the evidence further establishes that Westgrowth is suffering drainage of natural gas because of an inabili ty to bring the subj ect 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 Jedney Baldonnel 'A' Pool effective the date of this Order. 2. The Applicant's well, Westgrowth et al Jedney b-SO-F/94-G-8 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 the 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 Hinistry of Energy, Mines and Petroleum Resources, exclusive of the minimum of 60,OOOm 3 set for some wells. The gas pool boundary is that determined by the said Ministry. , •• 3
BR N I ORDER ~JUM8ER COM-12-81 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 9roportions 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 celivery 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 entitlement determined for the new producer. 7. Where the new well, westgrowth b-50-F, 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. 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. DATED at the City of Vancouver, in the Province of British Columbia I this .23 r"R day of October, 1981. -B -UTi co ON ORDER NUMBER COM-12-81 4 Such reallocations will be " BY ORDER .::::t". (3. ~;:t.; d. Division Chalrman
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.