The significant increase in effluent measured gas wells caused by the shale gas and coal bed methane drilling booms post 2005, resulted in updated provisions to Section 22.214.171.124. of the AER Directive 17. As annual effluent well testing typically costs $3,000 to $5,000 per well per year, taking advantage of these provisions will result in significant savings, where they apply.
A well will qualify for a 12-‐month exemption from testing if it meets one of the four exemptions listed below. Typically the preferred order to check for exemptions is in the order they are listed in the table below. Exemption option four waivers are generally the hardest to apply for, particularly where there are a lot of different well owners and/or a lot of freehold royalty owners.
|1||If the operating pressure is less than 350 kPag at the wellhead||This exemption s granted because the wells start with such low wellhead pressures that the additional back-‐pressures required to drive the effluent testing equipment will materially reduce the production rate during the 12 hour test period. The qualification for exemption is not subject to any other criteria, making it the most straightforwardexemption to apply for|
|2||If the well is covered by an AER zone measurement exemption|
|3||If both of the following criteria are met:
||To pursue this exemption, the company must confirm:
Tip: Refer to D17,Section 126.96.36.199 for applicable formulas
|4||If both of the following criteria are met:
||To pursue this exemption, the company must create a proposal for all working interest and freehold royalty owners involved to get their agreement in writing for this exemption. The proposal should include a review of the reporting entities currently set up and whether all the wells to be exempt should be placed into a single type 362 (multi-‐well effluent) battery, if they are not already.|
Note that all wet metered fields within Alberta must be reported in effluent proration batteries (battery sub-‐type 362) even though it could be empt from testing or “deemed” dry measured and gas wells that produce oil cannot be effluent measured without a special exemption.
Although wells may qualify for more than one of the different effluent testing exemption criteria,you should only apply for one criterion at a time.
How FacilityStudio provides value
FacilityStudio identifies all effluent measured batteries (sub-‐type 362) in your measurement schematics. Run the Inventory Report (version 2.4) or search for all sub-‐type 362 batteries using the Find Project window in the Schematic Viewer Interface to identify all of the sub-‐type 362 batteries in your schematics in FacilityStudio. The flowing pressure for 16 – 20 is calculated outside of FacilityStudio. Your company should review each effluent well to see if it qualifies for exemption under any of the qualifying criteria. The flow pressure from the meter reading is stored outside of FacilityStudio.