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Description

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  7.4.1.1.  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.

Exemption
Option
Exemption Additional Details
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:

  1. The well is flowing below its critical lift rate (i.e. needs artificial lift to operate) at the last day of the well test evaluation
    period.
  2. The well has electronic flow measurement for secondary and tertiary measurement (EFM) (i.e. is not chart measured).
To pursue this exemption, the company must confirm:

  • The well is below it’s critical flow rate and flow path by gathering the tubing size (and casing size for annular flow).
  • The current flow rate is below the critical flow rate.

Tip: Refer to D17,Section 7.4.1.1 for applicable formulas

4 If both of the following criteria are met:

  1. The total weighted average monthly Liquid to Gas Ratio (LGR) at the reporting facility is less than or equal to 0.15 m3 liquid/e3m3 gas (excluding fluid volumes from each well or reporting facility with dedicated separation).
  2.  hydrocarbon liquid condensate is less than or equal to 0.05m3 liquid/e3m3 gas for the well test evaluation period (excluding any recovered hydrocarbon load fluids).
  3. all working Interest participants and freehold royalty holders (if present) have been notified in writing with no objections received
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.

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