To submit an economic evaluation for gas conservation package:
1. Prepare the S-10 Economic Evaluation using the criteria provided in Appendix 1 of Directive S-10: Saskatchewan Upstream Petroleum Industry Associated Gas Conservation. This may be submitted as a PDF, Excel spreadsheet, or a combination of the two. It must include:
- NPV calculation, including the supporting documentation:
- Detailed capital and operating cost schedules as set out in Sections 2.9.1(6) and 2.9.1(7) of the Alberta Energy Regulator (AER) Directive 60.
- Oil and gas reserve calculations and supporting information, including a discussion of planned drilling programs and pressure maintenance schemes.
- A production forecast for both the oil and gas streams and the economic limit (date and production rates) of the project based on the oil production rate including planned drilling programs and pressure maintenance schemes.
- A copy of the gas analysis from the project, or a representative analog complete with gas heating value and gas liquid yields.
- A copy of the Facility Survey specifying the distance to the nearest resident.
- Documentation of alternatives that were considered in order to eliminate or reduce flaring, incinerating, or venting, how they were evaluated, and the outcome of the evaluation.
- Air dispersion modelling conducted in accordance with the most current Ministry of Environment Saskatchewan Air Quality Modelling Guideline if:
- Maximum H2S content of inlet gas/fluid is 10 mol/kmol or higher;
- Requested by the ministry.
2. Prepare a cover letter summarizing the outcome of the economic evaluation, the alternative options that were considered if uneconomic, as well as the following information:
- Distance to the nearest occupied dwelling (m);
- Maximum H2S content of inlet gas/fluid (mol/kmol); and
- Maximum continuous flaring/incineration/venting rate (103m3/d).
3. Log in to IRIS and complete the appropriate application for authorization process.
Once the economic evaluation is processed by the ministry, application approval or denial is communicated as a notification in IRIS.