With the recent 2017-18 Budget announcement, programs and services affected will be updated shortly. Posted March 22, 2017

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Apply for an Allowable Rate of Production for Oil Wells

Find out Saskatchewan’s Allowable Rate of Production (ARP) for oil wells, and how to apply for a Maximum Permissible Rate (MPR) or Good Production Practice (GPP) rate from the Ministry of the Economy.

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1. Guidance

The Allowable Rate of Production (ARP) controls the volume of oil that can be produced from a well, or a combination of wells in a block, in a 24-hour period.  

This rate can be authorized by the Minister of the Economy in the form of a: 
  • Minimum Allowable 
  • Maximum Permissible Rate (MPR) 
  • Maximum Permissible Rate Off-Target Penalty (MPR – OTW Penalty) 
  • Economic Allowance (EA)
  • Good Production Practice (GPP)  
With the exception of the Minimum Allowable and GPP, an ARP can be affected by a gas-to-oil (GOR) ratio penalty.
 

The Integrated Resource Information System (IRIS) assigns an ARP to a well at the time of license based on its location and proposed completion as described in Directive PNG012: Allowable Rate of Production: Oil Wells.

The IRIS assigned ARP is either:
  • GPP: For a well completion within a pool or spacing area where GPP has been granted; or
  • EA: For a well completion that is within a pool or spacing area that has not been granted GPP; or
  • Minimum Allowable: For non-horizontal well completions where a licensee identifies a proposed well completion as off-target and subject to an off-target penalty. The Minimum Allowable for an oil well is 3.0m3/day.  A minimum allowable overrides both GPP and EA.
An operator can make an application for a different ARP other than the one assigned by IRIS:
  • A well under EA can make an application for an MPR or GPP.  
  • A well under MPR can make an application for GPP.
  • A non-horizontal well completion that is subject to an off-target penalty can make an application for a MPR – OTW penalty.

Although IRIS displays the daily ARP, it doesn’t multiply in the GOR penalty factor. The Ministry does factor in the applicable GOR penalty as part of its production reviews, so it’s recommended operators include the GOR penalty factor when monitoring their own production.  An operator is responsible for monitoring their production and correcting any over-production. 

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2. Eligibility

An application for MPR or GPP allowable rate of production can be made at any point after drilling and completing a well. The applicant must:
  • Have an Integrated Resource Information System (IRIS) account and the appropriate permissions assigned by your IRIS Security Administrator.
  • Own the well or have agreements in place that allows them to submit an application for the well.
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3. How To Apply

The following steps must be completed for each individual well the operator is requesting an MPR or GPP allowable rate of production:
  1. Review drainage unit, setbacks, and target area by referring to Instructions for Determining Oil and Gas Well Spacing Using the InfoMap.
  2. Review the drainage area and the initial ARP assigned with the well licence, including applicable penalties. 
  3. Complete the MPR Application (Oil) Form for horizontal or non-horizontal wells, or the GPP Application Checklist Form
  4. Only one application is required if GPP is being requested for a large area, pool, or project. 
  5. Confirm that all the information is complete and accurate, and that all the forms are signed and in the proper format. 
  6. Log in to IRIS and complete the appropriate application process for authorization and attach the required documents.

Once the application package is submitted through IRIS it cannot be modified by the applicant. Any subsequent changes or additions requires resubmission.

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4. Apply

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5. Further Information

The Ministry of the Economy reviews applications and approves or rejects the proposed rate of production.  Notification of approval or denial of the application is provided through an IRIS notification.

If the MPR or GPP is approved, an authorization number and the approved ARP displays on IRIS within the ARP tab in the well completions detail screen. 

If an applicant has a legacy well that’s granted an ARP but doesn’t display correctly in IRIS, attach the original approval to an application for GPP or MPR. The system updates the APR once the Ministry confirms the existing approval.

The Oil Allowable Rate of Production (ARP) Report – Overproduction Management report provides a list of well completions that have overproduction associated to them and is available to download.

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