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Applying to implement, modify or expand a waterflood project in Saskatchewan.
A waterflood project improves oil recovery by injecting water into a hydrocarbon bearing formation. The water increases pressure in the reservoir and displaces oil towards a production well.
If a spacing modification (no injection proposed) is being applied for within a designated waterflood project use the reduced spacing application guidelines for information to attach to the waterflood application.
Good Production Practice (GPP) may be applied for as part of a new waterflood project application only. Attach justification as is outlined within Section 3 of this webpage to the new Waterflood Project Application. To apply for GPP on existing projects, use the GPP application process and submission.
Waterflood projects and well spacing modifications approved by the Ministry of Energy and Resources are available on the Minister's Order Bulletin Board. All archived Minister's Orders since 2005 can also be found on the bulletin board.
Application for a waterflood project can be made when:
The applicant must have an Integrated Resource Information System (IRIS) account and the appropriate permissions assigned by their IRIS Security Administrator to submit a waterflood project application.
To apply for a waterflood project:
Note: Documents related to third-party engineering reports and seismic data can be attached as confidential. The application must have enough non-confidential information within it to adequately justify/explain the application. Confidential attachments are kept confidential and are only viewable to the Business Associate that applies and the ministry.
New wells authorized through the Enhanced Recovery (ER) authorization will have a draft well licence submissions created.
The ER authorization cannot be used on a reference for a new licence application created by an applicant; licence submissions are generated from the authorization. Changes to the following fields from the ER authorization will cause the licence to go non-routine:
If amendments are required to existing Enhanced Recovery authorizations a request should be sent to ER Service Desk with the following details:
Amendments to the authorization would be considered if there is no change in the number of wells approved, no changes outside of approved area and if public notice was required the changes do not impact that notice validity. For example, replacing a cancelled licence, switching production/injection wells around, revising location details to avoid Non-Routine licence submissions would all be reasonable and considered authorization amendments.
A well may not require an authorization (i.e. does not require approval for a spacing change or is not for injection); those wells can be licensed and linked to a project without an authorization being required.
Note: Legacy authorizations that have been issued for Waterflood remain valid and usable.
If a project is transferred to a new operator all existing ER Waterflood Authorizations associated to that project issued remain valid. Ensure that the project operator is updated as well as transferring the well licences associated within the project. This will ensure reporting activity on completion changes remains available.
To use the existing draft well licence submissions generated by the ER Authorization contact the service desk and provide confirmation that a transfer has occurred as well as the submission numbers associated to the project that has transferred to a new operator and request the draft licence submissions be transferred.
Note: The application and authorization will remain under the BAID of the applicant, this is to maintain policy on applications being a point-in-time reference and to ensure confidential documentation submitted with the original application remains confidential.
An obligation for project commencement will be created upon creation of a project with the project number assigned in IRIS. Once criteria are met as outlined for the waterflood a company is to report commencement of the flood within 14 days.
An obligation for progress report submission will be found on the project if applicable. Annual reports are confidential. If annual reporting is required, the minimum requirements for the report are:
An obligation for project termination is assigned on all projects. Once an operator has decided to terminate a project, this obligation can be reported against once all pressure maintenance water injection has ceased. If injection wells are reclassified to other injection types a waterflood project may be terminated. A termination report should include at minimum:
The Waterflood Development Program (WDP) offers repayable royalty/freehold production tax deferral for eligible wells that have been converted to injection wells or newly drilled injection wells for the purpose of waterflooding an oil reservoir.
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