Higher Allowable Rate of Production for Gas Wells Application

The Allowable Rate of Production (ARP) controls the volume of gas that can be produced from a gas well in a 24-hour period.

As outlined in Directive PNG011: Allowable Rate of Production: Gas Wells, gas wells completed on-target or off-target are assigned a minimum ARP of 10,000 m³/day, unless the well has been completed in a defined pool where Good Production Practice (GPP) has been granted. The minimum ARP is applied to the gas well automatically by the Integrated Resource Information System (IRIS).

An operator can apply to the Ministry of Energy and Resources for a higher daily allowable rate.

All off-target gas wells are subject to a penalized allowable unless the operator has evidence they have applied for and have been granted a waiver of penalty, or where GPP has been granted, by the ministry.

An application for a higher daily allowable rate can be made when:

• An approved Absolute Open Flow (AOF) test is completed on the gas well within the proposed pool.
• The AOF test analysis demonstrates that 20% of the productive potential of the well, multiplied by the off-target penalty (if applicable), is greater than the minimum ARP of 10,000 m³/day.
• The gas well is not producing from a defined pool that's been granted GPP.

1. Perform the required AOF test as outlined in Guideline: Gas Well Absolute Open Flow (AOF) Tests.
2. Determine if the gas well is off-target by referring to Instructions for Determining Oil and Gas Well Spacing Using the InfoMap. If the well is off-target, see Directive PNG011: Allowable Rate of Production: Gas Wells to determine the penalty factor.
3. Calculate the proposed Daily Allowable (DA).
   
   • For an on-target gas well or an off-target gas well with a waiver of penalty, the DA is equal to the AOF potential multiplied by 20%.
   • For an off-target gas well without a waiver of penalty, the DA is equal to the AOF potential multiplied by 20% and multiplied by the off-target penalty.
4. If the calculated ARP is greater than the minimum ARP of 10,000 m³/d, complete the Application for Daily Allowable – Gas Form.
5. Confirm that all the information is complete and accurate, and the form is dated and signed. Ensure all required attachments are included:
   
   • Application for Daily Allowable – Gas Form
   • Absolute open flow (AOF) test data with calculations and summary
   • If required, waiver of the off-target penalty
   • If required, consents obtained and any Public Notice Process objections documented.
6. Log in to IRIS and complete the appropriate application process for authorization and attach the required documents.

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

Log in to IRIS

The effective date for a gas well to produce at the minimum ARP of 10,000m³/day is the date of first production.

If the application for an increased daily allowable rate is received by the ministry before the date of first production, the effective date of the applied for daily allowable is the date of first production. If the application for the daily allowable rate increase is received by the ministry after the date of first production, the effective date of the applied for daily allowable rate is the first day of the calendar month following the receipt date of the application.