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An operator can apply to produce a high volume of natural gas concurrently with their oil production in Saskatchewan as outlined in Section 49 of The Oil and Gas Conservation Regulations, 2012.
Concurrent production is the orderly production of an oil pool and its associated gas cap at the same time.
A concurrent production approval is necessary from Saskatchewan's Ministry of Energy and Resources in order to produce an oil pool and its associated gas cap. An oil well producing oil and significant amounts of gas may require concurrent production approval too, even if a gas-cap is not visible on the well logs.
No oil well shall produce gas in excess of a gas-oil ratio of 3,500 m3/m3 without approval. If a gas well test is performed and the gas-oil ratio is greater than 3,500 m3/m3, then the operator must immediately stop production. An operator must apply and receive approval from the Minister to produce the oil and gas concurrently.
Please note that there may be Minister's Orders with additional requirements for wells within designated spacing areas, pools, units, etc. If there is conflict between The Oil the Gas Conservation Regulations, 2012 to a Minister's Order regarding the requirements for concurrent production, the Minister's Order prevails.
All gas produced by concurrent production must be conserved.
To apply for concurrent production authorization, you must:
Complete the following steps for each well you are seeking authorization for concurrent production:
Once an authorization is issued, all gas production from the well must be conserved. If the infrastructure to conserve the gas is not in place at the time of approval, the well must be shut-in. Production can resume when the well is able to conserve all gas produced.
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