Well Spacing Modification Application

A drainage unit is the subsurface area allocated to a vertical oil well completion or gas well completion for drilling and producing in order to maximize oil or gas recovery from a defined or miscellaneous pool. A drainage area is made up of the drainage units associated to a horizontal well completion based on set-back requirements. The Government of Saskatchewan's drainage unit/area and set-back requirements ensure long-term, equitable, and orderly development of resources while preventing reservoir damage.

In accordance with subsections 17(1)(a), (b) and (c) and section 27 of The Oil and Gas Conservation Act, an application for oil/gas well spacing modifications must be submitted and approved by the Minister of Energy and Resources before licensing a well completion that won't meet the well spacing minimum requirements. Typically, this occurs if additional wells are proposed within a drainage unit or if a well is being proposed that will not meet the setback requirements.

An application for well spacing modification can be made:

• for a single well completion;
• on a large scale, multiple well completions or lands;
• as a test of a spacing modification;
• to enlarge a drainage unit's size; or
• reduce the regulated setback distances.

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.

To apply for a well spacing modification authorization:

• Have an Integrated Resource Information System (IRIS) account and the appropriate permissions assigned by your IRIS Security Administrator to submit a well spacing modification application.
• The applicant must be the licensee (or a party authorized to act on behalf of a licensee) that is active/capable of having wells within the proposed area of the spacing change.
• Applications must be made before licensing or completing a well.
• In accordance with subsections 17(1)(a), (b) and (c) and section 27 of The Oil and Gas Conservation Act, an operator can apply to modify well spacing for one or more of the following reasons. Well spacing applications that do not meet at least one of these criteria will be rejected.
  
  • Recovery improvement.
  • Additional or fewer wells are necessary to provide the capability to drain a pool at a reasonable rate without adversely affecting the recovery from the pool.
  • The spacing is already sustainably established in the pool and the proposed spacing modifications are equal to or more restrictive than the established pool spacing.
• All applications must include technical engineering arguments and analysis, as well as associated production, geological and other relevant engineering supporting data.
• All applications must meet all The Oil and Gas Conservation Regulations, 2012, criteria for drainage units and clearly support the entirety of the area.
• If required, the applicant must complete the Public Notice process (See Section 3) prior to making a submission. For more information see Public Notice Process for Oil and Gas Activities.

To apply for a well spacing modification

• Determine the current spacing of the proposed project area and verify that the proposed spacing or set-backs will require a modification from those already assigned:
  • Saskatchewan Mining and Petroleum GeoAtlas
  • Guideline PNG021: Determining Drainage Units and Target Areas
  • Directive PNG006: Horizontal Oil Well Requirements
• For Gas Well Spacing Modification or Vertical Oil Well Spacing Modification the Well Spacing Modification Application–Major form and process is required for any application.
  Note: Applications submitted using the Well Spacing Modification Application–Major form must complete the Public Notice Process.

If the proposed spacing modification relates to horizontal oil wells, the Major or Minor form may be used depending on the information related to the reason for application:

• Minor Form:
  • existing infrastructure inhibits proper development and standard inter-well set-backs cannot be met, but the intent is to maintain the well density of the Section/Area or;
  • the off-set wells meet the nominal set-back limits outlined in the table below (based on a one-year average of production), 
    
    
    
    
  • the set-back violation is mitigated due to stratigraphic isolation.
  • If the application meets the criteria outlined above, the Well Spacing Modification Application–Minor form is to be used for application submission. The instructions and required attachments are listed on the form.
    Note: Public Notice is not required for wells that meet the criteria for a Minor Form Application Submission.

• If the application does not meet the criteria outlined in Step 3, then applicants must download and fill out the Well Spacing Modification Application–Major form. The instructions and required attachments are listed on the form.
• Include the Reclassification (part of a reservoir) Application Form with all necessary attachments if a well is to recompleted or reclassified as a result of the spacing modification. For more information, see Guideline PNG024: Reclassification and Recompletion.
• Complete the Public Notice Process, if required, before submitting a Spacing Modification application. Process for public notice/consents is found within Directive PNG009: Public Notice Requirements.
• Log in to IRIS and attach the appropriate application form with required documents attached.

To apply for a reduced spacing as part of another application type

• When applying for spacing modification within a previously approved project area associated to secondary/tertiary recovery (Waterflood/EOR), use Section 3 – How to Apply and submit the application of the type associated to the project the application is within (Application for Waterflood, Application for EOR). This does not apply when a spacing modification is requested as part of an EOR or Waterflood application, i.e. a company requests approval to Waterflood by conversion of 3 injections and adding two infill wells, in this case the application would speak to the injection and spacing request in the application while submitting only one application. Use the spacing modification forms in this instance only if all that is being applied for within the project is a spacing modification, include a brief discussion on the impacts the spacing will have on the existing project.
• If applying to commingle, and it is being proposed to add a pool where a well completion may cause spacing requirements to not be met, include information related to Spacing Modification as per Section 3 – How to Apply as part of the Commingling Application.

Click on the link below to view the desired application webpages:

• Waterflood Project Application
• Enhanced Oil Recovery Project Application

Log in to IRIS

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.

Note: If an authorization is associated to a project and additional reporting is required, that reporting will be set as an obligation on the project. Reporting requirements (timelines, details) related to what must be submitted within the report and the frequency of providing information will be part of the authorization documents provided in IRIS or in the approval wording itself. If additional reporting is required and the authorization is not associated to a project, the requirements related to what must be submitted within the report and the frequency will be part of the authorization documents provided in IRIS or in the approval wording itself.

Application Forms

• Spacing Modification Application-Minor
• Spacing Modification Application-Major
• Recompletion/Reclassification (part of a reservoir) Application Form

Refer to the Directives and Guidelines below for details.

• PNG006: Horizontal Oil Well Requirements
• PNG009: Public Notice Requirements
• Guideline PNG021: Determining Drainage Units and Target Areas
• Guideline PNG024: Reclassification and Recompletion

Other Links

• Saskatchewan Mining and Petroleum GeoAtlas
• Waterflood Project Application
• Enhanced Oil Recovery Project Application
• Minister's Order Bulletin Board
• Public Notice Process for Oil and Gas Activities