Enhanced Oil Recovery Project Application

An EOR project improves the recovery of oil by injecting a substance other than water into a hydrocarbon bearing formation. The main techniques used for EOR include thermal, chemical, gas, and microbial injection.

A Measurement Accounting and Reporting Plan (MARP) application must be submitted for thermal EOR projects via IRIS. Details of this requirement are outlined in Guideline PNG042: Measurement Accounting and Reporting Plan.

If a spacing modification (no injection proposed) is being applied for within a designated EOR project use the reduced spacing application guidelines for information to attach to the EOR application.

Good Production Practice (GPP) may be applied for as part of a new EOR project application only. Attach justification as is outlined within Section 3 of this webpage to the new EOR Project Application. To apply for GPP on existing projects, use the GPP application process and submission. Note that GPP is generally provided for already within Spacing Area E, where an application to have it assigned to a project would not be required.

An application for an EOR project can be made when:

• The applicant has the right to operate/modify the well(s) within the application areas appropriate to what is being applied for;
• The project is expected to provide incremental recovery;
• The applicant has an Integrated Resource Information System (IRIS) account and the appropriate permissions assigned by their IRIS Security Administrator to submit an EOR project application.
• The proposed injection, injection pressures, operational temperatures, and well integrity isn’t detrimental to the stratigraphy unit or other permeable zones.
• The applicant is the operator of the project.

To apply for a new, expansion, or modification of an EOR project:

1. Complete the Enhanced Oil Recovery Application (New/Expansion) Form or the Enhanced Oil Recovery (Modification) Form and include all required attachments. Select the appropriate EOR form from the following:
   
   • Enhanced Oil Recovery Application (New/Expansion) Form: For new EOR Project or EOR Project expansion outside of an approved project area.
   • Enhanced Oil Recovery Application (Modification) Form: For project modification (i.e. infill drills, EOR Well Conversions, Altering Operational Strategy) within an approved project area.
   • Enhanced Oil Recovery Application (Project Area) Form: For EOR project area approvals.
   
   See the Form Instruction tab for more details of the application.

Details on Spacing Modifications and GPP:

• If a spacing modification (no additional injection wells being requested) is being applied for within an existing EOR Project follow the spacing modification application process in addition to the applicable Enhanced Oil Recovery project application form. Include a discussion of the impact on VRR and recoveries with the additional production wells being added.
• If a Good Production Practice is being applied for within the EOR project area in a new project include the following information:
  1. A discussion on produced water and gas usage plan,
  2. Current Allowable Rate of Production (ARP) for well completions in the project area,
  3. Analogous examples of GPP performance in an EOR project,
  4. Confirmation Public Notice was also conducted for GPP notification area if required.
  Refer to Apply for an Allowable Rate of Production for Oil Wells for guidance.
2. Complete the Public Notice Process, if required.
3. Complete and sign the Injection into Freehold Minerals declaration of agreement in place letter, if required.
4. Complete the Reclassification/Recompletion (part of a reservoir) Application Form with all the necessary attachments, if required. For more information, see Guideline PNG024: Reclassification and Recompletion.
5. Confirm that all the information is complete and accurate, and forms are dated and signed. Ensure all required attachments are included:
   • Applicable EOR Project Application Form and attachments.
   • Completed Public Notice Process package, documented objections and required consents as a separate document, if applicable.
   • Reclassification/Recompletion (part of a reservoir) Application Form with all the necessary attachments.
6. Log in to IRIS and complete the appropriate application process for authorization and attach the required documents.

Log in to IRIS

Enhanced Recovery – EOR Authorization

Licence Functionality

New wells authorized through the Enhanced Recovery (ER) authorization will have a draft well licence submissions created.

The ER authorization cannot be used to create a new well licence application. The well licence submissions is created from the ER authorization. Changes to the following fields from the ER authorization will cause the licence to go non-routine:

• Surface Location
• Drilling Trajectory
• Bottom Hole Location
• Well Completion Type
• Pool, only if the stratigraphy is different
• Additional completions are added to the Well Licence application.

• Denied well licences will repopulate a new well licence submission from the authorization.
• Cloning or withdrawing a licence generated through the Enhanced Recovery authorization is not permitted.
• To withdraw a well licence or regenerate a cancelled well licence created from an Enhanced Recovery authorization a request should be made through ER Service Desk.

Authorization Amendments

If amendments are required to existing Enhanced Recovery authorizations a request should be sent to ER Service Desk with the following details:

• Enhanced Recovery Authorization number
• Requested changes.

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.

Note: Legacy Enhanced Oil Recovery authorizations issued remain valid and usable.

Operator Transfers

If a project is transferred to a new operator all existing Enhanced Recovery EOR 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 ER 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.

Project Reporting/Obligations

An approved EOR project may be subject to obligations that must be satisfied by the operator. Project obligations are triggered automatically or added anytime during the life-cycle of a project.

Project Commencement

The project operator is responsible for notifying the ministry when the project commences by fulfilling the "Report Project Commencement" obligation, which includes attaching information and recording the commencement date in IRIS. The official commencement date for an EOR project is the first day of the first month injection begins. When this information is confirmed by the ministry, other processes will be triggered in IRIS (e.g. “EOR Oil” Royalty Reclassification, if previously approved by the Petroleum Royalties group in the Energy Policy Branch).

Progress Reports

Projects may be subject to reports dependent upon performance. If requested, an obligation will be added to the project detailing the requested information. The operator will be notified via IRIS, including the due date. Reports are held confidential by the ministry.

No annual progress report will be required unless requested.

Project Termination

A "Report Project Termination" obligation is assigned to all EOR projects when approved via IRIS. When an operator decides to terminate a project this obligation must be fulfilled in IRIS, including submitting supporting documentation. A final project report may be required to fulfill the "Submit Final Project Report" obligation upon the ministry approving the project termination.

Application Forms

• Enhanced Oil Recovery Application (New/Expansion)
• Enhanced Oil Recovery Application (Modification)
• Enhanced Oil Recovery Application (Project Area)
• Recompletion/Recompletion(part of a reservoir) Application Form

Refer to the Directives and Guidelines below for details

• Directive PNG006: Horizontal Oil Well Requirements
• Directive PNG008: Disposal and Injection Well Requirements
• Directive PNG009: Public Notice Requirements
• Directive PNG012: Allowable Rate of Production - Oil Wells
• Guideline PNG021: Determining Drainage Units and Target Areas
• Guideline PNG024: Reclassification and Recompletion

Other Links

• Enhanced Recovery Application Training Module
• Project Obligation Training Module
• Minister's Order Bulletin Board
• Public Notice Process for Oil and Gas Activities
• Well Spacing Modification Application