Background
The Ministry of Energy and Resources is seeking comments from industry on proposed amendments to Directive PNG003: Well Survey Requirements (Directive PNG003). Proposed changes to Directive PNG003 include updated and clarified terminology and requirements for key information to be included in well survey plans, particularly for plans relating to horizontal multi-lateral wells.
The Process
The ministry is holding consultations on the amended directive from June 6 to 28, 2024. Once the consultation period has concluded, the ministry will review all consultation feedback in the preparation of a final draft of the amended directive. The amended directive is expected to come into effect in summer 2024.
Summary of Proposed Changes
Directive PNG003 came into effect in November 2015 and outlines requirements for survey plans for all wells licensed by the ministry. With the growing number and complexity of horizontal, multi-lateral wells in Saskatchewan, the ministry has identified opportunities to update Directive PNG003’s terminology and key well survey plan components to promote clarity, consistency with other directives and more accurate data reporting in the Integrated Resource Information System (IRIS) for horizontal well survey plans. Notable clarification amendments proposed for Directive PNG003 include:
- Added definitions aligned to Directive PNG006: Horizontal Oil and Gas Well Requirements (Directive PNG006) to promote consistency in the labelling of data points on survey plans;
- References to Directive PNG006 to display lease boundary and inter-well set-back distances in relation to horizontal well paths; and
- Linkages to Directive PNG004: Surface Lease Construction Requirements to display set-back radii in relation to prescribed set-back distances from surface lease boundaries.
Also, the ministry is proposing the following key changes to be made to Directive PNG003’s information requirements relating to proposed well survey plans:
- Showing proposed wells and the unique identifier assigned by IRIS for all licensed wells;
- Using decimal degrees only for geographic coordinates for all points plotted on survey;
- Including a one-page overview displaying the subject well path in its entirety including all wellbore(s);
- For horizontal wells crossing Crown/Freehold and unit boundaries, a separate page showing the Ultimate Drainage Area and production allocation table as per Directive PNG006; and
- Any inflection points and/or midsection bends in addition to corner angles.
As well, proposed changes to Directive PNG003’s “as drilled” survey plan requirements for horizontal wells include displaying the Canadian Well Identification (CWI) numbers for all wellbores and an indication of the wellbore drilling sequence, including start and end dates.
Review of Amended Directive
Further details on the amended directive may be found at Notice of Proposed Directive Amendments Directive PNG003: Well Survey Requirements. Please submit feedback on the proposed amendments to the ER Service Desk at er.servicedesk@gov.sk.ca by June 28, 2024.