Continuations Frequently Asked Questions

 

All new petroleum and natural gas (PNG) continuation and validation applications business are conducted electronically through the Electronic Transfer System (ETS), since February 2015.

Submitting an Application

Are there other options available, besides ETS, to submit an application?
How far in advance of expiry can I submit an application?
How soon can I expect a response to my application?
What happens to my application after I have submitted it?
If Alberta Energy does not consider our agreement productive, we would like to know right away so we can drill a well to prove it up before expiry. Can we get a rush response to our application?
What is the benefit of applying for an advanced ruling?
After reviewing our expiring agreement we have decided not to apply for continuation. Should we notify you that we are not applying?
What happens if my application is late, or if I omit some of the lands or rights in the agreement from my application?
Where can I obtain a copy of the Continuation Application Guide?
Should I complete both the section 15 and section 16 tabs if I’m referring to a newly drilled well?
I want to make an application using an older producing well. Where do I put the unique well identifier on the Application Form?
I am worried that I might be completing the application incorrectly. Will I jeopardize the continuation of my agreement if I make an error?

Submitting Data

I am sending data, how will you know which application the data applies to? Should I attach my ETS application to my data package?
I want to apply for continuation based on a producing well. What information should I submit with the application?
Will you return my technical data after my agreement has been reviewed?
Will you allow anyone else to look at my data?
Why can’t I continue my agreement on the basis of AER G-Orders, without submitting technical data?
I have an agreement that is about to expire; I have drilled a shallow well on it and I have farmed out the deeper rights to another company. Can we each submit our own application for continuation?
I applied for continuation and didn't receive what I wanted on all of the lands I requested. I don't have any more data, but another company is willing to submit data to support my application. Can I arrange for them to provide the information?
Can Alberta Energy refer to technical data we submitted on a previous application, for a current application we intend to submit?

Authorizations

When is authorization needed from the well licensee?

Section 15: Indefinite Continuation

Under section 15 of the PNG Tenure Regulation, it references production of petroleum and natural gas "in paying quantity." Where can I find a definition of "paying quantity?"
If I apply for a section 15 continuation, but my well data does not support a section 15 continuation, will I be offered a section 17 and how will I select my sections?
How is an application administered if I apply for a section 17 and/or a section 15 on a spacing unit where there is a well drilled?
If my agreement is continued under section 15, will it be reviewed periodically for productivity, or will it remain continued indefinitely, or until it is surrendered?

Section 16: Continuation for six months due to recent or current drilling

If we are drilling a well over expiry, do we need to apply for continuation?
How much land can we continue under section 16 of the Regulation?
How many sections of land can be chosen from a qualifying well?
Can I submit mapping to increase the area to be continued under section 16?
How do I select sections using a horizontal well?
Do I have to select the sections that contain open perforations?
Does the qualifying well have to evaluate the rights in the agreement?
If I re-enter an existing well, will it qualify for continuation under section 16?
We drilled a well on our agreement and it was Drilled & Abandoned. What happens if we don’t want to continue the agreement even though it’s eligible for a section 16 continuation? Should we notify you that we will not be submitting an application?
If I am drilling a well past expiry, is it a requirement to select the section the well is drilled on?
What does the term “previously continued lands” mean?
Can a well drilled outside the location of the previously continued lands be a qualifying well for a “rolling”, or a subsequent section 16 continuation?
How long is a section 16 continuation period?
If I have two stacked agreements and I drill through the shallow and deeper agreement, how many sections will I be able to select?
If I drill a horizontal well through two groups of previously continued land, does that allow both groups of land to further continue under section 16?

Section 17: Continuation for one year for Potentially Productive Rights

Should I include the acceptance fee and rent with my application for continuation pursuant to section 17?
How do I earn a section 17 continuation?
Can I apply for a section 17 continuation even though my well is proven productive?
Can a potentially productive well be used to select adjacent agreements to continue?
Can a producing, productive or potentially productive well be used more than once to continue other lands under section 17?
How are commingled wells reviewed for a section 17 continuation?
I am considering farming into an agreement that is continuing under section 17, and there are only a couple of months until the lands expire. Can I get an extension so I can drill a well?
Do I have to drill a new well on the section 17 lands to get continuation pursuant to section 15?
I am drilling a horizontal well through multiple sections. Can I select up to nine sections from each section that the well bore has drilled through?

Section 18: Notices of Non-Productivity

Why did I receive a Section 18 notice on my agreement?
Do I have to drill a well to satisfy a Section 18 notice?
When reviewing lands for posting, we sometimes notice agreements that are continued under section 15 yet we do not believe they still meet the criteria for continuation. Is there a way these lands can be reviewed so they are available for future posting?
When I submit a Third Party request, will the lands in the agreement under review be subject to Shallow Rights Reversion (SRR)?

Extensions

If my agreement is currently continued under section 16 but I need more time to complete work on my agreement, what can I do?
If I received a section 18 notice of non-productivity and need more time, what can I do?
Is there an extension available to extend the time of a primary, intermediate or section 17 agreement expiry?
We have experienced mechanical difficulties while drilling our well and our agreement is expiring, is there an extension available?