www.ir.gov.sk.cawww.ir.gov.sk.ca

The Saskatchewan Natural Gas Advantage

Licensing of Wells and Facilities

J. A. Brian Mathieson, Director

Petroleum Development Branch

www.ir.gov.sk.ca

Departments (Agencies) Involved With Natural Gas Development

• Industry and Resources (SIR)• Environment (SE)• Agriculture and Food (A&F)• Government Relations (GR)• Rural Municipal Governments (RM’s)• Justice – Surface Rights Arbitration Board• Culture, Youth & Recreation (Heritage Branch)

www.ir.gov.sk.ca

SIR Responsibilities• Seismic Permits• Approvals for Off-target Wells, Reduced Spacing,

Production Allowable, Commingling Zones, Horizontal Wells, Waste Water Disposal Wells, Pool Boundaries, etc

• Well Licences (Drill, Operate, Produce)• Facility Approvals & Licences • Disposal of Drilling Fluids and Lease Clean-up • Disposal of Frac Fluids and Sand• Produced Fluid Storage and Disposal• Produced Fluid Spills On/Off Lease• Initial Contact Air and/or Water Pollution

www.ir.gov.sk.ca

SIR Peripheral Involvement

• Rural Municipality Development Permits• Surface Access to Private (Deeded) Lands• Surface Access to Crown Lands• Issuing Surface Lease Releases• Refined Product and Chemical Spills• Enforcing Air/Water Pollution Legislation

www.ir.gov.sk.ca

Well Licence

• Must Have a Licence Prior To Drilling– Simple two part application– Operator completes part one

• Must submit application in duplicate, together with required survey plans, any prior approvals required and proper fee

• Information on the licence is verified

– Department completes part two• Part two contains pertinent information:

– Licence conditions, Licence Number, Crown Royalty & Tax Provisions, etc

www.ir.gov.sk.ca

Facility Approvals

• Pipelines (flowlines)– Pipelines require a licence

– Flowlines do not require a licence

• Gas Compression Facility Installations– Not currently licensed (will be in future)

• Gas Processing Plants– Gas plants require approval by Minister’s Order

www.ir.gov.sk.ca

Follow Development Path

• Register Company in Saskatchewan– Corporations Branch, Saskatchewan Justice

• Acquire Petroleum & Natural Gas Disposition– Geology and Petroleum Lands Branch– Freehold Title Holder

• Obtain Surface Lease & Access Agreements– Landowners (Private or Crown) and RM’s which may

require a development permit• Obtain Well Licence

– Petroleum Development Branch

www.ir.gov.sk.ca

http://www.ir.gov.sk.ca• Saskatchewan Oil and Gas Resources• Licencing, Environmental Protection and Field Offices

– Daily Well Bulletins and Weekly Summary of Wells Drilled– Environmental Protection– Field Office Operations– Presentations– Retrospective Facilities Licence Application Program– Seismic Exploration Licence and Explosive Permit– Well Licence– Well Transfer

Contact Person: Brian Mathieson (306) 787-2593

www.ir.gov.sk.ca