Beginning in 2007, the Industry Measurement Group (IMG) undertook a two year initiative focused on creating technically based regulations that would allow for improved economics on low pressure, low liquid gas plays in Western Canada. The initiative was supported by the Canadian Association of Petroleum Producers (CAPP) and led to a joint CAPP/IMG review of Effluent metering applications and the associated testing requirements for gas wells set forth by the regulatory authorities in British Columbia and Alberta.

The Canadian Association of Petroleum Producers (CAPP) is the voice of Canada's upstream oil, oil sands and natural gas industry. CAPP represents companies that explore for, develop and produce natural gas and crude oil throughout Canada. CAPP's member companies produce about 90 per cent of Canada's natural gas and crude oil.

The Industry Measurement Group (IMG) represents 100 members from upstream, transmission, provincial and federal organizations. IMG is recognized by CAPP as a formal voice for measurement related activities in the Western Canadian Oil and Gas Industry. The objectives of the IMG organization include the identification of common areas of concern relating to measurement and encouraging co-operation in establishing action plans, increasing awareness of measurement issues and fostering beneficial relationships. IMG also acts as a liaison between the industry and regulatory bodies in the development of industry accepted standards for measurement activities.

The examination of metering applications and testing requirements for gas wells in British Columbia and Alberta led to the conclusion by both industry and the regulator that there was merit in conducting a timely multi-jurisdictional review. The primary objectives of the joint CAPP/IMG review were two fold. Firstly, it brought all parties together to form a common framework for Effluent metering application and testing expectations, based on a risk and volumetric approach. Secondly, it supported an economical approach to the continued development of unconventional gas resource plays in Alberta and British Columbia, with a focus on well-site infrastructure and operational cost optimization.

This paper will provide the reader with insight into well testing requirements and the benefits of creating technically based, pragmatic regulations. The paper will also demonstrate how through the use of existing regulatory documentation, the CAPP/IMG project team was able to develop a new practical and pragmatic regulatory framework and policy for Effluent metering and well testing, which provides a common regulatory and industry approach across Alberta and British Columbia.

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