The Oil and Gas Conservation Act (OGCA) gives each owner the opportunity to secure its share of the production of oil or gas from any pool and provides for economic, orderly, and efficient development in the public interest. Accordingly, the AER may issue a declaration of a common carrier of oil, gas, or synthetic crude under section 48 of the OGCA.
The common carrier provisions of the OGCA cannot be used to gain access to an oil battery, as indicated in the AER letter of October 26, 2005, regarding Application No. 1398650.
A typical situation that would warrant the filing of a common carrier application with the AER would be when an owner of a capable well has a market for its gas and has arranged to have the gas processed at a nearby plant. Its analysis shows the existing gathering system to be the only economically feasible way to transport the substance in question, the most practical way, or clearly the environmentally superior way to transport its gas to the processing plant. However, the owner has been unsuccessful in negotiating an agreement on reasonable terms to use the existing pipeline. The well owner has recourse to apply for the declaration of a common carrier in order to secure its share of gas from the pool.
An order under section 48 of the OGCA obliges each common carrier, among other things, to provide equal opportunity to each owner to have its production transported. A common carrier order would allow an owner to share in the existing capacity of the pipeline.
An applicant filing a request for the declaration of a common carrier order has the option to request that the AER direct
The following outlines the process to follow to get an approval for common carrier applications. It includes links to application submission procedures and guidance documents.
The applicant will submit its common carrier application through electronic applications submission (EAS). Applications are registered using the Integrated Application Registry (IAR), and all material related to an application is stored in this system.
After an application is received, it will be reviewed for completeness under Directive 065 requirements. If the application is determined to be incomplete, it will be closed and returned with an explanation. If it contains minor deficiencies, a letter will be issued itemizing the information required.
In evaluating an application for a common carrier order, the AER considers whether the applicant has demonstrated that
If the application is determined to be complete, a review will be conducted as follows:
Some decisions on the application can be appealed by eligible persons based on the Responsible Energy Development Act. The filing requirements for a request for regulatory appeal, including form, content, and time limits, are set out in section 30 of the Alberta Energy Regulator Rules of Practice. The regulatory appeals procedures are set out in sections 30 through 33 of the Alberta Energy Regulator Rules of Practice.
The processing time for this application is 120 calendar days.