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. Accordingly, the AER may issue a declaration of a common processor of gas under section 53 of the OGCA.
A typical situation that would warrant the filing of a common processor application with the AER would be when an owner of a capable well has a market for its gas and this gas requires processing in a plant that it does not own. Normally, this gas has to be processed in a plant to meet certain specifications in order to be transported through pipeline. The owner believes that using the existing plant is the only economically feasible or most practical way to process the gas or is clearly superior environmentally, but the owner has been unsuccessful in negotiations to gain access to the plant on reasonable terms. The owner has recourse to apply for the declaration of a common processor in order to gain access to the plant and to allow the owner to secure its share of gas from the pool.
An order under section 53 of the OGCA obliges each common processor, among other things, to process gas that may be made available for processing in the plant without discrimination in favour of one producer or owner over another in the pool.
An applicant filing a request for the declaration of a common processor has the option of requesting that the AER direct
The applicant will submit its common processor 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 processor 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.