_____________________________________
Does Gathering Systems count towards the summer deduction?
No, PCOS is meant to be used for oilfields and pipeline construction.
_____________________________________
"Deep Well Depth" is defined as the measured depth between kb and the top of the deepest pay of the well for vertical wells. Can you define pay for me, ie: if we are in the lower Montney does the well depth end at the top of the Montney (upper Montney)? There could be many pools with eligible pay zones in the Montney formation.
The OGC would evaluate the well and designate the pool(s) that had been encountered. Each pool would have a top and base of pay. Using the Montney example, if all the pay intervals encountered were deemed to be in the same pool, the top of the zone would be the top of the pay. For the Deep Royalty if the Montney was deemed to contain several pools, the top pay of the deepest Montney "pool" would define the "deep well depth".
_____________________________________
Does the Summer Royalty provide credit towards recompletion costs?
No, only towards the Drilling and Completion costs of Wells spud after June 30, 2003 and before December 1, 2003; after March 31, 2004 and before December 1, 2004; and after March 31, 2005 and before December 1, 2005.
_____________________________________
How does the OGC determine if a well is suspended?
A well's status must be formally altered with the 'BC 11 form' by the producer in order for a well to be changed from active status to suspended or abandoned status.
Further, Section 43 of the Drilling and Production Regulation requires that a “Notice of Commencement or Suspension of Operations” (BC-11 form) be submitted within 7 days following the date a well is placed on continuous production, suspension or service.
Numerous inactive wells are currently recorded by the OGC as having a status of “active” or “testing”. The OGC plans to change the status of these wells to “suspended”. The criteria used to identify a suspended well will be based on the following;
“ a UWI which has not produced for 12 consecutive calendar months, which may or may not have previously produced.”
Current well/UWI status, as recorded by the OGC, may be reviewed from the well index available from the OGC web site. The well index is available, in a number of different formats, from the following address;
www.ogc.gov.bc.ca
under “Statistics and Rig Activity” click “Data Downloads”
_____________________________________
Do Oil Wells qualify for the Summer Royalty program?
Yes, Oil Wells and Natural Gas Wells are eligible for the Summer Royalty program.
