ERCB approves well in vicinity of gas storage reservoir

ERCB approves well in vicinity of gas storage reservoir by Gavin S. Fitch and Michael C. Barbero, March 9, 2012, McLennan Ross LLP
The proposed well is located approximately 1 km from the boundary of the CrossAlta Gas Storage & Services gas storage reservoir. CrossAlta, a joint venture of TransCanada Energy and BP Canada, uses the depleted Amoco East Crossfield Elkton pool to store natural gas for customers transported on TransCanada’s mainline. In 2001, another nearby well (the 7-25 well) was allegedly fracked in the BQ “A” pool. Subsequently, it became apparent that there was communication in the 7-25 well between the BQ A and the Elkton, CrossAlta’s storage reservoir. CrossAlta argued that the fracking of the 7-25 well induced communication with its storage reservoir. CrossAlta objected to Kallisto’s application on the basis that the drilling and fracking of the proposed well would similarly pose a significant risk to the integrity of its gas storage reservoir.