Regulatory Intelligence
Can a gas well produce oil and still remain classified as a gas well?
Category:
Well Classification
Research Basis
Archive Period
2008-2016
Records Reviewed
35
Primary Topics
Gas Well Classification; Liquid Production; Production Reporting; AER Manual 014
Current Reference
AER Manual 014
Common Question
Can a gas well produce oil and still remain classified as a gas well?
Archive Findings
Yes. An analysis of archived regulatory records demonstrates that the fluids produced by a well did not automatically determine its regulatory classification. Multiple historical correspondence files show recurring discussions regarding wells that produced measurable liquid volumes while remaining classified as gas wells. The records consistently distinguish between production characteristics and regulatory classification, demonstrating that classification decisions considered a broader range of engineering and reporting factors. These archived discussions illustrate that classification required an evaluation of the complete technical context rather than simply identifying the produced fluid.
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Engineering Insight
One of the strongest themes identified throughout the archive is the importance of distinguishing between what a well produces and how that well is classified. Although the two are related, they are not necessarily the same. Understanding this distinction remains important when reviewing historical production records, facility reporting, production accounting and legacy well classifications.
Current Guidance
Current well classification requirements are provided in AER Manual 014. Production reporting obligations should also be evaluated using the current reporting framework applicable to the well and facility.
Related Regulatory Insights
Historical newsletter insights that reference the same directive, manual, rule or regulatory requirement.
Mar 31, 2016
Well Fluid Classification, Licensee Obligations and IWCP Updates
This April 2016 newsletter discusses the AER release of Manual 014 for liquid classification and well status fluid type determination for oil and gas wells. It also announces Benoit Regulatory’s strategic alliance with Acipenser Resources, summarizes AER Bulletin 2016-10 regarding licensee obligations in insolvency situations, and covers AER planning updates, OGC isotope gas analyses, groundwater protection elevations, IWCP program reminders, and reclamation reporting changes.