Stakeholder Comment Period - Development of Well Spacing Requirements - 5 April 2007

File Ad-GA-RG-COGDPR-02 5 April 2007 To: All Potentially Interested Parties Stakeholder Comment Period Development of Well Spacing requirements The National Energy Board (NEB or the Board) is collaborating with several federal and provincial agencies to develop goal-oriented Drilling and Production Regulations (DP Regs) 1under the Canada Oil and Gas Operations Act (COGOA) and the Offshore Accord Acts . The agencies that are part of this Project Working Group include Natural Resources Canada, the Department of Indian Affairs and Northern Development, the NEB, the Province of Newfoundland and Labrador, the Province of Nova Scotia, the Canada-Newfoundland and Labrador Offshore Petroleum Board and the Canada-Nova Scotia Offshore Petroleum Board. On 5 April 2007, the Project Working Group released draft Drilling and Production Regulations (DP Regs) under each Act for stakeholder comment. The NEB has responsibilities to administer regulations under the COGOA, such as the draft DP Regs currently under consideration. Section 3 of the COGOA version of the draft DP Regs would provide the Board with the authority to establish orders necessary for the management and control of oil or gas production. Section 3 states: Spacing 3. The Board is authorized to make orders respecting the allocation of areas, including the determination of the size of spacing units, and the well production rates for the purpose of drilling for or producing ...