It’s always best to apply for GPP – The regulator will decide if they want to give GOR penalty relief or Special MRL instead.

Maximum Rate Limitation (MRL) was invented by the Alberta government regulator as a measure to compel oil and gas companies to consider conserving oil reservoir energy.  MRL is a rate limitation that is imposed on oil wells until the well operator justifies to the regulator that the production method used will maximize recovery.

Almost all new wells receive a MRL.  With the restriction, the ERCB also determines a base gas/oil ratio (GOR) above which, the MRL is even further reduced.

The Alberta regulator uses three different ways of relaxing rate restrictions: Good Production Practice, GOR Penalty Relief, and Special MRL. 

Good Production Practice (GPP) removes all rate restrictions.  This is preferred by operators because they no longer need worry about accounting for over-production balances and starting up or shutting down a well in the middle of a month.

GOR Penalty Relief removes only the GOR penalty applied to wells but does not lift the MRL.

Special MRL increases a well’s MRL, but does not remove the restriction.

Although the regulator uses three ways to relax an MRL, the application for all three is almost identical.

In every case, the applicant must justify to the ERCB why the current production method conserves the oil reservoir resource and is the best production method for the pool.  In most cases, the applicant must review the enhanced recovery potential of the pool.

If you want to produce your Alberta oil wells without restriction, you must review the enhanced recovery potential of your pool with the ERCB.

~Granger J. Low

Traditionally, oil prices at major trading hubs in the North Sea, the Southern United States, and Northern Alberta have risen and fallen around approximately the same price per barrel. In late 2010, however, prices began to vary by wider margins, with Brent crude emerging as the higher priced commodity.

Reasons for the split in prices are thought to be related to perceived oversupply in North America, and increased mobility to Asia for North Sea shipments. It is widely thought that the completion of pipelines to the West coast of Canada – such as the Northern Gateway project – will alleviate the glut and lead to a rebalancing of prices.

Gavin Low is Proven Reserves' programmer, and an integral part of the company’s software development effort.

Gavin has received a CIT certificate from Lethbridge College, having received training computer technology field programming, networking, and computer maintenance, and is currently pursuing a degree in electrical and computer engineering at BCIT.

Gavin was born in High Level, Alberta, but was raised here in Calgary.

He enjoys programming, drawing and other creative projects, gaming and video game collecting, and spending time with friends.

Here at Proven, Gavin is working to enhance his computer programming skills and networking abilities, and wants to learn more about PLC, DCS, and micro-controller systems.