Royalty Program for Marginal Gas Wells

Applicants must be both new and reactivated wells that meets the following criteria.
1. Its primary product is natural gas, but it is not part of a coalbed methane project.
The MWRR does not apply to conservation gas or non‐conservation gas
produced from an oil well event.
2. The well event is in a well with a spud date after September 1st 2022 (i.e. wells that are
subject to Base 9 or 12 royalty rates).
3. Its average daily rate of production per metre of depth in the 12‐month period that
begins with the first month in which it produces marketable gas is less than 23.
This is calculated using the following formula:
(TP/TPH) X 24
MWD
where
TP = the total production from the well event in:
4. The 12 consecutive calendar months starting with the calendar month in which
marketable gas is first produced from the well event, or
5. In the case of a reactivated well event, the 12 consecutive calendar months after
the calendar month in which marketable gas is first produced following
reactivation. TPH = the total number of hours during which the well event produced natural
gas over the 12‐month test period.
MWD = the marginal well depth of the well event.
Marginal well depth for a marginal well event means:
6. For a well event in a vertical well, the true vertical depth to the top of pay,
which is the distance between the wellbore’s intersection with the pay of the
marginal well event to the point, directly above that intersection point, that is
the same elevation as the kelly bushing used in drilling that well, or
7. For a well event in a horizontal well, the total measured depth of the well event,
which is the length of all of the vertically and horizontally‐oriented wellbores
from the surface to the well event.