Energy Bulletin: What Does the ERCB’s Decision in Kallisto Mean for Hydraulic Fracturing?

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In a recent contest before the Alberta Energy Resources Conservation Board between the operator of a natural gas storage reservoir and a producer seeking to drill and frack a Basal Quartz vertical oil well in the vicinity of the storage reservoir, the ERCB granted the producer its well licence, subject to conditions. While not specifically addressing any of the potential issues relating to hydraulic fracturing in tight oil reservoirs, there are interesting and useful inferences that can be drawn from the ERCB’s approach to an adjoining mineral owner’s objection to a fracking operation.

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Published In: Energy & Utilities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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