1. www.ir.gov.sk.ca The Saskatchewan Natural Gas Advantage Licensing of Wells and Facilities J. A. Brian Mathieson, Director Petroleum Development Branch

2. www.ir.gov.sk.ca Departments (Agencies) Involved With Natural Gas Development Industry and Resources (SIR) Environment (SE) Agriculture and Food (A&F) Government Relations (GR) Rural Municipal Governments (RM’s) Justice – Surface Rights Arbitration Board Culture, Youth & Recreation (Heritage Branch)

3. www.ir.gov.sk.ca SIR Responsibilities Seismic Permits Approvals for Off-target Wells, Reduced Spacing, Production Allowable, Commingling Zones, Horizontal Wells, Waste Water Disposal Wells, Pool Boundaries, etc Well Licences (Drill, Operate, Produce) Facility Approvals & Licences Disposal of Drilling Fluids and Lease Clean-up Disposal of Frac Fluids and Sand Produced Fluid Storage and Disposal Produced Fluid Spills On/Off Lease Initial Contact Air and/or Water Pollution

4. www.ir.gov.sk.ca SIR Peripheral Involvement Rural Municipality Development Permits Surface Access to Private (Deeded) Lands Surface Access to Crown Lands Issuing Surface Lease Releases Refined Product and Chemical Spills Enforcing Air/Water Pollution Legislation

5. www.ir.gov.sk.ca Well Licence Must Have a Licence Prior To Drilling –Simple two part application –Operator completes part one Must submit application in duplicate, together with required survey plans, any prior approvals required and proper fee Information on the licence is verified –Department completes part two Part two contains pertinent information: –Licence conditions, Licence Number, Crown Royalty & Tax Provisions, etc

6. www.ir.gov.sk.ca Facility Approvals Pipelines (flowlines) –Pipelines require a licence –Flowlines do not require a licence Gas Compression Facility Installations – Not currently licensed (will be in future) Gas Processing Plants –Gas plants require approval by Minister’s Order

8. www.ir.gov.sk.ca Follow Development Path Register Company in Saskatchewan –Corporations Branch, Saskatchewan Justice Acquire Petroleum & Natural Gas Disposition –Geology and Petroleum Lands Branch –Freehold Title Holder Obtain Surface Lease & Access Agreements –Landowners (Private or Crown) and RM’s which may require a development permit Obtain Well Licence –Petroleum Development Branch

9. www.ir.gov.sk.ca http://www.ir.gov.sk.ca Saskatchewan Oil and Gas Resources Licencing, Environmental Protection and Field Offices –Daily Well Bulletins and Weekly Summary of Wells Drilled –Environmental Protection –Field Office Operations –Presentations –Retrospective Facilities Licence Application Program –Seismic Exploration Licence and Explosive Permit –Well Licence –Well Transfer Contact Person: Brian Mathieson (306) 787-2593

10. www.ir.gov.sk.ca