Equitable Sharing and End Use of Natural Gas


  • C. A. Rae




Energy Law, Petroleum Law


Pursuant to the Doctrine of Correlative Rights, an owner of property in an oil and gas pool is entitled to an opportunity to produce his just and equitable share of the oil and gas in the pool. If such an owner does not exercise this opportunity, this article concludes that the Rule of Capture is the law in Alberta, and the owner who is drained has no right under existing conservation legislation to limit the cummulative share of production of another owner in the pool. Natural gas has many uses in addition to its use as light and fuel. This article further submits, that under the provisions of the Alberta Oil and Gas Conservation Act, the Board has the power to regulate the end use of gas, and as such, could prohibit the use of natural gas in the manufacture of chemicals, fertilizers and carbon black.