The Commission has designated the gas zones under application as the Pickell - Notikewin "A", an extensive multi-well pool, and the single well Pickell - Bluesky-Gething "B" pool.

The Notikewin zone is producing gas up the casing at a rate of 6.3 10 3 m 3 /d. The Bluesky-Gething is flowing up tubing at a rate of 3.4 10 3 m 3 /d. The Notikewin and Bluesky-Gething zones are both producing below their critical lift rates and are experiencing liquid loading problems. Commingled production is expected to maximize production and reserve recovery. Gas compositions for both zones are similar. We wish to advise you that your application to commingle production from these zones is hereby granted approval, under the authority of Section 41 of the Drilling and Production Regulation, subject to the following conditions: 1. Production from the Notikewin (767.0 - 788.0 mKB) and Bluesky-Gething (997.0 - 1022.0 mKB) zones may be commingled. 2. Gas, condensate and water production should be allocated on the Ministry of Small Business and Revenue BC S-1 and BC S-2 forms on the basis of Notikewin 60% and Bluesky-Gething 40%. 3. This approval may be modified at a later date if deemed appropriate through a change in circumstances. Should you have any questions, please contact the undersigned at (250) 952-0310.