Well Data & Forms
Instructions for the Production Allocation Agreements & Acknowledgement (“PAA”) (for Horizontal Wells)
Except for Saskatchewan wells, where PrairieSky Royalty Ltd. no longer requires a formal Production Allocation Agreement, a Production Allocation Agreement is required for any other horizontal well drilled on lands where one or more of the following apply among the applicable spacing units:
- there is different royalty ownership;
- there are different royalties payable; or
- there are different lessees and/or working interest participants.
The Production Allocation Percentage (defined in the PAA) is calculated based on the proportionate productive interval length of the horizontal well contained within the boundaries of each Land Parcel (also defined in the PAA) to the length of the horizontal leg of such well pursuant to the post-drill survey submitted to the applicable regulator.
The Production Allocation Percentage is required to be attributed to each of the applicable Land Parcels under the Title Documents.
Each Land Parcel shall reflect no more than the impacted spacing units, as defined by the applicable regulations.
Production Allocation Agreement (“PAA”) Fillable Forms
Choose the Production Allocation Agreement for either Mineral Leases or Overriding Royalty Agreements:
- Production Allocation Agreement – Mineral Leases (Alberta/Manitoba/B.C.)
2. Production Allocation Acknowledgement – Overriding Royalty Agreements
The above mentioned PrairieSky fillable forms are new forms as of August 1, 2026. To use them properly, download the forms directly off the website and open in the Microsoft Word Application for full functionality (do not attempt to edit within the browser view) https://www.prairiesky.com/land/lease-documents-forms/
*Note: Downloading the word documents is key for the fillable fields (i.e. UWI, License Number etc.) to work properly and for the ability to add rows/lines for additional land parcels to the Exhibit “A” table. Fillable fields that repeat in the form will auto populate (UWI, Licence Number, and Effective Date)
For “Substance” select either petroleum or natural gas, in alignment with the classification of a horizontal well license by the governing body.
For “Title Documents” please include reference to the original parties under the description.
For unit to non-unit production allocation, choose the Production Allocation Agreement form that corresponds to PrairieSky’s royalty interest in the non-unit lands. For example, if the underlying PrairieSky interest is a Lessor Royalty, use the Mineral Lease PAA form.
Saskatchewan Horizontal Well Allocations
For Saskatchewan horizontal wells, PrairieSky no longer requires a formal Production Allocation Agreement. Production allocations for Saskatchewan wells will be reviewed based on the final as-drilled survey submitted by the Well Operator. Accordingly, the Saskatchewan pre-license Production Allocation Agreement process described in prior guidance is no longer required for Saskatchewan wells (see link below to the Notice).
This clarification applies only to Saskatchewan wells. Operators remain responsible for complying with all applicable laws, regulations, directives and licensing requirements, and for obtaining any rights, consents, approvals, pooling arrangements or other agreements that may be required for lands or mineral interests not owned or controlled by PrairieSky.
Saskatchewan HZ Wells PrairieSky Notice
Submission of Forms, Supporting Information and Queries
Submit the completed Production Allocation Agreement or Acknowledgement (Horizontal Well) for approval and execution to ProductionAllocations@prairiesky.com
The post-drill survey should accompany the completed Production Allocation Agreement and/or Acknowledgement form, if such surveys have not previously been sent to PrairieSky via StackDX as part of the Well Data Requirement.
Please contact ProductionAllocations@prairiesky.com for questions about our forms or unique requirements that are not addressed or contained within the applicable form.