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Introduction There are currently almost as many definitions for reserves as there are evaluators, oil and as companies, financial agencies securities commissions, and government departments. Each one uses its own version f the definitions for its own purposes. But today with the unstable economic conditions in the oil and gas industry, the lower quality of reservoirs that are being discovered, and the new recovery methods that are being developed, estimating the reserves is becoming more unpredictable. These factors have made it imperative to develop a universal set of definitions for reserves that will meet the needs of all users. Also important is the need for guidelines so that all evaluators and users will understand the Reserves Definition Committee, seated left to right: D. W. Tull, G. A. Warne, G J DeSorcy and D.R. Collyer. Standing left to right: B. R. Ashton. W. D. Robertson. J. G. Robinson. G.R. Campbell and R.V. Lang (missing J. Drury). Illustrations available in full paper. Process of calculating and subsequently c1assifying reserves, of oil and gas and related substances. The task of writing the reserves definitions was undertaken by the Petroleum Society's Standing Committee on Reserves Definitions. This document comprises the committee's 1993 report. The definitions developed by this committee are similar to those currently in use, particularly in North America. They have been reviewed by users in the oil and gas industry and representatives from regulatory agencies, government departments, industry associations, and technical and professional organizations. This document presents the definitions of oil and gas resources and reserves and a recommended reserves classification system. Guidelines to illustrate the application of the definitions are presented and at the end of the document is a glossary of related terms that have been prepared in conjunction with the definitions. The Standing Committee believes the recommended definitions and guidelines are suitable for use with respect to all types of oil and gas and related substances, including offshore situations and oil sands. Although those segments of the industry have used somewhat different terms and definitions the principles reflected in the recommended definitions are applicable. The fundamental principle is that those quantities that are known to exist and to be economically recoverable are reserves. The total qualities, whether or not they have been discovered, are resources Reserves and resources are further categorized depending on the level of certainty that they will be recovered. It is the view of the Standing Committee that current reserves estimation methods and categories, in general, match the recommend definitions and guidelines. The committee, therefore, does not expect that major changes to reserves estimates would result from adoption of the definitions, although it recognizes that for some specific reserves estimates (generally for small pools) changes could be significant. The committee hopes that, over time, reserves evaluators will increasingly conform to the recommendations and thus contribute to the overall quality and consistency of reserves estimates. This document has been prepared by the Standing Committee on Reserves Definitions and sponsored by The Petroleum Society of the Canadian Institute of Mining, Metallurgy and Petroleum. The committee is composed of representatives or oil and gas companies, geological and petroleum engineering consulting firms, Canadian industry associations, financial and accounting organizations, regulatory agencies, and government.

The JCPTand the Canadian Association for the WPC agreed that itwould be a timely and valued service to readers and delegates to the 17th WorldPetroleum Congress to publish a series of articles reviewing several keypetroleum technologies receiving attention in Canada. Distinguished authoritieson the technologies agreed to contribute short summary articles on Canadianresearch and field experience in specific areas. These articles are included inthis issue: The Evolution of Imperial Oil's Cold Lake Development by Raj Patel and BruceRauch Innovative Steam Injection Techniques Overcome Adverse Reservoir Conditionsby S.M. Farouq Ali Air Injection for Oil Recovery by Gord Moore, Raj Mehta, and MatthewUrsenbach Suncor's Path to Growth - Oil Sands Projects and Technology by K.C.Yeung Downhole Oil/Water Separation's Canadian Roots by Bruce Peachey and ToddZahacy Canada's Recovered Sulphur - In the World Class by Jim Hyne VAPEX - A Unique Canadian Technology by Swapan Das Canada - World Leader in Hydrocarbon Miscible Flooding by Nick Mungan Bitumen Recovery From Athabasca Oil Sands by Jacob Masliyah Computalog's LWD System Designed for Deepwater Drilling Environments byKevin Brady

The exposed bituminous oil sands at Athabasca appear to have first received the attention of white settlers in 1719 when Henry Kelsey, one of Hudson's Bay Company's early Governors, observed a sample of bituminous sand brought to him at Fort York(1)). One of his Cree employees had travelled to the Athabasca valley and brought back a sample of "gum or pitch" taken from the river bank. Although the bituminous sands sample did not impress Kelsey in 1719, the resource was recognized as having enormous potential by others who followed close behind him. Extensive efforts have been made since then, by provincial, federal and industry interests to improve the understanding of the resource, establish its economic potential and ensure that it is developed in the best interests of Alberta and Canada. Early Disposition of Rights The first disposition of rights to develop the oil sands was made in 1901 by the Privy Council of Canada(2). Seven tracts comprising 12,725 acres along the Athabasca River at and north of Fort McMurray were patented for surface, asphalt and petroleum and natural gas. Regulations for the "Disposal of Tarsands, the property of the Crown", in that portion of Alberta lying north of Township 80 between the 4th and 5th Meridians were approved by Order of the Governor in Council in 1910. Tar sands were interpreted in the regulations as: " ...the sands and other material impregnated with tar, bitumen, petroleum, oil and other like substances found in deposits in the northerly portion of the Province of Alberta". Soon after this in 1912 the regulations were suspended and each application was considered on its own merits. In total some 21 leases were issued by the federal government. However, only four were in existence at the time of the transfer of the administration of the resources to the province in 1930. It appearsonly the leases held by Mr. Draper resulted in the construction of a plant and other significant operations prior to the transfer. However, in the late 1920s International Bitumen Company had commenced work at Bitumount leading to the major pilot extraction operations there in the 1930 to 1950 period. The first regulations issued by Alberta for the disposal of bituminous sands deposits, the property of the Crown in the Province of Alberta, were issued by order in 1930. Between 1930 and 1951 provincial agreements for development of the sands were entered into with companies and individuals including: Max Waite Ball, International Bitumen Company Limited, Abasand Oils Limited, and Lloyd Rogers Champion. Of this group of dispositions only that of Max Waite Ball of Denver, who also formed Abasand Oil, was continued. His work led later to the Great Canadian Oil Sands (now Suncor) development. A major bituminous sands conference was arranged by the Alberta government in September 1951 to study factors affecting bituminous sands development. In conjunction with the conference, Honourable N.E. Tanner, then Minister of Mines and Minerals, gave a: policy statement regarding prospecting permits and leases.