ORs are very touchy and often produce results surprising to the programmer. Or at least to this programmer.
I find that parens are helpful, also INs, in constructing these sorts of queries.
WHERE $u_ = '$a'
AND (STATUS = 'Active' OR STATUS = 'Cancelled' OR STATUS = '$nil')
Alternatively:
WHERE $u_ = '$a'
AND STATUS IN ( 'Active', 'Cancelled', '$nil')
The second method is foolproof.