This is an official version. Copyright © 2009: Queen's Printer, Important Information
Newfoundland and Labrador
Offshore
Petroleum Drilling and Production (Filed Under the authority of section 145 of the Canada-Newfoundland and Labrador Atlantic Accord Implementation Newfoundland and Labrador Act, the Lieutenant-Governor in Council makes the following regulations. Dated at Gary Norris REGULATIONS Analysis 1. Short title 2. Interpretation PART
I 3. Spacing 4. Names and designations 5. Other powers of the board PART
II 6. Management system 7. Application for authorization 8. Other requirements- production installation 9. Safety plan 10. Environmental plan 11. Well approval 12. Well approval -drilling 13. Application 14. Well approval 15. Suspension and revocation of approval 16. Development plans 17. Resource management plan PART
III 18. Availability of documents 19. Management system 20. Safety and environmental protection 21. Appropriate use of equipment 22. Smoking prohibited 23. Storing and handling of consumables 24. Handling of chemical substances, waste material and oil 25. Cessation of a work or activity PART
IV 26. Duties of operator 27. Duties of operator 28. Defect to be remedied 29. Drilling fluid system 30. Marine riser 31. Drilling practices 32. Reference for well depths 33. Directional and deviation surveys 34. Formation of leak-off tests 35. Formation flow and well testing equipment 36. Well control 37. Well control equipment 38. Equipment to be tested 39. Loss of well control 40. Casing and cementing 41. Depth of installation 42. Cement slurry requirements 43. Waiting on cement time 44. Casing pressure testing 45. Production tubing 46. Monitoring and control of process operations 47. Well completion 48. Subsurface safety valve 49. Wellhead and Christmas tree equipment PART
V 50. Implementation-acquisition programs 51. Where programs cannot be implemented 52. Testing and sampling of formations 53. Formation flow testing 54. Submission of samples and data 55. Samples removed from core 56. Notification required PART
VI 57. Suspension or abandonment 58. Monitoring and inspection 59. Seafloor to be cleared 60. Installation removal PART
VII 61. Flow and volume 62. Allocation 63. Testing, maintenance and notification 64. Transfer meters 65. Proration of testing frequency PART
VIII 66. Resource management 67. Commingled production 68. Gas flaring and venting 69. Oil burning PART
IX 70. Support craft 71. Support craft- manned installations 72. Safety zone PART
X 73. Training and competency of personnel 74. Impairment and fatigue PART
XI 75. Reference to names and designations 76. Surveys 77. Incidents and near-misses 78. Submission of data and analysis 79. Records 80. Meteorological observations 81. Daily production record 82. Management of records 83. Formation of flow test reports 84. Pilot scheme 85. Daily reports 86. Monthly production report 87. Annual production report 88. Environmental reports 89. Annual safety report 90. Well history report 91. Well operations report 92. Other reports PART
XII 93. Transitional 94. Repeal 95. Commencement Short title 1. These regulations may be cited
as the Offshore Petroleum Drilling and
Production Interpretation 2. (1) In
these regulations (a) "abandoned",
in relation to a well, means a well or part of a well that has been permanently
plugged; (b) "Act" means the Canada-Newfoundland and (c) "artificial island" means a humanly
constructed island to provide a site for the exploration and drilling, or the
production, storage, transportation, distribution, measurement, processing or handling,
of petroleum; (d) "authorization"
means an authorization issued by the board under paragraph 134(1)(b) of the Act; (e) "barrier"
means any fluid, plug or seal that prevents petroleum or any other fluid from
flowing unintentionally from a well or from a formation into another formation; (f) "casing liner"
means a casing that is suspended from a string of casing previously installed
in a well and does not extend to the wellhead; (g) "commingled production" means
production of petroleum from more than one pool or zone through a common
well-bore or flow line without separate measurement of the production from each
pool or zone; (h) "completed",
in relation to a well, means a well that is prepared for production or
injection operations; (i) "completion interval" means a section within a well that
is prepared to permit the (i) production
of fluids from the well, (ii) observation of the
performance of a reservoir, or (iii) injection of fluids
into the well; (j) "conductor
casing" means the casing that is installed in a well to facilitate
drilling of the hole for the surface casing; (k) "drilling
program" means the program for the drilling of one or more wells within a
specified area and time using one or more drilling installations and includes
any work or activity related to the program; (l) "environmental
protection plan" means the environmental protection plan submitted to the
board under section 7; (m) "flow allocation
procedure" means the procedure to (i) allocate total
measured quantities of petroleum and water produced from or injected into a
pool or zone back to individual wells in a pool or zone where individual well
production or injection is not measured separately, and (ii) allocate production
to fields that are using a common storage or processing facility; (n) "flow
calculation procedure" means the procedure to be used to convert raw meter
output to a measured quantity of petroleum or water; (o) "flow system" means the flow meters,
auxiliary equipment attached to the flow meters, fluid sampling devices, production
test equipment, the master meter and meter prover
used to measure and record the rate and volumes at which fluids are (i) produced
from or injected into a pool, (ii) used as a fuel, (iii) used for artificial
lift, or (iv) flared or transferred
from a production installation; (p) "fluid"
means gas, liquid or a combination of them; (q) "formation flow
test" means an operation (i) to
induce the flow of formation fluids to the surface of a well to procure
reservoir fluid samples and determine reservoir flow characteristics, or (ii) to inject fluids into
a formation to evaluate injectivity; (r) "incident"
means (i) any
event that causes (A) a lost or restricted
workday injury, (B) death, (C) fire or explosion, (D) a loss of containment
of any fluid from a well, (E) an imminent threat to
the safety of a person, installation or support craft, or (F) pollution, (ii) any event that
results in a missing person, or (iii) any event that causes (A) the impairment of any
structure, facility, equipment or system critical to the safety of persons, an
installation or support craft, or (B) the impairment of any
structure, facility, equipment or system critical to environmental protection; (s) "lost or restricted workday injury"
means an injury that prevents an employee from reporting for work or from effectively
performing all the duties connected with the employee's regular work on any day
subsequent to the day on which the injury occurred whether or not that
subsequent day is a working day for that employee; (t) "minor injury"
means an employment injury for which medical treatment or first aid is provided
and excludes a lost or restricted workday injury; (u) "multi-pool well"
means a well that is completed in more than one pool; (v) "natural
environment" means the physical and biological environment; (w) "near-miss" means an event that
would likely cause an event set out in subparagraph (r)(i),
but does not due to particular circumstances; (x) "operator"
means a person that holds an operating licence under paragraph 134(1)(a) of the
Act and an authorization; (y) "physical environmental conditions"
means the meteorological, oceanographic and related physical conditions,
including ice conditions, that might affect a work or activity that is subject
to an authorization; (z) "pollution"
means the introduction into the natural environment of any substance or form of
energy outside the limits applicable to the activity that is subject to an
authorization, including spills; (aa) "production control system"
means the system provided to control the operation of, and monitor the status
of, equipment for the production of petroleum, and includes the installation
and workover control system; (bb) "production project" means an undertaking for the
purpose of developing a production site on, or producing petroleum from, a pool
or field, and includes any work or activity related to the undertaking; (cc) "proration test"
means, with respect to a development well to which a development plan applies,
a test conducted to measure the rates at which fluids are produced from the
well for allocation purposes; (dd) "recovery" means the recovery of petroleum under reasonably
foreseeable economic and operational conditions; (ee) "relief well" means a well drilled to assist in
controlling a blow-out in an existing well; (ff) "rig release date" means the date on which a rig last conducted
well operations; (gg) "safety plan" means the safety plan submitted to the board
under section 7; (hh) "seafloor" means the surface of all that portion of land
under the sea; (ii) "slick line"
means a single steel cable used to run tools in a well; (jj) "support craft" means a vessel,
vehicle, aircraft, standby vessel or other craft used to provide transportation
for or assistance to persons on the site where a work or activity is conducted; (kk) "surface casing" means the
casing that is installed in a well to a sufficient depth, in a competent
formation, to establish well control for the continuation of the drilling
operations; (ll) "suspended", in relation to a well or part of a well,
means a well or part of a well in which drilling or production operations have
temporarily ceased; (mm) "termination"
means the abandonment, completion or suspension of a well's operations; (nn) "waste material" means any garbage, refuse, sewage or
waste well fluids or any other useless material that is generated during
drilling, well or production operations, including used or surplus drilling
fluid and drill cuttings and produced water; (oo) "well approval" means the
approval granted by the board under section 14; (pp) "well-bore"
means the hole drilled by a bit in order to make a well; (qq) "well control" means the control
of the movement of fluids into or from a well; (rr) "well operation" means the
operation of drilling, completion, recompletion,
intervention, re-entry, workover, suspension or abandonment
of a well; (ss) "wire line" means a line that contains a conductor wire
and that is used to run survey instruments or other tools in a well; (tt) "workover"
means an operation on a completed well that requires removal of the Christmas
tree or the tubing; and (uu) "zone" means any stratum or any
sequence of strata and includes, for the purposes of the definition "commingled
production", section 8, subsection 62(2), sections 65 to
67 and 75,
subsection 84(2) and section 87, a zone that has been designated as such by the board
under section 5. (2) In these regulations, "delineation well",
"development well" and "exploratory well" have the same
meaning as in subsection 115(1) of the Act. (3) In these regulations, "drilling
installation", "drilling rig", "drilling unit", "drill
site", "installation", "production installation", "production
operation", "production site" and "subsea
production system" have the same meaning as in subsection 2(1) of the Offshore Petroleum Installations Newfoundland
and Labrador Regulations. (4) The following definitions apply for the
purpose of paragraph 134(4)(c) of the Act: (a) "production facility" means
equipment for the production of petroleum located at a production site,
including separation, treating and processing facilities, equipment and
facilities used in support of production operations, landing areas, heliports,
storage areas or tanks and dependent personnel accommodations, but not
including any associated platform, artificial island, subsea
production system, drilling equipment or diving system; and (b) "production platform" means a
production facility and any associated platform, artificial island, subsea production system, offshore loading system, drilling
equipment, facilities related to marine activities and dependent diving system.
(5) For the purpose of section 189.2 of the Act,
any installation is prescribed as an installation. PART I Spacing 3. The
board is authorized to make orders respecting the allocation of areas,
including the determination of the size of spacing units and the well
production rates for the purpose of drilling for or producing petroleum and to
exercise any powers and perform any duties that may be necessary for the
management and control of petroleum production. Names and designations 4. The board may give a name, classification or status to any well and may change that name, classification or status. Other powers of the board 5. The
board may also (a) designate a zone for
the purposes of these regulations; (b) give a name to a pool
or field; and (c) define the boundaries
of a pool, zone or field for the purpose of identifying it. PART II Management system 6. (1) The
applicant for an authorization shall develop an effective management system
that integrates operations and technical systems with the management of
financial and human resources to ensure compliance with the Act and these regulations. (2) The management system shall include (a) the policies on which
the system is based; (b) the processes for
setting goals for the improvement of safety, environmental protection and waste
prevention; (c) the processes for
identifying hazards and for evaluating and managing the associated risks; (d) the processes for
ensuring that personnel are trained and competent to perform their duties; (e) the processes for ensuring and maintaining the
integrity of all facilities, structures, installations, support craft and
equipment necessary to ensure safety, environmental protection and waste
prevention; (f) the processes for the
internal reporting and analysis of hazards, minor injuries, incidents and
near-misses and for taking corrective actions to prevent their recurrence; (g) the documents describing
all management system processes and the processes for making personnel aware of
their roles and responsibilities with respect to them; (h) the processes for ensuring that all documents
associated with the system are current, valid and have been approved by the appropriate
level of authority; (i) the processes for
conducting periodic reviews or audits of the system and for taking corrective
actions where reviews or audits identify areas of non-conformance with the
system and opportunities for improvement; (j) the arrangements for
coordinating the management and operations of the proposed work or activity
among the owner of the installation, the contractors, the operator and others,
as applicable; and (k) the name and position
of the person accountable for the establishment and maintenance of the system
and of the person responsible for implementing it. (3) The management system documentation shall be
controlled and set out in a logical and systematic fashion to allow for ease of
understanding and efficient implementation. (4) The management system shall correspond to the
size, nature and complexity of the operations and activities, hazards and risks
associated with the operations. Application for
authorization 7. The
application for authorization shall be accompanied by (a) a description of the
scope of the proposed activities; (b) an execution plan and
schedule for undertaking those activities; (c) a safety plan that
meets the requirements of section 9; (d) an environmental
protection plan that meets the requirements of section 10; (e) information on any
proposed flaring or venting of gas, including the rationale and the estimated
rate, quantity and period of the flaring or venting; (f) information on any
proposed burning of oil, including the rationale and the estimated quantity of
oil proposed to be burned; (g) in the case of a
drilling installation, a description of the drilling and well control
equipment; (h) in the case of a
production installation, a description of the processing facilities and control
system; (i) in the case of a
production project, a field data acquisition program that allows sufficient
pool pressure measurements, fluid samples, cased hole logs and formation flow
tests for a comprehensive assessment of the performance of development wells,
pool depletion schemes and the field; (j) contingency plans,
including emergency response procedures, to mitigate the effects of any
reasonably foreseeable event that might compromise safety or environmental protection,
which shall (i) provide
for coordination measures with any relevant municipal, provincial, territorial
or federal emergency response plan, and (ii) in an area where oil
is reasonably expected to be encountered, identify the scope and frequency of
the field practice exercise of oil spill countermeasures; and (k) a description of the decommissioning and abandonment of the site, including methods for restoration of the site after its abandonment. Other requirements- production installation 8. (1) Where the application for authorization covers a production
installation, the applicant shall also submit to the board for its approval the
flow system, the flow calculation procedure and the flow allocation procedure
that will be used to conduct the measurements referred to in Part VII. (2) The board shall approve the flow system, the flow calculation procedure and the flow allocation procedure where the applicant demonstrates that the system and procedures facilitate reasonably accurate measurements and allocate, on a pool or zone basis, the production from and injection into individual wells. Safety plan 9. The
safety plan shall set out the procedures, practices, resources, sequence of key
safety-related activities and monitoring measures necessary to ensure the
safety of the proposed work or activity and shall include (a) a summary of and references to the management
system that demonstrate how it will be applied to the proposed work or activity
and how the duties set out in these regulations with regard to safety will be fulfilled; (b) a summary of the
studies undertaken to identify hazards and to evaluate safety risks related to
the proposed work or activity; (c) a description of the
hazards that were identified and the results of the risk evaluation; (d) a summary of the
measures to avoid, prevent, reduce and manage safety risks; (e) a list of all
structures, facilities, equipment and systems critical to safety and a summary
of the system in place for their inspection, testing and maintenance; (f) a description of the
organizational structure for the proposed work or activity and the command
structure on the installation, which clearly explains (i) their
relationship to each other, and (ii) the contact
information and position of the person accountable for the safety plan and of
the person responsible for implementing it; (g)
where the possibility of pack sea ice or
drifting icebergs exists at the drill or production site, the measures to
address the protection of the installation, including systems for ice detection,
surveillance, data collection, reporting, forecasting and, where appropriate,
ice avoidance or deflection; and (h) a description of the arrangements for monitoring compliance with the plan and for measuring performance in relation to its objectives. Environmental plan 10. The
environmental protection plan shall set out the procedures, practices,
resources and monitoring necessary to manage hazards to and protect the
environment from the proposed work or activity and shall include (a) a summary of and references to the management
system that demonstrate how it will be applied to the proposed work or activity
and how the duties set out in these regulations with regard to environmental
protection will be fulfilled; (b) a summary of the
studies undertaken to identify environmental hazards and to evaluate
environmental risks relating to the proposed work or activity; (c) a description of the
hazards that were identified and the results of the risk evaluation; (d) a summary of the
measures to avoid, prevent, reduce and manage environmental risks; (e) a list of all structures, facilities,
equipment and systems critical to environmental protection and a summary of the
system in place for their inspection, testing and maintenance; (f) a description of the
organizational structure for the proposed work or activity and the command
structure on the installation, which clearly explains (i) their
relationship to each other, and (ii) the contact
information and position of the person accountable for the environmental
protection plan and the person responsible for implementing it; (g) the procedures for
the selection, evaluation and use of chemical substances including process
chemicals and drilling fluid ingredients; (h) a description of
equipment and procedures for the treatment, handling and disposal of waste
material; (i) a
description of all discharge streams and limits for any discharge into the
natural environment including any waste material; (j) a description of the system for monitoring
compliance with the discharge limits identified in paragraph (i), including the sampling and analytical program to
determine if those discharges are within the specified limits; and (k) a description of the
arrangements for monitoring compliance with the plan and for measuring
performance in relation to its objectives. Well approval 11. (1)
An operator who intends to drill, re-enter, work over,
complete or recomplete a well or suspend or abandon a
well or part of a well shall obtain a well approval. (2) Notwithstanding subsection (1), a well
approval is not necessary to conduct a wire line, slick line or coiled tubing
operation through a Christmas tree located above sea level where (a) the work does not
alter the completion interval or is not expected to adversely affect recovery;
and (b) the equipment, operating procedures and qualified persons exist to conduct the wire line, slick line or coiled tubing operations as set out in the authorization.
12. Where
the well approval sought is to drill a well, the application shall contain (a) a comprehensive
description of the drilling program; and (b) a well data acquisition program that allows for the collection of sufficient cutting and fluid samples, logs, conventional cores, sidewall cores, pressure measurements and formation flow tests, analyses and surveys to enable a comprehensive geological and reservoir evaluation to be made. Application 13. The
application shall contain (a) where the well approval sought is to re-enter,
work over, complete or recomplete a well or suspend
or abandon a well or part of it, a detailed description of that well, the
proposed work or activity and the rationale for conducting it; (b) where the well approval sought is to complete
a well, in addition to the information required under paragraph (a), information
that demonstrates that section 47 will be
complied with; and (c) where the well approval sought is to suspend a well or part of it, in addition to the information required under paragraph (a), an indication of the period within which the suspended well or part of it will be abandoned or completed. Well approval 14. The
board shall grant the well approval where an operator demonstrates that the
work or activity will be conducted safely, without waste and without pollution,
in compliance with these regulations. Suspension and
revocation of approval 15. (1) The
board may suspend the well approval where (a) the operator fails to
comply with the approval and the work or activity cannot be conducted safely,
without waste or without pollution; (b) the safety of the
work or activity becomes uncertain because (i) the level of
performance of the installation or service equipment, any ancillary equipment
or any support craft is demonstrably less than the level of performance indicated
in the application, or (ii) the physical environmental conditions
encountered in the area of the activity for which the well approval was granted
are more severe than the equipment's operating limits as specified by the
manufacturer; or (c) the operator fails to
comply with the approvals issued under subsection 8(2),
53(4) or 67(2). (2) The board may revoke the well approval where an
operator fails to remedy the situation causing the suspension within 120 days
after the date of that suspension. Development plans 16. For the purpose of subsection 135(1) of the Act, the well approval relating to a production project is prescribed. Resource management
plan 17. For
the purpose of paragraph 135(3)(b) of the Act, Part II
of the development plan relating to a proposed development of a pool or field
shall contain a resource management plan. PART Availability of
documents 18. (1) An
operator shall keep a copy of the authorization, the well approval and all
other approvals and plans required under these regulations, the Act and the
regulations made under the Act at each installation and shall make them
available for examination at the request of any person at each installation. (2) An operator shall ensure that a copy of all
operating manuals and other procedures and documents necessary to execute the
work or activity and to operate the installation safely without pollution are
readily accessible at each installation. Management system 19. An
operator shall ensure compliance with the management system referred to in section
6. Safety and environmental
protection 20. An
operator shall take all reasonable precautions to ensure safety and
environmental protection, including ensuring that (a) any operation
necessary for the safety of persons at an installation or on a support craft
has priority, at all times, over any work or activity at that installation or
on that support craft; (b) safe work methods are
followed during all drilling, well or production operations; (c) there is a shift
handover system to effectively communicate any conditions, mechanical or
procedural deficiencies or other problems that might have an impact on safety
or environmental protection; (d) differences in
language or other barriers to effective communication do not jeopardize safety
or environmental protection; (e) all persons at an
installation, or in transit to or from an installation, receive instruction in
and are familiar with safety and evacuation procedures and with their roles and
responsibilities in the contingency plans, including emergency response
procedures; (f) any drilling or well
operation is conducted in a manner that maintains full control of the well at
all times; (g) where there is loss
of control of a well at an installation, all other wells at that installation
are shut in until the well that is out of control is secured; (h) plans are in place to
deal with potential hazards; (i) all
equipment required for safety and environmental protection is available and in
an operable condition; (j) the inventory of all
equipment identified in the safety plan and the environmental protection plan
is updated after the completion of any significant modification or repair to
any major component of the equipment; (k) the administrative and logistical support that
is provided for drilling, well or production operations includes accommodation,
transportation, first aid and storage, repair facilities and communication
systems suitable for the area of operations; (l) a sufficient number
of trained and competent individuals are available to complete the authorized
work or activities and to carry out any work or activity safely and without
pollution; and (m) any operational procedure that is a hazard to safety or the environment is corrected and all affected persons are informed of the alteration. Appropriate use
of equipment 21. (1) A
person shall not tamper with, activate without cause, or misuse any safety or
environmental protection equipment. (2) A passenger on a helicopter, supply vessel or any other support craft engaged in a drilling program or production project shall comply with all applicable safety instructions. Smoking
prohibited 22. (1) A
person shall not smoke on an installation except in those areas set aside by
the operator for that use. (2) An operator shall ensure compliance with
subsection (1). Storing and handling
of consumables 23. An
operator shall ensure that fuel, potable water, spill containment products,
safety-related chemicals, drilling fluids, cement and other consumables are (a) readily available and
stored on an installation in quantities sufficient for any normal and
reasonably foreseeable emergency condition; and (b) stored and handled in
a manner that minimizes their deterioration, ensures safety and prevents
pollution. Handling of chemical
substances, waste material and oil 24. An
operator shall ensure that all chemical substances, including process fluids
and diesel fuel, waste material, drilling fluid and drill cuttings generated at
an installation, are handled in a way that does not create a hazard to safety
or the environment. Cessation of a
work or activity 25. (1) An
operator shall ensure that any work or activity ceases without delay where that
work or activity (a) endangers or is
likely to endanger the safety of persons; (b) endangers or is
likely to endanger the safety or integrity of the well or the installation; or (c) causes or is likely
to cause pollution. (2) Where the work or activity ceases, the
operator shall ensure that it does not resume until it can do so safely and
without pollution. PART IV Duties of operator 26. An
operator shall ensure that (a) all wells, installations, equipment and
facilities are designed, constructed, tested, maintained and operated to prevent
incidents and waste under the maximum load conditions that may be reasonably
anticipated during any operation; (b) a comprehensive inspection that includes a
non-destructive examination of critical joints and structural members of an
installation and any critical drilling or production equipment is made at an
interval to ensure continued safe operation of the installation or equipment
and in any case, at least once in every 5 year period; and (c) records of maintenance, tests and inspections are kept. Duties of
operator 27. An
operator shall ensure that (a) the components of an installation and well tubulars, Christmas trees and wellheads are operated in
accordance with good engineering practices; and (b) any part of an installation that may be exposed to a sour environment is designed, constructed and maintained to operate safely in that environment. Defect to be remedied 28. (1) An
operator shall ensure that any defect in the installation, equipment,
facilities and support craft that may be a hazard to safety or the environment
is rectified without delay. (2) Where it is not possible to rectify the defect
without delay, an operator shall ensure that it is rectified as soon as the
circumstances permit and that mitigation measures are put in place to minimize
the hazards while the defect is being rectified. Drilling fluid system 29. An
operator shall ensure that (a) the drilling fluid system and associated
monitoring equipment is designed, installed, operated and maintained to provide
an effective barrier against formation pressure, to allow for proper well
evaluation, to ensure safe drilling operations and to prevent pollution; and (b) the indicators and
alarms associated with the monitoring equipment are strategically located on
the drilling rig to alert onsite personnel. Marine riser 30. (1) An
operator shall ensure that every marine riser is capable of (a) furnishing access to
the well; (b) isolating the
well-bore from the sea; (c) withstanding the
differential pressure of the drilling fluid relative to the sea; (d) withstanding the
physical forces anticipated in the drilling program; and (e) permitting the
drilling fluid to be returned to the installation. (2) An operator shall ensure that every marine
riser is supported in a manner that effectively compensates for the forces
caused by the motion of the installation. Drilling
practices 31. An
operator shall ensure that adequate equipment, procedures and personnel are in
place to recognize and control normal and abnormal pressures, to allow for
safe, controlled drilling operations and to prevent pollution. Reference for
well depths 32. An
operator shall ensure that any depth in a well is measured from a single
reference point, which is either the kelly
bushing or the rotary table of the drilling rig. Directional and
deviation surveys 33. An
operator shall ensure that (a) directional and
deviation surveys are taken at intervals that allow the position of the
well-bore to be determined accurately; and (b) except in the case of
a relief well, a well is drilled in a manner that does not intersect an
existing well. Formation of
leak-off tests 34. An
operator shall ensure that (a) a formation leak-off
test or a formation integrity test is conducted before drilling more than 10 m
below the shoe of any casing other than the conductor casing; (b) the formation
leak-off test or the formation integrity test is conducted to a pressure that
allows for safe drilling to the next planned casing depth; and (c) a record is retained
of each formation leak-off test and the results included in the daily drilling
report referred to in paragraph 85(a) and in
the well history report referred to in section 90. Formation flow
and well testing equipment 35. (1) An
operator shall ensure that (a) the equipment used in
a formation flow test is designed to safely control well pressure, properly
evaluate the formation and prevent pollution; (b) the rated working pressure of formation flow
test equipment upstream of and including the well testing manifold exceeds the
maximum anticipated shut-in pressure; and (c) the equipment
downstream of the well testing manifold is sufficiently protected against
overpressure. (2) An operator of a well shall ensure that the
formation flow test equipment includes a down-hole safety valve that permits
closure of the test string above the packer. (3) An operator shall ensure that any formation
flow test equipment used in testing a well that is drilled with a floating
drilling unit has a subsea test tree that includes (a) a valve that may be
operated from the surface and automatically closes when required to prevent
uncontrolled well flow; and (b) a release system that
permits the test string to be hydraulically or mechanically disconnected within
or below the blow-out preventers. Well control 36. An operator shall ensure that adequate procedures, materials and equipment are in place and utilized to minimize the risk of loss of well control in the event of lost circulation. Well control
equipment 37. (1) An
operator shall ensure that, during all well operations, reliably operating well
control equipment is installed to control kicks, prevent blow-outs and safely
carry out all well activities and operations, including drilling, completion
and workover operations. (2) After setting the surface casing, the operator
shall ensure that at least 2 independent and tested well barriers are in place
during all well operations. (3) Where a barrier fails, the operator shall
ensure that no other activities, other than those intended to restore or
replace the barrier, take place in the well. (4) An operator shall ensure that, during drilling, except when drilling under-balanced, one of the 2 barriers to be maintained is the drilling fluid column. Equipment to be
tested 38. An operator shall ensure that pressure control equipment associated with drilling, coil tubing, slick line and wire line operations is pressure-tested on installation and as often as necessary to ensure its continued safe operation. Loss of well
control 39. Where
the well control is lost or where safety, environmental protection or resource
conservation is at risk, the operator shall ensure that any action necessary to
rectify the situation is taken without delay, despite any condition to the
contrary in the well approval. Casing and cementing 40. An
operator shall ensure that the well and casing are designed so that (a) the well can be
drilled safely, the targeted formations evaluated and waste prevented; (b) the anticipated
conditions, forces and stresses that may be placed upon them are withstood; and (c) the integrity of gas hydrate zones is protected. Depth of
installation 41. An operator shall ensure that the well and casing are installed at a depth that provides for adequate kick tolerances and well control operations that provide for safe, constant bottom hole pressure. Cement slurry requirements 42. An
operator shall ensure that cement slurry is designed and installed so that (a) the movement of
formation fluids in the casing annuli is prevented and, where required for
safety, resource evaluation or prevention of waste, the isolation of the
petroleum and water zones is ensured; (b) support for the
casing is provided; (c) corrosion of the
casing over the cemented interval is retarded; and (d) the integrity of gas
hydrate zones is protected. Waiting on cement
time 43. After
the cementing of any casing or casing liner and before drilling out the casing
shoe, the operator shall ensure that the cement has reached the minimum
compressive strength sufficient to support the casing and provide zonal isolation. Casing pressure
testing 44. After
installing and cementing the casing and before drilling out the casing shoe,
the operator shall ensure that the casing is pressure-tested to the value
required to confirm its integrity for maximum anticipated operating pressure. Production tubing 45. An
operator shall ensure that the production tubing used in a well is designed to
withstand the maximum conditions, forces and stresses that may be placed on it
and to maximize recovery from the pool. Monitoring and
control of process operations 46. An
operator shall ensure that (a) operations such as
processing, transportation, storage, re-injection and handling of petroleum on
the installation are effectively monitored to prevent incidents and waste; (b) all alarm, safety,
monitoring, warning and control systems associated with those operations are
managed to prevent incidents and waste; and (c) all appropriate
persons are informed of the applicable alarm, safety, monitoring, warning or
control systems associated with those operations that are taken out of service,
and when those systems are returned to service. Well completion 47. (1) An
operator that completes a well shall ensure that (a) it is completed in a
safe manner and allows for maximum recovery; (b) except in the case of
commingled production, each completion interval is isolated from any other
porous or permeable interval penetrated by the well; (c) the testing and
production of any completion interval are conducted safely and do not cause
waste or pollution; (d) where applicable,
sand production is controlled and does not create a safety hazard or cause
waste; (e) each packer is set as
close as practical to the top of the completion interval and that the pressure testing
of the packer to a differential pressure is greater than the maximum differential
pressure anticipated under the production or injection conditions; (f) where practical, any
mechanical well condition that may have an adverse effect on production of
petroleum from, or the injection of fluids into, the well is corrected; (g) the injection or
production profile of the well is improved, or the completion interval of the
well is changed, where it is necessary to do so to prevent waste; (h) where different
pressure and inflow characteristics of 2 or more pools might adversely affect
the recovery from any of those pools, the well is operated as a single pool
well or as a segregated multi-pool well; (i) after
initial completion, all barriers are tested to the maximum pressure to which
they are likely to be subjected; and (j) following any workover, any affected barriers are pressure-tested. (2) An operator of a segregated multi-pool well
shall ensure that (a) after the well is
completed, segregation has been established within and outside the well casing
and is confirmed; and (b) where there is reason
to doubt that segregation is being maintained, a segregation test is conducted
within a reasonable time frame. Subsurface safety
valve 48. An
operator of a development well capable of flow shall ensure that the well is
equipped with a fail-safe subsurface safety valve that is designed, installed,
operated and tested to prevent uncontrolled well flow when it is activated. Wellhead and
Christmas tree equipment 49. An
operator shall ensure that the wellhead and Christmas tree equipment, including
valves, are designed to operate safely and efficiently under the maximum load
conditions anticipated during the life of the well. PART V Implementation-acquisition
programs 50. An operator shall ensure that the well data acquisition program and the field data acquisition program are implemented in accordance with good oilfield practices. Where programs
cannot be implemented 51. (1) Where part of
the well or field data acquisition program cannot be implemented, the operator
shall ensure that (a)
a conservation officer is notified as soon as the
circumstances permit; and (b)
the procedures to otherwise achieve the goals of the
program are submitted to the board for approval. (2) Where the operator can demonstrate that those
procedures can achieve the goals of the well or field data acquisition program
or are all that can be reasonably expected in the circumstances, the board shall
approve them. Testing and sampling
of formations 52. An
operator shall ensure that every formation in a well is tested and sampled to
obtain reservoir pressure data and fluid samples from the formation, where
there is an indication that the data or samples would contribute substantially
to the geological and reservoir evaluation. Formation flow
testing 53. (1) An
operator shall ensure that (a) a development well is
not put into production unless the board has approved a formation flow test with
respect to the development well; and (b) where a development
well is subjected to a well operation that might change its deliverability,
productivity or injectivity, a formation flow test is
conducted within a reasonable time frame after the well operation is ended to
determine the effects of that operation on the well's deliverability, productivity
or injectivity. (2) An operator may conduct a formation flow test
on a well drilled on a geological feature where, before conducting that test,
the operator (a) submits to the board
a detailed testing program; and (b) obtains the board's
approval to conduct the test. (3) The board may require that an operator conduct
a formation flow test on a well drilled on a geological feature, other than the
first well, where there is an indication that the test would contribute substantially
to the geological and reservoir evaluation. (4) The board shall approve a formation flow test where
the operator demonstrates that the test will be conducted safely, without pollution
and in accordance with good oilfield practices and that the test will enable
the operator to (a) obtain data on the
deliverability or productivity of the well; (b) establish the
characteristics of the reservoir; and (c) obtain representative
samples of the formation fluids. Submission of
samples and data 54.
An operator shall ensure that all cutting samples, fluid samples and cores
collected as part of the well and field data acquisition programs are (a) transported and
stored in a manner that prevents any loss or deterioration; (b) delivered to the board within 60 days after
the rig release date unless analyses are ongoing, in which case those samples
and cores, or the remaining parts, are to be delivered on completion of the
analyses; and (c) stored in durable containers properly labelled for identification. Samples removed
from core 55. An operator shall ensure that after any samples necessary for analysis or for research or academic studies have been removed from a conventional core, the remaining core, or a longitudinal slab that is not less than one half of the cross-sectional area of that core, is submitted to the board. Notification required 56. Before
disposing of cutting samples, fluid samples, cores or evaluation data under
these regulations, the operator shall ensure that the board is notified in
writing and is given an opportunity to request delivery of the samples, cores
or data. PART VI Suspension or
abandonment 57. An
operator shall ensure that every well that is suspended or abandoned can be
readily located and left in a condition that (a) provides for
isolation of all hydrocarbon bearing zones and discrete pressure zones; and (b) prevents any
formation fluid from flowing through or escaping from the well-bore. Monitoring and inspection 58. An operator of a suspended well shall ensure that the well is monitored and inspected to maintain its continued integrity and to prevent pollution. Seafloor to be
cleared 59. An
operator shall ensure that, on the abandonment of a well, the seafloor is
cleared of any material or equipment that might interfere with other commercial
uses of the sea. Installation
removal 60. An
operator shall not remove or cause to have removed a drilling installation from
a well drilled under these regulations unless the well has been terminated in
accordance with these regulations. PART Flow and volume 61. (1) Unless otherwise included in the approval issued under subsection
8(2), the operator shall ensure that the rate
of flow and the volume of the following are measured and recorded: (a) the fluid that is
produced from each well; (b) the fluid that is
injected into each well; (c) any produced fluid that enters, leaves, is
used or is flared, vented, burned or otherwise disposed of on an installation,
including any battery room, treatment facility or processing plant; and (d) any air or materials
injected for the purposes of disposal, storage or cycling, including drill
cuttings and other useless material that is generated during drilling, well or
production operations. (2) An operator shall ensure that any measurements are conducted in accordance with the flow system, flow calculation procedure and flow allocation procedure, approved under subsection 8(2). Allocation 62. (1) An operator shall ensure that group production of petroleum
from wells and injection of a fluid into wells is allocated on a pro rata
basis, in accordance with the flow system, flow calculation procedure and flow
allocation procedure approved under subsection 8(2). (2) Where a well is completed over multiple pools
or zones, the operator shall ensure that production or injection volumes for
the well are allocated on a pro rata basis to the pools or zones in accordance
with the flow allocation procedure approved under subsection 8(2).
63. An
operator shall ensure (a) that meters and
associated equipment are calibrated and maintained to ensure their continued
accuracy; (b) that equipment used
to calibrate the flow system is calibrated in accordance with good measurement
practices; (c) that any component of the flow system that may
have an impact on the accuracy or integrity of the flow system and that is not
functioning in accordance with the manufacturer's specifications is repaired or
replaced without delay, or, where it is not possible to do so without delay,
corrective measures are taken to minimize the impact on the accuracy and
integrity of the flow system while the repair or replacement is proceeding; and (d) that a conservation officer is notified, as
soon as the circumstances permit, of any malfunction or failure of any flow system
component that may have an impact on the accuracy of the flow system and of the
corrective measures taken. Transfer meters 64. An
operator shall ensure that (a) a conservation officer is notified at least 14
days before the day on which any transfer meter prover
or master meter used in conjunction with a transfer meter is calibrated; and (b) a copy of the
calibration certificate is submitted to the Chief Conservation Officer as soon
as the circumstances permit, following completion of the calibration. Proration of testing frequency 65. An
operator of a development well that is producing petroleum shall ensure that
sufficient proration tests are performed to permit reasonably
accurate determination of the allocation of oil, gas and water production on a
pool and zone basis. PART VIII Resource management 66. An
operator shall ensure that (a) maximum recovery from
a pool or zone is achieved in accordance with good oilfield practices; (b) wells are located and
operated to provide for maximum recovery from a pool; and (c) where there is reason
to believe that infill drilling or implementation of an enhanced recovery
scheme might result in increased recovery from a pool or field, studies on
these methods are carried out and submitted to the board. Commingled production 67. (1) An
operator shall not engage in commingled production except in accordance with
the approval granted under subsection (2). (2) The board shall approve the commingled
production where the operator demonstrates that it would not reduce the
recovery from the pools or zones. (3) An operator engaging in commingled production
shall ensure that the total volume and the rate of production of each fluid produced
is measured and the volume from each pool or zone is
allocated in accordance with the requirements of Part VII. Gas flaring and
venting 68. An
operator shall not flare or vent gas unless (a) it is otherwise
permitted in the approval issued under subsection 53(4)
or in the authorization; or (b) it is necessary to do
so because of an emergency situation and the board is notified in the daily
drilling report, daily production report or in any other written or electronic
form, as soon as the circumstances permit, of the flaring or venting and of the
amount flared or vented. Oil burning 69. An
operator shall not burn oil unless (a) it is otherwise
permitted in the approval issued under subsection 53(4)
or in the authorization; or (b) it is necessary to do
so because of an emergency situation and the board is notified in the daily
drilling report, daily production report or in any other written or electronic
form, as soon as the circumstances permit, of the burning and the amount
burned. PART IX Support craft 70. An operator shall ensure that all support craft are designed, constructed and maintained to supply the necessary support functions and operate safely in the foreseeable physical environmental conditions prevailing in the area in which they operate. Support craft-
manned installations 71. (1) An
operator of a manned installation shall ensure that at least one support craft
is (a) available at a
distance that is not greater than that required for a return time of 20
minutes; and (b) suitably equipped to
supply the necessary emergency services including rescue and first aid
treatment for all personnel on the installation in the event of an emergency. (2) Where the support craft exceeds the distance
referred to in paragraph (1)(a), both the installation
manager and the person in charge of the support craft shall log this fact and
the reason why the distance or time was exceeded. (3) Under the direction of the installation
manager, the support craft crew shall keep the craft in close proximity to the
installation, maintain open communication channels with the installation and be
prepared to conduct rescue operations during any activity or condition that
presents an increased level of risk to the safety of personnel or the
installation. Safety zone 72. (1) For
the purposes of this section, the safety zone around an installation consists
of the area within a line enclosing and drawn at a distance of 500 metres from
the outer edge of the installation. (2) A support craft shall not enter the safety
zone without the consent of the installation manager. (3) An operator shall take all reasonable measures
to warn persons who are in charge of vessels and aircraft of the safety zone
boundaries, of the facilities within the safety zone and of any related
potential hazards. PART X Training and competency
of personnel 73. An
operator shall ensure that (a) all personnel have, before assuming their
duties, the necessary experience, training and qualifications and are able to
conduct their duties safely, competently and in compliance with these regulations;
and (b) records of the
experience, training and qualifications of all personnel are kept and made
available to the board upon request. Impairment and
fatigue 74. (1)
An operator shall ensure that a person does not work when his or her ability to
function is impaired and that a person is not required to work (a) any shift in excess
of 12.5 continuous hours; or (b) 2 successive shifts of any duration unless
that person has had at least 8 hours' rest between the shifts. (2) Notwithstanding subsection (1), an operator
may allow a person to work in excess of the hours or without the rest period
referred to in that subsection where the operator has assessed the risk associated
with the person working the extra hours and determined that the work can be
carried out without increased risk to safety or to the environment. (3) Where an operator allows a person to work in
excess of the hours or without the rest period referred to in subsection (1),
the operator shall ensure that a description of the work, the names of the
persons performing the work, the hours worked and the risk assessment referred
to in subsection (2) are recorded. PART XI Reference to
names and designations 75. When
submitting any information for the purposes of these regulations, an operator
shall refer to each well, pool and field by the name given to it under sections
4 and 5, or if
a zone, by its designation by the board under section 5. Surveys 76. (1) An
operator shall ensure that a survey is used to confirm the location of the well
on the seafloor. (2) The survey shall be certified by a person licensed
under the Canada Lands Surveyors Act. (3) An operator shall ensure that a copy of the
survey plan filed with the Canada Lands Surveys Records is submitted to the board. Incidents and
near-misses 77. (1) An
operator shall ensure that (a) the board is notified
of any incident or near-miss as soon as the circumstances permit; and (b) the board is notified
at least 24 hours in advance of any press release or press conference held by
the operator concerning any incident or near-miss during any activity to which
these regulations apply, except in an emergency situation, in which case it
shall be notified without delay before the press release or press conference. (2) An operator shall ensure that (a) any incident or
near-miss is investigated, its root cause and causal factors identified and
corrective action taken; and (b) for any of the
following incidents or near-misses, a copy of an investigation report
identifying the root cause, causal factors and corrective action taken is
submitted to the board no later than 21 days after the day on which the
incident or near-miss occurred: (i) a
lost or restricted workday injury, (ii) death, (iii) fire or explosion, (iv) a loss of containment
of any fluid from a well, (v) an imminent threat to
the safety of a person, installation or support craft, or (vi) a significant
pollution event. Submission of
data and analysis 78. (1) An operator shall ensure that a final copy of the results,
data, analyses and schematics obtained from the following sources is submitted
to the board: (a) testing, sampling and pressure surveys carried
out as part of the well and field data acquisition programs referred to in
section 50 and testing and sampling of
formations referred to in section 52; and (b) any segregation test
or well operation. (2) Unless otherwise indicated in these regulations,
An operator shall ensure that the results, data, analyses and schematics are
submitted within 60 days after the day on which any activity referred to in paragraphs
(1)(a) and (b) is completed. Records 79. An
operator shall ensure that records are kept of (a) all persons arriving,
leaving or present on the installation; (b) the location and movement of support craft,
the emergency drills and exercises, incidents, near-misses, the quantities of
consumable substances that are required to ensure the safety of operations and
other observations and information critical to the safety of persons on the
installation or the protection of the environment; (c) daily maintenance and
operating activities, including any activity that may be critical to the safety
of persons on the installation, the protection of the environment or the prevention
of waste; (d) in the case of a
production installation, (i) the
inspection of the installation and related equipment for corrosion and erosion
and any resulting maintenance carried out, (ii) the pressure,
temperature and flow rate data for compressors and treating and processing
facilities, (iii) the calibration of
meters and instruments, (iv) the testing of
surface and subsurface safety valves, (v) the status of each
well and the status of well operations, and (vi) the status of the
equipment and systems critical to safety and protection of the environment
including any unsuccessful test result or equipment failure leading to an impairment
of the systems; and (e) in the case of a
floating installation, all installation movements, data, observations,
measurements and calculations related to the stability and station-keeping
capability of the installation. Meteorological
observations 80. An
operator of an installation shall ensure (a) that the installation
is equipped with facilities and equipment for observing, measuring and
recording physical environmental conditions and that a comprehensive record of observations
of physical environmental conditions is maintained onboard the installation;
and (b) that forecasts of
meteorological conditions, sea states and ice movements are obtained and
recorded each day and each time during the day that they change substantially
from those forecasted. Daily production
record 81. An
operator shall ensure that a daily production record, which includes the
metering records and other information relating to the production of petroleum
and other fluids with respect to a pool or well, is retained and readily
accessible to the board until the field or well in which the pool is located is
abandoned and at that time shall offer the record to the board before
destroying it. Management of
records 82. An
operator shall ensure that (a) all processes are in place and implemented to
identify, generate, control and retain records necessary to support operational
and regulatory requirements; and (b) the records are
readily accessible for inspection by the board. Formation of flow
test reports 83. An
operator shall ensure that (a) with respect to
exploration and delineation wells, a daily record of formation flow test
results is submitted to the board; and (b) with respect to all wells,
a formation flow test report is submitted to the board as soon as the
circumstances permit, following completion of the test. Pilot scheme 84. (1) For
the purposes of this section, "pilot scheme" means a scheme that
applies existing or experimental technology over a limited portion of a pool to
obtain information on reservoir or production performance for the purpose of
optimizing field development or improving reservoir or production performance. (2) An operator shall ensure that interim
evaluations of any pilot scheme respecting a pool, field or zone are submitted
to the board. (3) When an operator completes a pilot scheme, the
operator shall ensure that a report is submitted to the board that sets out (a) the results of the
scheme and supporting data and analyses; and (b) the operator's
conclusions as to the potential of the scheme for application to full-scale
production. Daily reports 85. An
operator shall ensure that a copy of the following is submitted to the board
daily: (a) the daily drilling
report; (b) the daily geological
report, including any formation evaluation logs and data; and (c) in the case of a
production installation, a summary, in the form of a daily production report,
of the records referred to in paragraph 79(d)
and the daily production record. Monthly
production report 86. (1) An operator shall ensure that a report summarizing the production
data collected during the preceding month is submitted to the board not later
than the 15th day of each month. (2) The report shall use established production
accounting procedures. Annual production
report 87. An
operator shall ensure that, not later than March 31 of each year, an annual
production report for a pool, field or zone is submitted to the board providing
information that demonstrates how the operator manages and intends to manage
the resource without causing waste, including: (a) for the preceding year, details on the
performance, production forecast, reserve revision, reasons for significant
deviations in well performance from predictions in previous annual production reports,
gas conservation resources, efforts to maximize recovery and reduce costs and
the operating and capital expenditures, including the cost of each well operation;
and (b) for the current year
and the next 2 years, estimates of the operating and capital expenditures,
including the cost of each well operation. Environmental
reports 88. (1) For
each production project, an operator shall ensure that, not later than March 31
of each year, an annual environmental report relating to the preceding year is submitted
to the board and includes (a) for each
installation, a summary of the general environmental conditions during the year
and a description of ice management activities; and (b) a summary of environmental protection matters
during the year, including a summary of any incidents that may have an
environmental impact, discharges that occurred and waste material that was
produced, a discussion of efforts undertaken to reduce pollution and waste
material and a description of environmental contingency plan exercises. (2) For each drilling installation for an
exploration or delineation well, the operator shall ensure that an
environmental report relating to each well is submitted to the board within 90
days after the rig release date and includes (a) a description of the
general environmental conditions during the drilling program and a description
of ice management activities and downtime caused by weather or ice; and (b) a summary of
environmental protection matters during the drilling program, including a
summary of spills, discharges occurred and waste material produced, a
discussion of efforts undertaken to reduce them, and a description of environmental
contingency plan exercises. Annual safety
report 89. An
operator shall ensure that, not later than March 31 of each year, an annual
safety report relating to the preceding year is submitted to the board and
includes (a) a summary of lost or
restricted workday injuries, minor injuries and safety-related incidents and
near-misses that have occurred during the preceding year; and (b) a discussion of
efforts undertaken to improve safety. Well history
report 90. (1) An operator shall ensure that a well history report is prepared
for every well drilled by the operator under the well approval and that the
report is submitted to the board. (2) The well history report shall contain a record
of all operational, engineering, petrophysical and
geological information that is relevant to the drilling and evaluation of the
well. Well operations
report 91. (1) An
operator shall ensure that a report including the following information is
submitted to the board within 30 days after the end of a well operation: (a) a summary of the well
operation, including any problems encountered during the well operation; (b) a description of the
completion fluid properties; (c) a schematic of, and
relevant engineering data on, the down-hole equipment, tubulars,
Christmas tree and production control system; (d) details of any impact
of the well operation on the performance of the well, including any effect on
recovery; and (e) for any well
completion, suspension or abandonment, the rig release date. (2) The report shall be signed and dated by the
operator or the operator's representative. Other reports 92. An operator shall ensure that the board is made aware, at least once a year, of any report containing relevant information regarding applied research work or studies obtained or compiled by the operator relating to the operator's work or activities and that a copy of it is submitted to the board on request. PART XII Transitional 93. An operator at the time of the coming into
force of these regulations shall comply with the requirements of section 6. Repeal 94. The following
regulations are repealed: (a) the Offshore
Petroleum Drilling (b) the Offshore
Area Petroleum Production and Conservation Commencement 95. These regulations come into force on ©Earl G. Tucker, Queen's Printer |