This is an official version. Copyright © 2006: Queen's Printer, Important Information
Newfoundland Regulation 1997 Offshore Area Petroleum Production and
Conservation (Filed
February 12, 1997) Under the
authority of section 145 of the
Canada-Newfoundland Atlantic Accord Implementation Newfoundland Act, the
Lieutenant-Governor in Council makes the following regulations. Dated at A. Faour REGULATIONS Analysis 1. Short
title 2. Interpretation 3. Application 4. Submission
of information PART I APPROVALS AUTHORIZATIONS 5. General 6. Application
for amendment approval 7. Commencement
and continuation of production operations 8. Production
operations authorization 9. Approvals 10. Evidence
of financial responsibility PART II EVALUATIONS 11. Cores 12. Production
testing 13. Pool
pressure measurements and surveys 14. Cased
hole logs 15. Fluid
sampling and analysis PART OPERATION OF WELLS 16. Safe
operation of development well 17. Well
operation program authorization 18. Approval
for a well operation 19. Precautions 20. Well
operation report 21. Abandonment
or suspension of a zone or well 22. Production
casing and tubing 23. Fluids
for well operations 24. Annulus
between well tubulars 25. Surface
controlled subsurface safety valves 26. Wellhead
and Christmas tree equipment 27. Emergency
shutdown valves 28. Simultaneous
drilling and production operations PART IV CONSERVATION REQUIREMENTS 29. Reservoir
management 30. Voidage
replacement 31. Commingled
production 32. Flaring
and venting of gas 33. Disposal
of oil PART V PRODUCTION RATES 34. General PART VI MEASUREMENTS TESTING 35. General 36. Prorated
production 37. Transfer
meters 38. Group
and test production meter calibration 39. Water
meter calibration 40. Gas
meter calibration 41. Condensate
measurement 42. Metering
records 43. Testing
frequency 44. Accuracy
of measurement PART ENVIRONMENTAL REQUIREMENTS 45. Physical
environmental monitoring equipment 46. Physical
environmental observation and reporting 47. Construction
disturbances 48. Hazards 49. Handling
of waste material and produced water 50. De-commissioning PART VIII OPERATIONS 51. Safety
plan and environmental protection plan 52. Equipment
requirements 53. Testing
requirements for valves and sensors 54. Equipment
maintenance and replacement 55. Support
craft 56. Standby
vessel 57. Support
craft monitoring 58. Communications 59. Availability
of regulations 60. Suspension
of operations 61. Subsea
location PART IX SAFETY OF PERSONNEL 62. General 63. Qualifications 64. Oil
spill drills PART X AUTHORIZED ENTRY, INSPECTION INVESTIGATIONS 65. Safety
zones 66. Conservation
officer and safety officer 67. Investigation
of accidents PART XI RECORDS 68. System
of units 69. Names
and designations 70. Change
of operator 71. Construction
progress 72. Daily
operating record 73. Daily
production record 74. Monthly
production report 75. Submission
of data 76. Pilot
scheme 77. Annual
production and annual environmental reports Short title 1. These regulations may be cited as
the Offshore Area Petroleum Production
and Conservation Newfoundland Regulations. Interpretation 2. (1) In these regulations (a) "accommodation
installation" has the same meaning as in subsection 2(1) of the Offshore Petroleum Installations Newfoundland
Regulations; (b) "Act"
means the Canada-Newfoundland Atlantic
Accord Implementation Newfoundland Act; (c) " (d) "approved
development plan" means a development plan that is approved in accordance
with section 135 of the Act; (e) "barrier"
means a remotely-operated valve or set of valves that can be regularly pressure
tested, a fluid that exerts sufficient hydrostatic pressure to overbalance the
reservoir pressure, a cement plug placed in the wellbore, any mechanical
equipment installed in the well-head or Christmas tree or in the production
tubing, annulus or wellbore, or another pressure sealing mechanism installed
for the purpose of preventing the flow of fluids from a well; (f) "certificate of fitness" means a certificate, in the form
fixed by the board, issued by a certifying authority in accordance with section
4 of the Offshore Certificate of Fitness
Newfoundland Regulations; (g) "certifying
authority" has the same meaning as in section 2 of the Offshore Certificate of Fitness Newfoundland
Regulations; (h) "chiefs"
means the chief conservation officer and the chief safety officer; (i) "commingled production" means production of petroleum
from more than one pool through a common wellbore or flowline without separate
measurement of the petroleum; (j) "completion interval" means an interval through which
fluid enters or leaves a wellbore; (k) "condensate"
means a mixture of substances, most of which are pentanes and heavier
hydrocarbon components, that is recovered or is recoverable at a well from an
underground reservoir and that may be gaseous in its virgin reservoir state but
is liquid in the conditions under which its volume is measured or estimated; (l) "delineation well" means a well that is so located in
relation to another well penetrating an accumulation of petroleum that there is
a reasonable expectation that another portion of that accumulation will be
penetrated by the first-mentioned well and that the drilling is necessary in
order to determine the commercial value of the accumulation; (m) "development
well" means a well that is so located in relation to another well
penetrating an accumulation of petroleum that it is considered to be a well or
part of a well drilled for the purpose of production or observation or for the
injection or disposal of fluid into or from the accumulation; (n) "diving
installation" has the same meaning as in subsection 2(1) of the Offshore Petroleum Installations
Newfoundland Regulations; (o) "drilling
installation" has the same meaning as in subsection 2(1) of the Offshore Petroleum Installations
Newfoundland Regulations; (p) "environmental
protection plan" means an environmental protection plan that has been
approved under subsection 51(5); (q) "flow
system" means the flow meters, auxiliary equipment attached to the flow
meters, fluid sampling devices, production test equipment and the master meter
and meter prover used to measure and record the rate and volumes at which
fluids are produced from or injected into a pool, used as a fuel, used for
artificial lift, flared or transferred from a production installation; (r) "flowline" means a pipeline that is used to transport
fluids from a well to a production facility or vice versa, and includes
intrafield export and all gathering lines; (s) "fluid"
means gas or liquid, or gas and liquid in combination; (t) "gas pool" means a pool that contains hydrocarbon components
predominantly in a gaseous (single phase) state; (u) "gas
well" means a well that produces gas from a gas pool or from the gas cap
portion of an oil pool; (v) "group
production meter" means a meter that measures the total production from
more than one well; (w) "injection
line" means a flowline that is used to transport fluid to an injection
well or a disposal well; (x) "injection
well" means a development well that is used for the injection of fluids
into a pool or field; (y) "installation"
means a diving installation, a drilling installation, a production installation
or an accommodation installation; (z) "multi-pool
well" means a development well that has been completed in more than one
pool; (aa) "natural
environment" means the physical and biological environment in the vicinity
of a production project; (bb) "oil
pool" means a pool that contains hydrocarbon components primarily in a
liquid (single phase) state; (cc) "oil
well" means a well that produces oil from an oil pool; (dd) "operator"
means a person who has applied for or has been issued a production operations
authorization or has applied for or has been granted an approval for a
development plan; (ee) "physical
environmental conditions" means meteorological, oceanographic and related
physical conditions, including ice conditions, that could affect an operation
authorized under paragraph 134(1)(b) of the Act; (ff) "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; (gg) "production
casing" means a casing installed in a wellbore for production or injection
purposes, and may include an intermediate casing; (hh) "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; (ii) "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 does not include any associated platform,
artificial island, subsea production system, drilling equipment or diving
system; (jj) "production installation" means a production facility and
an associated platform, artificial island, subsea production system, offshore
loading system, drilling equipment, facilities related to marine activities and
dependent diving system; (kk) "production
operation" means an operation that is related to the production of
petroleum from a pool or field; (ll) "production operations authorization" means an authorization
that is issued to an operator by the board under paragraph 134(1)(b) of the Act
to conduct production operations; (mm) "production
project" means an undertaking for the purpose of developing a site for the
production of petroleum or for the purpose of producing petroleum from a pool
or field, and includes all related activities; (nn) "production
riser" means a conduit used for conveying fluids to or from the production
installation and includes production, injection, export, control and
instrumentation lines; (oo) "production
site" means a location where a production installation is or is proposed
to be installed; (pp) "production
test" means a test conducted to measure the rates at which fluids are
produced from or injected into a well in a pool for reservoir evaluation
purposes; (qq) "recovery"
means the recovery of petroleum under foreseeable economic and operational
conditions; (rr) "safety
system" means the automatic system installed on a production installation
that is capable of detecting hazardous conditions or abnormal operating
conditions on the installation and is designed so that, depending on the
condition, the system is able to initiate a safe shutdown of the production
installation or portion of it; (ss) "safety
zone" means the zone at and under sea level that covers the greater of (i) the area comprised within 500 metres of a production installation,
and (ii) the area comprised within 50 metres of the anchor pattern of a
production installation; (tt) "SCSSV"
means a surface-controlled subsurface safety valve; (uu) "spill"
means a discharge, emission or escape of a substance; (vv) "subsea
production system" means equipment and structures that are located on or
below, or buried in, the seafloor for the production of petroleum from, or for
the injection of fluids into, a field under an offshore production site, and
includes production risers, flowlines and associated production control
systems; (ww) "support
craft" means a vessel, vehicle, tug, ship, aircraft, air-cushion vehicle,
standby vessel or other craft used to provide transportation for or assistance
to persons on the site of a production operation or production project; (xx) "waste
material" means any garbage, refuse, sewage or waste well fluids or
another useless material that is generated during a production project or a
production operation; (yy) "well
operation", in respect of a development well that has been completed,
means a re-completion, stimulation, workover or wireline operation; (zz) "well
operation program authorization" means an authorization that is issued to
an operator by the board under paragraph 134(1)(b) of the Act to conduct a well
operation program; (aaa) "workover",
in respect of a development well, means an operation that requires the removal
of the Christmas tree; and (bbb) "zone"
means a stratum or a sequence of strata that is designated by the chief
conservation officer as a zone. (2) A
reference to a standard or specification in these regulations shall be considered
to be a reference to that standard or specification as amended. Application 3. These regulations apply (a) to
an operator who develops a production site or produces petroleum in the
offshore area; and (b) in
respect of an operation related to the production of petroleum from a well in
the offshore area. Submission of information 4. Information that is required to be
submitted under these regulations, other than an application for the approval
of a development plan or for a production operations authorization, shall be
submitted to the chief conservation officer or the chief safety officer, or
both, as applicable under the Act. PART I General 5. (1) An approval to drill granted in
respect of a development well under the Offshore
Petroleum Drilling Newfoundland Regulations is prescribed as an approval
for the purposes of subsection 135(1) of the Act. (2) A
person shall not develop a pool or field, including the initiation of a pilot
scheme, except in accordance with the approved development plan. Application for amendment approval 6. In addition to any approval
requirements the board considers appropriate under subsection 135(4) of the
Act, an operator shall apply for the approval of an amendment to the approved
development plan in accordance with subsection 135(5) of the Act, where (a) the
operator proposes to (i) make significant changes in the nature or timing of development
activities of the pool or field, (ii) make substantial modifications or additions to existing production
facilities at the pool or field, or (iii) initiate, in the pool or field, a pilot scheme or reservoir
depletion scheme that differs from the one set out in the approved development
plan; (b) pool
performance or new geological information shows that the recovery method needs
to be changed to achieve maximum recovery of petroleum reserves from the pool
or field; or (c) increased
ultimate recovery of petroleum would be economically obtainable by adopting new
technology or methodology. Commencement and continuance of production operations 7. (1) A person shall not commence
production from a pool or field, other than by means of a formation flow test
conducted in accordance with the Offshore
Petroleum Drilling Newfoundland Regulations, unless the person has a
production operations authorization. (2) A
person shall not carry on production operations except in accordance with (a) these
regulations; (b) the
approved development plan; and (c) the
conditions of the production operations authorization. (3) Before
an operator commences production of petroleum from a pool or field, the
operator shall submit a survey to the chief conservation officer showing the
location of the production installation for that pool or field. Production operations authorization 8. (1) An operator may apply for a
production operations authorization by submitting to the chief conservation
officer 5 copies of an application in the form referred to in section 134 of
the Act and containing the information fixed by the board under that section. (2) A
production operations authorization is subject to the following requirements,
namely, that (a) a
valid certificate of fitness, including all amendments thereto, is issued in
respect of the production installation used for the production operation; (b) every
approval required by Parts II to XI is obtained according to the applicable
requirements; (c) a
safety plan including all amendments to it, is approved under subsection 51(4); (d) an
environmental protection plan exists; and (e) the
operator conducts the production operations in accordance with the plans, and
all amendments to it, referred to in paragraphs (c) and (d), and in accordance
with all approvals granted under these regulations. (3) Where
a production operations authorization has been issued, an amendment shall not
be made to the production operations unless it is approved by the board on
submission of a revised application, in accordance with this section. Approvals 9. The chief conservation officer, the
chief safety officer, or both, as applicable under the Act, may grant an
approval under subsection 11(3), 12(2), 13(4), 18(7), 30(2), 31(2), 32(4),
33(4), 36(2) or 37(2), section 43, or subsection 49(3), 51(4) or (5), 60(4),
62(2) or 72(2). Evidence of financial responsibility 10. For the purposes of subsection
134(4) of the Act and in respect of an authorization issued under paragraph
134(1)(b) of the Act to carry on a work or activity in relation to the
development of a pool or field or the production of petroleum, the operator
shall, before the work or activity is started, submit to the board (a) evidence
of financial responsibility, of a type and in an amount that is sufficient to
ensure that the operator (i) completes the work or activity, and (ii) leaves the site where the work or activity was carried on in the
state required by Part (b) evidence
that the operator is able to meet any financial liability that might be
incurred in connection with the work or activity. PART II Cores 11. (1) An operator shall not commence
drilling a development well in a pool or field unless a coring program for the
pool or field has been approved under subsection (3). (2) Where
it is technically feasible to core and the coring could contribute to the
evaluation of a pool or field, the operator shall core a delineation well in
the reservoir interval of the pool or field. (3) The
chief conservation officer shall approve a development well coring program
where the program will provide sufficient geological and reservoir data to
evaluate the pool or field. (4) The
operator shall carry out routine and special core tests on samples taken from
the cores recovered in accordance with the program approved under subsection
(3). Production testing 12. (1) An operator shall not put a
development well into production unless the chief conservation officer has
approved, under subsection (2), (a) a
testing program in respect of the development well; or (b) a
testing program in respect of another well that the operator plans to use for
the development well. (2) The
chief conservation officer shall approve a testing program where the program
will enable the operator to (a) obtain
data on the deliverability or productivity of the development well; (b) establish
the characteristics of the reservoir; and (c) obtain
representative samples of the formation fluids. (3) Where
a development well is subjected to a well operation that could change the
deliverability, productivity or injectivity of the well, the operator shall,
immediately after the well operation is completed, test the well to determine
the effects of the well operation on the deliverability, productivity or
injectivity of the well. (4) The
operator shall conduct every test and evaluation of the development well in
accordance with the testing program approved under subsection (2). (5) Where
a conservation officer requests to be informed by the operator of the intent to
conduct a production test on a development well, the operator shall inform the
conservation officer at least 48 hours before the operator commences the test. (6) The
operator shall submit immediately to the chief conservation officer the results
of every production test that the operator carries out on the development well. Pool pressure measurements and surveys 13. (1) Before an operator commences
production from a completion interval of a development well, the operator shall
determine the static pressure of the pool at the completion interval. (2) The
operator shall conduct a pool pressure survey, in accordance with the program
approved under subsection (4), (a) 12
months after the pool is initially put into production and at least once every
12 months after that; or (b) at
the times approved under paragraph (4)(b). (3) The
operator shall, at least 60 days before carrying out a pool pressure survey
referred to in subsection (2), submit to the chief conservation officer a
pressure survey program that indicates the method of surveying and the location
of a sufficient number of wells to be shut in so as to allow for an accurate
determination of the pool static pressure. (4) The
chief conservation officer shall approve (a) a
pool pressure survey program submitted under subsection (3) where the
implementation of the program will produce an accurate determination of the
static pressure in the pool; and (b) a
schedule for conducting a pool pressure survey other than at the times
described in paragraph (2)(a) where the schedule is justified by operational
factors. (5) Where
an operator conducts a pool pressure survey, the operator shall do so in
accordance with Alberta Energy Resources Conservation Board Guide G-40, Pressure and Deliverability Testing Oil and
Gas Wells. Cased hole logs 14. (1) An operator shall run a cased
hole log on a well if it is technically feasible to do so and the cased hole
log would significantly contribute to the evaluation of the pool in which the
well is located. (2) Where,
under subsection (1), an operator runs a cased hole log, the operator shall,
immediately, submit a copy of the cased hole log to the chief conservation
officer. Fluid sampling and analysis 15. (1) Where an operator completes a
well in a pool, the operator shall, where it would contribute to the evaluation
of the pool or field in which the pool is located, (a) take
a subsurface sample of reservoir fluids from the well; or (b) where
it is not feasible to take a subsurface sample of reservoir fluids from the
well, collect a sample of the produced fluids at the surface of the well and
recombine them at the initial reservoir conditions. (2) An
operator shall obtain and analyze samples of oil, gas and water collected at
the surface of a sufficient number of wells to determine the composition of the
fluids in the pool (a) at
least once every 12 months; and (b) whenever
there is reason to believe that the composition of a fluid produced from a pool
has changed. (3) An
operator shall collect and analyze the samples of petroleum referred to in
subsection (1) or (2) in accordance with (4) Where
water is produced from a well, the operator shall (a) determine
in accordance with good production practices whether formation water is being
produced from the well; and (b) collect
samples from the well and analyze them to determine the probable source of the
water. (5) An
operator shall analyze water samples collected under subsection (1), (2) or (4)
in accordance with (6) An
operator shall provide the chief conservation officer with a compositional
analysis of representative fluid from the pool and a description of the general
physical properties of the gas and liquid components of the fluid as determined
in accordance with section 11.070 of the Oil
and Gas Conservation Regulations of PART Safe operation of development well 16. (1) In order to ensure the safe
operation of a development well, the operator shall operate the well in a
manner that is consistent with these regulations and that provides for (a) the
integrity of the well and the equipment used at the well for production
purposes; (b) safe
well operations; (c) the
protection of the environment; (d) the
evaluation and monitoring of the performance of the well; and (e) the
efficient recovery of petroleum from the well. (2) An
operator shall, where practicable, correct immediately a mechanical well
condition that may have an adverse effect on production of petroleum from or
injection of fluids into the development well. (3) An
operator shall improve the injection or production profile of a development
well or alter the completion interval of a development well where it is
necessary to do so to avoid significant loss in ultimate recovery of petroleum. (4) Where
different pressure and inflow characteristics of 2 or more pools could
adversely affect recovery of petroleum from those pools, the operator of a
development well that enters those pools shall operate the well (a) as
a single pool well; (b) as
a segregated multi-pool well; or (c) in
another manner that minimizes, to the greatest possible degree, the interflow
between the pools. (5) The
operator of a segregated multi-pool well shall (a) after
the well is completed, conduct a segregation test to confirm that segregation
has been established within and outside the well casing; and (b) conduct
a segregation test immediately where the operator has reason to doubt that
segregation is being maintained. Well operation program authorization 17. (1) A person shall not conduct a
well operation in respect of a development well in a pool or field unless the
well operation is conducted in accordance with the well operation program
authorization. (2) Information
submitted by an operator in a drilling program authorization application may,
where relevant, also be set out in the documentation submitted to obtain a well
operation program authorization. (3) An
operator may apply for a well operation program authorization by completing and
submitting to the chiefs 3 copies of an application in the form and manner
fixed by the board and the following information: (a) a
description of the operating procedures, general arrangement drawings and
specification of the installation from which the well operation is to be
performed; (b) a
copy of a valid certificate of fitness for the installation from which the
operation is to be performed; (c) the
location and configuration of all wells, both existing and planned, for which
application is made; (d) a
schematic and the relevant engineering data on a typical development well
including the wellhead, Christmas tree, casing and tubing designs, cementing
program, downhole equipment and production control system; (e) a
description of the completion fluids to be used; (f) a schematic and the relevant engineering data on pressure control
facilities, tools and equipment that may be used in performing the well
operation; (g) a
description of the operating procedures to be used for conducting all well
operations that may be foreseen, including emergency pressure control
procedures; and (h) a
description of the training, specialized skills and the relevant experience of
the personnel who will be engaged in well operations, in accordance with
sections 62 and 63. (4) The
well operation program authorization (a) is
valid for the period, not exceeding 3 years specified in the authorization; (b) is
subject to the continued validity and force of the certificate of fitness; (c) is
conditional on the operator using the equipment and following the procedures
set out in subsection (3); and (d) shall
be posted on the production installation, mobile offshore drilling unit or
vessel. Approval for a well operation 18. (1) A person shall not conduct a
well operation in respect of a development well in a pool or field unless that
person has obtained an approval for a well operation granted by the chiefs, in
accordance with this section. (2) Notwithstanding
subsection (1) an operator may, without obtaining the approval referred to in
that subsection, conduct a wireline or coiled tubing operation through a
Christmas tree located above sea level where (a) the
operation is approved by the well operation program authorization; (b) the
operation does not (i) alter the completion interval, (ii) adversely affect recovery, or (iii) result in damage to the completion equipment or pressure retaining
barriers; and (c) the
information referred to in subsection 17(3) respecting equipment, operating
procedures, training and qualifications of the personnel conducting the
operations has been submitted in accordance with that subsection. (3) An
operator may apply for an approval for a well operation by completing and submitting
to the chiefs 3 copies of an application in the form and manner fixed by the
chiefs, at least 21 days, if practicable, before the start date of the proposed
operation. (4) An
operator shall submit the following information with the application for
approval for a well operation: (a) the
name and type of well; (b) the
name of the contractor and a description of the equipment to be used to conduct
the well operation; and (c) a
technical description of the well operation, including (i) the objective of the well operation, (ii) a schematic and description of the downhole equipment and tubulars, (iii) a schematic of, and relevant engineering data on, the current
Christmas tree and production control system, (iv) the bottomhole shut-in pressure, (v) a description and the properties of the workover or completion
fluid, and (vi) the procedures proposed for the well operation. (5) Where
an operator proposes to suspend or abandon a completion interval in a
development well, the operator shall submit the following information with an
application for approval for a well operation: (a) the
production rates and the corresponding fluid ratios or injection rates; (b) the
shut-in wellhead pressure; (c) the
bottomhole pressure and production characteristics of adjacent wells; and (d) an
assessment of the effect of the proposed well operation on ultimate recovery. (6) In
addition to the requirements of subsection (5), where an operator requests the
approval of the chief conservation officer to abandon a zone or well, the
operator shall submit to the chief conservation officer (a) a
report setting out (i) the amount of oil and gas recovered from the well located in the
pool, and (ii) an estimate of the amount of gas-in-place and oil-in-place
remaining in the pool in which the well is located; and (b) documentation
that demonstrates that (i) production from the well can no longer be economically maintained, (ii) alternative recovery methods have been thoroughly evaluated, and (iii) alternative uses for the well have been evaluated. (7) The
chiefs shall approve the application for approval for a well operation and any
amendments to the approval where the operation will be conducted in a safe
manner and will not cause waste. (8) An
operator shall ensure that a copy of the approval for a well operation is
posted at the production installation, mobile offshore drilling unit or vessel. (9) Where
a well operation cannot be completed in accordance with the approval, the
operator shall (a) leave
the well in as secure a condition as is practicable; (b) inform
the chiefs that the well operation cannot be conducted in accordance with the
approval; and (c) complete
the well operation in accordance with a revised approval for a well operation. (10) Where
immediate action must be taken to avoid losing control of a well, that action
may be taken without the prior consent of the chiefs. (11) Where
well operations are conducted under subsection (10), the operator shall
inform the chiefs immediately and shall submit information describing the well
operation as soon as possible in accordance with subsection (4). (12) When
a conservation officer requests to be informed by the operator of the time the
operator intends to conduct the well operation for which approval for a well
operation has been granted, the operator shall inform the conservation officer
of that time at least 48 hours before that time. Precautions 19. (1) An operator shall ensure that,
during a well operation, 2 pressure-containing barriers are in place. (2) An
operator shall test the Christmas tree, production casing and tubing string to
the maximum pressure to which it is likely to be subjected after initial
installation and after every workover. (3) An
operator shall ensure that the maximum injection pressure used during a well
operation does not exceed the lesser of (a) the
burst pressure of the weakest joint in the casing or tubing used for injection;
and (b) the
rated working pressure of the Christmas tree and wellhead. Well operation report 20. (1) Subject to subsection (2), an
operator shall submit to the chief conservation officer, within 30 days after
the completion of a well operation, a report that includes (a) a
schematic of and relevant engineering data on the downhole equipment, tubulars,
Christmas tree and production control system; (b) a
description of the completion fluid properties; and (c) a
summary of the well operation, including problems encountered during the well
operation. (2) Subsection
(1) does not apply in respect of a wireline or coiled tubing operation
described in subsection 18(2) if the operator submits an annual report of all
that wireline or coiled tubing operations conducted in the previous year by
that operator. Abandonment or suspension of a zone or well 21. (1) A zone or well shall be
abandoned or suspended in accordance with the Offshore Petroleum Drilling Newfoundland Regulations. (2) In
addition to the requirements of subsection (1) an operator shall, on the
request of the chief conservation officer, conduct an inflow test. (3) Where
a well is shut in for a period greater than 3 months, (a) the
SCSSV shall be closed; (b) a
plug shall be placed in the tubing below the mud line; and (c) the
plug shall be pressure tested to a pressure of not less than 7000 kPa above the
shut-in wellhead pressure. (4) Notwithstanding
subsection (3), the operator may apply to the chief conservation officer for an
extension of the time period to place a plug in the tubing below the mud line. Production casing and tubing 22. (1) An operator shall ensure that
the production casing and tubing used in a well are designed (a) to
permit the installation of artificial lift equipment wherever there is reason
to believe that artificial lift equipment might be required in order to maintain
flow rates and increase ultimate recovery from the pool or field; (b) to
withstand the conditions that might have a detrimental effect on the structural
integrity of the casing and tubing; and (c) with
respect to sour service, to meet National Association of Corrosion Engineers,
NACE Standard MR0175-92 Item No. 53024 Standard
Material Requirements, Sulfide Stress Cracking Resistant - Metallic Materials
for Oilfield Equipment. (2) An
operator shall ensure that the production casing used in a well is equipped and
cemented with sufficient cement to (a) isolate
all petroleum zones; (b) isolate
abnormally-pressured intervals from normally-pressured intervals; (c) ensure
adequate cement bonding across each production zone (i) to a minimum of 60 metres above the production zone, and (ii) to a minimum of 30 metres below the production zone or to the guide
shoe of the production casing, whichever is the lesser; and (d) ensure
that any forces that could result from injection of fluids into the annulus or
from another phenomena will not result in stresses that exceed the design
stress limits of the casing. (3) An
operator shall ensure that the tubing hanger and all tubing and downhole
equipment that is an integral part of a tubing string is designed to provide
for sufficient resistance to burst, tension, collapse and buckling that may
result from installation and operational loads and from pressure and
temperature differentials, so that production and maintenance operations can be
conducted in a safe and efficient manner. (4) An
operator shall, when requested by the chief safety officer, conduct a triaxial
stress analysis on any tubulars installed in a well. Fluids for well operations 23. An operator shall ensure that the
fluids used in well operations are of a type that minimizes detrimental effects
on the production zone and subsurface equipment. Annulus between well tubulars 24. An operator shall ensure that a
well is not placed in production unless the annulus between the production
casing and tubing is (a) effectively
isolated from the completion interval; and (b) filled
with a fluid of sufficient density to overbalance the formation pressure,
except where the well is on gas lift. Surface controlled subsurface safety valves 25. (1) An operator shall ensure that a
development well is equipped with a SCSSV that is installed (a) in
the tubing at least 30 metres below the sea floor; and (b) in
the annulus of the well at least 30 metres below the sea floor where gas lift
is used and where the wellhead is located above sea level. (2) Notwithstanding
subsection (1) where a development well is located in a zone where permafrost
is present in unconsolidated sediments, the operator shall install an SCSSV in
the tubing at least 30 metres below the base of the permafrost. (3) An
operator shall not operate a development well unless the specifications,
design, installation, operation and testing of each SCSSV installed on the well
are in accordance with (4) An
operator shall ensure that every SCSSV installed in a development well is (a) pressure
tested immediately after installation; and (b) function
tested at least once every 6 months after the test referred to in paragraph
(a). Wellhead and Christmas tree equipment 26. (1) An operator shall ensure that
the wellhead and Christmas tree equipment, including any casing and tubing
hangers and sealing devices, are designed, constructed, installed and
maintained to withstand (a) loads
imposed in the well including those resulting from pressure and temperature
differentials; and (b) corrosion,
erosion and wear. (2) The
operator of a development well exposed to a sour environment shall ensure that
the wellhead and Christmas tree equipment are designed and constructed in
accordance with, National Association of Corrosion Engineers, NACE Standard
MR0175-92 Item No. 53024 Standard Material
Requirements, Sulfide Stress Cracking Resistant - Metallic Materials for
Oilfield Equipment. (3) An
operator shall ensure that all production equipment above the water level
complies with (a) Part
II of (b) (4) An
operator shall ensure that the wellhead and Christmas tree equipment conforms (a) when
the wellhead is above water level, with (b) when
the wellhead is below water level, with (i) (ii) (5) An
operator shall configure the annulus access on a production well to allow
monitoring and venting of pressure in the annulus between the production casing
and tubing. (6) The
wellhead and Christmas tree assembly shall be designed to have a means of
determining (a) the
pressure and temperature at the tubing head; and (b) the
pressure at the casing head and, where the wellhead is located above sea level,
in each casing annulus. Emergency shutdown valves 27. (1) An operator shall ensure that every
Christmas tree is equipped with at least 2 emergency shutdown valves (a) on
each flow path through the tree; and (b) on
the annulus access, where the well is configured for gas lift operations or
where the Christmas tree is located below sea level. (2) The
emergency shutdown valves required under subsection (1) shall be fail safe
close under full working pressure, under suction in the tubing bore and at the
maximum flow rate likely to occur in the tubing. (3) Every
oil and gas riser on a production installation, excluding the export riser to a
tanker loading system, shall be equipped with a topside fail safe close
emergency shutdown valve placed in a safe and accessible location to protect it
from damage and to permit inspection, maintenance and repairs. (4) Every
petroleum flowline to or from a production installation, excluding a flowline
to a tanker loading system, shall be equipped with a subsea fail safe close
emergency shutdown valve located at a safe distance from the installation. (5) Every
emergency shutdown valve required under subsections (1), (3) and (4) shall (a) be
designed, constructed and installed in accordance with (b) be
maintained and repaired in accordance with (6) An
operator shall not operate a development well unless every emergency shutdown
valve required under subsection (1) and SCSSV required under section 25 is in
working order. (7) An
operator shall not operate a production installation unless every emergency
shutdown valve required under subsections (3) and (4) is in working order. Simultaneous drilling and production operations 28. (1) An operator shall include in
the safety plan submitted under subsection 51(1) procedures to ensure the
safety of persons on board the production installation and the protection of
the environment, where the operator intends to conduct simultaneously with the
production of petroleum (a) the
drilling and completion of a well; (b) a
well operation; or (c) a
construction or related activity. (2) An
operator shall not conduct an activity referred to in subsection (1)
simultaneously with the production of petroleum except in accordance with the
safety plan approved under subsection 51(4). PART IV Reservoir management 29. (1) An operator shall provide for
maximum recovery of oil and gas from a pool or field. (2) An
operator shall locate wells so as to provide, to the extent possible, for
maximum recovery of oil and gas from a pool or field. (3) An
operator shall carry out and submit to the chief conservation officer infill
drilling studies and enhanced recovery studies where the operator has reason to
believe that infill drilling or implementation of an enhanced recovery scheme
could result in increased recovery of oil and gas from a pool or field. Voidage replacement 30. (1) Where the operator of an oil
pool carries out an oil recovery scheme that involves pressure maintenance, the
operator shall not inject fluid into the pool on a basis other than a
well-pattern basis or pool basis and shall not, unless an approval is granted
under subsection (2), (a) inject
fluid into the pool at a volume greater or less than that being withdrawn; or (b) permit
a rate of production from the pool that results in a lower pool pressure than
the pool pressure set out in the approved development plan. (2) The
chief conservation officer shall approve an imbalance of volumes or a different
rate of production where the ultimate recovery from the pool will not be
reduced. (3) The
operator shall maintain the volumes or rate approved by the chief conservation
officer under subsection (2). Commingled production 31. (1) An operator shall not engage in
commingled production except in accordance with an approval granted under
subsection (2). (2) The
chief conservation officer may approve commingled production where the
production will not reduce the ultimate recovery of petroleum from the pools. (3) An
operator engaging in commingled production shall estimate the total volume and
the rate of production of each fluid produced from each pool. Flaring and venting of gas 32. (1) An operator shall not flare or
vent gas during a production operation except in accordance with subsections (2) Subject
to requirements determined by the board under subsection 134(4) of the Act, an
operator may flare or vent gas during (a) a
production test over a period not exceeding 24 hours at rates and volumes not
greater than those necessary to unload and clean up a well; or (b) an
extended production test or well clean-up operation, for a period, and at rates
and volumes, approved under subsection (4). (3) An
operator may flare or vent gas during a production operation to relieve
abnormal pressure or if necessary because of an emergency situation. (4) The
chiefs may approve the flaring or venting of gas during a production operation
at a rate and volume and for the period set out in the approval where the
flaring or venting does not constitute waste or an undue safety hazard. Disposal of oil 33. (1) An operator shall not burn or
otherwise dispose of oil except in accordance with subsections (2) An
operator may burn or otherwise dispose of oil in accordance with section 17 of
the Offshore Petroleum Installations Newfoundland
Regulations (a) during
a production test, over a period not exceeding 24 hours at rates and volumes
not greater than those necessary to unload, clean up and evaluate a well; (b) during
an extended production test or well clean-up operation, for a period, and at
rates and volumes, set out in the approval; or (c) where
the oil is waste oil or contaminated oil that cannot be economically recovered. (3) An
operator may burn or otherwise dispose of oil where the disposal is necessary
because of an emergency situation if the operator (a) undertakes
those measures that may be necessary to limit the damage to the natural
environment; (b) cleans
up, to the extent practicable, any significant pollution caused by the
disposal; and (c) notifies
the board of the disposal. (4) The
chiefs shall approve burning or other disposal of oil where the burning or
disposal does not constitute waste or an undue safety hazard or damage to the
natural environment. (5) An
operator shall not produce from a well during a production test an amount of
oil that exceeds a quantity that can be safely stored, burned or otherwise
disposed of in accordance with section 17 of the Offshore Petroleum Installations Newfoundland Regulations. PART V General 34. An operator shall produce petroleum
from a pool or field in accordance with good production practices to achieve
maximum recovery of petroleum from the pool or field and at the applicable rate
specified in the approved development plan for that pool or field. PART VI General 35. (1) Subject to section 36, an
operator shall measure and record the rate of flow and the total volume of (a) each
fluid that is (i) produced from or injected into each well, and (ii) transferred from the production installation, sold, flared or
disposed of; (b) gas
used (i) as fuel for production operations, or (ii) to assist gas-lift operations; (c) oil
that is used as a hydraulic power fluid for artificial lift; and (d) each
fluid that enters or leaves a processing plant. (2) Where
an operator uses a meter to measure a fluid in accordance with subsection (1),
the meter shall (a) be
installed and used in accordance with the instructions provided by the
manufacturer; (b) have
a flow range appropriate for its intended use; (c) be
operated within the operating range of the meter; and (d) be
fitted with continuous temperature recording or temperature compensating
devices, where the meter is a custody transfer meter and temperature
fluctuations could affect the accuracy of its measurement. (3) An
operator shall ensure that every valve, meter and prover tap is installed in a
manner so that a reasonably uniform flow rate can be maintained through any
meter referred to in subsection (2). Prorated production 36. (1) An operator shall allocate
group production of oil and gas from wells in a pool on a proportional basis to
the wells in accordance with a flow system and flow calculation procedure and
an allocation procedure, approved under subsection (2). (2) The
chief conservation officer shall approve a flow system and flow calculation
procedure and an allocation procedure if the system and procedures will permit
reasonably accurate determination of the production from individual wells and
the transfer of fluids from the production installation. Transfer meters 37. (1) An operator shall, in respect
of a transfer meter used in a production operation, submit to the board those
details of the meter's specifications and operating procedures as are specified
by the board. (2) The
chief conservation officer shall approve a transfer meter referred to in
subsection (1) as part of the flow system, if the meter and operating
procedures will permit the determination of volumes to an accuracy required for
transfer purposes. (3) At
the request of the chief conservation officer, an operator shall submit to the
chief conservation officer a copy of a meter calibration report for the purpose
of verifying the accuracy of the meter. Group and test production meter calibration 38. (1) Where an operator uses a group
production meter or test production meter to measure fluids produced from a
pool, the operator shall calibrate the meter and maintain the calibration in
accordance with Part 14 of the Oil and
Gas Conservation Regulations of (2) An
operator shall replace a group production meter that cannot meet the mean meter
factor tolerance prescribed by section 14.12 of the Oil and Gas Conservation Regulations of Water meter calibration 39. An operator shall calibrate every
water meter that the operator uses and maintain the calibration in accordance
with Part 14 of the Oil and Gas
Conservation Regulations of Gas meter calibration 40. An operator shall calibrate every
gas meter that the operator uses and maintain the calibration in accordance
with Part 14 of the Oil and Gas Conservation
Regulations of Condensate measurement 41. (1) Where an operator uses a
displacement or turbine meter to measure condensate, the operator shall
calibrate the meter and maintain the calibration in accordance with Part 14 of
the Oil and Gas Conservation Regulations
of Alberta. (2) Where
an operator uses an orifice flow meter to measure condensate, the operator
shall equip the meter with a recorder. Metering records 42. An operator shall keep a record of
the flow through each group production meter or test production meter used by
the operator and retain the record for one year and, at the request of the
chief conservation officer during that year, shall submit that record to the
chief conservation officer. Testing frequency 43. The operator of a development well
that is producing oil or gas from a pool or field shall test the well at least
twice per month. Accuracy of measurement 44. An operator shall, at the request
of the chief conservation officer, test the accuracy of a meter used by the
operator to measure the production of petroleum, and submit the results to the
chief conservation officer. PART Physical environmental monitoring equipment 45. The operator of a production
installation shall equip the production installation with facilities and
equipment for observing, measuring and recording the physical environmental
conditions set out in subsections 46(2) and (3). Physical environmental observation and reporting 46. (1) The operator of a production installation
shall maintain a comprehensive record of observations of the physical
environment made by the operator during the life of the production project. (2) The
operator of a production installation shall observe and record the following
conditions: (a) the
location and movement of ice floes or icebergs in the vicinity of the
installation; (b) at
least once every 3 hours, (i) the wind direction and speed, (ii) the wave direction, height and period, (iii) the swell direction, height and period, (iv) the direction and speed of the current, (v) the barometric pressure and air temperature, (vi) the temperature of the water, and (vii) the visibility; and (c) once
a day, the amount of precipitation in the preceding day. (3) The
operator of a floating production installation shall observe and record the
pitch, roll and heave of the production installation and the tension on each
mooring line (a) at
least once every 6 hours, where the wind speed does not exceed 35 kilometres
per hour; and (b) at
least once every 3 hours, where the wind speed exceeds 35 kilometres per hour. (4) The
operator of a production installation shall obtain, during the period when
operations are carried out, forecasts of meteorological conditions and ice
movements each day, and each time during the day that the meteorological
conditions or ice movements change substantially from those forecasted. Construction disturbances 47. A person shall not construct or
install a production installation unless the production installation is
designed and constructed or installed in a manner so as to minimize, to the
extent reasonably practicable, a permanent disturbance to the seabed or another
part of the natural environment. Hazards 48. An operator shall take all
reasonable precautions to protect a production installation and all associated
equipment at the production site from naturally occurring hazards and hazards
associated with the operations carried out at the production site. Handling of waste material and produced water 49. (1) An operator shall ensure that
all waste material produced and stored at a production site is treated, handled
and disposed of in accordance with the environmental protection plan. (2) An
operator shall not carry out a scheme for the underground injection of water
produced from a well except in accordance with an approval granted under
subsection (3). (3) The
chief conservation officer shall approve a scheme for the underground injection
of water produced from a well if the scheme will avoid surface pollution and
will not adversely affect the recovery of petroleum from a pool or field. De-commissioning 50. A person shall not de-commission a
production installation at a pool or field other than in accordance with the
approved development plan or a requirement of an authorization issued under
paragraph 134(1)(b) of the Act. PART VIII Safety plan and environmental protection plan 51. (1) An operator shall develop and
submit to the chief safety officer a safety plan that provides for all matters
related to the safety and health of personnel and the integrity of an
installation and that includes (a) a
statement of the operator's safety management policy and a description of the
procedures established to ensure its effectiveness; (b) a
summary of the results of all studies undertaken to identify hazards and to
assess risks to the installation and means to mitigate those risks; (c) a
description of the features incorporated in the design of the installation and
of the equipment provided to eliminate hazards and reduce risks to the
occupational safety and health of personnel; (d) a
description of the procedures established and the manuals provided for the safe
operation and maintenance of the installation; (e) the
standards adopted for the training and qualification of personnel; (f) a description of the command structure on the installation and for
the operator's onshore base and their relationship to each other; (g) contingency
plans for response to and mitigation of accidental events affecting the safety
of persons on board, or the integrity of, the installation; and (h) a
description of the physical environmental monitoring equipment; (i) the distance from the production installation, at which the standby
vessel referred to in section 56 shall remain during normal operations. (2) An
operator shall develop and submit to the chief conservation officer an
environmental protection plan that provides for the protection of the natural
environment and includes (a) a
description of the program established to monitor and the measures adopted to
minimize or mitigate the effect on the natural environment of routine
operations on a production installation; (b) contingency
plans for response to, and mitigation of, the accidental spill of petroleum or
hazardous substances; (c) a
description of equipment and procedures for treatment, handling and disposal of
waste material; (d) compliance
monitoring programs to ensure that the composition of spilled waste material is
in accordance with the limits specified in the environmental protection plan; (e) a
summary of the chemical substances intended for use in operations and
maintenance on the production installation; and (f) plans for environmental restoration of the production site
following termination of production. (3) The
plans submitted under subsections (1) and (2) shall address abnormal conditions
and emergencies that can reasonably be anticipated, including (a) serious
injury, persons overboard or loss of life; (b) collisions; (c) loss
of well control; (d) forecast
or actual physical environmental conditions that may result in loads or load
effects on the production installation in excess of those for which it was
designed; (e) oil
spills; (f) fire; and (g) explosions. (4) The
chief safety officer shall approve the safety plan submitted under subsection
(1), including amendments to it, where adherence to the plan will ensure the
safety, health and training of persons on board the installation and
preservation of the integrity of the installation. (5) The
chief conservation officer shall approve the environmental protection plan
submitted under subsection (2), including amendments to it, where adherence to
the plan will provide for the protection of the natural environment. (6) An
operator shall ensure that a copy of every plan approved under subsections (4)
and (5) is (a) kept
at the installation; and (b) available
for examination on request by a person at the installation. (7) An
operator shall update the inventory of equipment described in each plan
approved under subsections (4) and (5) and shall submit the updated inventory
to the chiefs within 45 days after the completion of a significant modification
of or major repairs to a major component of the equipment. (8) The
plans submitted under subsections (1) and (2) shall provide for coordination
with a relevant municipal, provincial or federal emergency response plan. (9) An
operator shall ensure that all equipment required by the plans approved under
subsections (4) and (5) is available for use and in an operable condition. (10) On
request of the chiefs, drawings and other documentation referred to in the
plans submitted under subsections (1) and (2) shall be submitted by an operator
to the chiefs. Equipment requirements 52. An operator shall ensure that
equipment and related machinery used at a production installation (a) are
used within safe operating limits; (b) have
a control system and safety guards to protect persons on board the installation
and the natural environment; (c) are
not used unless there is a safe means of entry to and exit from the area where
the equipment and machinery are located; and (d) are
located in such a manner as to minimize a potential danger to the production
installation or to the operating personnel and to minimize a permanent damage
to the natural environment. Testing requirements for valves and sensors 53. (1) Subject to subsection (3), an
operator shall ensure that (a) the
components of the safety system of a production installation are tested, and
malfunctions of the system are recorded in accordance with (b) every
emergency shutdown station that forms part of the safety system is tested at
least once every 30 days; (c) at
least once every month, (i) every surface safety valve installed on a Christmas tree is tested
for function and for leakage, (ii) every pressure sensor is tested, (iii) every liquid level control device is tested by activating the
sensor for the device, (iv) every check valve installed in the piping system is tested for
leakage, (v) every automatic inlet shutdown valve on a vessel or compressor that
is actuated by a sensor is tested, (vi) every shutdown valve that is located in a liquid discharge line
from a vessel and is actuated by a low-level sensor is tested, and (vii) every shutdown valve installed on a production riser and associated
manifold is tested; (d) every
shutdown control installed on a compressor that is actuated by temperature
sensors is tested at least once every 6 months; (e) every
pressure-relief valve is tested at least once every 12 months, either through
bench-testing or, where possible, in-situ testing using an external pressure
source; and (f) all fire, hydrogen sulfide and gas detection systems are tested for
operation every three months and recalibrated if necessary. (2) The
testing of an emergency shutdown station under paragraph (1)(b) may be carried
out by activating a surface safety valve installed on a Christmas tree, a
subsurface safety valve installed in the tubing, or another valve that can be
activated from the station. (3) Paragraph
(1)(c) does not apply to valves or sensors that are located below sea level. (4) An
operator shall report to the chief safety officer immediately every failure or
unsuccessful test of the safety system of a production installation or of a
component of the safety system. Equipment maintenance and replacement 54. An operator shall ensure that (a) the
defective equipment used in a production installation that represents a safety
hazard for the personnel or the installation is repaired or replaced
immediately; (b) a
procedure used in a production installation that the operator has reason to
believe is unsafe is revised immediately and all personnel affected are
informed of the revision; (c) documentation
containing a procedure that has been revised under paragraph (b) is amended to
reflect the revision; (d) programs
are instituted to monitor, in accordance with good engineering practice, the
extent of corrosion and erosion of the components of the production
installation; and (e) at
the request of the chief safety officer, the results of programs instituted
under paragraph (d) are reported to the chief safety officer. Support craft 55. (1) An operator shall not use a
support craft unless the craft is designed, constructed and maintained so as to
be capable of operating safely in the foreseeable conditions of the physical
environment prevailing in the vicinity of the production installation, and an
operator using a support craft shall, at the request of the chief safety
officer, demonstrate that capability to the chief safety officer. (2) A
person shall not use a ship as a support craft unless the ship carries (a) the
navigational, safety and marine aids required under the Canada Shipping Act; and (b) emergency
equipment and life-saving devices of a type and in sufficient number to permit
the escape and survival of the persons on board the ship under any conditions
that could reasonably be anticipated. (3) Where
a passenger boards a support craft, the person in charge of the support craft
shall ensure that the passenger is informed, at the time of boarding, of the
safety rules and procedures applicable to the craft. (4) A
support craft shall not enter the safety zone around a production installation
without the consent of the installation manager. Standby vessel 56. (1) The operator of a manned
production installation shall ensure that a standby vessel is available during
storm conditions, at a distance, approved by the installation manager, that is
not greater than that required for 20 minutes return time unless a longer
period is approved by the installation manager under section 189.2 of the Act. (2) If
the standby vessel exceeds the distance or time set out in subsection (1)
without the consent of the installation manager, both the installation manager
and the master of the standby vessel shall log the incident and submit a
written report to the board within 48 hours stating the reason why the distance
or time was exceeded. (3) A
standby vessel shall not enter the safety zone around a production installation
without the consent of the installation manager. (4) Under
the direction of the installation manager, the standby vessel is to attend
close to the production installation when any of the following situations
occurs: (a) weather,
sea or ice conditions limit the safe deployment of a powered rescue boat from
the production installation; (b) a
helicopter is landing or taking off from the production installation; (c) diving
operations are in progress; (d) drill-stem
or production tests are being conducted; (e) kick-control
operations are proceeding; (f) abnormal pressure zones are being penetrated; (g) abandon
ship or person overboard drills are being conducted; or (h) personnel
are working overside. (5) The
installation manager and the master of the standby vessel shall enter a
notation in the appropriate logbook when the standby vessel assumes or leaves
standby duty and close standby. (6) A
standby vessel shall (a) maintain
a clear deck at all times; or (b) meet
the requirements of the Canadian Coast Guard TP 7920E, Standards Respecting Standby Vessels. (7) The
standby vessel shall have the capacity to accommodate the total number of
persons on board, and shall be fit for the purposes of, the installation the
vessel is serving. Support craft monitoring 57. An operator shall ensure that the
position and status of all support craft are monitored by a central vessel
monitoring service and helicopter flight following service. Communications 58. (1) The operator of a manned
production installation shall ensure that the communications equipment on the
installation is operated by personnel trained for that purpose. (2) The
personnel referred to in subsection (1) shall, on a 24 hour basis, (a) maintain
a listening watch on 156.8 MHz frequency; and (b) monitor
all marine and air communications with respect to movements of a support craft
operating between the production installation and the shore. Availability of regulations 59. The operator of a production site
shall keep a copy of these regulations at the site and make them available for
examination at the request of any person. Suspension of operations 60. (1) An operator shall ensure that
production operation is suspended immediately where the continuation of that
operation (a) would
endanger the safety of persons on board an installation, the security of a well
or the integrity or safe operation of the installation; or (b) would
cause a spill into the natural environment that exceeds the limits specified in
the environmental protection plan or a limit specified in a requirement of the
production operations authorization. (2) Where
an operator suspends a production operation under subsection (1), the operator
shall not resume the production operation until the operation can be resumed
safely and without unauthorized discharge into the natural environment. (3) Where
a serious injury, fatal accident or serious damage to equipment occurs at a
production site, the operator shall immediately suspend every operation that
contributed to the injury, fatality or damage and shall not resume the
operation without an approval granted under subsection (4). (4) The
chief conservation officer or the chief safety officer, or both, as applicable
under the Act, shall approve the resumption of an operation that, under
subsection (3), has been suspended if they determine that the operation can be
safely resumed. (5) Where
there is loss of control of a well at a production installation, the operator
shall shut in all other wells at the production installation until the well
that is out of control is secured. Subsea location 61. An operator must be able at all
times to readily locate the subsea production system. PART IX General 62. (1) An operator shall not conduct a
production operation for which the personnel require special skills until (a) the
operator has submitted to the chief safety officer a description of the
training that the operator proposes to require of the persons employed for that
operation; (b) the
training referred to in paragraph (a) has been approved under subsection (2);
and (c) the
operator has ensured that the employees have successfully completed the
approved training. (2) The
chief safety officer shall approve the training referred to in paragraph (1)(a)
if the training is sufficient to enable the production operation to be
conducted in a safe manner. Qualifications 63. (1) An operator shall ensure that
the supervisory personnel employed at a production site have, before assuming
their duties, sufficient experience and the necessary training to conduct their
duties in a safe manner. (2) An
operator shall, on request, provide the chiefs with a summary of the
qualifications and training of personnel employed at a production site. Oil spill drills 64. The operator of a production
installation at which oil could be produced shall carry out periodic drills on
the procedures to be used in response to an oil spill. PART X Safety zones 65. (1) No person other than a
conservation officer or safety officer or a person designated by the chief
conservation officer or chief safety officer or authorized by an operator
shall, except in an emergency, enter the safety zone. (2) An
operator shall take those measures that are reasonable to ensure that a person
in charge of a vessel or aircraft that operates in or approaches a safety zone
is informed of the boundaries of the safety zone. Conservation officer and safety officer 66. (1) Where a conservation officer or
a safety officer has reasonable grounds to believe that the condition of a production
facility is such that there is a risk of loss of life, serious bodily injury,
loss of control of a well or pollution of the natural environment, the conservation
officer or the safety officer may give written notice to the operator in charge
of that facility to test, to the extent practicable, the function of that
facility, and the operator shall do so immediately. (2) Where,
under subsection (1), an operator tests a production facility and determines
that the facility does not operate in accordance with the manufacturer's
specifications, the operator shall immediately replace or repair the facility. (3) Where
a production facility referred to in subsection (1) cannot be adequately
tested, the chief conservation officer or the chief safety officer may, on the
recommendation of a conservation officer or safety officer, order the operator
to repair or replace the facility, and the operator shall do so immediately. Investigation of accidents 67. (1) The chief conservation officer
or the chief safety officer shall investigate or cause to be investigated an
incident, accident or other event at a production site that (a) causes
significant damage to or failure of the production installation; or (b) results
or could result in a spill into the natural environment exceeding limits
specified in the environmental protection plan or in the requirements of the
production operations authorization for the pool or field or a portion thereof
located within the production site. (2) The
chief conservation officer or the chief safety officer may investigate or cause
to be investigated an incident, accident or other event at a production site
that results in the death of a person, a missing person, serious bodily injury,
imminent threat to the safety of personnel or the public, a fire, explosion,
loss of well control, spill of oil, gas or hazardous substances, significant
damage to or missing support craft or another serious incident, accident or
event at the installation. PART XI System of units 68. An operator shall use the
international system of units (SI) to record data and to prepare reports that
are submitted to the chief conservation officer or the chief safety officer. Names and designations 69. (1) The chief conservation officer
shall designate a name for a pool or field. (2) The
chief conservation officer may define the boundaries of a pool or field for the
purpose of identifying it. (3) An
operator shall assign to a well when it is completed (a) a
distinct permanent designation that consists of a completion number and the
name of the pool or field designated under subsection (1) on which the well is
located; and (b) a
non-permanent designation that indicates the completion status as set out in
subsection (4). (4) The
designation referred to in paragraph (3)(b) shall indicate the status of the
well as follows: (a) an
operational well shall be designated by the letter "O"; (b) a
suspended well shall be designated by the letter "S"; and (c) an
abandoned well shall be designated by the letter "A". (5) An
operator shall (a) submit
to the chief conservation officer every change the operator proposes to make to
the designation of a well, or to the name of a pool or field; and (b) in
the case of a well, notify the chief conservation officer of every change in
the status of the well that may affect the designation referred to in paragraph
(3)(b) and any consequential change in that designation. Change of operator 70. (1) Where the operator of a
production installation proposes that another operator operate the production
installation, the operator shall provide a report to the chief conservation
officer that sets out the reason for the change. (2) The
new operator shall provide documentation to the board that will enable the
board to determine if the new operator is able to meet the commitments and
responsibilities of the previous operator under the Act and these regulations. Construction progress 71. An operator shall, within 15 days
after a request by the chief conservation officer or chief safety officer,
submit a report to the chief conservation officer or chief safety officer
summarizing, for the month requested, the construction progress and significant
events occurring at a production site or during the construction of a production
installation. Daily operating record 72. (1) An operator shall keep at a
central control point and, on request, submit to the chiefs a current daily
operating record respecting (a) safety
and environmental protection; (b) the
identification of all persons at a production installation; (c) the
movements of support craft; (d) an
inspection, repair or modification of or significant damage to equipment; (e) the
inspection of the production installation for corrosion and erosion and any
resulting maintenance; (f) pressure, temperature and flow rate data for compressors, treating
facilities and processing equipment; (g) the
calibration of meters and instruments; (h) the
inspection of surface and subsurface safety valves; (i) the status of each well and the status of well operations; and (j) every spill of oil, gas, chemicals or hazardous substances into the
natural environment. (2) Except
as otherwise authorized by the chief conservation officer, an operator shall
retain a record referred to in subsection (1) for at least 5 years and shall
offer the original or a legible copy of the record to the chief conservation
officer before destroying it. Daily production record 73. (1) An operator shall keep a daily
production record in respect of a pool and shall, at the request of the chief
conservation officer, provide a copy of the record to the chief conservation
officer. (2) An
operator shall retain every record referred to in subsection (1) until
production from the field on which the pool is located is abandoned. Monthly production report 74. (1) An operator shall follow
established production accounting procedures. (2) An
operator shall submit to the chief conservation officer, in a form fixed by the
chief conservation officer, not later than the 15th day of each month or such
other date as the chief conservation officer authorizes, 3 copies of a report
summarizing the production data collected under subsection 35(1) during the
preceding month. Submission of data 75. (1) An operator shall submit to the
chief conservation officer, in a form fixed by the chief conservation officer,
3 copies of the results, data, analyses and schematics obtained (a) from
a measurement, core or fluid sample required under Part II; and (b) from
a segregation test or well operation. (2) An
operator shall submit the results, data, analyses and schematics referred to in
subsection (1) within 60 days after the completion of the measurement, core or
fluid sample, test or well operation. Pilot scheme 76. (1) An operator shall, in
accordance with the conditions of the development plan approval, submit interim
evaluations of a pilot scheme that the operator has conducted at a pool or
field to the chief conservation officer. (2) Where
an operator completes a pilot scheme, the operator shall submit a report to the
chief conservation officer that sets out (a) the
results of the scheme and supporting data and analyses; and (b) the
conclusions of the operator as to the potential of the scheme for application
to full-scale production. Annual production and annual environmental reports 77. (1) An operator shall submit to the
chief conservation officer not later than March 1 of each year an annual
production report and an annual environmental report relating to the preceding
year for a pool or field. (2) The
annual production report referred to in subsection (1) shall set out, where
applicable (a) graphs
of production from and injection into the pool or field; (b) a
review of production from and injection into each well that is located in the
pool or field; (c) a
review of the production capability of the pool or field; (d) predicted
declines in production capability of the pool or field; (e) details
of pool performance; (f) a review of water production; (g) a
summary of tests, surveys and alterations in respect of performance of each
well and alterations to production equipment for the pool or field; (h) a
review of subsurface safety valve performance; and (i) a listing of significant modifications to any production installation
at the pool or field. (3) The
annual environmental report referred to in subsection (1) shall set out a
review of general environmental conditions during the year, including
meteorological, oceanographic and ice conditions and a description of ice management
activities and downtime caused by weather or ice. (4) Where
the performance of a well in a pool differs significantly from predictions in
the annual production reports for the pool, the operator shall, at the request
of the chief conservation officer, submit to the chief conservation officer
performance evaluations of the well in the pool at intervals set by the chief
conservation officer. ©Earl G. Tucker, Queen's Printer |