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Consolidated Newfoundland Regulation 1996


CONSOLIDATED NEWFOUNDLAND REGULATION 748/96

CONSOLIDATED NEWFOUNDLAND REGULATION 748/96

Offshore Petroleum Drilling Newfoundland Regulations
under the
Canada‑Newfoundland Atlantic Accord
Implementation
Newfoundland Act
(O.C. 96‑177)

Under the authority of section 145 of the Canada‑Newfoundland Atlantic Accord Implementation Newfoundland Act and the Subordinate Legislation Revision and Consolidation Act, the Lieutenant‑Governor in Council makes the following regulations.

REGULATIONS

Analysis


        1.   Short title

        2.   Definitions

        3.   Application

        4.   Submission of information

              PART I
GENERAL

        5.   Application for authorization

        6.   Conditions of authorization

        7.   Defective equipment and procedures

        8.   Use of drilling equipment

        9.   Support craft

      10.   Vessel requirements

      11.   Standby vessel

      12.   Coast guard requirements

      13.   Pressure vessels

      14.   Hazards

      15.   Construction of drilling installations

      16.   Requirements for drilling installations

      17.   Protection of drilling installations

      18.   Other requirements to be met

      19.   Emergency equipment requirements

      20.   Helicopter deck or facility

      21.   Standards for drilling equipment

      22.   Meteorological forecasts

      23.   Safety arrangements

      24.   Safety exits

      25.   Escape device to be provided

      26.   Medical and rescue facilities

      27.   Devices required

      28.   Personnel transfer baskets

      29.   Electrical equipment

      30.   Electrical installation requirements

      31.   Lighting

      32.   Emergency electrical power

      33.   Safeguards against combustible gas accumulation

      34.   Partially enclosed areas

      35.   Pressure loss alarm

      36.   Positive air pressure

      37.   Fire‑resistant construction requirements

      38.   Firefighting equipment

      39.   Fire detectors and alarm systems

      40.   Total flooding system

      41.   Internal combustion engines on drilling units

      42.   Ventilation of machinery rooms

      43.   Communication systems

      44.   Alarm systems

      45.   Cranes

      46.   Blowout preventer system requirements

      47.   Equipment for well control

      48.   Casing

      49.   Casing requirements

      50.   Assumptions for burst pressures

      51.   Assumptions for collapse loading

      52.   Assumptions for tensile loading

      53.   Casing liners

      54.   Casing string setting depths

      55.   Casing program

      56.   Cementation of casing

      57.   Cementation requirements

      58.   Length of cementation

      59.   Marine riser

      60.   Drilling fluid system

      61.   Air, gas and foam drilling

      62.   Testing equipment

      63.   Operating manuals

      64.   Contingency plans

      65.   Misuse of safety and firefighting equipment

              PART II
APPROVAL TO DRILL OR APPROVAL TO RE‑ENTER A
WELL OR TO DRILL A TEST HOLE

      66.   Notification

      67.   Prohibition

      68.   Application

      69.   Approval conditions

      70.   Suspension or revocation of approval

      71.   Location of well

      72.   Evidence of financial responsibility

              PART III
OPERATIONAL
REQUIREMENTS

      73.   Drilling of a well

      74.   Surveys

      75.   Safety zone

      76.   Availability of regulations

      77.   Display of required authorizations

      78.   Drilling equipment tests

      79.   Well control equipment

      80.   Conductor pipe

      81.   Blowout preventer system

      82.   Composition of blowout preventer system

      83.   Safety valves

      84.   Choke manifold

      85.   Flow lines from wells

      86.   Main flow line valve

      87.   Flare line

      88.   Test of casing and blowout preventers

      89.   Duties of operator

      90.   Exemption

      91.   Pressure testing of casing

      92.   Coal and mineral deposits

      93.   Cementation

      94.   Cementation of a casing

      95.   Waiting on cement time

      96.   Maximum pressure during well stimulation

      97.   Formation leak‑off test

      98.   Monitoring of drilling

      99.   Monitoring of drilling

    100.   Volume of drilling fluid

    101.   Loss of circulation

    102.   Pressure transition zone

    103.   Directional and deviation surveys

    104.   Plugging part of a well

    105.   Suspension of drilling operations

    106.   Inspections and tests of equipment

    107.   Hoisting equipment inspection

    108.   Electrical equipment

    109.   Crane operations

    110.   Quantities of consumables

    111.   Handling of fuel and consumables

    112.   Waste material

    113.   Storage of waste material

    114.   Disposal of waste material

    115.   Radio and support craft procedures

    116.   Radio monitoring of support craft

    117.   Requirements of standby vessel operators

    118.   Moving drilling units

    119.   Anchors

    120.   Stability

              PART IV
SAFETY
AND TRAINING OF PERSONNEL

    121.   General

    122.   General safety

    123.   Maintenance of working areas

    124.   Training of personnel

    125.   Safety drills

    126.   Notice of emergency procedures

    127.   Protection against poisonous gas

    128.   Safety instructions

    129.   Rest period

    130.   Protective clothing

    131.   Safety belts

    132.   Life jackets

    133.   Transfer of personnel

    134.   Smoking

    135.   Welding

    136.   Impaired abilities

    137.   Corrosive material

    138.   Eyewash station

    139.   Protective clothing

    140.   Explosives

    141.   Radioactive substances

    142.   Equipment to meet federal standards

              PART V
OPERATIONAL
RECORDS
AND REPORTS

    143.   Safety and well evaluation information

    144.   Reference for well depths

    145.   Notification of chief

    146.   Notification of conservation engineer

    147.   Submission of survey plan

    148.   Tour sheets and barge reports

    149.   Tour sheet requirements

    150.   Barge report requirements

    151.   Floating unit records

    152.   Daily records

    153.   Routine reports

    154.   Downhole survey record

    155.   Penetration and gas content records

    156.   Formation flow records

    157.   Report of structural faults

    158.   Well termination record

    159.   Press releases

              PART VI
WELL EVALUATION

    160.   General

    161.   Drill cuttings

    162.   Cores

    163.   Sidewall core

    164.   Gas content of drilling fluid

    165.   Wireline logs

    166.   Duty to take wireline logs

    167.   Requirements for wireline logs

    168.   Wireline logs in salt or non‑sedimentary rock

    169.   Deferral of wireline logs

    170.   Testing and sampling of formations

    171.   Formation flow test

    172.   Formation flow test requirements

    173.   Formation flow test duties

    174.   Formation flow test information

    175.   Recording of reservoir fluid

    176.   Sample requirements for formation flow test

              PART VII
WELL OR TEST HOLE TERMINATION

    177.   Approval to terminate

    178.   Application for approval

    179.   Removal of casing

    180.   Clearing of sea floor

    181.   Drilling rig removal prohibited

    182.   Responsibility for abandoned wells

    183.   Responsibility continued

    184.   Location of abandonment plugs

    185.   Perforated intervals to be plugged

    186.   Length and quality of cement plugs

    187.   Feeling for plugs

    188.   Termination of shallow holes

    189.   Marking of wellheads

    190.   Fluid in inactive wells

    191.   Suspended wells

    192.   Operators of completed or suspended wells

    193.   Well completion

              PART VIII
DEPOSITION OF
SAMPLES FROM A
WELL

    194.   General

    195.   Transportation and storage of a cutting, core or sample

    196.   Drill cuttings

    197.   Sidewall cores

    198.   Conventional cores

    199.   Analysis of fluid samples

    200.   Delivery of samples to chief

              PART IX
FINAL
WELL REPORTS

    201.   Exploratory and development wells

    202.   Test holes

              PART X
OFFENCES

    203.   Offences

              PART XI
REPEAL

    204.   Repeal


Short title

        1. These regulations may be cited as the Offshore Petroleum Drilling Newfoundland Regulations.

158/92 s1

Definitions

        2. In these regulations

             (a)  "abandoned" means in respect of a well or test hole, a well or test hole that has been permanently plugged;

             (b)  "accommodation installation" means an installation used to accommodate persons at a drill site that functions independently of a drilling installation;

             (c)  "Act" means the Canada‑Newfoundland Atlantic Accord Implementation Newfoundland Act;

             (d)  "approval to drill" means the approval granted to an operator under Part II to drill a well;

             (e)  "approval to re‑enter" means the approval granted to an operator under Part II to re‑enter a well for the purpose of conducting a downhole operation;

              (f)  "approval to terminate" means the approval granted to an operator under Part VII to terminate a well or test hole;

             (g)  "casing liner" means a casing that

                      (i)  is suspended from a string of casing previously installed in a well, and

                     (ii)  does not extend to the wellhead;

             (h)  "chief" means the Chief Conservation Officer;

              (i)  "completed" means, in respect of a well, a well that has been prepared to permit the

                      (i)  production of fluids from the well,

                     (ii)  observation of the performance of a reservoir,

                    (iii)  injection of fluids into the well, or

                    (iv)  disposal of fluids into the well;

              (j)  "conductor casing" means casing that is installed in a well to facilitate well control during drilling of the hole for the surface casing;

             (k)  "conductor pipe" means a large diameter pipe installed in a well to provide a conductor for drilling fluid through surficial formations;

              (l)  "development well" means a well that is drilled in a field or pool for the purpose of the

                      (i)  production of fluids from the well,

                     (ii)  observation of the performance of a reservoir,

                    (iii)  injection of fluids into the well, or

                    (iv)  disposal of fluids into the well;

            (m)  "discovery well" means an exploratory well that is in a significant discovery area;

             (n)  "diverter" means a device fitted on a wellhead or on a marine riser for the purpose of directing the flow of fluids away from the drill floor in an emergency;

             (o)  "drill crew" means the personnel whose primary duties consist of the operation of a drilling rig;

             (p)  "drill floor" means, in respect of a drilling rig, the stable platform surrounding the slip setting area that provides support for the drill crew during drilling operations;

             (q)  "drill site" means a location where a drilling rig is or may be installed;

              (r)  "drilling base" means the stable foundation on which a drilling rig is installed and includes a platform fixed to or resting on the seafloor;

             (s)  "drilling installation" means

                      (i)  a drilling unit, or

                     (ii)  a drilling rig and its drilling base;

              (t)  "drilling program" means a program for the drilling of one or more wells within a specified area and time using one or more drilling installations and includes all operations and activities ancillary to the program;

             (u)  "drilling program authorization" means the authorization given to a person under paragraph 134(1)(b) of the Act to conduct a drilling program;

             (v)  "drilling rig" means the plant used to make a well by boring or other means and includes a derrick, draw works, rotary table, mud pump, blowout preventer, accumulator, choke manifold and other associated equipment including power, control and monitoring systems;

            (w)  "drilling unit" means a drillship, submersible, semi‑submersible, barge, jack‑up or other vessel used in a drilling program and fitted with a drilling rig, and includes the drilling rig and other facilities related to the drilling program that are installed on the vessel or platform;

             (x)  "drillship" means a ship that has a hull and is fitted with a drilling rig so that it is capable of drilling in deep water;

             (y)  "environmental conditions" means meteorological, oceanographical and other natural conditions, including ice conditions;

             (z)  "exploratory well" means a well, other than a development well or test hole, that is drilled for the purpose of discovering petroleum or obtaining geological information;

           (aa)  "formation flow test" means an operation to induce the flow of formation fluids to the surface of a well for the purpose of procuring reservoir fluid samples and determining reservoir flow characteristics;

          (bb)  "intermediate casing" means the casing installed in a well, following the installation of a surface casing in the well, through which further drilling operations may be carried out in the well;

           (cc)  "kick" means the spontaneous flow of fluids at the surface of a well caused by the entrance of formation fluids into the well‑bore;

          (dd)  "legal survey" means a survey made in accordance with the instructions of the surveyor general;

           (ee)  "natural environment" means the physical and biological environment in the area specified in the drilling program authorization;

            (ff)  "operator" means an individual or company that has applied for or has been given a drilling program authorization;

          (gg)  "permafrost" means the thermal condition of the ground when its temperature is at or below 0° Celsius for more than one year;

          (hh)  "permafrost casing" means the conductor casing installed in a well to protect against the hazards associated with the thawing of a permafrost section or the liberation of gas within or immediately below a permafrost section;

             (ii)  "production casing" means the casing installed in a well‑bore for production or injection purposes and may include an intermediate casing;

             (jj)  "relief well" means a well drilled to assist in controlling a blowout in an existing well;

           (kk)  "rig release date" means the date on which a drilling rig last conducted operations on a well in accordance with the approval to drill in respect of that well;

             (ll)  "seafloor" means the surface of all that portion of land under the sea;

         (mm)  "spud‑in" means, in respect of the drilling of a well, the initial penetration of the seafloor;

          (nn)  "standby vessel" means a vessel that has been approved by the board for use as a standby vessel;

          (oo)  "support craft" means a vessel, tug, ship, aircraft, air‑cushion vehicle or other craft used to provide transport for or assistance to a drilling program and includes a standby vessel but does not include a drilling installation;

          (pp)  "surface casing" means the casing installed in a well to a depth sufficient to establish well control for the continuation of the drilling operations;

          (qq)  "suspended" means, in respect of a well or test hole, a well or test hole in which drilling or producing operations have temporarily ceased;

            (rr)  "terminated" means

                      (i)  in respect of a well, a well that has been abandoned, completed or suspended in accordance with these regulations, and

                     (ii)  in respect of a test hole, a test hole that has been abandoned in accordance with these regulations;

           (ss)  "test hole" means a hole, other than a well or seismic shot hole, drilled through sedimentary rock to a depth of more than 30 metres;

            (tt)  "U.L.C." means the Underwriters' Laboratories of Canada;

          (uu)  "waste material" means any refuse or garbage, or other useless material generated during a drilling program and ancillary operations, but does not include drilling fluid and drill cuttings;

          (vv)  "well‑bore" means the hole drilled by a bit in order to make a well;

         (ww)  "well control" means the control of the movement of fluids in or from a well;

            (xx)  "well material" means a formation or reservoir material obtained from a well, including a cutting, core or fluid; and

          (yy)  "wireline" means a line that is used to run survey instruments or other tools in a well and that is made of

                      (i)  steel, or

                     (ii)  several wires made of steel, copper or other metals together with electrical insulation.

158/92 s2

Application

        3. These regulations apply

             (a)  to every operator who explores or drills for petroleum under the Act; and

             (b)  in respect of every well and test hole drilled under the Act.

158/92 s3

Submission of information

        4. Information that is required to be submitted under these regulations shall be prepared and submitted in a form and manner satisfactory to the board or a person designated by the board.

158/92 s4

PART I
GENERAL

Application for authorization

        5. A person may apply for a drilling program authorization by completing and forwarding an application to the board.

158/92 s5

Conditions of authorization

        6. A drilling program authorization is subject to the following requirements:

             (a)  the program, including all equipment used for it, shall be in compliance with this Part;

             (b)  every approval provided for in Parts II to VIII shall be obtained according to the requirements applicable to that approval; and

             (c)  the operator shall comply with section 72.

158/92 s6

Defective equipment and procedures

        7. (1) Every operator shall

             (a)  immediately repair or replace equipment that is essential to a drilling operation and is defective;

             (b)  alter an operational procedure that is unsafe, inadequate or deficient; and

             (c)  initiate a new operational procedure required to ensure the safety of the drilling operation.

             (2)  Notwithstanding subsection (1), where under that subsection an operator is required to replace equipment or alter a procedure described in the application for a drilling program authorization, the operator shall obtain the approval of the board or a person designated by the board for the replacement equipment or altered procedure before undertaking the replacement or alteration.

158/92 s7

Use of drilling equipment

        8. (1) In a drilling program, an operator shall not use drilling equipment that has not been proven under field conditions unless it has been approved by the board or a person designated by the board in accordance with subsection (2).

             (2)  The board or a person designated by the board may approve the use in a drilling program of drilling equipment that has not been proven under field conditions, but that approval shall cease to be valid if the actual performance of the equipment does not meet or exceed the performance characteristics specified for that equipment set out in the application for the drilling program authorization.

158/92 s8

Support craft

        9. Every support craft used in a drilling program shall be designed and constructed to operate safely and to provide safe and efficient support for all drilling operations.

158/92 s9

Vessel requirements

     10. Every support craft referred to in section 9 that is a vessel shall

             (a)  meet the requirements of the Collision Regulations (Canada), as amended, as if the support craft were a Canadian vessel; and

             (b)  carry emergency equipment and lifesaving devices sufficient in number to permit the escape of all persons from the support craft under any conditions that may reasonably be anticipated.

158/92 s10

Standby vessel

     11. A standby vessel that has sufficient capacity and equipment to evacuate all personnel from the drill site shall be provided for a drilling operation as a means of evacuating personnel from the drill site.

158/92 s11

Coast guard requirements

     12. Every standby vessel shall be equipped in accordance with the Canadian Coast Guard TP 7920E Standards Respecting Standby Vessels, as amended.

158/92 s12

Pressure vessels

     13. The design and construction of pressure vessels, steam generators, hot water boilers, hydraulic systems and other components of a hydraulic, steam or compressed air system used in a drilling program shall be in accordance with the Canadian Standards Association Code B51‑M1986, Boiler, Pressure Vessel, and Pressure Piping Code, as amended.

158/92 s13

Hazards

     14. Every operator shall take all reasonable precautions for the protection of personnel and equipment from naturally‑occurring and man‑made hazards in the area specified in the drilling program authorization issued to that operator.

158/92 s14

Construction of drilling installations

     15. Every drilling installation shall be designed and constructed to

             (a)  withstand the environmental conditions and effects that may reasonably be anticipated to occur during the drilling program; and

             (b)  permit the drilling and related operations to be conducted safely and efficiently.

158/92 s15

Requirements for drilling installations

     16. (1) Every drilling installation shall

             (a)  be equipped with drip trays, curbs and gutters and such other facilities as are necessary to prevent pollution of the water by fuel or chemicals that have been spilled or leaked aboard the drilling installation; and

             (b)  be equipped with a means for burning, venting, storing, transporting or otherwise disposing of waste in accordance with sections 112 to 114.

             (2)  The operator of every drilling installation shall ensure that the drilling installation is equipped with a system capable of collecting any waste oil from the oil sumps on the installation.

158/92 s16

Protection of drilling installations

     17. All parts of a drilling installation shall be protected against erosion and corrosion.

158/92 s17

Other requirements to be met

     18. (1) Every drilling unit that is a vessel shall meet the requirements of the Collision Regulations (Canada), as amended, as if the drilling unit were a Canadian vessel.

             (2)  Every drilling installation that is not a vessel shall meet the requirements of the Navigable Waters Works Regulations (Canada), as amended, as if the drilling installation were in waters to which those regulations apply.

158/92 s18

Emergency equipment requirements

     19. (1) Every drilling installation shall carry emergency equipment and lifesaving devices sufficient in number to permit the escape of all persons from the drilling installation under any conditions that may reasonably be anticipated.

             (2)  Every drilling unit shall be equipped in accordance with Part X of the Canadian Coast Guard TP 6472E Standards Respecting Mobile Offshore Drilling Units as if the unit were a mobile offshore drilling unit as defined in those standards.

             (3)  Every helicopter supporting a drilling installation shall carry immersion suits sufficient in number to accommodate each crew member and passenger of the helicopter.

158/92 s19

Helicopter deck or facility

     20. (1) Every helicopter deck or facility forming part of a drilling installation shall

             (a)  conform to Canadian Coast Guard TP 4414 Standard Respecting Helicopter Facilities on Ships, May 1986; and

             (b)  be equipped so that fuel stored on or adjacent to the helicopter deck or living accommodation area

                      (i)  can be jettisoned by action taken at another location on the drilling installation, or

                     (ii)  is protected from potential damage or impact.

             (2)  Every helicopter deck that is part of a drilling installation shall be located in a position that is readily accessible to and from the living accommodation area of the installation.

158/92 s20

Standards for drilling equipment

     21. The derrick, mast, draw works, mud pump and related equipment of a drilling rig shall be designed to operate safely and efficiently under the maximum load conditions anticipated during a drilling operation.

158/92 s21

Meteorological forecasts

     22. (1) Every operator shall obtain, during the period an operation is being carried out under a drilling program authorization, forecasts of meteorological conditions, including ice movements, each day and each time during the day when the conditions change substantially.

             (2)  Every operator shall ensure that the drilling installation is equipped with facilities and equipment for observing, measuring and recording

             (a)  environmental conditions; and

             (b)  in the case of a floating drilling unit, the pitch, roll and heave.

158/92 s22

Safety arrangements

     23. Every operator shall ensure that

             (a)  safety guards are installed on the drilling installation on all potentially dangerous machinery and on machinery that has external moving parts; and

             (b)  guard rails are installed on the drilling installation around the perimeter of the drill floor, deck area, walkways, stairs and any working areas where there is a drop from that area to an adjacent area of more than one metre.

158/92 s23

Safety exits

     24. (1) Every operator shall ensure that, where practicable, there are at least 2 exits from each self‑contained working area on a drilling installation.

             (2)  The exits referred to in subsection (1) shall be as far apart as possible and where the exits are closed by doors, the doors shall be sliding or hinged to open outward.

158/92 s24

Escape device to be provided

     25. Where a person is required to work in the derrick of a drilling rig as part of a normal drilling operation, an escape device shall, where practicable, be provided as a means of escape from the working platform of the derrick.

158/92 s25

Medical and rescue facilities

     26. (1) There shall be at least one person on each drilling crew engaged in a drilling operation who is the holder of a certificate in first aid from the St. John Ambulance Association or a certificate in first aid from another similar organization having requirements equivalent or superior to those of the St. John Ambulance Association.

             (2)  Every drilling installation shall be equipped with

             (a)  a medical treatment room that has

                      (i)  resuscitation facilities and such medical treatment supplies as may be necessary to deal with an industrial accident that may reasonably be anticipated,

                     (ii)  where the normal complement of the drilling installation is less than 30, at least one standard hospital bed,

                    (iii)  where the normal complement of the drilling installation is 30 or more, at least 2 beds, one of which shall be a standard hospital bed, and

                    (iv)  a connection with the internal telephone system; and

             (b)  a rigid frame stretcher suitable for the transfer of an injured person to or from the drilling installation.

             (3)  Where a drilling operation is being carried out, the operator shall make arrangements whereby

             (a)  a qualified physician is available at all times for consultation or to be transported to the drilling installation;

             (b)  an injured person can be speedily transported from the drilling installation to a hospital; and

             (c)  a qualified physician, a trained nurse or a medical attendant who is the holder of a valid certificate of medical training obtained by successfully completing a course such as a provincial industrial first aid course is available on the drilling installation at all times.

158/92 s26

Devices required

     27. (1) Every drilling rig shall be equipped with

             (a)  at least 5 portable self‑contained pressure‑demand breathing devices available at locations readily accessible from the drill floor or an air manifold on the drill floor equipped with at least 5 outlets and 5 suitable face masks;

             (b)  at least 2 portable hydrogen sulphide gas detectors; and

             (c)  at least 2 portable detectors for combustible gases.

             (2)  The living accommodation area of a drilling installation shall be equipped with at least 4 self‑contained portable pressure‑demand breathing devices.

158/92 s27

Personnel transfer baskets

     28. Every drilling installation shall be equipped with 2 buoyant personnel transfer baskets that are in serviceable condition.

158/92 s28

Electrical equipment

     29. All electrical equipment used on a drilling installation shall be designed and located in such a manner as to avoid the creation of a hazard.

158/92 s29

Electrical installation requirements

     30. (1) Every electrical installation on a drilling unit used to carry out a drilling program shall

             (a)  comply with the Institute of Electrical and Electronics Engineers, Inc. IEEE Recommended Practice for Electric Installations on Shipboard, Standard 45‑1983, as amended; and

             (b)  be explosion‑proof or pressurized where it is installed

                      (i)  in an open space within 15 metres horizontally of the rotary table of the drilling unit,

                     (ii)  less than 3 metres above the drill floor of the drilling unit or less than 10 metres below the drill floor, or

                    (iii)  within 3 metres of a mud ditch, shale shaker, degasser or mud tank.

             (2)  Where combustible gases may accumulate in an enclosed area of a drilling installation and air is used to provide the pressure referred to in paragraph (1)(b), the air intake shall be located outside and as far as practicable from an area where combustible gases may accumulate.

             (3)  The primary circuits from the power plant serving a drilling installation shall be equipped with at least 2 manual shut‑off switches, each at a different location.

158/92 s30

Lighting

     31. (1) During the course of a drilling program, all working areas shall be provided with adequate lighting.

             (2)  Emergency lighting shall be provided to illuminate the following areas on a drilling installation, namely,

             (a)  all communications centres;

             (b)  the drill floor and the well control areas;

             (c)  all passageways, exits and machinery generator areas;

             (d)  the navigational control area and all survival craft embarkation stations; and

             (e)  another place where illumination is necessary for well control.

158/92 s31

Emergency electrical power

     32. Every drilling installation shall be equipped with an emergency electrical power supply system that is independent of the primary source of electrical power for that installation and consists of an emergency generator or accumulator batteries capable of providing power for

             (a)  the lighting in every navigation and well control area;

             (b)  emergency lighting in every passageway;

             (c)  every warning system;

             (d)  every communication system required by section 43;

             (e)  all navigation lights;

              (f)  every fire extinguishing system that is electrically operated;

             (g)  every pump essential for maintaining trim;

             (h)  every well disconnect system that is electrically operated; and

              (i)  all deck lights required by paragraph 20(1)(a) in respect of the helicopter deck or facility.

158/92 s32

Safeguards against combustible gas accumulation

     33. Where, in an enclosed area on a drilling unit, dangerous concentrations of combustible gases may accumulate, an alarm system shall be installed in that area to warn of an accumulation and the area shall be

             (a)  ventilated with a mechanical ventilation system that is capable of completely changing all the air in the area once every 2 minutes;

             (b)  maintained at a negative air pressure relative to the surrounding areas; and

             (c)  monitored by gas detectors that are operative at all times.

158/92 s33

Partially enclosed areas

     34. Where, in a partially enclosed area on a drilling unit, there is a possibility that combustible gases may accumulate, gas detectors and alarms capable of indicating the presence of those gases shall be installed in that area or that area shall be ventilated so as to prevent the accumulation of those gases.

158/92 s34

Pressure loss alarm

     35. Where all or part of an enclosed space containing non‑explosive‑proof electrical fittings, such as a room used to monitor mud properties or examine drill cuttings, is located within 15 metres of the well‑bore, the enclosed space shall be pressurized and fitted with an alarm to warn the occupants when there is a loss of pressure.

158/92 s35

Positive air pressure

     36. On every drilling unit a positive air pressure shall, where practicable, be maintained in the living accommodation area and enclosed working areas in relation to the air pressure in the surrounding areas.

158/92 s36

Fire‑resistant construction requirements

     37. (1) Every drilling unit shall be designed, constructed and arranged to minimize, to the greatest extent practicable, the risk of fire.

             (2)  The hull, superstructure, bulkheads, decks and deck‑houses of every drilling unit shall be constructed of steel or of a material that is as resistant to fire as steel.

158/92 s37

Firefighting equipment

     38. (1) Every operator shall provide and maintain on each drilling unit firefighting equipment capable of combatting a type of fire that may occur on the drilling unit.

             (2)  The location and method of use of all firefighting equipment referred to in subsection (1) shall be set out in a notice that is posted in the living accommodation area of a drilling unit.

             (3)  Every drilling unit shall be equipped with

             (a)  a main firefighting system that is adequately protected against freezing and that includes

                      (i)  at least 2 fire pumps, each independently driven and each having sufficient capacity to produce 2 continuous streams of water, at a minimum pressure of 275 kilopascals and at a minimum rate of 200 litres per minute, simultaneously from any 2 hydrants,

                     (ii)  hydrants sufficient in number and located so that every living, working, machinery and storage area of the drilling unit is within 15 metres of a hydrant and within 45 metres of a second hydrant,

                    (iii)  a hydrant located on a side of the compartment containing the main internal combustion engines on the drilling unit and a second hydrant located on that side of the compartment that is opposite the site of the first hydrant, each equipped with hoses and fog nozzles or applicators suitable for spraying water on oil,

                    (iv)  a hose equipped with a nozzle or an applicator at every hydrant located on the drilling unit, and

                     (v)  at least 3 combination nozzles that can be installed on a hose, each of which is capable of emitting a stream of water or a stream of high velocity fog;

             (b)  where fire pumps are located above the water line of the drilling unit, a water storage tank installed at the main deck level of the drilling unit that is

                      (i)  connected to at least 2 of the pumps referred to in subparagraph (a)(i),

                     (ii)  of sufficient capacity to supply water to 2 outlets simultaneously at the rate specified in subparagraph (a)(i) for a minimum period of 15 minutes without replenishment,

                    (iii)  equipped with a means of replenishment that is reliable and that has a flow capacity greater than the combined capacity of the fire pumps connected to it, and

                    (iv)  equipped with an alarm to warn that water in the tank is not sufficient to meet the requirements set out in subparagraph (ii);

             (c)  the following portable fire extinguishers located in readily accessible locations in the following areas, namely,

                      (i)  one fire extinguisher for each 225 square metres of deck area in the galley, each extinguisher having a U.L.C. rating of 20 BC or higher,

                     (ii)  5 fire extinguishers in the living accommodation area, each extinguisher having a U.L.C. rating of 20 BC or higher,

                    (iii)  6 fire extinguishers in the main engine room, each extinguisher having a U.L.C. rating of 20 BC or higher,

                    (iv)  one fire extinguisher having a U.L.C. rating of 40 BC or higher in the main engine room,

                     (v)  one fire extinguisher having a U.L.C. rating of 20 BC or higher in the boiler room,

                    (vi)  one fire extinguisher having a U.L.C. rating of 20 BC or higher in the emergency generator room, and

                   (vii)  at least one fire extinguisher having a U.L.C. rating of 20 BC or higher in an area where a fire hazard exists;

             (d)  the following firefighting equipment located at readily accessible locations on the drilling unit, namely,

                      (i)  at least 2 proximity firefighting suits, and

                     (ii)  one portable electric drill with a supply of drill bits, one of which is at least the 13 millimetre size; and

             (e)  at least 3 fire axes located in the living accommodation area.

             (4)  Exterior exits on all drilling units shall be clearly identified by signs.

158/92 s38

Fire detectors and alarm systems

     39. (1) Every room that is used as sleeping accommodation on a drilling unit shall be equipped with a smoke detector and alarm.

             (2)  Every drilling unit shall be equipped with a fire alarm system that

             (a)  is capable, on the activation of a detector, of automatically sounding a warning alarm;

             (b)  indicates on a panel the location of the detector that triggered the alarm system; and

             (c)  includes fire detectors located in

                      (i)  each engine room,

                     (ii)  each boiler room, and

                    (iii)  each paint storage room.

158/92 s39

Total flooding system

     40. (1) Every engine room, boiler room and paint storage room on a drilling installation shall be equipped with a carbon dioxide total flooding system or a total flooding system that gives equivalent fire protection and that system shall

             (a)  include devices to warn personnel before activation; and

             (b)  be controlled by a device located outside the room.

             (2)  Every room referred to in subsection (1) shall be designed so that all openings in the room can be closed.

158/92 s40

     41. Internal combustion engines on drilling units

(1) A person shall not operate an internal combustion engine on a drilling unit where the air intake of the engine is

             (a)  located inside an area where combustible gases may accumulate;

             (b)  located less than 20 metres from the centre line of the well‑bore; or

             (c)  directed toward the well‑bore or another potential source of combustible gases.

             (2)  A person shall not operate a diesel engine within 20 metres of the centre line of the rotary table unless

             (a)  a steel wall separates the engine from the rotary table; and

             (b)  the engine is equipped with

                      (i)  air intake shut‑off valves that can be activated by a remote control device that is readily accessible from the driller's station on the drilling rig, or

                     (ii)  a flooding system for injecting an inert gas into the engine's cylinders that can be activated by a remote control device that is readily accessible from the driller's station on the drilling rig.

158/92 s41

Ventilation of machinery rooms

     42. (1) Every opening in a machinery room on a drilling unit shall be equipped with a door, shutter or other barrier capable of closing each opening and the means of control for that door, shutter or other barrier shall be located outside the room.

             (2)  Where a machinery room on a drilling unit is equipped with a forced air ventilation system, the system shall have at least 2 master controls, one of which shall be located outside the machinery room.

158/92 s42

Communication systems

     43. (1) Every drilling installation shall be equipped with a radio communication system that includes

             (a)  a very high frequency marine radio telephone;

             (b)  a single side‑band radio;

             (c)  a very high frequency aviation radio;

             (d)  a low frequency radio‑homing beacon;

             (e)  a radio capable of communicating with a support craft used in connection with the drilling operations; and

              (f)  a facility for transmitting written data to and from the shore base.

             (2)  The radio communication system on every drilling installation shall be operated in accordance with sections 8 and 9 of the VHF Radiotelephone Practices and Procedures Regulations (Canada), as amended, as if the drilling installation was a ship to which those regulations apply.

             (3)  Every drilling installation shall be equipped with

             (a)  an internal telephone system; and

             (b)  a public address system that has speakers placed in certain locations so that a transmission made by the system is audible to all personnel on the drilling installation.

158/92 s43

Alarm systems

     44. Every drilling installation shall be equipped with

             (a)  alarm systems to alert supervisory personnel of the presence of toxic or combustible gases in an area of the drilling installation; and

             (b)  a general alarm system to alert all personnel when the safety of a person or the security of the drilling installation or well is threatened.

158/92 s44

Cranes

     45. (1) Every crane that is used on a drilling installation shall have

             (a)  a load capacity chart that specifies boom angle and safe working loads for each block posted inside the crane control cab;

             (b)  load measuring devices for the main block, where the load rating of the crane is more than 5080 kilograms; and

             (c)  boom and block travel‑limiting devices.

             (2)  All crane hooks used on a drilling installation shall be equipped with safety catches.

             (3)  The capacity of each sling used on a drilling installation shall be clearly and permanently marked on the sling.

158/92 s45

Blowout preventer system requirements

     46. (1) Where drilling and related operations are being carried out below the conductor casing of a well, a diverter or blowout preventer system shall be installed on the wellhead.

             (2)  Where hydraulic control lines are used to activate a blowout preventer system, the lines shall be fire‑resistant.

             (3)  A drilling system shall be designed to provide a means of installing on and removing from the wellhead the blowout preventer system referred to in subsection (1).

             (4)  Each blowout preventer system installed under subsection (1) shall have a rated working pressure in accordance with section 81.

             (5)  Notwithstanding subsection (4), the rated working pressure of a blowout preventer system installed under subsection (1) shall be not less than 13 MPa.

             (6)  A blowout preventer system installed under subsection (1) shall be equipped with

             (a)  a control panel whose functions are clearly identified on it and in full view and within easy access of the driller's station;

             (b)  a control panel in addition to the control panel described in paragraph (a), in a readily accessible and protected location remote from the drill floor;

             (c)  a control system that is capable of closing

                      (i)  a ram‑type blowout preventer within 30 seconds after activation,

                     (ii)  an annular‑type blowout preventer with a base diameter of less than 450 millimetres within 45 seconds after activation, and

                    (iii)  another type of blowout preventer within 60 seconds after activation; and

             (d)  a secondary control system and a secondary source of operating power capable of activating the blowout preventers in case the primary control system or primary power source fails.

             (7)  An accumulator in a hydraulic blowout preventer control system installed on a wellhead during the drilling of a well shall be capable of closing and opening the annular‑type blowout preventer and one of the ram‑type blowout preventers in one continuous sequence of operations without recharging.

             (8)  The blowout preventer system installed under subsection (1) shall be designed to permit the maintenance, retrieval and replacement of a major component of the system while maintaining well control.

158/92 s46

Equipment for well control

     47. Equipment used for the purpose of well control shall

             (a)  have sufficient structural strength to withstand normal loading conditions associated with drilling and related operations; and

             (b)  be designed to operate under all environmental conditions that may reasonably be anticipated to occur during the drilling program.

158/92 s47

Casing

     48. (1) A casing installed in a well shall be new pipe or, subject to subsection (2), reconditioned pipe.

             (2)  A reconditioned pipe shall not be used as casing unless it has been inspected by a method approved by the board or a person designated by the board and found to have adequate strength for its intended purpose.

             (3)  Where a floating drilling unit is used to drill a well, the conductor casing for that well shall be designed to have sufficient structural strength to support the load imposed by the marine riser and by the diverter or the blowout preventer system.

             (4)  In the design of the conductor casing referred to in subsection (3), the support provided by the conductor pipe may be taken into account.

158/92 s48

Casing requirements

     49. (1) The casing installed in a well shall be designed to withstand burst, collapse, tension, bending, buckling or other stresses that are known to exist or that may reasonably be expected to exist.

             (2)  For the purpose of subsection (1), the performance properties of a casing shall be considered to be those listed for that casing in the American Petroleum Institute's API Bulletin on Performance Properties of Casing, Tubing, and Drill Pipe, API BUL 5C2, 19th edition, October 1984.

             (3)  The minimum design factors used in the design of well casings shall be

             (a)  1.33 for burst, for surface and intermediate casing;

             (b)  1.0 for burst, for conductor casing, production casing and production casing liners;

             (c)  1.0 for collapse; and

             (d)  1.6 for tension.

158/92 s49

Assumptions for burst pressures

     50. (1) The casing installed in a well shall be designed to withstand burst pressures using the following assumptions:

             (a)  the maximum internal pressure in the conductor casing and surface casing is 22 kilopascals per metre of depth to which it is run;

             (b)  the maximum internal pressure in intermediate casing is equal to 75% of the maximum anticipated formation fluid pressure at the depth to which the well is to be drilled before setting a further casing;

             (c)  the maximum internal pressure for production casing is the maximum reservoir pressure;

             (d)  the maximum internal pressure determined in accordance with paragraphs (b) and (c) is reduced by an internal pressure equivalent to a head of methane gas that extends from the wellhead to the depth to which the well is to be drilled before setting a further casing; and

             (e)  for surface and intermediate casing, an external pressure exists that is equivalent to a head of water from the casing shoe to mean sea level.

             (2)  For the purpose of paragraph (1)(b), where the formation fluid pressure is not known, the formation fluid pressure at any depth shall be assumed to be 11 kilopascals per metre of well depth.

158/92 s50

Assumptions for collapse loading

     51. (1) The casing installed in a well shall be designed to withstand collapse loading based on the following assumptions:

             (a)  the hydrostatic head of the drilling fluid in which the casing is run acts on the exterior of the casing at any given depth;

             (b)  subject to paragraph (c), the casing is 50% evacuated; and

             (c)  the production casing is completely evacuated.

             (2)  For the purpose of subsection (1), the effect of axial stresses on collapse resistance shall be taken into account.

158/92 s51

Assumptions for tensile loading

     52. The casing installed in a well shall be designed to withstand tensile loading based on the following assumptions:

             (a)  the weight of casing is its weight in air; and

             (b)  the tensile strength of the casing is the yield strength of the casing wall or of the joint, whichever is the lesser.

158/92 s52

Casing liners

     53. Where casing liners are used instead of full casing strings, the casing liner and the casing to which it is attached shall together meet the relevant design criteria set out in sections 49 to 52.

158/92 s53

Casing string setting depths

     54. The setting depth of a casing string shall be based on relevant geological and engineering data.

158/92 s54

Casing program

     55. (1) Where normal pressure conditions exist, the casing program shall, in respect of an exploratory well, provide for

             (a)  conductor pipe set at a minimum depth of 10 metres below the seafloor;

             (b)  one or more conductor casings set at a depth not exceeding 250 metres below the seafloor unless a diverter system is installed on a cemented conductor pipe or previous conductor casing in which case the conductor casing shall be set at a depth not exceeding the greater of

                      (i)  4 times the depth of the previous conductor casing or cemented conductor pipe, and

                     (ii)  500 metres;

             (c)  surface casing set at a depth to ensure that at least 25% of the well‑bore is cased at all times; and

             (d)  intermediate casing as required to protect the well against anticipated pressures or difficult hole conditions and to ensure that at least 25% of the well‑bore is cased at all times while drilling below surface casing.

             (2)  An operator shall not, without the approval of the board or a person designated by the board, install additional casing in a well, including production casing and liners, below the intermediate casing referred to in paragraph (1)(d).

             (3)  An operator shall not set a casing in a well unless the operator has received approval from the board or a person designated by the board for the depth at which the casing may be set.

158/92 s55

Cementation of casing

     56. The mixture of the cement to be used and the procedure to be followed in the cementation of casing strings in a well shall be designed to

             (a)  prevent the movement of formation fluids in the casing‑formation annuli or casing‑casing annuli;

             (b)  provide support for the casing; and

             (c)  retard corrosion of the casing.

158/92 s56

Cementation requirements

     57. (1) The conductor casing and permafrost casing shall be cemented where practicable from the shoe of the casing to the seafloor.

             (2)  Surface casing shall be cemented to the seafloor or to a depth that is not less than 25 metres above the base of a previous casing string.

             (3)  Intermediate casing shall be cemented with sufficient cement to

             (a)  isolate all hydrocarbon or potable water zones;

             (b)  isolate abnormally pressured intervals from normally pressured intervals; and

             (c)  rise to a minimum of 300 metres above the casing shoe or 150 metres above the base of the permafrost.

158/92 s57

Length of cementation

     58. Where practicable, every casing liner shall be cemented for its full length.

158/92 s58

Marine riser

     59. (1) Every marine riser shall be 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 wave and current forces; and

             (e)  permitting the drilling fluid to be returned to the drilling unit.

             (2)  Every marine riser shall be supported in a manner that effectively isolates it from the forces caused by the motion of the drilling unit.

158/92 s59

Drilling fluid system

     60. (1) The drilling fluid system, including the drilling fluid, the circulating system and the associated monitoring and maintenance equipment used during a drilling operation, shall be capable of

             (a)  preventing the uncontrolled entry of formation fluids into the well‑bore;

             (b)  allowing proper well evaluation;

             (c)  coping with all lithological, operational, pressure, temperature and other well conditions that may be encountered; and

             (d)  removing excess drill solids, weighting material and formation fluids from the drilling fluid.

             (2)  The combined capacity of the drilling fluid tanks of every drilling fluid system shall be not less than the greater of

             (a)  180 cubic metres; and

             (b)  50% of the aggregate of the volume of the hole and the marine riser.

             (3)  The equipment provided to monitor the drilling fluid of every drilling fluid system shall include

             (a)  a mud pit level indicator with a warning device to alert personnel to mud volume gains and losses;

             (b)  a mud volume measuring device that accurately determines the mud volume used to fill the hole on trips;

             (c)  a mud‑return or full‑hole indicator that monitors drilling fluid returns;

             (d)  equipment to test the physical and chemical properties of the drilling fluid entering and leaving the hole, including density, viscosity, water loss, filter cake, salinity, pH, solids content and gel strengths; and

             (e)  automatic gas detecting, measuring and recording devices that trip an automatic audio alarm to warn of an increase in the gas content of the drilling fluid.

             (4)  The indicators and alarms required by subsection (3) shall be strategically located on the drilling rig to alert a drilling supervisor.

             (5)  Every operator shall provide a means, approved by the board or a person designated by the board, of disposing of drilling fluid, drill cuttings and gas separated from the drilling fluid.

158/92 s60

Air, gas and foam drilling

     61. (1) An operator shall not drill a well using air, gas, foam or other fluid in the circulatory system without the approval of the board or a person designated by the board.

             (2)  Where air or gas is used in the circulatory system referred to in subsection (1), the operator shall

             (a)  install and maintain a rotating head capable of diverting the return air or gas flow into a bleed‑off line that is as straight as practicable and is directed away from the drilling installation;

             (b)  install and maintain, where formations that may contain hydrogen sulphide are being drilled, a hydrogen sulphide monitor continuously on the bleed‑off line;

             (c)  install and maintain a device to provide a continuous source of ignition at the end of the bleed‑off line; and

             (d)  provide a reserve volume of mud that is

                      (i)  in suitable condition to be pumped into the well without delay,

                     (ii)  equal in volume to at least 1.5 times the volume of the hole, and

                    (iii)  not less than 1,200 kilograms per cubic metre in density.

             (3)  Notwithstanding section 50, where air, gas or foam is used in the circulatory system referred to in subsection (1), the blowout preventer system and the casing shall be capable of containing the maximum formation pressure that may be encountered.

158/92 s61

Testing equipment

     62. (1) The equipment used in a formation flow test shall have the capacity to

             (a)  reverse circulate the test string;

             (b)  conduct the flow from the well through the surface control valve to the choke manifold; and

             (c)  treat, store, burn or otherwise dispose of the fluids produced during the testing operation.

             (2)  The rated working pressure of formation flow test equipment and related equipment shall be equal to or greater than the maximum shut‑in formation pressure that may reasonably be anticipated.

             (3)  The formation flow test equipment referred to in subsection (1) shall include a downhole safety valve that permits closure of the test string above the packer.

             (4)  A formation flow test equipment used in testing a well that is drilled with a floating drilling unit shall have a subsea test tree that includes

             (a)  a valve that

                      (i)  may be operated from the surface, and

                     (ii)  automatically closes when there is a failure in a part of the formation flow test equipment; and

             (b)  a release system that permits the test string to be hydraulically or mechanically disconnected within or below the blowout preventers.

158/92 s62

Operating manuals

     63. (1) Every operator shall prepare an operating manual for all normal drilling and related operations carried out by that operator and for all abnormal conditions or situations that can be reasonably anticipated during drilling operations.

             (2)  A copy of the operating manual referred to in subsection (1) shall be

             (a)  readily accessible on each drilling installation and an accommodation installation at the drill site; and

             (b)  submitted to the chief on request.

158/92 s63

Contingency plans

     64. (1) Every operator shall ensure that contingency plans have been formulated and that equipment is available to cope with a reasonably foreseeable emergency situation during a drilling program, including

             (a)  a serious injury to or the death of a person;

             (b)  a major fire;

             (c)  the loss of or damage to support craft;

             (d)  the loss or disablement of a drilling unit, drilling rig, drilling base or an accommodation installation;

             (e)  the loss of well control;

              (f)  a situation requiring the drilling of a relief well;

             (g)  hazards unique to the drill site; and

             (h)  spills of oil or other pollutants.

             (2)  The plans referred to in subsection (1) shall provide for coordination with existing local or national contingency plans.

             (3)  A copy of the plans referred to in subsection (1) shall be

             (a)  readily accessible on each drilling installation and an accommodation installation; and

             (b)  submitted to the chief on request.

158/92 s64

Misuse of safety and firefighting equipment

     65. A person shall not tamper with or activate without cause a safety or firefighting equipment required under section 12, subsection 19(2) and sections 27, 32, 38, 39, 43 and 44 or the switches required under subsection 30(3).

158/92 s65

PART II
APPROVAL TO DRILL OR APPROVAL TO RE‑ENTER A
WELL OR TO DRILL A TEST HOLE

Notification

     66. Every operator shall, at least 45 days before the commencement of the spud‑in of a proposed well or the re‑entry of a well that has been suspended, notify the chief in writing of the day spud‑in or re‑entry is to commence.

158/92 s66

Prohibition

     67. (1) A person shall not

             (a)  drill a well without an approval to drill that well granted by the board or a person designated by the board under this Part; or

             (b)  for the purpose of conducting a downhole operation, re‑enter a well that has been suspended without an approval to re‑enter that well granted by the board or a person designated by the board under this Part.

             (2)  A person shall not drill a test hole without the approval of the board or a person designated by the board.

158/92 s67

Application

     68. (1) Every operator shall submit to the board an application for an approval to drill or approval to re‑enter not less than 21 days before the date that operator plans to spud‑in or re‑enter.

             (2)  The application required by subsection (1) shall include the following information:

             (a)  the name of the well;

             (b)  the geographical coordinates of the well;

             (c)  the proposed depth of the well;

             (d)  the name of the drilling contractor and the identification of the drilling installation to be used;

             (e)  the proposed spud‑in or re‑entry date and estimated time required to drill the well;

              (f)  the proposed drilling program including a program for the taking of conventional cores, wireline logs or formation flow tests;

             (g)  the casing program and the volume of cement estimated to be used;

             (h)  the elevation of the rotary table;

              (i)  the depth of the water at the drill site;

              (j)  the geological prognosis and prospective horizons; and

             (k)  other information that the board or a person designated by the board may require.

             (3)  The application required by subsection (1) shall be accompanied by

             (a)  a tentative survey plan showing the location of the proposed well and a description of the survey system that will be used to establish the position of the well; and

             (b)  the well prognosis described in subsections (4) and (5).

             (4)  The well prognosis referred to in paragraph (3)(b) shall include information in respect of

             (a)  all surface and subsurface conditions that may affect the drilling of the well;

             (b)  the manner in which the program for the drilling of the well has been designed to overcome the meteorological and oceanographic conditions referred to in the application for a drilling program authorization; and

             (c)  another matter in respect of the well on the request of the board or a person designated by the board.

             (5)  The well prognosis referred to in paragraph (3)(b) shall be divided into the following parts:

             (a)  part 1, which shall provide general information in respect of the well, including the well name, well classification and, where the well is a development well, the coordinates of the location at which the well is designed to penetrate the production interval or injection interval;

             (b)  part 2, which shall provide information in respect of surface conditions in the vicinity of the well that may affect the safety and efficiency of operations and the anticipated meteorological and oceanographic conditions and the topography and composition of the seafloor;

             (c)  part 3, which shall provide information in respect of the subsurface conditions anticipated at the drill site that may affect the safety and efficiency of the drilling operations and shall include

                      (i)  the depth and thickness of geological formations and the depth of geological markers,

                     (ii)  the depth and nature of formations where problems such as lost circulation zones, swelling shale zones and permafrost zones are anticipated, and

                    (iii)  the anticipated depth of unconsolidated sand and gravel below the seafloor; and

             (d)  part 4, which shall provide information to demonstrate that the drilling program is suitable for the conditions described in paragraphs (b) and (c) including

                      (i)  the equipment, procedures and resources to be employed to protect the natural environment in the vicinity of the well,

                     (ii)  the details of the casing and cementing program to be used in respect of the well,

                    (iii)  the variations in the blowout preventer and drilling fluid systems from those described in the drilling program authorization, and

                    (iv)  the well evaluation and termination program.

158/92 s68

Approval conditions

     69. Approval to drill or approval to re‑enter shall be conditional on

             (a)  the operator commencing drilling within 120 days after the day the approval is granted;

             (b)  the well being drilled no deeper than the depth proposed in the application for the approval;

             (c)  the contractor and the drilling installation identified in the application for the approval being used in the drilling operations; and

             (d)  the operator following the drilling program proposed in the application for the approval.

158/92 s69

Suspension or revocation of approval

     70. The board or a person designated by the board may suspend or revoke the approval to drill or approval to re‑enter where the safety of operations becomes uncertain owing to

             (a)  the level of performance of the drilling rig, drilling base or drilling unit or a support craft being demonstrably less than the level of performance indicated in the application for a drilling program authorization submitted by the operator; or

             (b)  the environmental conditions encountered in the area of the drilling program for which the approval to drill or approval to re‑enter was granted, being more severe than those predicted by the operator when the drilling program authorization was given.

158/92 s70

Location of well

     71. (1) The location of a well is subject to the approval of the board or a person designated by the board.

             (2)  The surface location of a development well shall be selected and the drilling procedures for that well designed to ensure that the well intersects the reservoir at a point consistent with good reservoir engineering practice.

158/92 s71

Evidence of financial responsibility

     72. Every operator shall, before drilling or re‑entering a well,

             (a)  provide the board with evidence of financial responsibility in a form and in an amount satisfactory to the board or a person designated by the board for the purpose of ensuring that the operator terminates the well and leaves the drill site in a satisfactory condition in accordance with section 180; and

             (b)  provide the board with evidence in a form satisfactory to the board or a person designated by the board that the operator is financially able to meet a financial liability that may be incurred as a result of the drilling of a well or of an operation in the well.

158/92 s72

PART III
OPERATIONAL REQUIREMENTS

Drilling of a well

     73. Every operator shall ensure that

             (a)  the drilling of a well is conducted in a manner so that full control of the well is maintained at all times;

             (b)  plans have been made and equipment is available to deal with all abnormal situations that may reasonably be anticipated;

             (c)  the administrative and logistic support that is provided for a drilling program includes the following, namely,

                      (i)  transportation facilities suitable for the area of operations,

                     (ii)  suitable supplies of drilling consumables, food and fuel,

                    (iii)  accommodation for personnel,

                    (iv)  medical facilities described in section 26,

                     (v)  storage and repair facilities, and

                    (vi)  the communication systems referred to in section 43;

             (d)  the drilling of the well is conducted in accordance with the procedures and using the equipment authorized under Parts I and II;

             (e)  equipment including travelling blocks and ancillary equipment, masts, substructures, drilling lines, well control equipment and pressure vessels are used or operated within the limits specified by the manufacturer of the equipment;

              (f)  at the end of each crew shift, the retiring drilling supervisor of a drilling rig informs the new supervisor of mechanical deficiencies that have not been rectified during the shift and of downhole conditions or other problems that have a bearing on the safe conduct of the drilling of the well; and

             (g)  differences in language or other barriers to effective communication do not jeopardize the safety of operations on a drilling rig, drilling base, drilling unit or support craft.

158/92 s73

Surveys

     74. (1) Every operator shall ensure that a legal survey is used to confirm the location of

             (a)  a development well;

             (b)  a discovery well; or

             (c)  another well, on the request of the chief.

             (2)  Every operator shall determine the geographical location of an exploratory well by a survey made in accordance with recognized surveying practices as soon as practicable after the drilling installation is in position at the well location.

158/92 s74

Safety zone

     75. (1) For the purpose of this section, the safety zone around a drilling installation consists of

             (a)  the area within a line enclosing and drawn at a distance of 500 metres from the perimeter of the drilling installation; and

             (b)  the area within a line enclosing and drawn at a distance of 50 metres from the anchor pattern of the drilling installation.

             (2)  A person, other than a person authorized by the operator or the board or a person designated by the board, shall not enter the safety zone around a drilling installation as described in subsection (1).

             (3)  Every operator shall take all reasonable measures to warn persons who are in charge of vessels and aircraft and who are not authorized to enter the safety zone of the boundaries of the safety zone.

158/92 s75

Availability of regulations

     76. Every operator shall ensure that a copy of these regulations is

             (a)  kept on a drilling installation during the period a drilling program is being conducted under a drilling program authorization; and

             (b)  available for examination on request by a person on the drilling installation.

158/92 s76

Display of required authorizations

     77. Every operator shall ensure that

             (a)  the drilling program authorization, the approval to drill and the approval to re‑enter are displayed in a prominent place on the drilling installation in respect of which they apply; and

             (b)  current information on the status of the well, including the location and arrangement of blowout preventers and mud density, together with the detailed procedures for controlling a kick, are displayed in a conspicuous place in the doghouse or at the driller's station.

158/92 s77

Drilling equipment tests

     78. A conservation engineer may, where it is reasonable having regard to the drilling operation in progress and after giving written notice to the operator, require the operator to test the functioning, capacity or structural integrity of an item of drilling equipment the failure or malfunction of which might affect the safety of personnel or the pressure control of the well.

158/92 s78

Well control equipment

     79. Every operator shall ensure that all well control equipment, including the casing, the blowout preventer system and the surface equipment necessary for formation flow testing, is

             (a)  installed in a manner that ensures that it can properly fulfil its function; and

             (b)  pressure tested on installation and periodically after that in accordance with sections 88 to 91.

158/92 s79

Conductor pipe

     80. (1) Every operator shall ensure that a blowout preventer and a marine riser or a diverter and a marine riser are installed on the conductor pipe where necessary to ensure that the portion of the hole below the conductor pipe can be drilled safely.

             (2)  Where conductor casing is installed on a well, every operator shall ensure that

             (a)  a blowout preventer system is installed on the wellhead that

                      (i)  has a rated working pressure that exceeds the maximum bottom‑hole pressure anticipated before the next casing is installed,

                     (ii)  consists of at least 3 hydraulically‑operated blowout preventers of which one is an annular‑type preventer, one is fitted with pipe rams and one is fitted with blind rams,

                    (iii)  has a pressure relief line and a kill line, and

                    (iv)  has a choke manifold at the surface; or

             (b)  a diverter system that gives protection equivalent to or superior to the protection provided by the system described in paragraph (a) is installed.

158/92 s80

Blowout preventer system

     81. (1) Every operator shall ensure that a blowout preventer system is installed on the wellhead during all drilling operations that are carried out below the surface casing.

             (2)  Subject to subsection 61(3), every operator shall ensure that the blowout preventer system for all drilling operations below the surface casing has a rated working pressure that is

             (a)  greater than 75% of the maximum anticipated formation pressure in the case of ram‑type preventers and greater than 50% of the maximum anticipated formation pressure in the case of annular‑type preventers; and

             (b)  greater than 20 MPa unless the operator provides data to show that a blowout preventer system with a pressure rating of less than 20 MPa can be used without jeopardizing the safety of the well.

             (3)  Notwithstanding subsection (2), the pressure rating of an annular‑type preventer need not exceed 35 MPa.

             (4)  For the purposes of subsections (2) and 61(3), where the maximum formation pressure is not known, it shall be assumed to be 11 kilopascals per metre of well depth.

             (5)  Every operator shall ensure that the blowout preventer system referred to in subsection (1) includes at least

             (a)  4 hydraulically‑operated blowout preventers comprising

                      (i)  one annular‑type preventer, and

                     (ii)  3 ram‑type preventers, one of which is fitted with blind rams and 2 with rams that fit the drillpipe in use;

             (b)  a drilling spool with side outlets, unless side outlets are provided in the body of the preventer;

             (c)  a pressure relief line and kill line; and

             (d)  a choke manifold.

             (6)  Every operator shall ensure that the blowout preventer system referred to in subsection (1), where the blowout preventers are submerged, includes blind rams that are capable of shearing the drillpipe.

158/92 s81

Composition of blowout preventer system

     82. Every operator shall ensure, when running casing in a well, that a blowout preventer system is installed on the wellhead consisting of

             (a)  at least one annular‑type preventer when running

                      (i)  surface casing,

                     (ii)  intermediate casing in a well where the blowout preventers for the well are submerged, or

                    (iii)  production casing in an exploratory well where the blowout preventers for the well are submerged;

             (b)  at least one annular‑type preventer and one ram‑type preventer fitted with rams to fit the casing while running intermediate and production casing in a well where the blowout preventers for the well are not submerged; and

             (c)  at least one annular‑type preventer and one ram‑type preventer fitted with rams to fit the casing or 2 annular‑type preventers while running production casing in a development well where the blowout preventers for the well are submerged.

158/92 s82

Safety valves

     83. Every operator shall ensure that

             (a)  a safety valve is installed in the drill string immediately above and below the kelly; and

             (b)  there is available on every drill floor

                      (i)  full‑opening drill string safety valves to fit each type of connection in the drill string, and

                     (ii)  a suitable inside blowout preventer valve.

158/92 s83

Choke manifold

     84. (1) Every operator shall ensure that a choke manifold that has a rated working pressure equal to or greater than the pressure rating of the blowout preventers referred to in sections 81 to 83 is installed on or near the drill floor.

             (2)  The inside diameter of all lines and valves constituting the choke manifold referred to in subsection (1) shall be greater than 64 millimetres.

             (3)  Every operator shall ensure that the flow from a well is capable of being directed through the main flow line and 2 or more secondary lines of the choke manifold and that each secondary line is equipped with an adjustable choke.

             (4)  The choke manifold referred to in subsection (1) shall

             (a)  be equipped with at least one pressure gauge; and

             (b)  have a sufficient number of outlets to permit the installation of gauges to measure the pressure under a selection of flow route.

             (5)  Every operator shall ensure that during all drilling operations gauges sufficient in number to fit all gauge outlets on the choke manifold are available for immediate installation.

             (6)  Every operator shall ensure that where a choke manifold referred to in subsection (1) has a pressure rating greater than 20 MPa, the manifold is equipped with an automatic choke and the control for the automatic choke is on or near the drill floor.

             (7)  Every operator shall ensure that every choke manifold referred to in subsection (1) is protected against freezing.

             (8)  Every operator shall ensure that where a choke manifold is in an enclosed area, the area is properly ventilated and has at least 2 exits.

158/92 s84

Flow lines from wells

     85. Every operator shall ensure that all flow lines, pressure relief lines, kill lines and choke lines

             (a)  are made of steel or high pressure flexible hose covered with fire‑resistant material;

             (b)  have an inside diameter that is greater than 64 millimetres;

             (c)  are properly installed and securely tied down;

             (d)  are designed so that there is a minimum number of changes in the direction of flow and, where an abrupt change in direction is necessary at any point, the interior of the line is protected against erosion at that point; and

             (e)  are identified by colour or other means at the choke manifold.

158/92 s85

Main flow line valve

     86. Every operator shall ensure that the main flow line from a well is equipped with a valve located near the wellhead and is capable of being operated from the driller's station.

158/92 s86

Flare line

     87. (1) Every operator shall ensure that every flare line and any other pipeline downstream of the choke manifold referred to in subsection 84(1) has an inside diameter that is not less than the inside diameter of the largest line in the choke manifold.

             (2)  Every operator shall ensure that no valve is located on the flare line downstream of the choke manifold while drilling operations are in progress.

             (3)  Every operator shall install, for a well, at least 2 complete flare lines or other devices that allow the flow of fluid from the well to be directed to 2 or more sides of the drilling unit for flaring.

158/92 s87

Test of casing and blowout preventers

     88. (1) Every operator shall ensure that

             (a)  every blowout preventer is visually inspected before or immediately after installation to confirm that

                      (i)  it is in good working order, and

                     (ii)  the packing elements and seals for each preventer are in good condition; and

             (b)  the blowout preventer control system is pressure tested to its maximum operating pressure

                      (i)  immediately following installation, where the blowout preventers are not submerged, and

                     (ii)  immediately before installation, where the blowout preventers are submerged.

             (2)  When pressure testing a blowout preventer, choke manifold, kill line and pressure relief line as required by these regulations, every operator shall ensure that

             (a)  a low viscosity fluid is used; and

             (b)  the following 2 test pressures are used for each test, namely,

                      (i)  a test pressure of 1 500 kilopascals, and

                     (ii)  a test pressure equal to that prescribed for a casing pressure test in paragraph 91(2)(b) except in the case of an annular‑type preventer, in which case the test pressure shall be equal to 50% of the rated working pressure of the preventer or the pressure prescribed by paragraph 91(2)(b), whichever is the lesser, and this test shall be made with the preventer closed on the drillpipe being used.

158/92 s88

Duties of operator

     89. Every operator shall ensure that

             (a)  the equipment referred to in subsection 88(2) is pressure tested

                      (i)  after installation,

                     (ii)  before drilling out a string of casing installed in a well,

                    (iii)  before commencing a formation flow test or a series of formation flow tests,

                    (iv)  following repairs that require disconnecting a pressure seal in the wellhead assembly, and

                     (v)  not less than once every 14 operational days;

             (b)  appropriate remedial measures are undertaken immediately where a blowout preventer fails to meet pressure test requirements; and

             (c)  blowout preventers are not removed from the wellhead, unless the well is adequately plugged.

158/92 s89

Exemption

     90. Notwithstanding paragraph 89(a), the operator need not pressure test shear rams in a blowout preventer stack where there is a separate set of blind rams in the same stack.

158/92 s90

Pressure testing of casing

     91. (1) Every operator shall ensure that casing is pressure tested

             (a)  after installation and before drilling out the cement plug or casing shoe;

             (b)  immediately after a remedial cementing;

             (c)  at least once every 1000 rotating hours or more frequently where casing wear is detected; and

             (d)  immediately before perforating or using the casing for purposes of formation flow testing.

             (2)  Every operator shall ensure that

             (a)  conductor casing is tested to a minimum surface pressure of 1000 kilopascals;

             (b)  surface casing, intermediate casing and intermediate casing liners are pressure tested to a surface pressure that is equal to or greater than the least of

                      (i)  the rated working pressure of the blowout preventers,

                     (ii)  60% of the maximum formation fluid pressure anticipated during the next phase of the drilling operation, and

                    (iii)  the calculated formation fracture pressure at the casing shoe; and

             (c)  production casing and production casing liners are tested to a surface pressure that is equal to at least 90% of the maximum reservoir pressure.

             (3)  For a casing pressure test to be satisfactory, the test pressure prescribed in subsection (2) shall be maintained for 5 minutes with no pressure decline or for 15 minutes with a pressure decline of less than 5% of the test pressure.

             (4)  Where the operator suspects that there may be excessive casing wear, the operator shall advise the chief of that suspicion and shall conduct a pressure test on the casing.

             (5)  Where a casing string does not hold the required pressure throughout its length during a pressure test, the operator shall suspend a drilling or testing operation and shall not recommence that operation without taking precautions or remedial measures approved by the board or a person designated by the board.

158/92 s91

Coal and mineral deposits

     92. Where coal or other mineral deposits are encountered while drilling, the operator shall notify the chief of the deposits and shall take those measures that are necessary to protect the deposits.

158/92 s92

Cementation

     93. Every operator shall ensure that

             (a)  the cementation of casing and casing liners is carried out in accordance with the drilling program specified in the approval to drill;

             (b)  where practicable, fluid returns are visually observed during all cementation operations; and

             (c)  the cement rise in the annulus, based on observations made under paragraph (b) and on the design data, is calculated and is recorded.

158/92 s93

Cementation of a casing

     94. (1) Every operator shall ensure that the volume of cement slurry used for the cementation of a casing is at least 30% greater than the estimated annular volume to be filled, unless that estimate is based on a reliable calliper log, in which case the operator shall ensure that the volume is at least 10% greater than the estimated annular volume.

             (2)  Where there are indications during or after the completion of cementation that the casing is not properly cemented, the operator shall conduct a pressure test at the shoe of the casing or otherwise determine the effectiveness of the cement in the annulus and ensure that any necessary remedial action is taken.

158/92 s94

Waiting on cement time

     95. (1) Every operator shall ensure that the time interval while waiting for cement to harden before resumption of drilling after cementation of a casing is in no case less than 6 hours and is less than 12 hours only where the operator determines, by testing representative samples of the cement, that the cement has a compressive strength of at least 3 500 kilopascals.

             (2)  The operator shall record the time interval and the result of a test referred to in subsection (1) on the tour sheets referred to in section 148.

158/92 s95

Maximum pressure during well stimulation

     96. Every operator shall ensure that the maximum injection pressure used during a well stimulation operation does not exceed the burst pressure resistance of the weakest joint in the casing or tubing used for the injection or the rated working pressure of the wellhead, whichever is the lesser.

158/92 s96

Formation leak‑off test

     97. (1) Every operator shall conduct a pressure test in the hole to determine the pressure integrity of the formations present in the hole

             (a)  before drilling more than 60 metres below the shoe of a casing other than the conductor casing; and

             (b)  when an over‑pressured zone is about to be penetrated.

             (2)  The test referred to in subsection (1) shall test the formations to a pressure that is the lesser of 1 1/3 times the estimated formation fluid pressure and the pressure at which the formation begins to accept the test fluid before the point of fracturing.

158/92 s97

Monitoring of drilling

     98. Every operator shall ensure that

             (a)  the drilling fluid is monitored during the drilling of a well, after the conductor casing has been installed in the well, to determine

                      (i)  its volume, flow rate and chemical and physical properties, and

                     (ii)  where automatic gas detecting, measuring and recording devices are required by paragraph 60(3)(e), the nature and relative quantity of gas in the drilling fluid returns;

             (b)  the results of the determination made in accordance with paragraph (a) are recorded and the record maintained at the drill site;

             (c)  the equipment required by subsection 60(3) is maintained in good working order at all times; and

             (d)  a continuous surveillance of the drilling fluid returns is maintained at all times when significant amounts of formation fluid are entering the well‑bore or when a zone that is over‑pressured or contains petroleum is being penetrated.

158/92 s98

Monitoring of drilling

     99. (1) Every operator shall ensure that

             (a)  the rate of penetration of the formations of a well is recorded continuously while drilling or coring by an automatic device located on the drill floor;

             (b)  the drilling fluid and the drilling fluid system are maintained and operated in a manner that prevents formation fluids entering or leaving the well‑bore except under controlled conditions; and

             (c)  drilling ceases and remedial measures are undertaken immediately when the hydrostatic head of the drilling fluid fails to over‑balance the formation fluid pressure, except where drilling in an under‑balanced condition has been approved by the board or a person designated by the board.

             (2)  Unless approval to drill in an under‑balanced condition has been obtained from the board or a person designated by the board, every operator shall endeavour to keep the hole filled with a fluid of sufficient density to over‑balance formation pressures at all times.

             (3)  During tripping and except as provided in subsection (2), every operator shall ensure that the hole is filled with the correct amount of drilling fluid after every fifth stand of drillpipe or every single stand of drill‑collars is withdrawn from the hole.

158/92 s99

Volume of drilling fluid

   100. (1) Every operator shall ensure that, during a drilling operation, the volume of active drilling fluid in the surface system of a well is not less than 50% of the hole capacity or 65 cubic metres, whichever is the lesser.

             (2)  Every operator shall, in respect of an exploratory well, have stored on the drilling installation reserve drilling fluid

             (a)  the volume of which is greater than the lesser of

                      (i)  the volume of the drilling fluid in the active mud tanks at the surface of the well, and

                     (ii)  65 cubic metres; and

             (b)  that is in a suitable condition for immediate use during a period that drilling is in progress.

             (3)  The reserve drilling fluid required by subsection (2) shall, in respect of an exploratory well, have a density of 200 kilograms per cubic metre greater than the density of the fluid in the active system unless the operator provides data to the chief to show that a lesser density will provide an equivalent or greater degree of well control.

158/92 s100

Loss of circulation

   101. Except while drilling the hole of the conductor casing, every operator shall ensure that drilling ceases immediately when lost circulation occurs to the extent that the hole cannot be kept full of drilling fluid and that drilling is not resumed until adequate circulation has been regained or until approval has been obtained from the board or a person designated by the board to continue drilling the well.

158/92 s101

Pressure transition zone

   102. (1) Every operator shall continuously monitor the fluid content and the characteristics of the lithology of the formations being drilled during an exploratory drilling using techniques such that the pressure transition zone between normally and abnormally pressured formations can be detected.

             (2)  Every operator shall, when a pressure transition zone is detected,

             (a)  cease drilling;

             (b)  attempt to verify the presence of the zone; and

             (c)  take such measures as are necessary to control the anticipated pressures before drilling is resumed.

             (3)  Where, on the basis of seismic or other data and on the basis of the results observed during the drilling of a well, the existence of an over‑pressured zone is indicated to be within the next 100 metres of drilling, the operator shall not continue drilling except in accordance with a program approved by the board or a person designated by the board.

158/92 s102

Directional and deviation surveys

   103. (1) Every operator shall ensure that deviation surveys are taken at intervals not exceeding 150 metres or at the intervals set out in the approval to drill.

             (2)  Every operator shall take directional surveys at sufficiently frequent intervals during the drilling of a well to permit the location of a point in the well‑bore to be calculated within 15 metres of its actual location.

             (3)  Except in the case of a relief well, every operator shall ensure that a well is drilled in such a manner that it does not intersect an existing well.

             (4)  Every operator shall ensure that a directional survey is taken before installing a casing string in a well.

158/92 s103

Plugging part of a well

   104. Where the lower portion of a well is to be plugged, the operator shall abandon that portion in accordance with sections 184 to 187 and shall leave a minimum of 30 metres of cement in place at the top of the plugged interval unless the operator provides to the chief data to show that it is not practicable to do so.

158/92 s104

Suspension of drilling operations

   105. (1) Every operator shall ensure that an operation at a drill site ceases as soon as possible where the continuation of that operation

             (a)  causes pollution; or

             (b)  endangers the safety of personnel, the security of the well or the safety of the drilling rig, drilling base or drilling unit.

             (2)  Where an operation has ceased under subsection (1), the operator shall not resume the operation until it can be resumed safely and without causing pollution.

             (3)  Where a fatal accident occurs at a drill site, the operator shall suspend every operation associated with the fatality as soon as possible and shall not resume an operation without the approval of the board or a person designated by the board.

             (4)  Every operator shall ensure that a drilling operation in progress at a drill site is suspended where any of the following conditions exist:

             (a)  an inability to maintain well control;

             (b)  a failure of a major component of the blowout preventer system, casing or drilling fluid system;

             (c)  an inability to maintain the properties, volume or circulation rate of the drilling fluid as required by these regulations;

             (d)  an inability to maintain on location the quantities of drilling consumables required by section 110;

             (e)  an uncontrolled fire;

              (f)  a loss of a significant portion of the primary power;

             (g)  an inability to safely handle the drillpipe, casing or heavy equipment necessary for the operation in progress;

             (h)  a diving operation is being conducted near a submerged blowout preventer or wellhead;

              (i)  an inability to satisfactorily maintain the position of the drilling unit over the well;

              (j)  an excessive motion of the drilling unit caused by environmental conditions;

             (k)  a serious and imminent threat of ice or icebergs; or

              (l)  where a drilling unit is anchored, the tension on an anchor exceeds the values established when the anchor was set.

             (5)  Where a drilling operation is suspended under subsection (4), the operator shall not resume that drilling operation until the condition that was the reason for the suspension ceases to exist.

             (6)  Where, during the drilling of a well a formation that is potentially dangerous is likely to be encountered, or a potentially hazardous operation is to be undertaken near the end of a drilling season, and it may not be possible to deal safely with the potential danger or hazard before the end of the drilling season, the operator shall suspend drilling operations until the subsequent drilling season.

158/92 s105

Inspections and tests of equipment

   106. (1) Every operator shall ensure that every drilling installation and associated equipment used in a drilling program

             (a)  are maintained in good working condition at all times during the drilling program; and

             (b)  are inspected at least annually and a report is prepared in respect of the inspection.

             (2)  Every operator shall ensure that a comprehensive inspection, that includes magnetic particle, x‑ray and ultrasonic surveys of critical joints and structural members, of the structure of every drilling unit used in a drilling program is made at least once in every 4 year period and a report is prepared in respect of the inspection.

             (3)  Every operator shall ensure that

             (a)  all major components of the blowout preventer system, except the blind rams, are actuated once each day that drilling operations are carried out if

                      (i)  the drill string is out of the hole, or

                     (ii)  the drill bit is within the casing;

             (b)  notwithstanding paragraph (a), where the drill string referred to in that paragraph is not out of the hole or the drill bit referred to in that paragraph is not within the casing, all major components of the blowout preventer system, except the blind rams, are actuated at least once every 3 days that drilling operations are carried out;

             (c)  the blind rams are actuated at least once each time the drill string is out of the hole;

             (d)  auxiliary equipment that may be used for well control, including the cementing unit and lines, degasser, hydraulic control lines and inside drillpipe blowout preventers, are available for immediate use;

             (e)  all firefighting and safety equipment required by these regulations is inspected once each week to confirm that the equipment is serviceable and in its proper location;

              (f)  all safety cables attached to the kelly hose, tongs, weight indicator or other suspended equipment are inspected, properly secured and serviceable; and

             (g)  each air‑intake shut‑off valve or engine flooding system, where required for diesel engines by subsection 41(2), is tested to confirm that it is serviceable

                      (i)  before drilling out the cement plug at the shoe of a casing string,

                     (ii)  before each formation flow test or series of formation flow tests, and

                    (iii)  in conjunction with every blowout prevention practice drill required by paragraph 125(f).

158/92 s106

Hoisting equipment inspection

   107. Every operator shall ensure that

             (a)  all lifting and hoisting equipment is inspected at regular intervals and is serviceable;

             (b)  all cables, slings and other devices used in lifting, transferring or moving loads are inspected before use and replaced if they show signs of wear;

             (c)  all hoisting machinery on a drilling installation is inspected each year and tested every 4 years in the manner prescribed by the American Petroleum Institute's API Recommended Practice for Hoisting Tool Inspection and Maintenance Procedures, API RP 8B, as amended;

             (d)  all chains, rigs, hooks, blocks and shackles on a drilling installation are operated in accordance with the American Petroleum Institute's Recommended Practice for Operation and Maintenance of Offshore Cranes, API RP 2D, as amended;

             (e)  a personnel transfer basket used in respect of a drilling installation is in serviceable condition and any ropes, wires or other vital parts of the basket being used that show signs of significant wear are replaced; and

              (f)  a cable used to tow a drilling unit is inspected before its use and is not used if significant wear is detected.

158/92 s107

Electrical equipment

   108. (1) Every operator shall ensure that electrical equipment, electric motors, lighting fixtures and wiring on a drilling unit are designed, installed and maintained to operate safely under the maximum anticipated load conditions.

             (2)  Every operator shall ensure that the electrical equipment and wiring on a drilling unit used in a drilling program are inspected at intervals not exceeding 18 months and, on request of the chief, shall provide verification that they meet the requirements of section 30.

158/92 s108

Crane operations

   109. (1) Every operator shall ensure that

             (a)  loading and unloading of supply vessels and aircraft ceases where the rigging, cable, boom, mountings or stops of the crane used in those operations are found to be in an unsafe condition;

             (b)  adequate tag lines are used to control a swinging of a load that is being lifted by a crane;

             (c)  loads are not left hanging above the deck of a drilling installation unless the crane operator is at the controls of the crane; and

             (d)  where the weight of a load to be lifted by a crane at a drill site is in excess of 5080 kilograms, the weight is clearly marked on the load.

             (2)  Where a loading or unloading operation has ceased under paragraph (1)(a), the operator shall not resume that operation unless suitable remedial measures are taken so that it may be resumed safely.

158/92 s109

Quantities of consumables

   110. (1) Every operator shall ensure that sufficient quantities of fuel, drilling fluid materials, cement and other drilling consumables are stored on the drill site to meet a normal and reasonably foreseeable emergency condition.

             (2)  The quantities referred to in subsection (1) shall not, in the case of a drilling installation, be less than

             (a)  in the case of weight material, 30 cubic metres;

             (b)  in the case of bentonite or equivalent material, 10 cubic metres;

             (c)  in the case of cement, 15 cubic metres; and

             (d)  in the case of usable fuel, 20 cubic metres.

158/92 s110

Handling of fuel and consumables

   111. Every operator shall ensure that

             (a)  drilling fluid additives are

                      (i)  stored and handled in a manner that minimizes their deterioration and prevents damage to the natural environment, and

                     (ii)  where bulk transfer systems are not used, packaged in properly labelled containers;

             (b)  liquid fuel and oils are transported, transferred and stored in a closed system;

             (c)  liquid fuel stored at or above deck level is contained in a closed and properly vented container that is properly isolated from the well‑bore;

             (d)  all reasonable precautions are taken to avoid spillage while transferring fuel from a supply vessel to a drill site or to a drilling installation; and

             (e)  when a fuel transfer referred to in paragraph (d) is completed, the transfer hoses used in the transfer are drained into the supply vessel and both hose‑ends are securely plugged.

158/92 s111

Waste material

   112. Every operator shall ensure that all waste material, drilling fluid and drill cuttings generated at a drill site are handled and disposed of in a manner that

             (a)  does not create a hazard to safety, health or to the natural environment; and

             (b)  is approved by the board or a person designated by the board.

158/92 s112

Storage of waste material

   113. Every operator shall ensure that

             (a)  petroleum produced during formation flow tests is stored in suitable tanks or flared in a manner approved by the board or a person designated by the board;

             (b)  where an oil spill occurs, no countermeasures of a chemical nature are used without the approval of the board or a person designated by the board unless, during the delay required to obtain the approval, there is a severe threat to the safety of persons, property or the natural environment that can be lessened by such countermeasures;

             (c)  waste fuel, oil or lubricant is collected in a closed system that is designed for the purpose; and

             (d)  stored waste oil or oily material that is not burned at the drill site is transported to shore in a suitable container and properly disposed of on shore.

158/92 s113

Disposal of waste material

   114. Every operator shall ensure that

             (a)  all sewage, galley and other domestic waste material that might contribute to pollution is disposed of in a manner approved by the board or a person designated by the board;

             (b)  combustible trash is not burned at a drill site except where precautions are taken to ensure that the fire does not endanger personnel or the safety of the well;

             (c)  spent acid or excess acid is disposed of in a manner approved by the board or a person designated by the board; and

             (d)  all non‑combustible trash, including glass, wire, scrap metal and plastics, is transported to a port and properly disposed of at that port.

158/92 s114

Radio and support craft procedures

   115. Every person in charge of a helicopter, supply vessel or other support craft employed in the carrying out of a drilling program shall inform all passengers of that support craft, at the time of boarding, of the safety rules and procedures applicable to that craft.

158/92 s115

Radio monitoring of support craft

   116. Every operator shall ensure that all movements of a support craft operating between a drilling installation and the shore are monitored by the person operating the radio station on the drilling installation.

158/92 s116

Requirements of standby vessel operators

   117. Every person in charge of a standby vessel referred to in section 12 shall

             (a)  maintain open communication channels with the drilling unit;

             (b)  maintain the standby vessel within such distance from the drilling unit as is approved by the board or a person designated by the board; and

             (c)  stand ready with the standby vessel to conduct rescue operations at any time

                      (i)  that the safety of personnel, the safety of the drilling unit or the safety of the well being drilled by that drilling unit is endangered or is likely to be endangered,

                     (ii)  when there is particular danger of a person falling overboard,

                    (iii)  when a helicopter is landing on or taking off from the drilling unit,

                    (iv)  when diving operations from the drilling unit are in progress, or

                     (v)  when the drilling unit is threatened by ice.

158/92 s117

Moving drilling units

   118. (1) An operator shall not set or retrieve the anchor of a drilling unit used in a drilling program when weather or sea conditions make such an operation unsafe.

             (2)  Every operator shall ensure that all drillpipe, drill‑collars, marine risers or other equipment and any consumables stored on the deck of a drilling unit used in a drilling program are securely tied down during a move or during adverse weather conditions.

             (3)  Where a drilling unit used in a drilling program is moved, the operator shall ensure that when practicable the anchor buoy pennant lines are securely fastened to prevent them from trailing over the side of the drilling unit or in the water.

158/92 s118

Anchors

   119. (1) Where anchors are used for holding a drilling unit used in a drilling program in position at a well site, the operator shall ensure that before the commencement of drilling operations, each anchor line and anchor is tested to a tension equal to the lesser of

             (a)  the maximum anticipated tension expected during the time the drilling unit is on the well site; and

             (b)  the capacity of the winch.

             (2)  Where a tension load equal to the lesser of paragraphs (1)(a) and (b) cannot be applied to the anchor line, the operator shall take remedial action that is necessary to ensure that the drilling unit is securely anchored.

158/92 s119

Stability

   120. (1) Where an operator uses a drilling unit that is not a floating drilling unit in a drilling program, the operator shall ensure that

             (a)  the mat, legs, footings, hull or piles of the drilling unit and the surrounding seafloor are inspected regularly, where practicable, to confirm that no areas of weakness are developing; and

             (b)  where scour, build‑up of seafloor sediments or another condition that threatens the stability of the drilling unit occurs, measures that are necessary to protect the safety of the drilling unit and of the personnel on board are taken.

             (2)  Where an operator uses a drilling unit referred to in subsection (1), the operator shall not raise or lower the drilling unit if weather, ice or sea conditions make that operation unsafe.

             (3)  During the raising or lowering of a drilling unit referred to in subsection (1), the operator shall ensure that only those persons necessary for the operation are on board the drilling unit and that each person on board the drilling unit is awake and is wearing a life jacket.

158/92 s120

PART IV
SAFETY
AND TRAINING OF PERSONNEL

General

   121. Every operator shall ensure that

             (a)  an operation necessary for the safety of personnel employed at a drill site or on a support craft has priority, at all times, over another operation on that drill site or support craft;

             (b)  trained personnel are ready and able to operate an item of equipment; and

             (c)  safe working methods are followed in all operations during a drilling program.

158/92 s121

General safety

   122. Every operator shall require that all personnel on a drilling installation or support craft keep clear of a load that is being hoisted, suspended or lowered and shall ensure that a person is not under a mast that is being raised or lowered.

158/92 s122

Maintenance of working areas

   123. Every operator shall ensure that all working areas including walkways, decks, stairs, rig floors and enclosed areas on a drilling installation or support craft are kept clean and tidy and free of waste material, oil and ice.

158/92 s123

Training of personnel

   124. (1) Every operator shall ensure that every person employed on a drilling program

             (a)  receives instruction and training in respect of all operational and safety procedures that that person may be required to carry out during the course of his or her duties during such employment;

             (b)  is capable of doing the duties assigned to him or her; and

             (c)  is 16 years of age or more and is 18 years of age or more if his or her duties require him or her to work on the drill floor.

             (2)  An operator shall not employ an offshore installation manager, drilling supervisor, drilling foreman or tool‑pusher on a drilling program unless that person has, once in every 3 year period, attended a well control school whose standards have been approved by the board or a person designated by the board and has achieved a satisfactory rating from that school.

158/92 s124

Safety drills

   125. Every operator shall ensure that

             (a)  a fire drill is held at least once every 2 weeks at each drill site;

             (b)  all personnel employed on a drill site are familiar with personal safety and evacuation procedures in respect of the drilling program;

             (c)  all members of the drill crew and all other persons employed on a drilling program have received full instructions in respect of their assigned duties in the event of an oil spill;

             (d)  a practice exercise of oil spill countermeasures is held at least once in each year that the operator is engaged in a drilling program;

             (e)  in the case of a drilling installation, an abandonment drill is carried out at least once each week;

              (f)  a blowout prevention practice drill is held at least once in each week that the operator is engaged in a drilling program; and

             (g)  all members of the drill crew are fully instructed in their assigned duties in respect of the prevention of a blowout.

158/92 s125

Notice of emergency procedures

   126. Every operator shall post a notice at appropriate locations at a drill site that sets out the details of the emergency procedures to be followed in the event of fire or evacuation of the drill site.

158/92 s126

Protection against poisonous gas

   127. Every operator shall ensure that

             (a)  every person employed on a drilling program is made aware of the dangers of hydrogen sulphide gas;

             (b)  every member of the drill crew is familiar with the breathing devices required by paragraph 27(1)(a);

             (c)  each drilling supervisor is capable of training other personnel in the use and the operation of the hydrogen sulphide gas detectors required by paragraph 27(1)(b);

             (d)  a person whose duties may require the wearing of a breathing device does not have hair that interferes with the proper functioning of the breathing device; and

             (e)  every person working in an area where the hydrogen sulphide concentration in ambient air exceeds 15 parts per million by volume wears a breathing device referred to in paragraph (b).

158/92 s127

Safety instructions

   128. Every passenger on a helicopter, supply vessel or another support craft engaged in a drilling program shall comply with all safety instructions received from the person in charge of that support craft.

158/92 s128

Rest period

   129. Every operator shall ensure that a person is not required to work, as a member of a drill crew,

             (a)  a shift in excess of 12 continuous hours; or

             (b)  2 successive shifts of a duration unless that person has had at least 6 hours rest between those shifts,

except where it is necessary to ensure the safety of personnel, the drilling installation or the security of the well.

158/92 s129

Protective clothing

   130. Every operator shall ensure that every person employed on a drilling installation wears adequate protective clothing and uses personal safety equipment during the period that person is carrying out his or her duties.

158/92 s130

Safety belts

   131. Every operator shall ensure that a safety belt is worn by each person employed in the derrick or at another location on a drilling installation where there is a danger of falling.

158/92 s131

Life jackets

   132. Every operator shall ensure that a life jacket, life belt or immersion suit is worn by every person working

             (a)  in the moonpool area of a drilling unit; or

             (b)  at another location where there is a danger of falling overboard.

158/92 s132

Transfer of personnel

   133. (1) Every operator shall ensure that no basket that is used for transferring personnel to or from a drilling installation is used to transfer cargo except in an emergency.

             (2)  Every operator shall ensure that the transfer of a person by a basket referred to in subsection (1) takes place only when visibility is good and when weather conditions permit the transfer to be made safely.

             (3)  Every operator shall ensure that where a person is transferred in a basket from a drilling installation to a support craft or from a support craft to a drilling installation,

             (a)  the drilling installation and the support craft are in direct radio contact; and

             (b)  the person to be transferred is instructed in the safety procedures to be followed and is wearing a life jacket.

             (4)  Every operator shall ensure that

             (a)  not more than 5 persons and their hand luggage are transferred at one time in the basket referred to in subsection (3); and

             (b)  the raising or lowering of the basket is carried out over the water to the greatest extent practicable.

158/92 s133

Smoking

   134. (1) A person shall not smoke on a drilling installation except in those areas designated as smoking areas by the board or a person designated by the board.

             (2)  Notwithstanding subsection (1), a person shall not smoke on a drilling installation during emergency operations or emergency evacuation practice drill.

             (3)  Every operator shall post no smoking notices in all areas on the drilling installation that have been designated as no smoking areas by the board or a person designated by the board.

158/92 s134

Welding

   135. (1) A welder shall not commence welding on a drill site unless that welder has obtained approval to do so from the supervisor of the drill site.

             (2)  A supervisor shall not grant the approval referred to in subsection (1) unless there is adequate ventilation and firefighting equipment in the area where the welding is to take place and the welding operation can be carried out safely.

             (3)  Every operator shall ensure that a welding operation is not conducted in an area where combustible gases may be present until the area is examined with a detector and found to be safe.

158/92 s135

Impaired abilities

   136. A person shall not engage in an activity related to a drilling program while that person's ability to perform his or her duties is impaired by fatigue, illness, alcohol, drugs or another condition or substance.

158/92 s136

Corrosive material

   137. Every operator shall ensure that

             (a)  every container used for corrosive material is constructed of material resistant to corrosion;

             (b)  every container holding corrosive material is handled in a manner that minimizes the danger of spillage;

             (c)  where caustic soda is added to the drilling fluid, only safe equipment designed for that purpose is used;

             (d)  a person handling caustic soda or other corrosive material wears a safety hood or goggles; and

             (e)  empty containers in which caustic soda or other corrosive materials have been packaged are tightly wrapped in a protective covering or otherwise safely packaged before being transferred from a drilling installation to a supply vessel.

158/92 s137

Eyewash station

   138. Every operator shall ensure that every drilling installation is fitted with an eyewash station located in or near the mud mixing facilities.

158/92 s138

Protective clothing

   139. Every person, when preparing, sampling or using acid solutions or inspecting acid containers, shall wear suitable protective clothing, goggles and shields.

158/92 s139

Explosives

   140. Every operator shall ensure that

             (a)  a detonator for explosives is not stored with any explosives;

             (b)  all detonators and explosives are stored in a dry secure location;

             (c)  a detonator of one type is not stored with a detonator of a different type;

             (d)  not more than 75 kilograms of explosive material, including detonators of any type, is stored on a drilling installation; and

             (e)  electrical equipment installed or used in an explosives storage room is explosion proof.

158/92 s140

Radioactive substances

   141. Every operator shall ensure that

             (a)  every person using radioactive substances at a drill site is licensed by the Atomic Energy Control Board; and

             (b)  the procurement, containment, transportation, use, storage and disposal of all radioactive substances used at a drill site is in accordance with the provisions of the Atomic Energy Control Act (Canada) and the regulations under that Act.

158/92 s141

Equipment to meet federal standards

   142. Every operator shall ensure that the containment, use and certification of equipment used at a drill site that emits radiation is in accordance with the requirements of the Radiation Emitting Devices Regulations (Canada).

158/92 s142

PART V
OPERATIONAL RECORDS
AND REPORTS

Safety and well evaluation information

   143. (1) Every operator shall record information obtained during the drilling program that is relevant to the safety of the program or to the evaluation of the well at the time the information is obtained in a suitable book or log kept at the drill site.

             (2)  Every operator shall submit to the chief a report regarding applied research work or studies obtained or compiled by the operator that contains information relevant to the safety of drilling operations in the area set out in the application for drilling program authorization as soon as the report is available.

158/92 s143

Reference for well depths

   144. (1) Every operator shall measure a depth in a well during the drilling or on the termination of the well from a single reference point.

             (2)  The reference point referred to in subsection (1) shall be either the rotary table or the kelly bushing of the drilling rig.

             (3)  The operator shall measure and record immediately before spud‑in

             (a)  the distance from the rotary table or the kelly bushing to the seafloor at the mean lower low water level; and

             (b)  the water depth at the mean lower low water level.

158/92 s144

Notification of chief

   145. (1) Every operator shall notify the chief immediately, by the most rapid and practical means, of a significant situation or significant event, including

             (a)  the loss of life;

             (b)  a missing person;

             (c)  serious injury to a person;

             (d)  fire;

             (e)  loss of well control;

              (f)  an imminent threat to personnel;

             (g)  imminent threat to the safety of a drilling unit, drilling rig or drilling base;

             (h)  an oil or toxic chemical spill; or

              (i)  the anticipated discovery of petroleum.

             (2)  Every operator shall submit a full written report of a situation or event referred to in subsection (1) to the chief as soon as practicable following the notification required by that subsection.

158/92 s145

Notification of conservation engineer

   146. Every operator shall, within 24 hours, notify a conservation engineer, by telex, telegram or by an equivalent means, of the

             (a)  date that a drilling unit arrives at a drill site;

             (b)  hour and date of a spud‑in or of the re‑entry of a well for the purpose of further drilling; and

             (c)  hour and date that a drilling rig is released from a well.

158/92 s146

Submission of survey plan

   147. Every operator shall submit to the chief, in triplicate, a plan of a legal survey made under section 74 as soon as practicable.

158/92 s147

Tour sheets and barge reports

   148. Every operator shall ensure that a comprehensive record of the drilling operation and of observations of the natural environment is maintained during a drilling program in the form of tour sheets and, where applicable, daily ship or barge reports.

158/92 s148

Tour sheet requirements

   149. (1) Every operator shall ensure that the tour sheets referred to in section 148 are kept during the period a drilling rig is engaged in a drilling program or well completion.

             (2)  Every operator shall submit a legible copy of the tour sheets referred to in section 148, signed by or on behalf of the operator, to the chief at least once each week.

             (3)  Every operator shall ensure that a legible copy of the tour sheets referred to in section 148 for each well is kept on the drilling installation during a time drilling operations are being carried out.

             (4)  Every operator shall ensure that the following information is recorded on the tour sheets referred to in section 148:

             (a)  the distance from the rotary table or the kelly bushing to the seafloor at the mean lower low water level;

             (b)  the time spent by the drill crew at each separate operation carried out during the drilling program;

             (c)  the volume of the drilling fluid in surface tanks that is available for use and the properties of and the materials added to the drilling fluid;

             (d)  the pumping pressure, the circulating rate of the drilling fluid, and any loss of the drilling fluid in the well;

             (e)  the make‑up of all drilling assemblies including the size and type of bit, and the size, number and length of all tubulars;

              (f)  the increase in the depth of the well made by drilling or coring in each shift of a drill crew;

             (g)  the weight on the bit and rotary table speed;

             (h)  particulars of the taking of deviation surveys or directional surveys and the results of those surveys;

              (i)  particulars of the running and cementing of a casing, including the type and quantity of casing and cement;

              (j)  the results of a pressure test or function test of the blowout preventer system;

             (k)  the results of a pressure test on casing, open formations or packers;

              (l)  particulars of wireline logging operations, including the type of wireline log run;

            (m)  details of a safety meeting held;

             (n)  details of a blowout prevention or abandon‑ship practice drill held;

             (o)  particulars of the failure of or significant damage to equipment that affects the drilling operations;

             (p)  details in respect of the accidental spillage of fuel, drilling fluid or other material;

             (q)  details of an apparent gain in volume of the drilling fluid at the surface and the steps taken to control a kick that may have been encountered;

              (r)  particulars of the perforating of a casing including the number of perforations and the intervals of those perforations;

             (s)  particulars of the stimulating of a formation including the type and quantity of the fluid used and the pressure and rate at which the fluid was injected into the formation;

              (t)  particulars of the running of a formation flow test;

             (u)  details of the recovery by wireline of a formation sample or formation fluid sample;

             (v)  particulars in respect of the loss of tubulars or other material in the well and a description of operations undertaken for their recovery;

            (w)  particulars of the suspension of operations for a cause; and

             (x)  details in respect of the termination of the well.

             (5)  Where a drilling rig is being used for a well completion, recompletion or a remedial operation, the operator shall ensure that the information recorded on the tour sheets includes, in addition to the information required by subsection (4),

             (a)  a summary of the operations undertaken;

             (b)  the amounts of workover fluids used, injected, lost or recovered from the well;

             (c)  details of a casing or tubing used in the completion;

             (d)  results of tubing and packer pressure tests;

             (e)  the landing depths for tubing or casing packers and the depths of any seats; and

              (f)  details of recovered fluid and of fluid levels observed during swabbing operations.

             (6)  Every operator shall submit to the chief at least once a week a summary of work performed on a well during a drilling program by a work barge, support vessel or other similar equipment.

158/92 s149

Barge report requirements

   150. The operator shall observe and record on the daily ship or barge report referred to in section 148

             (a)  the presence of ice floes or icebergs and their movement;

             (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 current direction and speed,

                     (v)  the barometric pressure and air temperature,

                    (vi)  the sea water temperature, and

                   (vii)  the visibility; and

             (c)  the amount of precipitation in the preceding 24 hour period.

158/92 s150

Floating unit records

   151. Where the drilling unit is a floating unit, the operator shall

             (a)  observe and record at least once every 6 hours, where the wind speed does not exceed 35 kilometres per hour, and at least once every 3 hours, where the wind speed exceeds 35 kilometres per hour,

                      (i)  the pitch, roll and heave of the drilling unit, and

                     (ii)  the tension on every anchor line;

             (b)  observe and record during the drilling program the fluid level of every ballast, fuel and drill water tank at least once

                      (i)  every 4 hours, where the drilling unit is of the semi‑submersible type, and

                     (ii)  every 24 hours, where the drilling unit is a drillship; and

             (c)  calculate and record the vertical centre of gravity of the drilling unit at least once

                      (i)  every 24 hours, where the drilling unit is of the semi‑submersible type, and

                     (ii)  every 7 days and reassess that calculation every 24 hours, where the drilling unit is a drillship.

158/92 s151

Daily records

   152. Every operator shall ensure that

             (a)  a daily record is kept of all persons employed at or visiting a drill site; and

             (b)  a barge log or ship's log is maintained, in respect of a drilling installation, that records

                      (i)  the arrival and departure of a support craft,

                     (ii)  the location and deployment of a standby vessel,

                    (iii)  the dispatch and receipt of a radio message,

                    (iv)  the details of emergency drills,

                     (v)  a change in the draft, and

                    (vi)  the particulars of an inspection of the hull.

158/92 s152

Routine reports

   153. (1) Every operator shall, during a drilling program, prepare and submit to the chief once each week

             (a)  a summary of all significant situations and significant events as described in subsection 145(1) that occurred at the drill site during the preceding week;

             (b)  a report describing the lithology of a formation drilled and the nature of reservoir fluids encountered during the preceding week; and

             (c)  a summary of the results of deviation surveys and directional surveys that were taken during the preceding week, including a calculation of the bottom‑hole coordinates for a well that was directionally drilled or that has deviated more than 5° from the vertical.

             (2)  Every operator shall, during a drilling program, submit a report to the chief each day, by telex, telegram or by an equivalent means, setting out the depth of the well, the lithology of the formations encountered during the previous day, the properties of the drilling fluid, the results of each formation leak‑off test, the weather and, where applicable, sea conditions, and the performance of the drilling installation.

             (3)  Every operator shall ensure that a record is maintained on the drill site of the receipt and consumption of all explosive material at the drill site and that the record is submitted on request to the chief.

158/92 s153

Downhole survey record

   154. (1) Every operator shall ensure that every wireline log or other survey made in a well

             (a)  is recorded at a scale that provides a degree of sensitivity appropriate to the measurements being taken; and

             (b)  has recorded a description of a tool calibration or other data that is necessary in the interpretation of the wireline log or other survey.

             (2)  Every operator shall

             (a)  submit to the chief, by the most rapid and practical means, 2 field‑print copies of all wireline logs run by that operator;

             (b)  submit, to the chief on request, wireline logs in digital form if they have been prepared in that form; and

             (c)  submit, to the chief on request, all wireline log data in respect of a well before the well is terminated.

158/92 s154

Penetration and gas content records

   155. Every operator shall submit the record of the rate of penetration made in accordance with subsection 99(1) and the record referred to in subsection 164(2) to the chief on request.

158/92 s155

Formation flow records

   156. (1) Every operator shall submit to the chief immediately any records made in accordance with section 174 or 175.

             (2)  The records referred to in subsection (1) shall include accurate reproductions of pressure and flow charts except where accurate reproductions cannot be made, in which case the original charts shall be submitted.

             (3)  Where original charts are submitted under subsection (2), the chief shall return the charts to the operator within 30 days after the day of the chief received them.

158/92 s156

Report of structural faults

   157. (1) Every operator shall submit to the chief a written report on an inspection made in accordance with section 106 within 15 days after the day the report is completed.

             (2)  Every operator shall notify the chief immediately if an inspection of a drilling installation or of a vessel engaged in the drilling program reveals conditions that lessen or might lessen the structural integrity of the drilling installation or vessel.

158/92 s157

Well termination record

   158. (1) Every operator shall record the details of the manner in which a well has been terminated and shall submit the record to the chief within 21 days after the rig release date in respect of the well.

             (2)  The record referred to in subsection (1) shall, if requested by the chief, be accompanied by a sketch illustrating the condition of the well after termination.

158/92 s158

Press releases

   159. Where an operator issues a press release concerning a discovery, blowout or other significant event that occurs at a well, the operator shall simultaneously transmit to the chief by telex or telecopier or an equivalent means a copy of the press release.

158/92 s159

PART VI
WELL EVALUATION

General

   160. (1) Every operator shall obtain sufficient well tests, wireline logs, analyses, surveys and samples during the drilling of a well to ensure that a comprehensive geological and reservoir evaluation can be made.

             (2)  Where permafrost exists in a well, the operator shall, if requested by the chief, determine the approximate depth of the base of permafrost by running a temperature survey or other wireline log or by another method as specified by the chief.

158/92 s160

Drill cuttings

   161. (1) Every operator shall ensure that samples of drill cuttings are collected from those portions of the well set out for that purpose in the approval to drill.

             (2)  Notwithstanding subsection (1), where an operator cannot obtain samples from a portion of the well as required by subsection (1), the operator shall record the depth interval for which samples were not obtained and the reason they were not obtained and submit the record to the chief.

158/92 s161

Cores

   162. (1) Every operator shall ensure that conventional cores are taken in accordance with the program contained in the approval to drill unless it is not operationally practicable.

             (2)  Every operator shall advise the chief, as soon as possible, of a case where it is not practicable to take the cores referred to in subsection (1).

             (3)  Every operator shall ensure that a core taken under subsection (1) is

             (a)  extracted from the core‑barrel in accordance with good oilfield practice;

             (b)  described immediately in accordance with good geological practice;

             (c)  where the nature of the core is amenable, marked in a way that identifies the depth interval from which the core was obtained and the orientation that the core had before its removal from the formation; and

             (d)  placed in a core container.

             (4)  Every operator shall ensure that a core container referred to in paragraph (3)(d) is

             (a)  sufficiently strong to protect the core from breakage;

             (b)  approximately 800 millimetres in overall length; and

             (c)  accurately and durably labelled with the name of the well, the depth interval from which the core was obtained and the sequential number of the container.

             (5)  The labelling information required by paragraph (4)(c) and subsection 163(2) may be given in coded form.

158/92 s162

Sidewall core

   163. (1) A person shall not extract a sidewall core from a core gun before the firing head of the core gun has been removed.

             (2)  Every operator shall ensure that a sidewall core obtained is described immediately in accordance with good geological practice and is placed in a suitable container that is accurately and durably labelled with the name of the well and the depth interval from which the core was obtained.

158/92 s163

Gas content of drilling fluid

   164. (1) Every operator shall, where a gas detection device is required by paragraph 60(3)(e), sample and test all drilling fluid returning to the surface to determine the total hydrocarbon gas content and, where the device has the capability, the relative amounts of any methane, ethane, propane and butane gas.

             (2)  Every operator shall record the results of the sampling and testing referred to in subsection (1).

158/92 s164

Wireline logs

   165. (1) Every operator shall ensure that wireline logs that are necessary for the proper evaluation of a well are taken over all uncased intervals in the well below the surface casing.

             (2)  For the purpose of subsection (1), every operator shall take sufficient wireline logs in a well to

             (a)  permit an accurate calculation of the porosity, fluid saturation and fluid contact for all potential reservoirs;

             (b)  measure the size of the hole and the spontaneous potential and natural radioactivity of a formation;

             (c)  assist in determining the lithology of a formation; and

             (d)  permit the calculation of accurate values of the vertical angle and direction of the hole and of the structural dips of the formations.

             (3)  Every operator shall ensure that the wireline logs referred to in subsection (2) yield data of good quality by having them taken

             (a)  as soon as practicable after penetrating a potential reservoir;

             (b)  before altering the nature of the drilling fluid in a manner that would affect the quality of the wireline logs;

             (c)  before enlarging the diameter of the hole for the purpose of installing casing; and

             (d)  at sufficiently frequent time intervals during the drilling of a well that the nature of the formation fluids adjacent to the well‑bore has not been significantly altered by invasion of the drilling fluid.

             (4)  For the purpose of subsection (1), every operator shall take a sufficient number of types of porosity‑measuring wireline logs in a well so that an effect of shaliness, hydrocarbons, complex lithology and the walls of the hole can be compensated for in determining the porosity of a formation.

             (5)  Unless otherwise permitted in the approval to drill, every operator shall take at least 2 types of porosity‑measuring wireline logs if significant reservoir development is indicated in the portion of the hole in which the wireline logs are to be taken.

             (6)  For the purpose of subsection (1), every operator shall take a sufficient number of types of resistivity‑measuring wireline logs in a well so that the distortion caused by filtrate invasion, thin beds, the drilling fluid and the walls of the hole can be compensated for in calculating the formation resistivity.

158/92 s165

Duty to take wireline logs

   166. Every operator shall take wireline logs in the hole drilled for the surface casing when the requirement to do so is stated in the approval to drill.

158/92 s166

Requirements for wireline logs

   167. Where a wireline log referred to in section 165 is taken, the operator shall ensure that

             (a)  the maximum bottom‑hole temperature is measured with at least 2 maximum‑recording thermometers; and

             (b)  the formation temperature, the time that the circulation of the drilling fluid stopped and the time that the wireline log instrument left the bottom of the hole is recorded on the wireline log.

158/92 s167

Wireline logs in salt or non‑sedimentary rock

   168. Notwithstanding sections 165 and 166, where the formations in a well are composed of salt or non‑sedimentary rock, only those wireline logs that are necessary to measure the diameter of the hole, the radioactivity of the formation and sonic transit time of the formation are required.

158/92 s168

Deferral of wireline logs

   169. (1) Every operator shall ensure that every wireline log referred to in sections 165 and 166 is taken at a rate that yields good quality data and does not cause formation fluids to be swabbed into the well.

             (2)  Where conditions in a well are such that the taking of a wireline log referred to in section 165 would endanger the safety of a person, the well or the drilling rig, the operator shall defer the taking of that wireline log until the conditions are such that the taking of the wireline log can be done safely.

             (3)  Where the taking of a wireline log is deferred under subsection (2), the operator shall

             (a)  immediately notify a conservation engineer of the deferment;

             (b)  submit a program, for approval by the board or a person designated by the board, detailing the procedures to be used to obtain the information that would have been obtained from the deferred wireline log; and

             (c)  follow the procedures referred to in paragraph (b), if approved.

             (4)  Where a well is being drilled from a floating drilling unit, the operator shall use a motion‑compensator device during the taking of a wireline log referred to in section 165 if the vertical motion of the drilling unit is such that the quality of the data would otherwise be adversely affected.

158/92 s169

Testing and sampling of formations

   170. (1) Every operator shall ensure that every formation in a well is sampled or tested to obtain fluid flow and reservoir pressure data from the formation where there is an indication that the result of such a sample or test will contribute substantially to the evaluation of the formation.

             (2)  For the purpose of subsection (1), every operator shall ensure that a formation flow test is conducted if fluid samples and productivity data are required and wireline formation samples do not provide sufficient information for the evaluation of the formation.

158/92 s170

Formation flow test

   171. (1) Every operator shall submit to the chief a detailed testing program before conducting the formation flow test referred to in subsection 170(2).

             (2)  Notwithstanding subsection 170(1), every operator shall ensure that a formation flow test is not conducted without the prior written approval of the board or a person designated by the board.

158/92 s171

Formation flow test requirements

   172. (1) Every operator shall ensure that during a formation flow test no formation fluids are allowed to flow to the surface or are circulated to the surface unless there is adequate illumination in the vicinity of the test tree, flow lines and test tanks.

             (2)  Where a well is being drilled from a floating drilling unit, every operator shall ensure that a formation flow test in respect of that well is not conducted

             (a)  with a packer set in an interval of the well that is not protected by casing;

             (b)  when the unit is heaving or likely to heave more than 1 1/2 metres during the test; or

             (c)  without adequate illumination,

unless the formation flow test has been approved by the board or a person designated by the board.

             (3)  Every operator shall ensure that before starting a formation flow test

             (a)  all safety equipment and fire protection equipment is inspected and found ready for immediate use;

             (b)  where the test is to be conducted in an interval of a well that is protected by casing, the annulus between the test string and the casing is pressure tested to confirm that the packer will withstand pressure from above the packer;

             (c)  all sections of the flow test equipment are pressure tested to at least the maximum pressure to which that equipment may reasonably be expected to be subjected during the test; and

             (d)  the captain of the standby vessel is informed that the test is to be conducted.

158/92 s172

Formation flow test duties

   173. Every operator shall ensure that

             (a)  during a formation flow test, all flow rates and pressures are measured and controlled;

             (b)  well fluid produced during a formation flow test is

                      (i)  sampled to determine if it contains hydrogen sulphide gas,

                     (ii)  monitored to determine if it contains a significant amount of sand, and

                    (iii)  stored and disposed of in accordance with section 113;

             (c)  a formation flow test is stopped immediately where

                      (i)  hydrogen sulphide gas is present, or

                     (ii)  significant sand erosion is occurring,

unless precautions have been taken to ensure the safety of personnel and the control of the well; and

             (d)  after the completion of a formation flow test and before pulling the test string used to conduct the test out of the well, a formation fluid in the test string is circulated to the surface or is otherwise recovered.

158/92 s173

Formation flow test information

   174. Every operator shall ensure that

             (a)  all relevant information in respect of a formation flow test is properly recorded; and

             (b)  the information referred to in paragraph (a) includes, if available,

                      (i)  the initial shut‑in pressure,

                     (ii)  all flow rates and pressures and the time at which each measurement was taken,

                    (iii)  sufficient build‑up pressure and flowing pressure data to calculate the permeability and the static reservoir pressure,

                    (iv)  the total volume of fluid recovered and the volume of each type of fluid produced, and

                     (v)  the temperature and pressure in the well at the point and at the time a fluid sample was taken.

158/92 s174

Recording of reservoir fluid

   175. (1) Every operator shall ensure that a formation flow test taken by wireline is designed and conducted to obtain the maximum amount of reservoir fluid practicable under the circumstances and that the information in respect of the test is recorded.

             (2)  The information referred to in subsection (1) shall include

             (a)  the name of the well and the depth from which the fluid sample was obtained;

             (b)  the date and time the fluid sample was obtained;

             (c)  the temperature of the formation from which the fluid was obtained;

             (d)  a record of the well pressure during the test; and

             (e)  the type, quality and nature of the fluids recovered.

158/92 s175

Sample requirements for formation flow test

   176. (1) Every operator shall ensure that, during a formation flow test, a sample of each type of fluid produced, including condensate, is collected in a sufficient volume and using techniques that permit the analyses referred to in section 199.

             (2)  Every operator shall place a sample referred to in subsection (1) in a sealed container at the drill site.

             (3)  The container referred to in subsection (2) shall be

             (a)  constructed of a material that ensures that the sample can be safely transported; and

             (b)  numbered, properly labelled and accompanied by information setting out

                      (i)  the name and depth of the well,

                     (ii)  the date and the means by which the sample was obtained, and

                    (iii)  where applicable, the type and the number of the formation flow test.

158/92 s176

PART VII
WELL OR TEST HOLE TERMINATION

Approval to terminate

   177. A person shall not terminate a well or test hole without an approval to terminate that well or test hole granted by the board or a person designated by the board under this Part.

158/92 s177

Application for approval

   178. An operator may apply for an approval to terminate a well or test hole by completing and forwarding an application to the board.

158/92 s178

Removal of casing

   179. (1) An operator shall not permanently remove a casing or tubing while abandoning a well unless the removal is permitted by the approval to terminate and is carried out in accordance with subsection (2).

             (2)  Where the casing referred to in subsection (1) is removed,

             (a)  a bridge plug shall be set in the casing not more than 15 metres below the cut‑off point before cutting the casing;

             (b)  a 30 metre cement plug shall be placed across the casing stub;

             (c)  that portion of the well above the cut‑off point shall be abandoned in accordance with this Part; and

             (d)  notwithstanding paragraph (b), where casing is cut for the purpose of recovering a wellhead, a cement plug that is as long as practicable shall be placed across the casing stub.

158/92 s179

Clearing of sea floor

   180. Every operator shall ensure that on the termination of a well the seafloor is cleared of any material or equipment that could interfere with other commercial uses of the sea, unless the board or a person designated by the board, having been satisfied that no interference with the commercial use of the sea is reasonably likely to result, otherwise approves.

158/92 s180

Drilling rig removal prohibited

   181. An operator shall not remove a drilling rig from a well drilled under these regulations unless the well has been terminated in accordance with the approval to terminate and this Part.

158/92 s181

Responsibility for abandoned wells

   182. Every operator shall ensure that

             (a)  a well or a portion of a well that is not suspended or completed is abandoned; and

             (b)  where a well or a portion of a well is abandoned, the well is abandoned in a manner so that a formation fluid is prevented from flowing through or escaping from the well‑bore.

158/92 s182

Responsibility continued

   183. (1) An acknowledgement by the chief of a well termination record submitted in accordance with subsection 158(1) shall in no way relieve an operator of the responsibility for a proper termination of the well if, at a later date, the termination of the well is found not to be in accordance with these regulations.

             (2)  Where the chief is informed that a well or a portion of a well has not been terminated in accordance with these regulations, the chief may order the operator of the well to properly terminate the well and may specify the period within which the proper termination of the well is to be carried out.

158/92 s183

Location of abandonment plugs

   184. (1) Where a well or a portion of a well is abandoned, the operator shall ensure that

             (a)  where practicable, a cement plug is set at the bottom of the well except where

                      (i)  the formation at the bottom of the well is salt, in which case the bottom cement plug may be set immediately above the top of the salt formation, or

                     (ii)  conditions in the borehole of the well are such that it is not practicable to set a cement plug at the bottom of the well, in which case the bottom cement plug shall be set as deep in the well as is practicable;

             (b)  cement plugs and bridge plugs are set in accordance with the approval to terminate and are designed to

                      (i)  isolate formations or groups of formations that appear to have abnormal pressures,

                     (ii)  separate porous permeable formations that contain formation fluids that are significantly different in nature from each other,

                    (iii)  separate porous permeable formations from other porous permeable formations that are significantly different in age, and

                    (iv)  separate lost circulation intervals in the well from other porous permeable formations;

             (c)  unless at least 10 metres of cement is left in the bottom of the deepest casing string during cementation and the cement is not drilled out,

                      (i)  the well is plugged with

                            (A)  a cement plug that is at least 30 metres in length and extends at least 15 metres below and 15 metres above the shoe of the deepest casing string, or

                            (B)  a bridge plug that is set in the casing within 100 metres of the bottom of the deepest casing string, and

                     (ii)  the plug is tested to a pressure equal to the formation leak‑off test pressure described in subsection 97(2) plus 3 500 kilopascals;

             (d)  where a leak exists or is suspected in the innermost casing string, a cement plug is set at the time of abandonment to seal the leak;

             (e)  where an annulus is open to a formation, a cement plug is set to seal that annulus;

              (f)  a cement plug is placed on a bridge plug set at a depth of not more than 150 metres below the seafloor or squeezed through a retainer placed at a depth of not more than 150 metres below the seafloor; and

             (g)  all casing is cut off below the seafloor at a depth below which damage by ice scour cannot reasonably be expected or one metre, whichever is the greater.

             (2)  Every operator shall perforate a casing installed in a well in order to place cement between porous permeable zones if the zone would not otherwise be isolated.

158/92 s184

Perforated intervals to be plugged

   185. (1) Except in a development well, every operator shall ensure that every interval in a casing string that has been perforated for flow testing or another purpose is plugged before perforating another interval in the casing string.

             (2)  Where the perforated intervals referred to in subsection (1) are in formations that contain petroleum or abnormal fluid pressures, the operator shall plug them

             (a)  by setting a bridge plug not more than 30 metres above the top perforation and by placing not less than 5 metres of cement on the bridge plug;

             (b)  by squeezing cement into the perforations and then testing the plug to a pressure of not less than 7 000 kilopascals above the formation fluid pressure in the interval; or

             (c)  by setting a cement plug not more than 30 metres above the top perforation and not less than 30 metres in length.

             (3)  Notwithstanding subsection (2), where the interval that is perforated is the uppermost perforated interval in a well, the operator shall place in the casing a cement plug, the base of which is not more than 30 metres above the upper limit of the perforations and the length of which is not less than 30 metres.

158/92 s185

Length and quality of cement plugs

   186. (1) Every operator shall ensure that the cement plugs referred to in paragraph 184(1)(b), unless otherwise permitted in the approval to terminate, are not less than

             (a)  100 metres in length, where they are set in a portion of the well that is not protected by casing; and

             (b)  30 metres in length, where they are set in a portion of the well that is protected by casing.

             (2)  Every operator shall ensure that the cement used for cement plugs is designed to have a minimum compressive strength of 3 000 kilopascals after it has hardened for at least 8 hours.

158/92 s186

Feeling for plugs

   187. (1) Every operator shall wait for at least 6 hours for the cement used for plugs to harden and shall then confirm with a form of 90 kN or the full weight of the cementing string, whichever is the lesser, the position of a cement plug that is not supported by a plug or by the bottom of the well and that is located

             (a)  at the shoe of the deepest casing string;

             (b)  above an abnormally‑pressured zone; or

             (c)  above a hydrocarbon‑bearing zone.

             (2)  Where a plug is so displaced from its intended position as to render it inadequate for the purpose for which it was intended, the operator shall set a supplementary plug to replace it and shall confirm the position of the supplementary plug in accordance with subsection (1).

158/92 s187

Termination of shallow holes

   188. Every operator shall ensure that a hole drilled to a depth of less than 30 metres is plugged with a cement plug at the surface before the drilling equipment is removed from the site.

158/92 s188

Marking of wellheads

   189. Every operator shall ensure that the wellhead of a suspended or completed well is

             (a)  protected against damage; and

             (b)  equipped with a device that will permit it to be easily located.

158/92 s189

Fluid in inactive wells

   190. Every operator shall ensure that

             (a)  where a well or an interval in a well is to be abandoned or suspended, the well or interval is filled with fluid of sufficient density to over‑balance the formation pressures found in the well; and

             (b)  a fluid to be placed in the casing‑tubing annulus of a well that is to be suspended or completed is fluid that

                      (i)  will not freeze under the conditions to which it will be subjected, and

                     (ii)  is treated to minimize corrosion of the casing and tubing.

158/92 s190

Suspended wells

   191. (1) Every operator shall ensure that every well drilled by the operator that is suspended is left in such a condition that

             (a)  a formation fluid is prevented from flowing through or escaping from the well‑bore;

             (b)  a seafloor obstruction is minimized; and

             (c)  a wellhead can be installed and operations can be safely and efficiently resumed.

             (2)  Every operator shall ensure that every well referred to in subsection (1) that is suspended after it is completed is equipped with a down‑hole mechanical plug and a surface mechanical plug in the tubing that are pressure tested to ensure that they are properly installed.

158/92 s191

Operators of completed or suspended wells

   192. (1) Every operator of a well that is suspended and that has not been completed shall complete or abandon that well within 6 years after the date of suspension.

             (2)  Every operator of a well that is completed and suspended shall

             (a)  inspect the well each year and report on the condition of the well to the chief; and

             (b)  place the well on production or abandon the well within a period of 6 years after the date of suspension unless the chief has granted an extension of that period.

158/92 s192

Well completion

   193. (1) Where the operator intends to complete a well, the operator shall submit, in the application for an approval to terminate, a well completion program that provides for

             (a)  the isolation of each completed reservoir interval from another porous or permeable interval penetrated by the well;

             (b)  the safe and efficient testing and production of a completed reservoir interval;

             (c)  where open‑hole completion techniques are used, the installation of production casing at a depth that is not more than 60 metres above the top of the productive interval;

             (d)  where cased‑hole completion techniques are used, the installation of production casing at a depth that provides a sump of at least 15 metres below the base of the productive interval;

             (e)  the setting of a packer as close as practicable to the top of the interval to be completed and the pressure testing of that packer to a differential pressure that is at least 4 000 kilopascals greater than the maximum differential pressure anticipated under production conditions;

              (f)  the stimulation of productive formations in a manner that is safe and that permits evaluation of production characteristics; and

             (g)  the measurement and control of the amount of sand flowing into the well.

             (2)  Notwithstanding subsection (1), every operator shall terminate a well in accordance with the terms and conditions of the approval to terminate.

             (3)  Every operator shall ensure that the wellhead and related equipment on a completed well

             (a)  has a working pressure that is greater than the initial reservoir pressure in a productive interval;

             (b)  is pressure tested to a pressure that is not less than the initial reservoir pressure in a productive interval; and

             (c)  has installed a means of monitoring

                      (i)  the pressure and temperature at the tubing‑head, and

                     (ii)  the pressure at the casing‑head.

             (4)  Every operator shall install a surface‑controlled sub‑surface safety valve in a well that has been completed.

158/92 s193

PART VIII
DEPOSITION OF SAMPLES FROM A
WELL

General

   194. When submitting any information for the purpose of the Act, these regulations, or other regulations made under the Act, an operator shall refer to each well by the name assigned by the chief.

158/92 s194

Transportation and storage of a cutting, core or sample

   195. (1) Every operator shall ensure that every sample of a drill cutting, a core or sample of well fluid that is taken from a well in compliance with these regulations is transported and stored in a manner that prevents a loss or deterioration of the cutting, core or sample.

             (2)  An operator shall not transport

             (a)  a sample of well fluid that is collected for purposes of analysis in a plastic container or in another container that may cause or permit the chemical properties of the sample to be significantly altered; or

             (b)  a sample of gas the pressure of which is greater than the pressure rating of the gas container.

158/92 s195

Drill cuttings

   196. (1) Every operator shall, to the extent practicable, ensure that

             (a)  a portion of each sample of drill cuttings collected in accordance with section 161 is washed and dried

                      (i)  to remove any drilling fluid or other contaminants, and

                     (ii)  in a manner that minimizes a change in the natural appearance or lithological characteristics of the cuttings;

             (b)  the portion referred to in paragraph (a) is of sufficient volume to fill 2 vials;

             (c)  the vials referred to in paragraph (b) are transparent and are accurately and durably labelled with the name of the well and the depth interval from which the drill cuttings were obtained;

             (d)  notwithstanding paragraph (a), at least 500 grams of each sample of drill cuttings referred to in that paragraph are left unwashed and are placed in a moisture‑proof container; and

             (e)  the container referred to in paragraph (d) is durably labelled with the name of the well and the depth interval, which may be coded, from which the sample was taken.

             (2)  Notwithstanding subsection (1), the operator shall process the samples the operator has obtained in the manner approved by the board or a person designated by the board where it is not practicable to comply with that subsection.

158/92 s196

Sidewall cores

   197. Every operator shall store a sidewall core material remaining after petrographic, reservoir, palaeontological, palynological or other analyses have been conducted in containers that are durably labelled with the name of the well and the depth from which the core was obtained.

158/92 s197

Conventional cores

   198. (1) Every operator shall ensure that

             (a)  every conventional core is analyzed to determine the basic reservoir characteristics of all potential reservoir intervals in the core;

             (b)  the analysis referred to in paragraph (a) includes the measurement of at least the following characteristics, namely,

                      (i)  porosity,

                     (ii)  permeability, in the vertical direction and in the direction of maximum horizontal permeability and in the direction normal to the direction of maximum horizontal permeability, and

                    (iii)  fluid saturation; and

             (c)  where any samples necessary for the analysis referred to in paragraph (a) have been removed from the core, the remaining core or a longitudinal slab of the core that is not less than 1/2 of the cross‑sectional area of the core is submitted to the chief.

             (2)  Every operator shall store at a location in Canada every core or portion of a core not submitted to the chief under paragraph (1)(c), for a period of not less than 2 years after the date of abandonment of the well from which the core was taken.

             (3)  Every operator shall, before disposing of a core or a portion of a core referred to in subsection (1), notify the chief in writing and give the chief an opportunity to request delivery to him or her of that core or portion.

158/92 s198

Analysis of fluid samples

   199. (1) Every operator shall ensure that

             (a)  each sample of gas, condensate, oil or water obtained from a well is analyzed to determine

                      (i)  its density, and

                     (ii)  its constituent compounds and the relative proportion of each of the compounds;

             (b)  each sample of gas referred to in paragraph (a) is analyzed to determine

                      (i)  its gross heating value in the dry acid‑free condition, and

                     (ii)  its pseudo‑critical temperature and pressure;

             (c)  the viscosity of each sample of oil referred to in paragraph (a) is measured at 2 different temperatures with a variance of at least 20° Celsius;

             (d)  the resistivity and pH of each sample of water referred to in paragraph (a) is measured; and

             (e)  where a well produces more than one fluid phase, the analysis of a recombined sample is made to determine the physical and chemical factors that affect the performance of the reservoir of the well.

             (2)  The result of an analysis or measurement referred to in subsection (1) shall be reported in units specified by the chief.

158/92 s199

Delivery of samples to chief

   200. Every operator shall deliver to the addresses specified by the chief

             (a)  all samples and other materials that are required to be submitted under these regulations;

             (b)  within 60 days after the rig release date of a well

                      (i)  2 complete sets of the washed drill cutting samples referred to in paragraph 196(1)(a), and

                     (ii)  a complete set of the unwashed drill cutting samples referred to in paragraph 196(1)(d);

             (c)  within 6 months after the rig release date, a sidewall core or a remnant of it remaining after analyses of the core;

             (d)  within 60 days after the rig release date, a conventional core required to be submitted under paragraph 198(1)(c);

             (e)  within 60 days after the date of the formation flow test, a fluid sample referred to in section 176;

              (f)  within 6 months after the rig release date, a palynological or nano‑fossil slide produced from a sidewall core that was destroyed in the production of the slide; and

             (g)  within 5 years after the rig release date, a foraminiferal or petrographic slide produced from a sidewall core that was destroyed in the production of the slide.

158/92 s200

PART IX
FINAL
WELL REPORTS

Exploratory and development wells

   201. (1) Every operator shall prepare a final well report on termination of a well for every well drilled by the operator and shall submit the report to the chief within a period of 90 days after the rig release date in the case of an exploratory well and within a period of 45 days after the rig release date in the case of a development well.

             (2)  The final well report referred to in subsection (1) in respect of an exploratory well shall contain a record of all operational, engineering and geological information that is relevant to the well and shall be organized into the following sections, with appendices, where appropriate:

             (a)  an introduction;

             (b)  general well data;

             (c)  a summary of drilling and related operations;

             (d)  a summary of weather, ice conditions and sea state and of the response performances of the drilling unit in extreme conditions;

             (e)  geological and palaeontological information;

              (f)  a summary of directional and deviation surveys and the coordinates of the bottom of the hole;

             (g)  a plot of the location of the borehole in the case of a well that has deviated more than 10° from the vertical;

             (h)  reservoir and well evaluation data; and

              (i)  wireline logs, analyses, studies and all other pertinent reports.

             (3)  The final well report referred to in subsection (1) in respect of a development well shall contain the following:

             (a)  a summary of the completion operations;

             (b)  the coordinates of the bottom of the hole and of the top of a productive zone and, in the case of a directionally‑drilled well, a plot showing the location of the well‑bore;

             (c)  details of the completion equipment and tubing including a diagram of equipment installed on the well;

             (d)  results of a formation flow test;

             (e)  a copy of a report prepared by contractors of the operator respecting well stimulation; and

              (f)  wireline logs, core analyses, studies, reports or records relating to the evaluation of the well.

158/92 s201

Test holes

   202. (1) Every operator shall prepare a final report on the drilling of a test hole or group of test holes drilled by the operator.

             (2)  An operator shall submit the report referred to in subsection (1) to the chief within a period of 90 days after the rig release date of the test hole or group of test holes unless a different period is approved by a conservation engineer.

             (3)  The final report referred to in subsection (1) shall contain a record of all operational and engineering information that is relevant to the test hole and shall be organized into the following sections, with appendices, where appropriate:

             (a)  introduction;

             (b)  general well data;

             (c)  a summary of drilling and related operations;

             (d)  a summary of weather, ice and sea conditions;

             (e)  geological and palaeontological information; and

              (f)  wireline logs, petrophysical analyses and special studies.

158/92 s202

PART X
OFFENCES

Offences

   203. The contravention of any of the following provisions of these regulations is an offence under Part III of the Act, namely, sections 65 to 67, 73 to 77, 79 to 89 and 91 to 155, subsection 156(1) and sections 157 to 167, 169 to 177, 179 to 182 and 184 to 202.

158/92 s203

PART XI
REPEAL

Repeal

   204. The Newfoundland Offshore Petroleum Drilling (Newfoundland) Regulations, Newfoundland Regulation 158/92, are repealed.