Canada Oil and Gas Drilling and Production Regulations

Link to law: http://laws-lois.justice.gc.ca/eng/regulations/C.R.C.,_c._1517/FullText.html

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Canada Oil and Gas Drilling and Production Regulations

C.R.C., c. 1517TERRITORIAL LANDS ACT
Regulations Respecting the Drilling and Production of Oil and Gas Belonging to Her Majesty in Right of Canada under all Lands Forming Part of Canada but not Within any ProvinceShort Title

1 These Regulations may be cited as the Canada Oil and Gas Drilling and Production Regulations.

Interpretation

2 (1) In these Regulations,

barrel
barrel means 35 gallons; (baril)
blowout
blowout means the unintentional and uncontrolled escape of oil or gas, as from a drilling well when high formation pressure is encountered; (éruption)
blowout preventer
blowout preventer means a casing-head control fitted with special gates or rams that can be closed around the drill pipe and completely close the top of the casing if the pipe is withdrawn; (dispositif anti-éruption)
field

field means

(a) the general surface area or areas underlain or appearing to be underlain by one or more pools, or
(b) the subsurface regions vertically beneath the surface area or areas; (champ)

gas-oil ratio
gas-oil ratio means the number of cubic feet of gas produced per barrel of oil; (rapport gaz-pétrole)
gas well

gas well means a well

(a) that produces natural gas not associated or blended with oil at the time of production,
(b) that produces more than 30,000 cubic feet of natural gas to each barrel of oil from the same producing horizon,
(c) wherein the gas producing stratum has been successfully segregated from the oil and the gas is produced separately, or
(d) that is classified as a gas well by the Minister for any reason; (puits de gaz)

oil well
oil well means any well capable of producing oil and not being a gas well; (puits de pétrole)
pipeline
pipeline means any pipe or any system or arrangement of pipes wholly within Canada lands whereby oil or gas is conveyed from any wellhead or other place at which it is produced, to any other place, or from any place where it is stored, processed or treated, to any other place, and includes all property of any kind used for the purpose of, or in connection with, or incidental to, the operation of a pipeline in the gathering, transporting, handling and delivery of oil or gas, and without restricting the generality of the foregoing, includes tanks, surface reservoirs, pumps, racks, storage and loading facilities, compressors, compressor stations, pressure measuring and controlling equipment and fixtures, flow controlling and measuring equipment and fixtures, metering equipment and fixtures, and heating, cooling and dehydrating equipment and fixtures, but does not include any pipe or any system or arrangement of pipes which constitutes a distribution system for the distribution of gas to ultimate consumers; (pipe-line)
pool
pool means a natural underground reservoir containing or appearing to contain an accumulation of oil or gas or both separated or appearing to be separated from any other such accumulations; (nappe)
waste

waste includes

(a) the inefficient, excessive or improper use or dissipation of reservoir energy,
(b) the locating, spacing, drilling, equipping, operating or producing of any well or wells in a manner that results or could result in reducing the quantity of oil or gas ultimately recoverable from any pool,
(c) the inefficient storing of oil or gas, whether on the surface or underground,
(d) the producing of oil or gas in excess of transportation or marketing facilities or of reasonable market demand, and
(e) the locating, drilling, equipping, operating or producing of a well or wells in a manner that causes or could cause unnecessary or excessive surface loss or destruction of oil or gas; (déperdition)

zone
zone means any stratum or strata designated by the Minister as a zone, either generally or in respect of any designated area, or any specified well or wells. (zone)

(2) All other words have the same meaning as in the Canada Oil and Gas Land Regulations.

Application

3 (1) These Regulations apply to all wells and all operations carried out for the purpose of searching for, producing or transporting oil or gas on Canada lands that are under the control, management and administration of the Minister.

(2) These Regulations apply to all operations carried out under the authority of a licence, permit or lease granted or issued pursuant to the Territorial Oil and Gas RegulationsFootnote 1
Return to footnote 1Revoked by SOR/60-182.

Notice of Drilling

4 (1) No person shall drill a well or undertake a program of structure test hole drilling unless he has given notice of his intention to begin such operations to the Oil Conservation Engineer and has obtained the approval of the Oil Conservation Engineer.
(2) The notice mentioned in subsection (1) shall be made in triplicate in a form approved by the Department.

5 (1) Subject to subsection (2), no person shall depart from the program of operations that has been approved by the Oil Conservation Engineer without the further approval of the Oil Conservation Engineer.
(2) Where an immediate change in the approved program of operations is necessary, such changes may be made without the approval of the Oil Conservation Engineer, but notice in writing of the change shall be sent to the Oil Conservation Engineer as soon as possible.

Rotary Drilling Procedure

6 (1) Surface casing satisfactory to the Oil Conservation Engineer shall be used in wells and shall be placed to the depth required by him.
(2) Surface casing shall be cemented by the pump and plug or displacement method from the bottom to top and cement shall be allowed to set for not less than 12 hours under pressure before drilling the plug.
(3) Production casing or intermediate strings of casing when run shall be of a design to meet safety factors of 1.60 in tension, 1.125 in collapse and 1.0 in burst.
(4) The casing design shall be submitted in triplicate to the Oil Conservation Engineer on a form approved by the Chief.
(5) Production casing shall be cemented to a height sufficient to ensure isolation of the productive zones.
(6) The pump and plug method of cementing shall be used and the cement shall be allowed to set for not less than 24 hours and shall be pressure tested in accordance with good oil field practice before the cement plug is drilled.

Blowout Preventers and Casing Heads

7 (1) In proven areas, the use of blowout preventers is obligatory and they shall be used in accordance with established good practice.

(2) In unproven areas, all drilling wells shall be equipped with minimum blowout-control equipment consisting of

(a) equipment that will completely close off the open hole;
(b) equipment that will completely close off around the drill pipe, casing and tubing that are being employed in the drilling operations; and
(c) a bleed-off line and valve of the proper size and working pressure.

(3) Controls for the blowout preventers shall be located at a point not less than two feet outside the substructure.

Cable Drilling Procedure

8 (1) Before commencing to drill, proper and adequate slush pits shall be constructed for the reception of mud of sufficient quality and quantity so that such mud may be available if and when the hole is plugged, and where cable tools are used, sufficient surface casing shall be set to a depth specified in the notice of intention to drill and cemented from bottom to top and no natural gas that may be encountered in any section of a cable tool drilled hole above the ultimate objective may be permitted to blow while drilling proceeds, but shall be shut off either by mudding or by the running of a string of casing, and, if the latter method is used, such string of casing shall be tested by bailing to insure shut-off before drilling proceeds.
(2) The casing program adopted for cable tool drilled wells shall be planned to protect any potential oil or gas bearing horizons penetrated during drilling from infiltration of injurious waters from other horizons and to prevent the migration of oil or gas from one horizon to another.

Coring and Testing

9 The licensee, permittee or lessee shall, when a well being drilled is approaching a formation from which production of oil or gas may be expected, if required to do so by the Oil Conservation Engineer, core and adequately test such formation, but such coring and testing must be reasonable and proper and not detrimental to the operations being performed and such test shall not be required unless the hole is in proper condition.

Samples and Cores

10 (1) Unless otherwise directed by the Oil Conservation Engineer, each licensee, permittee or lessee shall cause to be taken, preserved and maintained a series of samples at interval depths of 10 feet of the various formations that non-coring drilling penetrates in drilling a well or structure test hole, and the samples shall be washed, dried, preserved in bags accurately labelled with the name of the well, interval, depth, date of sample and shall be forwarded prepaid in accordance with instructions issued by the Oil Conservation Engineer.
(2) All cores taken from the core barrel shall be stored in book fashion in core boxes and accurately labelled on the body, not the lid, of each box as to the number and interval of the core, top, bottom and footage recovery of the core and the name of the well from which the core is taken.
(3) Boxes shall be of stout wooden or metal construction the sides of which shall project above the level of the contained cores and lids shall be securely fixed to ensure safe transit, and such boxes shall not exceed three feet in length.
(4) Reasonable steps shall be taken to protect boxes containing the cores from theft, misplacement or exposure to the weather and after reasonable time has been afforded the licensee, permittee or lessee to carry out examinations and obtain core analyses of them, they shall be forwarded prepaid to the Oil Conservation Engineer when directed by him to do so.
(5) Without the consent of the Oil Conservation Engineer, no cores shall be destroyed or taken out of Canada except such portions thereof as are reasonably necessary for analytical purposes.

Deviation Test

11 The licensee, permittee or lessee, when directed by the Oil Conservation Engineer, shall make or cause to be made tests at intervals not exceeding 500 feet from the top to the bottom of the well or such lesser intervals as the Oil Conservation Engineer may require for the purpose of ascertaining to what extent, if any, the well deviates from the vertical and shall submit a report of the tests with the daily drilling reports at the end of each week.

Logs

12 (1) Unless otherwise directed by the Oil Conservation Engineer, the permittee or lessee shall cause to be taken one electric log and one other type of electric log, radio-activity log, sonic log or other log approved by the Chief so that the information provided by the two logs shall be sufficient for determining the contacts between horizons or zones penetrated and the porosity and fluid saturation of all potential reservoir horizons.
(2) The title to each log shall contain all information necessary to identify that log and to allow the quantitative and qualitative analysis referred to in subsection (1) to be made.
(3) Three copies of each log shall be sent to the Oil Conservation Engineer within 30 days of the date on which the log was taken.

Daily Reports

13 (1) While drilling is in progress on wells, the licensee, permittee or lessee or their agents shall maintain on a form approved by the Chief a daily report of drilling operations and such report shall be made in duplicate, one copy being at all times retained at the well and open to inspection by the Oil Conservation Engineer.
(2) A copy of the original report shall be forwarded to the Oil Conservation Engineer at the end of each and every week during the course of such drilling operations.

(3) Such daily report shall set out complete data on all operations carried on during the day and, without restricting the generality of the foregoing, shall include

(a) depth at the beginning of the day or tour;
(b) depth at the end of the day;
(c) formation penetrated;
(d) any change in casing;
(e) if casing set, all data regarding setting with size, type, grade and weight of casing whether new or used and depth at which it is set;
(f) particulars of cementing;
(g) any water, oil or gas encountered, even if only small showings;
(h) a report on any deviation surveys, formation tests or other tests carried on; and
(i) information on any other operations carried on such as fishing, shooting, perforating, acidizing, surveying, whipstocking or abandonment.

Encounters of Oil or Gas

14 (1) Where the licensee, permittee or lessee encounters in significant quantities oil or gas in a well outside a designated pool or field, he shall notify the Oil Conservation Engineer, by the most expeditious method, of the character, extent and quantity thereof.
(2) In such instances mentioned in subsection (1) and where practicable, the licensee, permittee or lessee shall take and preserve samples for a reasonable time in an amount of not less than one quart of oil or water and in the case of gas, sufficient to fill a container satisfactory to the Oil Conservation Engineer.
(3) When requested to do so by the Oil Conservation Engineer, the licensee, permittee or lessee shall forward the samples referred to in subsection (2) to him.

Abandonment of Wells

15 (1) Before abandoning a well drilled under these Regulations and before removing any part of the casing therefrom, the licensee, permittee or lessee shall notify the Oil Conservation Engineer in writing of his intention to so do on a form approved by the Chief in triplicate and shall obtain written approval of such abandonment and removal of casing from the Oil Conservation Engineer but such approval may first be given orally.
(2) In abandoning wells, cement plugs shall be used to protect porous formations and unless otherwise directed by the Oil Conservation Engineer, the plugs shall be felt for in accordance with good oil field practice and new plugs shall be placed when necessary.
(3) The interval between plugs shall be filled with an approved mudladen fluid of proper density unless otherwise directed by the Oil Conservation Engineer.
(4) Seismic shot holes and structure test holes shall be abandoned by a method approved by the Oil Conservation Engineer and in accordance with good oil field practice.
(5) Upon abandonment of the well, all excavations shall be filled and exact locations of such well or hole shall be marked by a pipe not less than two inches in diameter set solidly into a concrete block or other approved material and projecting at least four feet above ground level.
(6) The name of the well shall be plainly and permanently marked on the pipe in a manner approved by the Oil Conservation Engineer.

Restoration of Surface

16 The licensee, permittee or lessee shall, as soon as weather or ground conditions permit, upon the final abandonment and completion of the plugging of any well or structure test hole, clear the area around the location of all refuse material, burn waste oil, drain and fill all excavations, remove concrete bases, machinery and materials other than the marker provided for in subsection 15(5) and level the surface to leave the site as nearly as possible in the condition encountered when operations were commenced.

Reports to Oil Conservation Engineer

17 (1) A report in triplicate on a form approved by the Chief shall be forwarded to the Oil Conservation Engineer within 30 days of

(a) the abandonment of a well; or
(b) the suspension of drilling of a well.

(2) The licensee, permittee or lessee shall, within 30 days of receiving core, oil, gas or water analyses by him or caused to be made by him, submit copies in duplicate to the Oil Conservation Engineer.
(3) Upon completion of a structure test hole program the licensee, permittee or lessee shall submit to the Oil Conservation Engineer a report on a form approved by the Chief in triplicate on each hole drilled.

18 (1) Within 30 days after the completion of a well or the recompletion of a well into a different producing interval or a workover operation, a report in triplicate shall be filed with the Oil Conservation Engineer on a form approved by the Chief by the permittee, lessee or his authorized agent.
(2) Within 30 days after the initial production test following completion, recompletion or any workover operation, a supplemental well completion report in triplicate shall be filed with the Oil Conservation Engineer on an approved form.
(3) During any period of testing as required by the Oil Conservation Engineeer following completion, recompletion or workover operation, the licensee, permittee or lessee shall report weekly, if mail service permits, in duplicate, the daily production and such report shall be specific as to the recovery of oil or gas and the period of time in which production was obtained.

Suspension of Drilling or Production

19 (1) The licensee, permittee or lessee shall notify the Oil Conservation Engineer by submitting notification on a form approved by the Chief in triplicate before drilling or production operations are suspended at any well.
(2) The licensee, permittee or lessee shall comply with all precautionary measures required by the Oil Conservation Engineer.

20 The licensee, permittee or lessee shall not resume operations on any well that has been suspended without previously notifying the Oil Conservation Engineer and submitting the form approved by the Chief in triplicate.

Where Wells or Holes to Be Drilled

21 (1) Except with the approval of the Oil Conservation Engineer, no well shall be drilled

(a) within 250 feet of the outer boundaries of a leased area, any road allowance, surveyed road, railway, pipeline, high voltage power line or other right-of-way, dwelling, industrial plant, building used for military purposes, permanent farm building, school or church; or
(b) within 1/2 mile of any existing or proposed flightway or any airfield.

(2) A licensee, permittee or lessee shall carry on his operations with a minimum of inconvenience and interference with existing or proposed airfields.

Well Spacing

22 (1) Every development well shall be drilled

(a) within a target area; or
(b) in such manner as will permit the well to be drilled into a target area before being completed.

(2) The Chief may designate a grid area as a well spacing area and no person shall drill a well within a well spacing area except within a target area approved by the Chief.

Oil and Gas to Be Conserved

23 Whenever a stratum penetrated in a well or structure test hole is capable of producing gas, the licensee, permittee or lessee shall take all reasonable precautions and confine such gas to its original stratum until such time when such gas can be produced and utilized without waste.

24 (1) The licensee, permittee or lessee shall make provision to the satisfaction of the Oil Conservation Engineer for the control and conservation of oil and gas at every well and structure test hole and he shall take all reasonable steps to maintain his equipment for such purpose in proper condition.
(2) Where at any time, in the opinion of the Oil Conservation Engineer, such equipment is inadequate, he may prescribe the remedial measures that shall be instituted and completed before any further drilling or production is undertaken.

Precaution Against Waste

25 Every licensee, permittee or lessee shall take all precautions to the satisfaction of the Minister to prevent waste.

Testing of Wells

26 The surface and subsurface equipment of every oil and gas well shall be so arranged as to allow the taking of closed-in pressure, bottom hole pressure, the working pressure and the making of any reasonable tests required.

Equipment Required

27 (1) No equipment, casing or tubing used in drilling or production shall be used unless it is in good general condition and complies in all respects with these Regulations.
(2) Each well shall be cased in such manner as may be prescribed or approved by the Oil Conservation Engineer, unless he is satisfied that casing is not required in any particular case.

Defective or Inadequate Equipment

28 (1) Where it appears to the Oil Conservation Engineer that any equipment, casing or tubing used in drilling or production is inadequate, defective or hazardous, he may require the replacement or reconditioning of the equipment, casing or tubing, and may require that operations be discontinued until the required action is taken.
(2) The subsurface equipment shall include a pincollar or its equivalent at the lower end of the production tubing as a safeguard against loss of testing equipment, but the Oil Conservation Engineer may grant permission to dispense with the pincollar.
(3) The surface equipment shall include such valve connections as are necessary to sample the oil, gas or water produced.

Plan to Be Furnished

29 The lessee shall furnish to the Oil Conservation Engineer upon request a plan in duplicate showing the position of all wells, pipelines, tanks, buildings or other structures on the leased area.

Minister May Take Remedial Measures

30 (1) The licensee, permittee or lessee shall at all times take reasonable measures to the satisfaction of the Oil Conservation Engineer to prevent or to remedy the injurious access of water, gas or oil into a formation.

(2) Where any well is a menace to oil, or water-bearing formations or to life or property, and if remedial measures are considered necessary and the licensee, permittee or lessee of the well fails to use such measures as may be directed by the Minister, the Minister shall, at the expense of the licensee, permittee or lessee, take such steps and employ such persons as he considers necessary to carry out the remedial measures and for that purpose may

(a) enter upon, seize and take possession of any such well, together with the whole or part of the movable and immovable property in, on or about the well or used in connection therewith or appertaining thereto; and
(b) take over the management and control thereof for the time necessary to carry out the remedial measures.

Excavations and Disposal of Earth, Rock and Waste

31 (1) The permittee or lessee shall enclose and keep enclosed all openings or excavations made in connection with or for the purpose of exploring for and producing oil and gas or other operations.
(2) The licensee, permittee or lessee shall at all times make such provisions to the satisfaction of the Oil Conservation Engineer for the disposal of the earth, rock, waste or refuse that it shall not be an inconvenience, nuisance or obstruction to any roadway, pass, passage, river, creek or place or to any private or Canada lands, or conflict or embarrass the operating of any mines on the said lands, or in any manner whatsoever occasion unnecessary private or public damage, nuisance or inconvenience.

Salt Water

32 The licensee, permittee or lessee shall take all reasonable care and carry out such measures as may be satisfactory to the Oil Conservation Engineer with regard to the disposal of salt water.

Storage

33 When an area is designated as a field by the Minister, or where it is expected that oil and gas will be encountered, adequate provision shall be made

(a) for the conservation of oil and gas before a well is drilled in; and
(b) for producing and storage equipment before a well is placed on production.

Safety Precautions to Be Taken

34 (1) No oil shall be stored in an unprotected excavation or in storage receptacles that are inadequate or likely to cause reasonably avoidable waste or loss.
(2) All tanks or batteries of tanks shall be surrounded by a dike or ditch of a capacity greater than that of the tank or battery of tanks and the dike or ditch shall be maintained in good condition and free from high grass, weeds or combustible material.
(3) All oil tanks or batteries of tanks shall be located at least 200 feet from the outer perimeter of the ditch or dike to any road allowance, surveyed road, railway other than siding, high voltage power line or other right-of-way, dwelling, industrial plant, existing or proposed aircraft runway or taxiway, building used for military purposes, farm building, school, church or cemetery and shall not be located in the flightway of an airfield within 1,000 feet of the end of the runway without a special permit.
(4) Reasonable precautions shall be taken to prevent salt water, drilling fluid, waste, oil or refuse from tanks or wells from flowing over the land.
(5) Any rubbish or debris that might constitute a fire hazard shall be removed to a distance of at least 150 feet from the vicinity of any well, tank or pump station.
(6) All waste, oil and refuse from tanks or wells shall be drained into proper receptacles located not less than 100 feet from any tank, well or building and shall be burned immediately or transported from the premises, and when necessary and practicable, surrounded by a fireguard.
(7) No flammable product or waste produce of any kind from any oil or gas well shall be permitted to run into any lake, stream or other body of water or on to any highway or public road.
(8) No flare pit or end of flare line shall be located closer than 250 feet to any road allowance, surveyed road, railway, pipeline, high voltage power line or other right-of-way, dwelling, industrial plant, aircraft runway or taxiway, building used for military purposes, permanent farm building, school, church or cemetery, except where the Oil Conservation Engineer finds a lesser distance is justified under the circumstances.

Gas Metering

35 (1) A well producing gas shall be equipped with a gas meter of a type approved by the Oil Conservation Engineer, and no gas shall be produced at a well unless it is metered or the Oil Conservation Engineer gives permission to dispense with a meter.
(2) Each orifice meter shall be installed in accordance with the regulations made under the Gas Inspection Act.
(3) Where gas from several wells is brought to a common point for metering, each meter shall be marked clearly to indicate the source of gas being measured.
(4) Any by-pass around a meter shall be closed by valves or stop-cocks that effectively stop all flow of gas when closed, and, on every occasion when the by-pass is operated and on any extraordinary occasion where gas does not reach the meter, a suitable entry shall be made on the meter chart.
(5) Whenever an orifice plate is installed or changed, a record of the time and the size of the orifice removed and inserted shall be recorded on the meter chart.
(6) Each orifice meter-run installed shall be equipped with a thermometer well and pressure gauge connection.
(7) The measured inside diameter of the pipe at the orifice shall be clearly marked on the pipe near the orifice flanges.
(8) The orifice plate shall show clearly the size of orifice, in inches and decimals, by figures stamped or cut into the metal of the plate, and a plate shall not be rebored or the orifice size increased without first removing or permanently defacing the old marking.
(9) Each meter shall be maintained in good and usable condition.
(10) Purchasers shall keep meter charts and records of gas purchased in a permanent file for a period of at least two years and such information shall be made available to the Oil Conservation Engineer at his request.

Orifice Meter Charts

36 (1) Orifice meter charts shall be clearly marked in such manner as to indicate the well or wells being metered and the time and the date of start and finish of records.
(2) Charts shall be computed and shall be preserved for a period of one year.
(3) In computing the quantity of gas passing the meter during the period covered by a chart, all metered gas shall be recorded together with a fair estimate of all gas passed during all periods in which the meter for any reason fails to record.
(4) Coefficients for calculating meter charts shall be computed in accordance with the regulations made under the Gas Inspection Act.

When Meters Not Required

37 (1) The Oil Conservation Engineer may permit group meter measurements.
(2) The Oil Conservation Engineer, after examination, may exempt any well or wells from metering the volume of gas produced therefrom if satisfactory estimates of the volume of gas produced are supplied to the Oil Conservation Engineer in lieu of meter measurements.
(3) Where, in the opinion of the Oil Conservation Engineer, adequate measurements are not being made of the gas produced from any well, the Oil Conservation Engineer may require that such well be closed in until such time as adequate measurements or other satisfactory arrangements for determining quantities have been made.

Testing Gas Wells

38 (1) Before production is taken initially from any gas well it shall be tested by the back-pressure method.
(2) Each producing gas well shall be tested at least every 12 months.
(3) At the request of the lessee or lessees of a majority of the gas wells in any pool not subject to special pool regulation, the Oil Conservation Engineer may direct that such gas wells in the pool be tested by any standard method recognized as being practicable, except that all gas wells in any one pool shall be tested by the same method.
(4) Tests shall be made in accordance with detailed instructions obtainable from the Oil Conservation Engineer and shall be forwarded promptly to the Oil Conservation Engineer on a form approved by the Chief.
(5) Shut-in pressures shall be taken on all producing gas wells semi-annually unless the taking of such pressures is covered by special pool order.
(6) Surface shut-in pressure shall be taken with a dead-weight gauge after a minimum shut-in period of 24 hours.
(7) All shut-in pressures and the duration of the shut-in period thereof shall be reported to the Oil Conservation Engineer on the regular monthly gas well report.
(8) Open-flow and back-pressure tests on gas wells may be witnessed or observed by the Oil Conservation Engineer and he shall be given reasonable notice by the permittee or lessee of the well on which the tests are to be taken, setting the time that such tests will commence.

Well Treatment

39 (1) The licensee, permittee or lessee shall not allow a well to be shot with nitroglycerine or similar type of explosive until the Oil Conservation Engineer has been notified of the contemplated action.
(2) All reasonable precautions shall be taken when shooting, perforating, hydraulically fracturing or chemically treating a well, to ensure that no irreparable injury is done to the well, and to prevent ingress of water or other foreign substance into productive zone.
(3) The licensee, permittee or lessee shall submit to the Oil Conservation Engineer a report on all wells shot, perforated, hydraulically fractured or chemically treated on a form approved by the Chief and shall include particulars of the results obtained.
(4) In case any injury is done to the well by shooting, perforating, hydraulically fracturing or chemically treating, the licensee, permittee or lessee may repair or abandon the well and it shall be repaired or abandoned promptly to the satisfaction of the Oil Conservation Engineer if such repair or abandonment is reasonably necessary to prevent waste of oil or gas or damage to persons or property.

Gas-Oil Ratio

40 (1) The maximum gas-oil ratio for a well or a pool shall be determined by the Minister.
(2) No oil well shall be permitted to produce gas in excess of the maximum ratio unless all gas produced in excess thereof, except gas used in gas-lift operations, is returned to the pool from which it was produced under conditions authorized by the Minister.

Gas-Oil Ratio Surveys

41 Gas-oil ratio surveys shall be taken in the manner approved or prescribed by the Oil Conservation Engineer.

Commingling of Production

42 (1) A person shall not allow a well to produce from more than one pool unless such action is authorized by the Minister in writing.
(2) The method of multiple completion shall be approved by the Oil Conservation Engineer.

43 The production from one pool shall not be commingled with that from another pool in the same field before measurement without permission from the Oil Conservation Engineer.

44 No permittee or lessee shall permit a well to produce either oil or gas from different pools through the same production string without first receiving written permission from the Oil Conservation Engineer.

Affixing of Seals

45 (1) The Oil Conservation Engineer, wherever he considers it necessary to do so, may seal or cause to be sealed with a metallic seal or seals any or all valves or meters installed at a well or wells or on pipelines, tanks or other receptacles used for the storage or transportation of oil or other fluid produced or withdrawn from the well or wells.
(2) The person in charge of operations at the well, and the permittee or lessee shall be notified in writing by the Oil Conservation Engineer of the affixing of the seal or seals and the reasons therefor.
(3) Any seals so affixed shall not be removed, except in case of an emergency, without authority in writing from the Oil Conservation Engineer.

Designating Pool or Field

46 The Minister may designate an area as a pool, field or both and shall name all oil and gas pools and fields in Canada lands.

Well-name Register

47 (1) The licensee, permittee or lessee shall mark each of his wells in a conspicuous place with a sign on which is printed, in reasonably large and legible letters, the name of the licensee, permittee or lessee, the name of the well and the legal description of the location and he shall keep the sign posted and the lettering clear.

(2) There shall be maintained in the Department a record of official names, to be known as the well-name register, in which shall be entered

(a) the location of each well and the name thereof, which shall be approved by the Oil Conservation Engineer;
(b) the name of the licensee, permittee or lessee and his agent or operator of the well;
(c) the name of the drilling contractor; and
(d) any subsequent name or names assigned and approved by the Oil Conservation Engineer.

(3) The last name of the well shown in the well-name register shall be the official name and the one by which the well shall be known.
(4) The Oil Conservation Engineer may grant or refuse an application to change the official name, and if the application is granted, the new name shall be entered in the well-name register.

Proration

48 The Minister may in his discretion fix and regulate the production and allowables from all wells or pools in order to effect economic production and the conservation of oil and gas.

Injection

49 (1) Where an application is made to inject fluids into an underground reservoir, the Minister may authorize or refuse to authorize such action.

(2) The application shall set forth

(a) the location of each intake well;
(b) the location of all oil and gas wells, including abandoned and drilling wells and dry holes and the names of permittees or lessees within two miles of each intake well;
(c) the formations from which wells are producing or have produced;
(d) the name, description and depth of each formation in which fluid is to be injected;
(e) the well completion program and the depth of the casing shoe or liner below which it is to be injected;
(f) the elevations of the top of the formation into which the fluid is to be injected in the intake well and the wells producing from the same formation within a two-mile radius of each intake well;
(g) a log of each intake well or such information as is available;
(h) a description of the fluid, stating the kind, where obtained and the estimated amounts to be injected daily;
(i) the name and address of the applicant or person to be in charge of the injection operation; and
(j) such other information as the Oil Conservation Engineer may require to ascertain whether the injection may be safely and legally made.

(3) Application may be made to include the use of more than one intake well.
(4) Each application shall be executed by the lessees who are willing to participate in the proposed operations.

(5) Upon approval of the Minister, the applicant or the person in charge of injection operations shall notify the Oil Conservation Engineer

(a) of the date of commencement of such operations; and
(b) within the 10 days next following the discontinuance of such operations, together with reasons in writing in respect of such discontinuance.

(6) Each well used for the injection of gas or water into a producing formation shall be cased with sound casing so as not to permit leakage, and the casing shall be cemented so that damage will not be caused to oil, gas or fresh water reservoirs.

(7) The lessee of an intake well shall keep an accurate record of

(a) the amount of fluid injected into the intake well;
(b) the source of fluid injected; and
(c) the pressure used in injection of the fluid.

50 Before fixing and regulating production under section 48 or authorizing the injection of fluids into a reservoir under section 49, the Minister shall have regard to all the circumstances that appear to be relevant and shall consider the interests of other permittees or lessees in the area.

51 The Minister may direct that injection wells may be used by others than the applicant.

Records — Scrubbing Plant, Absorption Plant

52 (1) Each person who is the owner or who has the control or management of a scrubbing plant or absorption plant in the Northwest Territories and Yukon Territory shall keep, at his office or other place of business, records of

(a) all gas received into a scrubbing plant or absorption plant;
(b) the name and address of each person from whom the gas was received;
(c) the quantity and quality of the gas received from each person;
(d) the price payable in respect thereof; and
(e) each disposition and price received by him of any product obtained from treating or processing gas.

(2) Each person operating a plant for processing gas shall keep a daily record of such gas and file in duplicate with the Chief, not later than the 25th day of each month, a full report, on a form approved by the Chief, of the gas processed during the preceding month.

Records — Oil and Gas Production and Repressuring, Cycling

53 (1) Where a well is producing or is capable of producing oil and gas, there shall be kept, at the field office or other place of business acceptable to the Oil Conservation Engineer, a daily record, on a form approved by the Chief, of

(a) the oil, gas, water and sediment produced from the well;
(b) the average separator pressure if a separator is in use; and
(c) the full particulars of the disposition of all products of the well.

(2) Where fluid is being injected into a well, there shall be kept, at the field office or other place of business acceptable to the Oil Conservation Engineer, a daily record, on a form approved by the Chief, of

(a) the gas or liquid injected into the well;
(b) the source from which the gas or liquid was obtained; and
(c) the particulars of any treatment to which the gas or liquid has been subjected.

(3) Each permittee or lessee of a well that, during the preceding month, produced or was capable of producing oil or gas, or into which fluid was injected during the preceding month, shall file a statement in duplicate with the Chief, on forms approved by him, not later than the 25th day of the month, showing

(a) the oil, gas, water and sediment produced from the well during the preceding month and the disposition thereof;
(b) the liquid and gas injected into the well during the preceding month; and
(c) the average separator pressure during the preceding month if a separator is in use.

(4) If a well is shut in, a record so stating shall be filed in duplicate with the Chief each month until production is resumed or the well is abandoned.

(5) The Oil Conservation Engineer, upon application, may permit the keeping of records or the filing of reports in accordance with this section for a battery or group of wells, but in such cases

(a) the figures shall be apportioned in a manner satisfactory to the Oil Conservation Engineer to indicate as nearly as possible the actual production of the individual wells; and
(b) the apportioned figures shall represent the production of each well for all purposes.

(6) The permittee or lessee shall keep such other records and furnish such other reports as the Minister may require.

Accident Reports

54 (1) A licensee, permittee, lessee or his agent shall report to the Oil Conservation Engineer immediately by telegraph, telephone or radio and confirm by letter

(a) any well flowing out of control;
(b) all fires that occur at oil or gas wells or storage tanks owned, operated or controlled by him or on his property;
(c) all tanks struck by lightning;
(d) any other fires that destroy oil or gas; and
(e) any breaks or leaks in tanks or pipelines from which any serious loss of oil or gas has occurred.

(2) In all reports of fires, breaks or leaks in pipes, or other accidents of this nature, the location and name of the well, tank or line break shall be given.

Reservoir Surveys

55 (1) The Oil Conservation Engineer may direct permittees and lessees at such time and in such manner as he may deem advisable to conduct all reasonable tests and furnish information in respect of oil or gas reservoirs.

(2) Notwithstanding the generality of subsection (1), the tests and information to enable the taking of reservoir surveys may relate to

(a) the practices and methods employed in operating a well;
(b) the volume and source of oil and gas;
(c) the pressure of the reservoir as an average;
(d) the areas of the regional or differential pressure;
(e) gas-oil ratios;
(f) the producing characteristics of individual wells in any field; and
(g) the producing characteristics of any field.

Safety Regulations

56 (1) A person who operates a drilling rig shall take all necessary and reasonable measures to enforce these Regulations and to ensure that they are observed by each and every employee; and a toolpusher and a driller shall take all reasonable measures to enforce the requirements of all such regulations as are applicable to the work over which he has supervision and to ensure that the same are observed by workmen under his charge and direction.
(2) An owner or any employee shall take all reasonable measures to carry out his duties in accordance with such rules as are applicable to the work in which he is engaged.

General Requirements

57 (1) No derrick, buildings, draw works, links, elevator, tongs, machinery, tools or other equipment shall be used that are unsafe, unsuitable or not so constructed, protected, placed and operated as to afford reasonable safety from accidents to persons employed in or around wells.
(2) The spudding in or drilling operations at any oil or gas well shall not be performed until all moving parts of machinery are securely guarded and until all stairways, handrails and escape lines with escape buggy installed at the derrick platforms are properly installed and fastened in position.

Blowout Prevention

58 (1) Where a licensee, permittee or lessee or his agent is drilling a well, he shall install, maintain and use at all times necessary control equipment as required by section 7.
(2) Except in instances in which loss of circulation occurs through unforeseeable circumstances, sufficient drilling fluid of proper density shall be kept in the well at all times to minimize the possibility of the well blowing out of control.

Derricks

59 (1) Every derrick and derrick floor, walk, ladder and platform shall be substantially constructed of structurally sound material to conform with standard practice and shall be kept in good repair.
(2) Subject to section 60, the engineroom, pumphouse, derrick floor and fourble board shall be properly enclosed to a sufficient height to provide protection against the weather for employees.

Derrick-room Exits

60 (1) Where practicable, an exit shall be provided on each of at least three sides of the derrick-room in addition to one from the doghouse direct to the outside.
(2) The pumphouse shall have two doors leading to two different directions to the outside, placed as far apart as practicable.
(3) All exit doors of a derrick, including all doors of the doghouse, shall open outwards from the derrick-room and shall not be held closed with a lock or an outside latch when workmen are employed in the main derrick-room.

Derrick Crown Platform and Railings

61 (1) On every jacknife derrick constructed for drilling or equipped for redrilling, a platform at least two feet wide shall be provided on at least one side of the crown block, and shall be equipped on its outer edges with a standard two-rail railing 3 1/2 feet high and a toe-board six inches high.
(2) On every other derrick constructed for drilling or equipped for redrilling, a platform at least two feet wide shall be equipped on its outer edges with a standard two-rail railing 3 1/2 feet high and a toe-board six inches high.

Outside Derrick Platform for Conventional Drilling Rigs

62 (1) A platform shall be provided completely around the derrick level with the fourble board or with the principal working platform where necessary.
(2) The width of such platform shall be not less than two feet.
(3) Platforms shall be provided with openings not exceeding 30 inches by 30 inches to permit the passage of men climbing derrick ladders.
(4) A platform shall be equipped on its outer edges with a standard two-rail railing 3 1/2 feet high and a toe-board six inches high.

Inside Derrick Platforms

63 (1) Each platform erected on the inside of every derrick, except stabbing boards, shall completely cover the space from the working edge of the platform back to the legs and girts of the derrick.
(2) The decking plank on the working side of each platform shall be secured to the derrick girts with U and J bolts.
(3) Each working platform shall be equipped with a wire rope not less than 1/2 inch in diameter securely fastened under and over the platform with U or J bolts, both ends being secured to the same girt of the derrick.
(4) Stabbing boards shall be constructed of not less than one fir plank three inches by 12 inches and one reinforcing plank two inches by 12 inches or of material of equal strength; all planks shall be free of knots or other defects and shall project at least 12 inches beyond the support on which they rest; pieces of not less than two-inch angle iron shall be bolted near the ends of the three-inch by 12-inch board, either inside or outside the girt supporting the board, and in addition, each end of the board shall be fastened to the derrick with a safety line of 1/2 inch diameter wire rope securely fastened to the inside of the board with U or J bolts at a point not exceeding three feet towards the centre from the girts.
(5) The supports on opposite sides of a derrick on which the stabbing board is placed shall be reasonably level, rigid, horizontal and securely fastened.

Ginpoles

64 (1) The ginpoles at the crown of every derrick shall have at least two uprights and a cross beam or their adequately constructed equivalent.
(2) The clearance between the crown platform and the crossbeam shall be not less than seven feet.

Crown Blocks

65 The gudgeons of all sheaves on every derrick crown block shall be provided with bearings fitted with caps or metal straps constructed in a manner that will prevent any gudgeon from jumping out of its bearings.

Fingers

66 On all rotary rigs where fingers are used at fourble platforms, each finger shall be secured to the derrick by a wire-rope safety cable not less than 1/2 inch in diameter attached to the outer end of the finger.

Ladders and Stairways

67 (1) On every derrick a ladder shall be provided from the floor to the crown platform.
(2) All ladders shall be caged or provided with platforms not more than 21 feet apart or with other approved derrick ladder safety equipment.
(3) Caging for a ladder shall be constructed of metal hoops securely fastened to the ladder, spaced not more than six feet apart, and extended out not more than 30 inches from the rungs of the ladder, hoops shall be fastened together with metal bars at least one inch by 1/8 inch spaced not more than 12 inches apart and the lower loop of such caging shall not be more than eight feet from any landing.
(4) Platforms shall be not less than four feet long and shall extend at least 30 inches from the rungs of the ladder and shall be equipped with a standard two-rail railing and toe-board as described in subsection 62(4), and platforms shall be provided with openings not exceeding 30 inches by 30 inches to permit the passage of men climbing derrick ladders.
(5) Rungs shall be uniformly spaced not to exceed 14 inches centre to centre, and the width of the ladder shall be not less than 12 inches between stringers.
(6) A clearance of at least 6 1/2 inches shall be maintained back of the ladder rungs.
(7) Each ladder section shall be secured to the derrick with U bolts and shall project at least three feet above its platform.
(8) No section of the ladder shall lean back from the vertical.
(9) A stairway and landing platform shall be installed to connect the derrick floor to the catwalk.
(10) All stairways shall be securely fastened, provided with suitable handrails and kept in a state of good repair.

Auxiliary Means of Escape

68 (1) Auxiliary means of escape from the fourble board or the principal working platform on every drilling derrick shall be provided by means of a specially rigged escape line from the working level to the ground.
(2) Each escape line shall be not less than 1/2 inch diameter soft iron wire rope smooth and free from obstructions.
(3) The escape line shall be tightened to such a tension that a man suspended on such a line 20 to 25 feet from the anchor will touch the ground.
(4) The escape line shall be attached to the derrick at a point to provide a ready and convenient means of escape for the derrick man at the fourble board or other principal working platform and shall extend to a securely anchored deadman.
(5) The length of the escape line shall be twice the height of the derrick to which it is attached.
(6) Each escape line shall be equipped with a safety buggy provided with a suitable hand brake that shall be kept at the fourble board or principal working platform at all times during which a workman is engaged thereon.
(7) The safety buggy shall be tested at weekly intervals and a record of such test shall be entered in the Rig Record Book by the toolpusher in charge at the well or other person authorized by the owner of the rig.

Safety Belt and Lines

69 (1) Every safety belt shall be capable of withstanding a weight of 500 pounds dropping five feet.
(2) A safety belt securely fastened to the derrick shall be provided for and worn by each workman when engaged in working above the derrick floor.
(3) At any stabbing board the safety belt rope shall be attached to a 1 1/8 inch diameter manilla rope, or to a wire rope of equal strength, stretched across the derrick at approximately seven feet above the stabbing board.
(4) The safety belt rope worn by the derrickman shall be a manilla rope of at least 1 1/8 inches in diameter or wire rope of equal strength.
(5) The slack in the line of a safety belt rope shall not exceed five feet.
(6) A toolpusher shall ensure that every safety belt, line and fitting is kept in good repair.

Head Protection

70 Hard hats shall be worn by all workmen when employed on the derrick floor including work on the erection and dismantling of derricks.

Eye Protection

71 Properly fitting goggles of a type suitable for the purposes for which they are being used shall be provided by the employer and worn by the workman at all times when engaged in

(a) the mixing of chemicals;
(b) welding operations;
(c) the chipping of metal or any other operation involving the tapping or hammering of metal on metal;
(d) the grinding of metal; or
(e) cleaning by use of compressed air.

Pipe Hooks

72 Where pipe hooks are used above the derrick floor, every pipe hook shall be secured to the derrick in such a manner as to prevent the hook from falling.

Loose Material in Derricks

73 No tools, machine parts or material of any kind shall be kept in a derrick above the derrick floor unless there is occasion for their immediate use, and then adequate precaution shall be taken to prevent their falling on persons below.

Travelling Blocks, Hooks, Elevators and Weight Indicators

74 (1) No employee shall ride the travelling block, hook or elevators, nor slide down pipes, kelly hose, cables or rope lines other than the escape line.
(2) On all types of travelling blocks the points where the cables run on the sheaves must be guarded against personal contact.
(3) Every drill-pipe casing, tubing and sucker-rod hook shall be provided with a latch or other device to prevent elevator links and other equipment becoming accidentally disengaged from the hook.
(4) Every drilling rig shall be equipped with a reliable weight indicator to enable the driller to determine the weight being carried on the drilling line.

Counterbalances

75 On rotary drilling rigs every counterbalance above the derrick floor, when not fully encased or running in permanent guides, shall be attached to the frame of the derrick with a separate wire-rope safety line not less than 5/8 inch in diameter so as to prevent the counterbalance from coming within eight feet of the floor.

Hand Tools

76 All hand tools shall be kept in a state of good repair.

Well Completion and Work-over Jobs

77 (1) On all occasions before wells are brought into production by swabbing, bailing or displacement with gas or oil, the siding shall be removed from three sides of the derrick below the derrick floor.
(2) Before bailing or swabbing operations are undertaken, and before work-over jobs are commenced, the siding shall be removed from any two opposite sides of the derrick to a height of not less than six feet above the derrick floor.
(3) The suction pit or tanks used for the circulation of oil shall not be located inside the pumphouse.

Oil and Gas Storage Tanks and Containers

78 (1) No workman shall be required to enter any tank or other container used for the storage of oil or of any product thereof or any confined space unless and until

(a) all gases likely to prove injurious to each workman have been removed;
(b) such workman has been equipped with an air line mask or other breathing apparatus and whatever equipment is used must be of a type approved by the Oil Conservation Engineer; and
(c) such workman has been supplied with a rope that has been made fast to his body and also to a substantial support on the outside of the tank or other container; such rope must be of sufficient length to reach from the support on the outside to any point of work in the tank or container and shall be of sufficient strength to bear the weight of the workman, and the workman shall be attended by two men whose duty it is to stay on the outside of the tank and to keep a close watch over the workman inside.

(2) All work in any confined space where conditions are such as to produce nausea or indisposition on the part of the workman shall be arranged in short shifts with the men on the outside alternating with the workman inside.
(3) No flashlights or lanterns other than those that are approved for such use by the Oil Conservation Engineer shall be used around gas or oil wells.

Electrical Installations

79 (1) All electrical installations at or within 75 feet of any drilling rig, well, separator, crude petroleum storage tank or other unprotected source of ignitable vapours shall be in accordance with the standards prescribed by the Canadian Electrical Code, except where those standards do not conform with the provisions of these Regulations.

(2) In lighting installations

(a) all wiring shall be in

(i) rigid, threaded and vapour-proof conduit with threaded vapour-proof fittings, or
(ii) assemblies of type S cord with vapour-proof fittings approved by the Oil Conservation Engineer;

(b) all switching and overcurrent protection shall be enclosed in a vapour-proof cabinet with all conductor raceways entering the cabinet properly sealed;
(c) all extension cords shall be so connected that accidental disconnection is impossible and when cord receptacle of the lock and switch type are not provided, instructions shall be issued to turn off the current before connecting or disconnecting extension cords;
(d) all lamps shall be provided with guards approved by the Oil Conservation Engineer; and
(e) all service conductors shall be enclosed in rigid, threaded and vapour-proof conduit or lead-covered or aluminum-covered cable extending at least 75 feet horizontally from any drilling rig, well, separator, crude petroleum storage or other unprotected source of ignitable vapours.

(3) In power installations

(a) all wiring shall be in

(i) rigid, threaded and vapour-proof conduit or lead covered armoured cable or aluminum-covered armoured cable, or
(ii) assemblies of type S cable with vapour-proof fittings if approved by the Oil Conservation Engineer; and

(b) all switches, control and overcurrent protective devices shall be of a vapour-proof type if fitted inside a derrick or derrick building or within 75 feet of any well, separator, crude petroleum storage or other unprotected source of ignitable vapours.

(4) Electric generators, motors and heaters within 75 feet of a drilling rig or well or of equipment in which ignitable vapours are contained shall be of totally enclosed construction.
(5) Electrical installations shall be properly maintained at all times.

Illumination of Rigs

80 Lighting shall be sufficient to provide at all times for a minimum illumination of

(a) five foot candle power on all of the derrick floor;
(b) three foot candle power at the fourble board, pumps and catwalk; and
(c) one foot candle power at the shale shaker, stairways and other working areas.

Control of Static Electricity

81 Metallic parts of containers and conductors of flammable fluids shall be in electrical contact with and connected to the ground in such manner as will prevent development of static electric charges.

Fire Extinguishers

82 (1) Each drilling rig shall have not less than two 20-pound dry powder extinguishers and each boiler house shall have not less than two five-gallon non-freeze type fire extinguishers all of which shall be kept in good working condition.
(2) When a steam pressure of 100 pounds or more is used on or about any rig, there shall be placed in the derrick room thereof, apart from other snuff line, a steam hose of a diameter of not less than one inch and a length of hose of not less than 20 feet, securely connected to a steam line with the valve situated close to the exit therefrom.

Breathing Apparatus

83 (1) Every employer shall keep on hand a sufficient number of air line respirators or other breathing apparatus all of which shall be of a type approved by the Oil Conservation Engineer.
(2) An employee, when working in an area where gas accumulations may present a hazard, shall use an air line mask or other breathing apparatus.
(3) All breathing apparatus shall be tested once in each month and the result of this test entered in a log book, or if the apparatus is provided in connection with a drilling operation, in the Rig Record Book, and the entry signed by a person authorized by the owner or operator of the apparatus.

Smoking and Fires

84 (1) No person shall smoke

(a) on any rig, derrick or any derrick house;
(b) within 75 feet of any drilling rig, well or any equipment used for the storage, measurement, separation, pumping, transfer or processing of any oil and gas where oil or gas may be present.

(2) No fire shall be located less than 75 feet from any drilling rig, well or from any equipment in which ignitable vapours are contained.
(3) Any fire that is set shall be safeguarded by mechanical or other means so that no hazard to surrounding property is created.
(4) All waste material shall be burned in a manner so as not to create a fire hazard to wells, tanks or other equipment containing ignitable vapours or disposed of in such a manner so as not to pollute any stream or fresh water stratum.
(5) No heating or lighting apparatus involving the use of a flame or exposed electrical element shall be brought into a drilling rig doghouse.
(6) No stove, open flame heater or electric heater with exposed elements shall be used within 75 feet of any drilling rig, well or of any equipment in which ignitable vapours are contained.
(7) Steam boilers or open flame steam generators shall be located at a point not less than 150 feet distant from a well or any equipment containing ignitable vapours and on the side from which the prevailing wind blows.

(8) On all internal combustion engines on a derrick floor or in a drilling engine room or within 75 feet of any equipment containing ignitable vapours

(a) the exhaust systems, where the temperature of the parts in contact with hot gases exceeds 400°F, shall be thermally insulated and covered by metal so that no liquids can be absorbed by the insulating materials;
(b) engine air inlets shall be fitted with flame arrestors if located within 40 feet of a well head and the final engine exhaust to atmosphere shall be fitted with a flame trap if situated within 40 feet of the well head unless otherwise directed by the Oil Conservation Engineer;
(c) the exhaust pipes shall be directed away from the well or any equipment containing ignitable vapours; and
(d) the manifolds shall be shielded to prevent contact with liquids which might fall thereon.

(9) The cylinders, valve chests and other hot exposed parts of steam engines and steam pipes on a derrick or in a drilling engine room or within 75 feet thereof, whenever the steam temperature exceeds 400°F, shall be fitted with thermal insulation and the insulation shall be covered by metal so that no liquid can be absorbed by the insulating materials.

Fuel Tanks

85 (1) Except for the fuel tanks actually connected to the operating equipment, no storage of gaseous or liquid fuel shall be permitted within 75 feet of a well.
(2) Drainage from such a location shall be such that the flow is in a direction away from the location of such well.

Drill Stem Tests

86 Unless a rig is adequately lighted by natural light or by means of floodlights having no electrical equipment capable of igniting gas or oil within 75 feet of the well head, no drill pipe shall be disconnected during a drill stem test unless there is no possibility of any oil or gas being present in the drill pipe.

Test Plugs

87 In addition to its regular means of attachment, every test plug shall be equipped with a safety line and attached thereby to the links when above the derrick floor.

Pipe Racks

88 Pipe racks shall be substantially constructed and provision made to have the casing, drill pipe, drill collars and the like laid thereon adequately cleated to prevent them from rolling off the racks.

Mudguards

89 When casing or drill pipes are being disconnected on drilling platforms, a metal guard that will prevent mud or water splashing on workmen shall be installed on every drilling rig.

Rotary Drilling Rig

90 (1) On both sides of the draw works, guards of heavy metal shall be provided for all drive sprockets and chains, and such guards shall be strong enough to withstand the shock of breaking chains and shall be installed so that workmen cannot come in contact with the moving parts.
(2) The guard for the low gear drum driven sprockets and chain next to the driller shall be flanged with a steel plate so that a breaking chain cannot hit the driller or foul the brake lever.
(3) On every chain-driven rig, the pinion shaft, the couplings and the bevel gear shall be guarded with metal shields.
(4) On every shaft-driven rig, the drive pinion, the shaft, the coupling and the bevel gears shall be guarded with metal shields.
(5) The pump end of every rig hose shall be securely fastened to the derrick and the swivel end of such hose shall be securely fastened to the swivel housing with a safety chain or wire cable.
(6) The key seat and projecting key on every cathead shall be covered with a smooth thimble.
(7) Every cathead shall be provided with an adequate guard to separate the first turn of the catline.
(8) The tops and outer sides of the hoisting drum brake flanges shall be guarded by a steel plate of a thickness not less than 1/8 inch, and these guards shall be installed with a minimum working clearance from the brake and shall be securely bolted in place.
(9) All rotary rig tongs shall be provided with two separate wire-rope safety cables of a diameter not less than 5/8 inch.
(10) Every steam-driven drilling engine shall, in addition to the usual steam-control valve, be equipped with a quick closing steam valve to which is attached an extension handle of sufficient length so as to be readily available to the driller while at the controls of the rig.
(11) The rotary table shall not be used for final making up or initial breaking out of drill pipe.
(12) Where practicable, a locking device shall be installed on all control levers.
(13) The eye connection of all safety cables shall be securely fastened with at least three U type clamps.
(14) The suction pit shall be equipped on its outer edge with a two-rail railing of adequate height.

Rig Record Book

91 (1) The owner of a drilling rig shall keep at the rig a hard covered book in which shall be entered information as required by sections 68, 83, 92 and 93.
(2) This book shall be readily available to the Oil Conservation Engineer at all times.

Draw Works Brakes

92 The brakes on the draw works of every drilling rig shall be tested by each driller when he comes on shift to show whether they are in good order, and such brakes shall also be examined at weekly intervals by the tool-pusher or other person authorized by the owner of the rig, who shall enter the result of this examination in the Rig Record Book over his signature.

Hoisting, Casing or Rotary Drilling Lines

93 (1) The end of the hoisting line shall be securely fastened to the hoist drum shaft.
(2) The hoisting line shall be long enough so that, when the travelling block is laid horizontally on the derrick floor, there will remain at least three turns of rope on the hoist drum.
(3) Every hoisting line used in well-drilling, well-servicing and well-abandoning operations shall be examined weekly by the toolpusher, or other person authorized by the owner to determine the condition of the line, who shall enter the result of his examination in the Rig Record Book over his signature.
(4) No hoisting line used for well-drilling, well-servicing or well-abandoning operations shall be used when the factor of safety falls below five.

(5) When the examination mentioned in subsection (3) indicates that any one or a combination of two or more of the following conditions may have reduced the safety factor to less than five, the line shall be replaced:

(a) worn wires;
(b) broken wires;
(c) visible corrosion; and
(d) a damaged or otherwise defective line.

(6) The ultimate strength of wire-rope hoisting lines should be based on the manufacturer’s catalogue.

First Aid

94 (1) Every driller employed on a gas or oil well drilling rig shall be the holder of a certificate of competency in First Aid in good standing.
(2) Every employer shall provide and maintain at every drilling rig a suitable First Aid Kit of a recognized standard and a carrying stretcher.

Cellars

95 Cellars, after the setting and heading up of the surface casing, with the exception of those less than four feet deep or those in which a false flooring has been installed to make such cellar less than four feet deep, shall be provided with two runways constructed opposite each other, extending from the cellar bottom to the ground surface, but

(a) the slope of the runways shall not exceed 20 degrees from the horizontal;
(b) the width of the runways shall be not less than three feet in the clear;
(c) the clearance between the floor of each runway and the derrick sills shall be not less than seven feet;
(d) the cellar and cellar exit shall be secured against caving by the use of sheeting and shoring installed in a manner that will permit the unobstructed passage of employees; and
(e) the runways and their approaches shall be kept clear of snow or other material.

Storage of Explosives

96 Except as otherwise provided by the Explosives Act, explosives shall be stored in properly constructed magazines at a distance not less than 500 feet from any place where any drilling or production operation is carried on.

Notice of Fatal Accident

97 Where in or about any well any accident occurs which causes loss of life to any person employed thereat, the person in charge of such well shall immediately notify the Oil Conservation Engineer by telephone, telegraph or radio, and confirm by letter.

Operations Outside the Northwest Territories and Yukon Territory

98 Subsections 15(4), (5) and (6) and sections 21, 31, 33 and 95 do not apply to drilling operations that are carried on outside the Northwest Territories or the Yukon Territory.

Inspection

99 (1) The Minister or person authorized by him may, at any time

(a) enter and inspect any permit area or lease area;
(b) enter and inspect any place or building used in connection with the refining, handling, processing or treating of oil or gas;
(c) inspect any well, record, plant or equipment located in or on any place or building referred to in paragraph (a) or (b);
(d) take samples of any substance found in or on any place or building referred to in paragraph (a) or (b);
(e) take particulars of any well, record, plant or equipment referred to in paragraph (c); and
(f) enter upon any permit area or lease area and carry out such tests or examinations that the Chief may consider appropriate and that are not detrimental to the operations of the permittee or lessee.

(2) The permittee or lessee shall give the Minister, or person authorized by him, such assistance as may be necessary.

Enforcement

100 Where a licensee, permittee or lessee violates any provision of these Regulations, the Minister may give written notice to the licensee, permittee or lessee and unless the licensee, permittee or lessee remedies or prepares to remedy the violation to the satisfaction of the Minister within 90 days from the date of the notice, the Minister may cancel the licence, permit or lease.

Reports

101 (1) Unless previously submitted to the Oil Conservation Engineer or the Chief in accordance with these Regulations or in accordance with the Canada Oil and Gas Land Regulations, every licensee, permittee or lessee shall forward to the Oil Conservation Engineer, in triplicate, within 30 days after the abandonment, suspension or completion of any well,

(a) copies of all logs run in the well;
(b) copies of all drill stem test charts and the results of each test;
(c) copies of all core, gas or fluid analyses;
(d) copies of all bottom hole sample analyses including pressure, volume and temperature data; and
(e) copies of a well completion report on a form approved by the Chief.

(2) In the case of a well other than a development well, the licensee, permittee or lessee shall also submit to the Oil Conservation Engineer a Well History Report, in triplicate, within 30 days after completion, suspension or abandonment of the well.
(3) A permittee or lessee shall also send to the Oil Conservation Engineer, in triplicate, copies of all other surveys or the results of any tests conducted during the producing life of a well or field.

Release of Information

102 All information submitted in accordance with the requirements of these Regulations shall be kept confidential but may be released in accordance with section 106 of the Canada Oil and Gas Land Regulations.

Measurement of Oil and Gas

103 (1) Where the measurement of oil is required under these Regulations or under the Canada Oil and Gas Land Regulations, its volume shall be computed as the number of barrels it would occupy at a standard temperature of 60°/60°F.
(2) Where the temperature conditions differ from 60°F, the volume shall be converted to that which would be occupied at 60°F in accordance with Table 7 of Petroleum Measurement Tables published jointly by the American Society of Testing Materials and the Institute of Petroleum and designated respectively as D1250 and 200.

104 (1) Where the measurement of gas is required under these Regulations, its volume shall be computed as the number of cubic feet it would occupy at standard conditions of 14.65 pounds per square inch absolute and 60°F.
(2) Where the conditions of pressure and temperature differ from the standard conditions set out in subsection (1), the volume shall be converted to the standard conditions in accordance with the Ideal Gas Laws and corrected for deviations from the Ideal Gas Laws where the amount of the deviation exceeds one per cent.