Nova Scotia Offshore Petroleum Drilling and Production Regulations

Link to law: https://www.novascotia.ca/just/regulations/regs/coprdrill.htm

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now
Nova Scotia Offshore Petroleum Drilling and Production Regulations
made under Section 146 of the

Canada-Nova Scotia Offshore Petroleum Resources Accord

Implementation (Nova Scotia) Act

S.N.S. 1987, c. 3

O.I.C. 2009-518 (December 15, 2009, effective December 31, 2009), N.S. Reg. 336/2009

Table of Contents

Interpretation and Application

Citation

Definitions

Part 1: Board’s Powers

Spacing

Names and classification of wells

Names and designations of pools, zones and fields

Part 2: Management System, Application for Authorization and Well Approvals

Management system

Application for authorization

Additional requirements for production installation

Safety plan

Environmental protection plan

Well approval

Additional requirement where well to be drilled

Application contents

Grant of well approval

Suspension and revocation of well approval

Development plans

Resource management plan required

Part 3: Operator’s Duties

Availability of documents

Management system

Safety and environmental protection

Safety equipment and instructions

No smoking on installation

Storing and handling of consumables

Handling of chemical substances, waste material and oil

Cessation of a work or activity

Part 4: Equipment and Operations

Wells, installations, equipment, facilities and support craft

Operating and design, construction and maintenance standards

Rectifying defects

Drilling fluid system

Marine riser

Drilling practices

Reference for well depths

Directional and deviation surveys

Formation leak-off test

Formation flow and well testing equipment

Well control

Well control equipment

Pressure control equipment

Corrective action

Casing and cementing

Installation depth

Cement slurry

Wait time after cementing

Casing pressure testing

Production tubing

Monitoring and control of process operations

Well completion

Subsurface safety valve

Wellhead and Christmas tree equipment

Part 5: Evaluation of Wells, Pools and Fields

Data acquisition programs

Alternate data-acquisition procedures

Testing and sampling of formations

Formation flow testing

Submission of samples and data

Remaining cores

Disposal of cutting, fluid, corer or evaluation data

Part 6: Well Termination

Suspension or abandonment

Monitoring and inspecting suspended well

Clearing of seafloor

Installation removal

Part 7: Measurements

Flow and volume

Allocation of production and fluids

Testing, maintenance and notification

Transfer meters

Proration testing frequency

Part 8: Production Conservation

Resource management

Commingled production

Gas flaring and venting

Oil burning

Part 9: Support Operations

Support craft design, construction and maintenance

Support craft utilization

Safety zone

Part 10: Training and Competency

Impairment and fatigue

Part 11: Submissions, Notifications, Records and Reports

Reference to names and designations

Surveys

Incidents and near-misses

Submission of data and analysis

Records

Meteorological observations

Daily production record

Management of records

Formation flow test reports

Pilot scheme

Daily reports

Monthly production report

Annual production report

Environmental reports

Annual safety report

Well history report

Well operations report

Other reports

Transitional provision

Interpretation and Application

Citation

1     These regulations may be cited as the Nova Scotia Offshore Petroleum Drilling andProduction Regulations.

Definitions

2     (1)    In these regulations,

 

“abandoned”, in relation to a well, means a well or part of a well that has beenpermanently plugged;

 

“Act” means the Canada-Nova Scotia Offshore Petroleum Resources AccordImplementation (Nova Scotia) Act;

 

“artificial island” means a humanly constructed island to provide a site for theexploration and drilling, or the production, storage, transportation, distribution,measurement, processing or handling, of petroleum;

 

“authorization” means an authorization issued by the Board under clause 135(1)(b)of the Act;

 

“barrier” means any fluid, plug or seal that prevents petroleum or any other fluidfrom flowing unintentionally from a well or from a formation into anotherformation;

 

“casing liner” means a casing that is suspended from a string of casing previouslyinstalled in a well and does not extend to the wellhead;

 

“commingled production” means production of petroleum from more than 1 pool orzone through a common well-bore or flow line without separate measurement of theproduction from each pool or zone;

 

“completed,” in relation to a well, means a well that is prepared for production orinjection operations;

 

“completion interval” means a section within a well that is prepared to permit the

 

                         (i)     production of fluids from the well,

 

                         (ii)    observation of the performance of a reservoir, or

 

                         (iii)   injection of fluids into the well;

 

“conductor casing” means the casing that is installed in a well to facilitate drilling ofthe hole for the surface casing;

 

“drilling program” means the program for the drilling of 1 or more wells within aspecified area and time using 1 or more drilling installations and includes any workor activity related to the program;

 

“environmental protection plan” means the environmental protection plan submittedto the Board under Section 7;

 

“flow allocation procedure” means the procedure to

 

                         (i)     allocate total measured quantities of petroleum and water produced fromor injected into a pool or zone back to individual wells in a pool or zonewhere individual well production or injection is not measured separately,and

 

                         (ii)    allocate production to fields that are using a common storage orprocessing facility;

 

“flow calculation procedure” means the procedure to be used to convert raw meteroutput to a measured quantity of petroleum or water;

 

“flow system” means the flow meters, auxiliary equipment attached to the flowmeters, fluid sampling devices, production test equipment, the master meter andmeter prover used to measure and record the rate and volumes at which fluids are

 

                         (i)     produced from or injected into a pool,

 

                         (ii)    used as a fuel,

 

                         (iii)   used for artificial lift; or

 

                         (iv)   flared or transferred from a production installation;

 

“fluid” means gas, liquid or a combination of the 2;

 

“formation flow test” means an operation

 

                         (i)     to induce the flow of formation fluids to the surface of a well to procurereservoir fluid samples and determine reservoir flow characteristics, or

                         (ii)    to inject fluids into a formation to evaluate injectivity;

 

“incident” means

 

                         (i)     any event that causes

 

                                  (A)   a lost or restricted workday injury,

 

                                  (B)   death,

 

                                  (C)   fire or explosion,

 

                                  (D)   a loss of containment of any fluid from a well,

 

                                  (E)   an imminent threat to the safety of a person, installation or supportcraft, or

                                  (F)    pollution,

 

                         (ii)    any event that results in a missing person, or

 

                         (iii)   any event that causes

 

                                  (A)   the impairment of any structure, facility, equipment or systemcritical to the safety of persons, an installation or support craft, or

 

                                  (B)   the impairment of any structure, facility, equipment or systemcritical to environmental protection;

 

“lost or restricted workday injury” means an injury that prevents an employee fromreporting for work or from effectively performing all the duties connected with theemployee’s regular work on any day subsequent to the day on which the injuryoccurred whether or not that subsequent day is a working day for that employee;

 

“minor injury” means an employment injury for which medical treatment or first aidis provided and excludes a lost or restricted workday injury;

 

“multi-pool well” means a well that is completed in more than 1 pool;

 

“natural environment” means the physical and biological environment;

 

“near-miss” means an event that would likely cause an event set out in subclause (i)of the definition of “incident”, but does not due to particular circumstances;

 

“operator” means a person that holds an operating licence under clause 135(1)(a) ofthe Act and an authorization;

 

“physical environmental conditions” means the meteorological, oceanographic andrelated physical conditions, including ice conditions, that might affect a work oractivity that is subject to an authorization;

 

“pollution” means the introduction into the natural environment of any substance orform of energy outside the limits applicable to the activity that is subject to anauthorization, including spills;

 

“production control system” means the system provided to control the operation of,and monitor the status of, equipment for the production of petroleum, and includesthe installation and workover control system;

 

“production project” means an undertaking for the purpose of developing aproduction site on, or producing petroleum from, a pool or field, and includes anywork or activity related to the undertaking;

 

“proration test” means, in respect of a development well to which a developmentplan applies, a test conducted to measure the rates at which fluids are produced fromthe well for allocation purposes;

 

“recovery” means the recovery of petroleum under reasonably foreseeable economicand operational conditions;

 

“relief well” means a well drilled to assist in controlling a blow-out in an existingwell;

 

“rig release date” means the date on which a rig last conducted well operations;

 

“safety plan” means the safety plan submitted to the Board under Section 7;

 

“seafloor” means the surface of all that portion of land under the sea;

 

“slick line” means a single steel cable used to run tools in a well;

 

“support craft” means a vessel, vehicle, aircraft, standby vessel or other craft used toprovide transportation for or assistance to persons on the site where a work oractivity is conducted;

 

“surface casing” means the casing that is installed in a well to a sufficient depth, in acompetent formation, to establish well control for the continuation of the drillingoperations;

 

“suspended”, in relation to a well or part of a well, means a well or part of a well inwhich drilling or production operations have temporarily ceased;

 

“termination” means the abandonment, completion or suspension of a well’soperations;

 

“waste material” means any garbage, refuse, sewage or waste well fluids or any otheruseless material that is generated during drilling, well or production operations,including used or surplus drilling fluid and drill cuttings and produced water;

 

“well approval” means the approval granted by the Board under Section 14;

 

“well-bore” means the hole drilled by a bit in order to make a well;

 

“well control” means the control of the movement of fluids into or from a well;

 

“well operation” means the operation of drilling, completion, recompletion,intervention, re-entry, workover, suspension or abandonment of a well;

 

“wire line” means a line that contains a conductor wire and that is used to run surveyinstruments or other tools in a well;

 

“workover” means an operation on a completed well that requires removal of theChristmas tree or the tubing;

 

“zone” means any stratum or any sequence of strata and includes, for the purposes ofthe definition “commingled production”, Section 8, subsection 62(2), Sections 65 to67 and 75, subsection 84(2) and Section 87, a zone that has been designated as suchby the Board under Section 5.

 

       (2)    In these regulations, “delineation well”, “development well” and “exploratory well”have the same meaning as in subsection 121(1) of the Act.

 

       (3)    In these regulations, “drilling installation”, “drilling rig”, “drilling unit”, “drill site”,“installation”, “production installation”, “production operation”, “production site”and “subsea production system” have the same meaning as in subsection 2(1) of theNova Scotia Offshore Area Petroleum Installations Regulations made under the Act.

 

       (4)    The following definitions apply for the purposes of clause 135(4)(c) of the Act:

 

“production facility” means equipment for the production of petroleum located at aproduction site, including separation, treating and processing facilities, equipmentand facilities used in support of production operations, landing areas, heliports,storage areas or tanks and dependent personnel accommodations, but not includingany associated platform, artificial island, subsea production system, drillingequipment or diving system;

 

“production platform” means a production facility and any associated platform,artificial island, subsea production system, offshore loading system, drillingequipment, facilities related to marine activities and dependent diving system.

 

       (5)    For the purpose of Section 190B of the Act, any installation is prescribed as aninstallation.

Part 1: Board’s Powers

Spacing

3     The Board is authorized to make orders respecting the allocation of areas, including thedetermination of the size of spacing units and the well production rates for the purpose ofdrilling for or producing petroleum and to exercise any powers and perform any duties thatmay be necessary for the management and control of petroleum production.

Names and classification of wells

4     The Board may give a name, classification or status to any well and may change that name,classification or status.

Names and designations of pools, zones and fields

5     The Board may also

 

                (a)    designate a zone for the purposes of these regulations;

 

                (b)    give a name to a pool or field; and

 

                (c)    define the boundaries of a pool, zone or field for the purpose of identifying it.

Part 2: Management System, Application for Authorization and Well Approvals

Management system

6     (1)    The applicant for an authorization shall develop an effective management systemthat integrates operations and technical systems with the management of financialand human resources to ensure compliance with the Act and these regulations.

 

       (2)    The management system shall include

 

                (a)    the policies on which the system is based;

 

                (b)    the processes for setting goals for the improvement of safety, environmentalprotection and waste prevention;

 

                (c)    the processes for identifying hazards and for evaluating and managing theassociated risks;

 

                (d)    the processes for ensuring that personnel are trained and competent to performtheir duties;

 

                (e)    the processes for ensuring and maintaining the integrity of all facilities,structures, installations, support craft and equipment necessary to ensure safety,environmental protection and waste prevention;

 

                (f)    the processes for the internal reporting and analysis of hazards, minor injuries,incidents and near-misses and for taking corrective actions to prevent theirrecurrence;

 

                (g)    the documents describing all management system processes and the processesfor making personnel aware of their roles and responsibilities with respect tothem;

 

                (h)    the processes for ensuring that all documents associated with the system arecurrent, valid and have been approved by the appropriate level of authority;

 

                (i)     the processes for conducting periodic reviews or audits of the system and fortaking corrective actions if reviews or audits identify areas of non-conformancewith the system and opportunities for improvement;

 

                (j)     the arrangements for coordinating the management and operations of theproposed work or activity among the owner of the installation, the contractors,the operator and others, as applicable; and

 

                (k)    the name and position of the person accountable for the establishment andmaintenance of the system and of the person responsible for implementing it.

 

       (3)    The management system documentation shall be controlled and set out in a logicaland systematic fashion to allow for ease of understanding and efficientimplementation.

 

       (4)    The management system shall correspond to the size, nature and complexity of theoperations and activities, hazards and risks associated with the operations.

Application for authorization

7     The application for authorization shall be accompanied by

 

                (a)    a description of the scope of the proposed activities;

 

                (b)    an execution plan and schedule for undertaking those activities;

 

                (c)    a safety plan that meets the requirements of Section 9;

 

                (d)    an environmental protection plan that meets the requirements of Section 10;

 

                (e)    information on any proposed flaring or venting of gas, including the rationaleand the estimated rate, quantity and period of the flaring or venting;

 

                (f)    information on any proposed burning of oil, including the rationale and theestimated quantity of oil proposed to be burned;

 

                (g)    in the case of a drilling installation, a description of the drilling and wellcontrol equipment;

 

                (h)    in the case of a production installation, a description of the processing facilitiesand control system;

 

                (i)     in the case of a production project, a field data acquisition program that allowssufficient pool pressure measurements, fluid samples, cased hole logs andformation flow tests for a comprehensive assessment of the performance ofdevelopment wells, pool depletion schemes and the field;

 

                (j)     contingency plans, including emergency response procedures, to mitigate theeffects of any reasonably foreseeable event that might compromise safety orenvironmental protection, which shall

 

                         (i)     provide for coordination measures with any relevant municipal,provincial, territorial or federal emergency response plan, and

 

                         (ii)    in an area where oil is reasonably expected to be encountered, identifythe scope and frequency of the field practice exercise of oil spillcountermeasures; and

 

                (k)    a description of the decommissioning and abandonment of the site, includingmethods for restoration of the site after its abandonment.

Additional requirements for production installation

8     (1)    If the application for authorization covers a production installation, the applicantshall also submit to the Board for its approval the flow system, the flow calculationprocedure and the flow allocation procedure that will be used to conduct themeasurements referred to in Part 7.

 

       (2)    The Board shall approve the flow system, the flow calculation procedure and theflow allocation procedure if the applicant demonstrates that the system andprocedures facilitate reasonably accurate measurements and, allocate, on a pool orzone basis, the production from and injection into individual wells.

Safety plan

9     The safety plan shall set out the procedures, practices, resources, sequence of keysafety-related activities and monitoring measures necessary to ensure the safety of theproposed work or activity and shall include

 

                (a)    a summary of and references to the management system that demonstrate howit will be applied to the proposed work or activity and how the duties set out inthese regulations with regard to safety will be fulfilled;

 

                (b)    a summary of the studies undertaken to identify hazards and to evaluate safetyrisks related to the proposed work or activity;

 

                (c)    a description of the hazards that were identified and the results of the riskevaluation;

 

                (d)    a summary of the measures to avoid, prevent, reduce and manage safety risks;

 

                (e)    a list of all facilities, structures, equipment and systems critical to safety and asummary of the system in place for their inspection, testing and maintenance;

 

                (f)    a description of the organizational structure for the proposed work or activityand the command structure on the installation, which clearly explains

 

                         (i)     their relationship to each other, and

 

                         (ii)    the contact information and position of the person accountable for thesafety plan and of the person responsible for implementing it;

 

                (g)    if the possibility of pack sea ice or drifting icebergs exists at the drill orproduction site, the measures to address the protection of the installation,including systems for ice detection, surveillance, data collection, reporting,forecasting and, if appropriate, ice avoidance or deflection; and

 

                (h)    a description of the arrangements for monitoring compliance with the plan andfor measuring performance in relation to its objectives.

Environmental protection plan

10   The environmental protection plan shall set out the procedures, practices, resources andmonitoring necessary to manage hazards to and protect the environment from theproposed work or activity and shall include

 

                (a)    a summary of and references to the management system that demonstrate howit will be applied to the proposed work or activity and how the duties set out inthese regulations with regard to environmental protection will be fulfilled;

 

                (b)    a summary of the studies undertaken to identify environmental hazards and toevaluate environmental risks relating to the proposed work or activity;

 

                (c)    a description of the hazards that were identified and the results of the riskevaluation;

 

                (d)    a summary of the measures to avoid, prevent, reduce and manageenvironmental risks;

 

                (e)    a list of all structures, facilities, equipment and systems critical toenvironmental protection and a summary of the system in place for theirinspection, testing and maintenance;

 

                (f)    a description of the organizational structure for the proposed work or activityand the command structure on the installation, which clearly explains

 

                         (i)     their relationship to each other, and

 

                         (ii)    the contact information and position of the person accountable for theenvironmental protection plan and the person responsible forimplementing it;

 

                (g)    the procedures for the selection, evaluation and use of chemical substancesincluding process chemicals and drilling fluid ingredients;

 

                (h)    a description of equipment and procedures for the treatment, handling anddisposal of waste material;

 

                (i)     a description of all discharge streams and limits for any discharge into thenatural environment including any waste material;

 

                (j)     a description of the system for monitoring compliance with the discharge limitsidentified in clause (i), including the sampling and analytical program todetermine if those discharges are within the specified limits; and

 

                (k)    a description of the arrangements for monitoring compliance with the plan andfor measuring performance in relation to its objectives.

Well approval

11   (1)    Subject to subsection (2), an operator who intends to drill, re-enter, work over,complete or recomplete a well or suspend or abandon a well or part of a well shallobtain a well approval.

 

       (2)    A well approval is not necessary to conduct a wire line, slick line or coiled tubingoperation through a Christmas tree located above sea level if

 

                (a)    the work does not alter the completion interval or is not expected to adverselyaffect recovery; and

 

                (b)    the equipment, operating procedures and qualified persons exist to conduct thewire line, slick line or coiled tubing operations as set out in the authorization.

Additional requirement where well to be drilled

12   If the well approval sought is to drill a well, the application shall contain

 

                (a)    a comprehensive description of the drilling program; and

 

                (b)    a well data acquisition program that allows for the collection of sufficientcutting and fluid samples, logs, conventional cores, sidewall cores, pressuremeasurements and formation flow tests, analyses and surveys to enable acomprehensive geological and reservoir evaluation to be made.

Application contents

13   The application shall contain

 

                (a)    if the well approval sought is to re-enter, work over, complete or recomplete awell or suspend or abandon a well or part of it, a detailed description of thatwell, the proposed work or activity and the rationale for conducting it;

 

                (b)    if the well approval sought is to complete a well, in addition to the informationrequired under clause (a), information that demonstrates that Section 47 will becomplied with; and

 

                (c)    if the well approval sought is to suspend a well or part of it, in addition to theinformation required under clause (a), an indication of the period within whichthe suspended well or part of it will be abandoned or completed.

Grant of well approval

14   The Board shall grant the well approval if the operator demonstrates that the work oractivity will be conducted safely, without waste and without pollution, in compliance withthese regulations.

Suspension and revocation of well approval

15   (1)    The Board may suspend the well approval if

 

                (a)    the operator fails to comply with the approval and the work or activity cannotbe conducted safely, without waste or without pollution;

 

                (b)    the safety of the work or activity becomes uncertain because

 

                         (i)     the level of performance of the installation or service equipment, anyancillary equipment or any support craft is demonstrably less than thelevel of performance indicated in the application, or

 

                         (ii)    the physical environmental conditions encountered in the area of theactivity for which the well approval was granted are more severe than theequipment’s operating limits as specified by the manufacturer; or

 

                (c)    the operator fails to comply with the approvals issued under subsection 8(2),53(4) or 67(2).

 

       (2)    The Board may revoke the well approval if the operator fails to remedy the situationcausing the suspension within 120 days after the date of that suspension.

Development plans

16   For the purpose of subsection 136(1) of the Act, the well approval relating to a productionproject is prescribed.

Resource management plan required

17   For the purpose of clause 136(3)(b) of the Act, Part II of the development plan relating to aproposed development of a pool or field shall contain a resource management plan.

Part 3: Operator’s Duties

Availability of documents

18   (1)    The operator shall keep a copy of the authorization, the well approval and all otherapprovals and plans required under these regulations, the Act and the regulationsmade under the Act at each installation and shall make them available forexamination at the request of any person at each installation.

 

       (2)    The operator shall ensure that a copy of all operating manuals and other proceduresand documents necessary to execute the work or activity and to operate theinstallation safely without pollution are readily accessible at each installation.

Management system

19   The operator shall ensure compliance with the management system referred to in Section6.

Safety and environmental protection

20   The operator shall take all reasonable precautions to ensure safety and environmentalprotection, including ensuring that

 

                (a)    any operation necessary for the safety of persons at an installation or on asupport craft has priority, at all times, over any work or activity at thatinstallation or on that support craft;

 

                (b)    safe work methods are followed during all drilling, well or productionoperations;

 

                (c)    there is a shift handover system to effectively communicate any conditions,mechanical or procedural deficiencies or other problems that might have animpact on safety or environmental protection;

 

                (d)    differences in language or other barriers to effective communication do notjeopardize safety or environmental protection;

 

                (e)    all persons at an installation, or in transit to or from an installation, receiveinstruction in and are familiar with safety and evacuation procedures and withtheir roles and responsibilities in the contingency plans, including emergencyresponse procedures;

 

                (f)    any drilling or well operation is conducted in a manner that maintains fullcontrol of the well at all times;

 

                (g)    if there is loss of control of a well at an installation, all other wells at thatinstallation are shut in until the well that is out of control is secured;

 

                (h)    plans are in place to deal with potential hazards;

 

                (i)     all equipment required for safety and environmental protection is available andin an operable condition;

 

                (j)     the inventory of all equipment identified in the safety plan and theenvironmental protection plan is updated after the completion of anysignificant modification or repair to any major component of the equipment;

 

                (k)    the administrative and logistical support that is provided for drilling, well orproduction operations includes accommodation, transportation, first aid andstorage, repair facilities and communication systems suitable for the area ofoperations;

 

                (l)     a sufficient number of trained and competent individuals are available tocomplete the authorized work or activities and to carry out any work or activitysafely and without pollution; and

 

                (m)   any operational procedure that is a hazard to safety or the environment iscorrected and all affected persons are informed of the alteration.

Safety equipment and instructions

21   (1)    No person shall tamper with, activate without cause, or misuse any safety orenvironmental protection equipment.

 

       (2)    A passenger on a helicopter, supply vessel or any other support craft engaged in adrilling program or production project shall comply with all applicable safetyinstructions.

No smoking on installation

22   (1)    No person shall smoke on an installation except in those areas set aside by theoperator for that use.

 

       (2)    The operator shall ensure compliance with subsection (1).

Storing and handling of consumables

23   The operator shall ensure that fuel, potable water, spill containment products,safety-related chemicals, drilling fluids, cement and other consumables are

 

                (a)    readily available and stored on an installation in quantities sufficient for anynormal and reasonably foreseeable emergency condition; and

 

                (b)    stored and handled in a manner that minimizes their deterioration, ensuressafety and prevents pollution.

Handling of chemical substances, waste material and oil

24   The operator shall ensure that all chemical substances, including process fluids and dieselfuel, waste material, drilling fluid and drill cuttings generated at an installation, arehandled in a way that does not create a hazard to safety or the environment.

Cessation of a work or activity

25   (1)    The operator shall ensure that any work or activity ceases without delay if that workor activity

 

                (a)    endangers or is likely to endanger the safety of persons;

 

                (b)    endangers or is likely to endanger the safety or integrity of the well or theinstallation; or

 

                (c)    causes or is likely to cause pollution.

 

       (2)    If the work or activity ceases, the operator shall ensure that it does not resume until itcan do so safely and without pollution.

Part 4: Equipment and Operations

Wells, installations, equipment, facilities and support craft

26   The operator shall ensure that                  

 

                (a)    all wells, installations, equipment and facilities are designed, constructed,tested, maintained and operated to prevent incidents and waste under themaximum load conditions that may be reasonably anticipated during anyoperation;

 

                (b)    a comprehensive inspection that includes a non-destructive examination ofcritical joints and structural members of an installation and any critical drillingor production equipment is made at an interval to ensure continued safeoperation of the installation or equipment and in any case, at least once inevery 5-year period; and

 

                (c)    records of maintenance, tests and inspections are kept.

Operating and design, construction and maintenance standards

27   The operator shall ensure that

 

                (a)    the components of an installation and well tubulars, Christmas trees andwellheads are operated in accordance with good engineering practices; and

 

                (b)    any part of an installation that may be exposed to a sour environment isdesigned, constructed and maintained to operate safely in that environment.

Rectifying defects

28   (1)    The operator shall ensure that any defect in the installation, equipment, facilities andsupport craft that may be a hazard to safety or the environment is rectified withoutdelay.

 

       (2)    If it is not possible to rectify the defect without delay, the operator shall ensure that itis rectified as soon as the circumstances permit and that mitigation measures are putin place to minimize the hazards while the defect is being rectified.

Drilling fluid system

29   The operator shall ensure that

 

                (a)    the drilling fluid system and associated monitoring equipment is designed,installed, operated and maintained to provide an effective barrier againstformation pressure, to allow for proper well evaluation, to ensure safe drillingoperations and to prevent pollution; and

 

                (b)    the indicators and alarms associated with the monitoring equipment arestrategically located on the drilling rig to alert onsite personnel.

Marine riser

30   (1)    The operator shall ensure that every marine riser is capable of

 

                (a)    furnishing access to the well;

 

                (b)    isolating the well-bore from the sea;

 

                (c)    withstanding the differential pressure of the drilling fluid relative to the sea;

 

                (d)    withstanding the physical forces anticipated in the drilling program; and

 

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

 

       (2)    The operator shall ensure that every marine riser is supported in a manner thateffectively compensates for the forces caused by the motion of the installation.

Drilling practices

31   The operator shall ensure that adequate equipment, procedures and personnel are in placeto recognize and control normal and abnormal pressures, to allow for safe, controlleddrilling operations and to prevent pollution.

Reference for well depths

32   The operator shall ensure that any depth in a well is measured from a single referencepoint, which is either the kelly bushing or the rotary table of the drilling rig.

Directional and deviation surveys

33   The operator shall ensure that

 

                (a)    directional and deviation surveys are taken at intervals that allow the positionof the well-bore to be determined accurately; and

 

                (b)    except in the case of a relief well, a well is drilled in a manner that does notintersect an existing well.

Formation leak-off test

34   The operator shall ensure that

 

                (a)    a formation leak-off test or a formation integrity test is conducted beforedrilling more than 10 m below the shoe of any casing other than the conductorcasing;

 

                (b)    the formation leak-off test or the formation integrity test is conducted to apressure that allows for safe drilling to the next planned casing depth; and

 

                (c)    a record is retained of each formation leak-off test and the results included inthe daily drilling report referred to in clause 85(a) and in the well history reportreferred to in Section 90.

Formation flow and well testing equipment

35   (1)    The operator shall ensure that

 

                (a)    the equipment used in a formation flow test is designed to safely control wellpressure, properly evaluate the formation and prevent pollution;

 

                (b)    the rated working pressure of formation flow test equipment upstream of andincluding the well testing manifold exceeds the maximum anticipated shut-inpressure; and

 

                (c)    the equipment downstream of the well testing manifold is sufficiently protectedagainst overpressure.

 

       (2)    The operator of a well shall ensure that the formation flow test equipment includes adown-hole safety valve that permits closure of the test string above the packer.

 

       (3)    The operator shall ensure that any formation flow test equipment used in testing awell that is drilled with a floating drilling unit has a subsea test tree that includes

 

                (a)    a valve that may be operated from the surface and automatically closes whenrequired to prevent uncontrolled well flow; and

 

                (b)    a release system that permits the test string to be hydraulically or mechanicallydisconnected within or below the blow-out preventers.

Well control

36   The operator shall ensure that adequate procedures, materials and equipment are in placeand utilized to minimize the risk of loss of well control in the event of lost circulation.

Well control equipment

37   (1)    The operator shall ensure that, during all well operations, reliably operating wellcontrol equipment is installed to control kicks, prevent blow-outs and safely carryout all well activities and operations, including drilling, completion and workoveroperations.

 

       (2)    After setting the surface casing, the operator shall ensure that at least 2 independentand tested well barriers are in place during all well operations.

 

       (3)    If a barrier fails, the operator shall ensure that no other activities, other than thoseintended to restore or replace the barrier, take place in the well.

 

       (4)    The operator shall ensure that, during drilling, except when drilling under-balanced,1 of the 2 barriers to be maintained is the drilling fluid column.

Pressure control equipment

38   The operator shall ensure that pressure control equipment associated with drilling, coiltubing, slick line and wire line operations is pressure-tested on installation and as often asnecessary to ensure its continued safe operation.

Corrective action

39   If the well control is lost or if safety, environmental protection or resource conservation isat risk, the operator shall ensure that any action necessary to rectify the situation is takenwithout delay, despite any condition to the contrary in the well approval.

Casing and cementing

40   The operator shall ensure that the well and casing are designed so that

 

                (a)    the well can be drilled safely, the targeted formations evaluated and wasteprevented;

 

                (b)    the anticipated conditions, forces and stresses that may be placed upon themare withstood; and

 

                (c)    the integrity of gas hydrate zones is protected.

Installation depth

41   The operator shall ensure that the well and casing are installed at a depth that provides foradequate kick tolerances and well control operations that provide for safe, constant bottomhole pressure.

Cement slurry

42   The operator shall ensure that cement slurry is designed and installed so that

 

                (a)    the movement of formation fluids in the casing annuli is prevented and, whererequired for safety, resource evaluation or prevention of waste, the isolation ofthe petroleum and water zones is ensured;

 

                (b)    support for the casing is provided;

 

                (c)    corrosion of the casing over the cemented interval is retarded; and

 

                (d)    the integrity of gas hydrate zones is protected.

Wait time after cementing

43   After the cementing of any casing or casing liner and before drilling out the casing shoe,the operator shall ensure that the cement has reached the minimum compressive strengthsufficient to support the casing and provide zonal isolation.

Casing pressure testing

44   After installing and cementing the casing and before drilling out the casing shoe, theoperator shall ensure that the casing is pressure-tested to the value required to confirm itsintegrity for maximum anticipated operating pressure.

Production tubing

45   The operator shall ensure that the production tubing used in a well is designed towithstand the maximum conditions, forces and stresses that may be placed on it and tomaximize recovery from the pool.

Monitoring and control of process operations

46   The operator shall ensure that

 

                (a)    operations such as processing, transportation, storage, re-injection and handlingof petroleum on the installation are effectively monitored to prevent incidentsand waste;

 

                (b)    all alarm, safety, monitoring, warning and control systems associated withthose operations are managed to prevent incidents and waste; and

 

                (c)    all appropriate persons are informed of the applicable alarm, safety,monitoring, warning or control systems associated with those operations thatare taken out of service, and when those systems are returned to service.

Well completion

47   (1)    An operator that completes a well shall ensure that

 

                (a)    it is completed in a safe manner and allows for maximum recovery;

 

                (b)    except in the case of commingled production, each completion interval isisolated from any other porous or permeable interval penetrated by the well;

 

                (c)    the testing and production of any completion interval are conducted safely anddo not cause waste or pollution;

 

                (d)    if applicable, sand production is controlled and does not create a safety hazardor cause waste;

 

                (e)    each packer is set as close as practical to the top of the completion interval andthat the pressure testing of the packer to a differential pressure is greater thanthe maximum differential pressure anticipated under the production or injectionconditions;

 

                (f)    if practical, any mechanical well condition that may have an adverse effect onproduction of petroleum from, or the injection of fluids into, the well iscorrected;

 

                (g)    the injection or production profile of the well is improved, or the completioninterval of the well is changed, if it is necessary to do so to prevent waste;

 

                (h)    if different pressure and inflow characteristics of 2 or more pools mightadversely affect the recovery from any of those pools, the well is operated as asingle pool well or as a segregated multi-pool well;

 

                (i)     after initial completion, all barriers are tested to the maximum pressure towhich they are likely to be subjected; and

 

                (j)     following any workover, any affected barriers are pressure-tested.

 

       (2)    The operator of a segregated multi-pool well shall ensure that

 

                (a)    after the well is completed, segregation has been established within and outsidethe well casing and is confirmed; and

 

                (b)    if there is reason to doubt that segregation is being maintained, a segregationtest is conducted within a reasonable time frame.

Subsurface safety valve

48   The operator of a development well capable of flow shall ensure that the well is equippedwith a fail-safe subsurface safety valve that is designed, installed, operated and tested toprevent uncontrolled well flow when it is activated.

Wellhead and Christmas tree equipment

49   The operator shall ensure that the wellhead and Christmas tree equipment, includingvalves, are designed to operate safely and efficiently under the maximum load conditionsanticipated during the life of the well.

Part 5: Evaluation of Wells, Pools and Fields

Data acquisition programs

50   The operator shall ensure that the well data acquisition program and the field dataacquisition program are implemented in accordance with good oilfield practices.

Alternate data-acquisition procedures

51   (1)    If part of the well or field data acquisition program cannot be implemented, theoperator shall ensure that

 

                (a)    a conservation officer is notified as soon as the circumstances permit; and

 

                (b)    the procedures to otherwise achieve the goals of the program are submitted tothe Board for approval.

 

       (2)    If the operator can demonstrate that those procedures can achieve the goals of thewell or field data acquisition program or are all that can be reasonably expected inthe circumstances, the Board shall approve them.

Testing and sampling of formations

52   The operator shall ensure that every formation in a well is tested and sampled to obtainreservoir pressure data and fluid samples from the formation, if there is an indication thatthe data or samples would contribute substantially to the geological and reservoirevaluation.

Formation flow testing

53   (1)    The operator shall ensure that

 

                (a)    no development well is put into production unless the Board has approved aformation flow test in respect of the development well; and

 

                (b)    if a development well is subjected to a well operation that might change itsdeliverability, productivity or injectivity, a formation flow test is conductedwithin a reasonable time frame after the well operation is ended to determinethe effects of that operation on the well’s deliverability, productivity orinjectivity.

 

       (2)    The operator may conduct a formation flow test on a well drilled on a geologicalfeature if, before conducting that test, the operator

 

                (a)    submits to the Board a detailed testing program; and

 

                (b)    obtains the Board’s approval to conduct the test.

 

       (3)    The Board may require that the operator conduct a formation flow test on a welldrilled on a geological feature, other than the first well, if there is an indication thatthe test would contribute substantially to the geological and reservoir evaluation.

 

       (4)    The Board shall approve a formation flow test if the operator demonstrates that thetest will be conducted safely, without pollution and in accordance with good oilfieldpractices and that the test will enable the operator to

 

                (a)    obtain data on the deliverability or productivity of the well;

 

                (b)    establish the characteristics of the reservoir; and

 

                (c)    obtain representative samples of the formation fluids.

Submission of samples and data

54   The operator shall ensure that all cutting samples, fluid samples and cores collected as partof the well and field data acquisition programs are

 

                (a)    transported and stored in a manner that prevents any loss or deterioration;

 

                (b)    delivered to the Board within 60 days after the rig release date unless analysesare ongoing, in which case those samples and cores, or the remaining parts, areto be delivered on completion of the analyses; and

 

                (c)    stored in durable containers properly labelled for identification.

Remaining cores

55   The operator shall ensure that after any samples necessary for analysis or for research oracademic studies have been removed from a conventional core, the remaining core, or alongitudinal slab that is not less than one half of the cross-sectional area of that core, issubmitted to the Board.

Disposal of cutting, fluid, corer or evaluation data

56   Before disposing of cutting samples, fluid samples, cores or evaluation data under theseregulations, the operator shall ensure that the Board is notified in writing and is given anopportunity to request delivery of the samples, cores or data.

 

Part 6: Well Termination

Suspension or abandonment

57   The operator shall ensure that every well that is suspended or abandoned can be readilylocated and left in a condition that

 

                (a)    provides for isolation of all hydrocarbon-bearing zones and discrete pressurezones; and

 

                (b)    prevents any formation fluid from flowing through or escaping from thewell-bore.

Monitoring and inspecting suspended well

58   The operator of a suspended well shall ensure that the well is monitored and inspected tomaintain its continued integrity and to prevent pollution.

Clearing of seafloor

59   The operator shall ensure that, on the abandonment of a well, the seafloor is cleared of anymaterial or equipment that might interfere with other commercial uses of the sea.

Installation removal

60   No operator shall remove or cause to have removed a drilling installation from a welldrilled under these regulations unless the well has been terminated in accordance withthese regulations.

Part 7: Measurements

Flow and volume

61   (1)    Unless otherwise included in the approval issued under subsection 8(2), the operatorshall ensure that the rate of flow and the volume of the following are measured andrecorded:

 

                (a)    the fluid that is produced from each well;

 

                (b)    the fluid that is injected into each well;

 

                (c)    any produced fluid that enters, leaves, is used or is flared, vented, burned orotherwise disposed of on an installation, including any battery room, treatmentfacility or processing plant; and

 

                (d)    any air or materials injected for the purposes of disposal, storage or cycling,including drill cuttings and other useless material that is generated duringdrilling, well or production operations.

 

       (2)    The operator shall ensure that any measurements are conducted in accordance withthe flow system, flow calculation procedure and flow allocation procedure approvedunder subsection 8(2).

Allocation of production and fluids

62   (1)    The operator shall ensure that group production of petroleum from wells andinjection of a fluid into wells is allocated on a pro rata basis, in accordance with theflow system, flow calculation procedure and flow allocation procedure approvedunder subsection 8(2).

 

       (2)    If a well is completed over multiple pools or zones, the operator shall ensure thatproduction or injection volumes for the well are allocated on a pro rata basis to thepools or zones in accordance with the flow allocation procedure approved undersubsection 8(2).

Testing, maintenance and notification

63   The operator shall ensure

 

                (a)    that meters and associated equipment are calibrated and maintained to ensuretheir continued accuracy;

 

                (b)    that equipment used to calibrate the flow system is calibrated in accordancewith good measurement practices;

 

                (c)    that any component of the flow system that may have an impact on theaccuracy or integrity of the flow system and that is not functioning inaccordance with the manufacturer’s specifications is repaired or replacedwithout delay or, if it is not possible to do so without delay, that correctivemeasures are taken to minimize the impact on the accuracy and integrity of theflow system while the repair or replacement is proceeding; and

 

                (d)    that a conservation officer is notified, as soon as the circumstances permit, ofany malfunction or failure of any flow system component that may have animpact on the accuracy of the flow system and of the corrective measurestaken.

Transfer meters

64   The operator shall ensure that

 

                (a)    a conservation officer is notified at least 14 days before the day on which anytransfer meter prover or master meter used in conjunction with a transfer meteris calibrated; and

 

                (b)    a copy of the calibration certificate is submitted to the Chief ConservationOfficer as soon as the circumstances permit, following completion of thecalibration.

Proration testing frequency

65   The operator of a development well that is producing petroleum shall ensure thatsufficient proration tests are performed to permit reasonably accurate determination of theallocation of oil, gas and water production on a pool and zone basis.

Part 8: Production Conservation

Resource management

66   The operator shall ensure that

 

                (a)    maximum recovery from a pool or zone is achieved in accordance with goodoilfield practices;

 

                (b)    wells are located and operated to provide for maximum recovery from a pool;and

 

                (c)    if there is reason to believe that infill drilling or implementation of an enhancedrecovery scheme might result in increased recovery from a pool or field,studies on these methods are carried out and submitted to the Board.

Commingled production

67   (1)    No operator shall engage in commingled production except in accordance with theapproval granted under subsection (2).

 

       (2)    The Board shall approve the commingled production if the operator demonstratesthat it would not reduce the recovery from the pools or zones.

 

       (3)    The operator engaging in commingled production shall ensure that the total volumeand the rate of production of each fluid produced is measured and the volume fromeach pool or zone is allocated in accordance with the requirements of Part 7.

Gas flaring and venting

68   No operator shall flare or vent gas unless

 

                (a)    it is otherwise permitted in the approval issued under subsection 53(4) or in theauthorization; or

 

                (b)    it is necessary to do so because of an emergency situation and the Board isnotified in the daily drilling report, daily production report or in any otherwritten or electronic form, as soon as the circumstances permit, of the flaringor venting and of the amount flared or vented.

Oil burning

69   No operator shall burn oil unless

 

                (a)    it is otherwise permitted in the approval issued under subsection 53(4) or in theauthorization; or

 

                (b)    it is necessary to do so because of an emergency situation and the Board isnotified in the daily drilling report, daily production report or in any otherwritten or electronic form, as soon as the circumstances permit, of the burningand the amount burned.

Part 9: Support Operations

Support craft design, construction and maintenance

70   The operator shall ensure that all support craft are designed, constructed and maintained tosupply the necessary support functions and operate safely in the foreseeable physicalenvironmental conditions prevailing in the area in which they operate.

Support craft utilization

71   (1)    The operator of a manned installation shall ensure that at least 1 support craft is

 

                (a)    available at a distance that is not greater than that required for a return time of20 minutes; and

 

                (b)    suitably equipped to supply the necessary emergency services including rescueand first aid treatment for all personnel on the installation in the event of anemergency.

 

       (2)    If the support craft exceeds the distance referred to in clause (1)(a), both theinstallation manager and the person in charge of the support craft shall log this factand the reason why the distance or time was exceeded.

 

       (3)    Under the direction of the installation manager, the support craft crew shall keep thecraft in close proximity to the installation, maintain open communication channelswith the installation and be prepared to conduct rescue operations during any activityor condition that presents an increased level of risk to the safety of personnel or theinstallation.

Safety zone

72   (1)    For the purposes of this Section, the safety zone around an installation consists of thearea within a line enclosing and drawn at a distance of 500 m from the outer edge ofthe installation.

 

       (2)    A support craft shall not enter the safety zone without the consent of the installationmanager.

 

       (3)    The operator shall take all reasonable measures to warn persons who are in charge ofvessels and aircraft of the safety zone boundaries, of the facilities within the safetyzone and of any related potential hazards.

Part 10: Training and Competency

 

73   The operator shall ensure that

 

                (a)    all personnel have, before assuming their duties, the necessary experience,training and qualifications and are able to conduct their duties safely,competently and in compliance with these regulations; and

 

                (b)    records of the experience, training and qualifications of all personnel are keptand made available to the Board upon request.

Impairment and fatigue

74   (1)    Subject to subsection (2), the operator shall ensure that no person works when theirability to function is impaired and that no person is required to work

 

                (a)    any shift in excess of 12.5 continuous hours; or

 

                (b)    2 successive shifts of any duration unless that person has had at least 8 hours’rest between the shifts.

 

       (2)    The operator may allow a person to work in excess of the hours or without the restperiod referred to in subsection (1) if the operator has assessed the risk associatedwith the person working the extra hours and determined that such work can becarried out without increased risk to safety or to the environment.

 

       (3)    If an operator allows a person to work in excess of the hours or without the restperiod referred to in subsection (1), the operator shall ensure that a description of thework, the names of the persons performing the work, the hours worked and the riskassessment referred to in subsection (2) are recorded.

Part 11: Submissions, Notifications, Records and Reports

Reference to names and designations

75   When submitting any information for the purposes of these regulations, the operator shallrefer to each well, pool and field by the name given to it under Sections 4 and 5 or, if azone, by its designation by the Board under Section 5.

Surveys

76   (1)    The operator shall ensure that a survey is used to confirm the location of the well onthe seafloor.

 

       (2)    The survey shall be certified by a person licensed under the Canada Lands SurveyorsAct, S.C. 1998, c. 14.

 

       (3)    The operator shall ensure that a copy of the survey plan filed with the Canada LandsSurveys Records is submitted to the Board.

Incidents and near-misses

77   (1)    The operator shall ensure that

 

                (a)    the Board is notified of any incident or near-miss as soon as the circumstancespermit; and

 

                (b)    the Board is notified at least 24 hours in advance of any press release or pressconference held by the operator concerning any incident or near-miss duringany activity to which these regulations apply, except in an emergency situation,in which case it shall be notified without delay before the press release or pressconference.

 

       (2)    The operator shall ensure that

 

                (a)    any incident or near-miss is investigated, its root cause and causal factorsidentified and corrective action taken; and

 

                (b)    for any of the following incidents or near-misses, a copy of an investigationreport identifying the root cause, causal factors and corrective action taken issubmitted to the Board no later than 21 days after the day on which theincident or near-miss occurred:

 

                         (i)     a lost or restricted workday injury,

 

                         (ii)    a death,

 

                         (iii)   fire or explosion,

 

                         (iv)   a loss of containment of any fluid from a well,

 

                         (v)    an imminent threat to the safety of a person, installation or support craft,or

 

                         (vi)   a significant pollution event.

Submission of data and analysis

78   (1)    The operator shall ensure that a final copy of the results, data, analyses andschematics obtained from the following sources is submitted to the Board:

 

                (a)    testing, sampling and pressure surveys carried out as part of the well and fielddata acquisition programs referred to in Section 50 and testing and sampling offormations referred to in Section 52; and

 

                (b)    any segregation test or well operation.

 

       (2)    Unless otherwise indicated in these regulations, the operator shall ensure that theresults, data, analyses and schematics are submitted within 60 days after the day onwhich any activity referred to in clauses (1)(a) and (b) is completed.

Records

79   The operator shall ensure that records are kept of

 

                (a)    all persons arriving, leaving or present on the installation;

 

                (b)    the location and movement of support craft, the emergency drills and exercises,incidents, near-misses, the quantities of consumable substances that arerequired to ensure the safety of operations and other observations andinformation critical to the safety of persons on the installation or the protectionof the environment;

 

                (c)    daily maintenance and operating activities, including any activity that may becritical to the safety of persons on the installation, the protection of theenvironment or the prevention of waste;

 

                (d)    in the case of a production installation,

 

                         (i)     the inspection of the installation and related equipment for corrosion anderosion and any resulting maintenance carried out,

 

                         (ii)    the pressure, temperature and flow rate data for compressors and treatingand processing facilities;

 

                         (iii)   the calibration of meters and instruments,

 

                         (iv)   the testing of surface and subsurface safety valves,

 

                         (v)    the status of each well and the status of well operations, and

 

                         (vi)   the status of the equipment and systems critical to safety and protectionof the environment including any unsuccessful test result or equipmentfailure leading to an impairment of the systems; and

 

                (e)    in the case of a floating installation, all installation movements, data,observations, measurements and calculations related to the stability andstation-keeping capability of the installation.

Meteorological observations

80   The operator of an installation shall ensure

 

                (a)    that the installation is equipped with facilities and equipment for observing,measuring and recording physical environmental conditions and that acomprehensive record of observations of physical environmental conditions ismaintained onboard the installation; and

 

                (b)    that forecasts of meteorological conditions, sea states and ice movements areobtained and recorded each day and each time during the day that they changesubstantially from those forecasted.

Daily production record

81   The operator shall ensure that a daily production record, which includes the meteringrecords and other information relating to the production of petroleum and other fluids inrespect of a pool or well, is retained and readily accessible to the Board until the field orwell in which the pool is located is abandoned and at that time shall offer the record to theBoard before destroying it.

Management of records

82   The operator shall ensure that

 

                (a)    all processes are in place and implemented to identify, generate, control andretain records necessary to support operational and regulatory requirements;and

 

                (b)    the records are readily accessible for inspection by the Board.

Formation flow test reports

83   The operator shall ensure that

 

                (a)    in respect of exploration and delineation wells, a daily record of formation flowtest results is submitted to the Board; and

 

                (b)    in respect of all wells, a formation flow test report is submitted to the Board assoon as the circumstances permit, following completion of the test.

Pilot scheme

84   (1)    For the purposes of this Section, “pilot scheme” means a scheme that appliesexisting or experimental technology over a limited portion of a pool to obtaininformation on reservoir or production performance for the purpose of optimizingfield development or improving reservoir or production performance.

 

       (2)    The operator shall ensure that interim evaluations of any pilot scheme respecting apool, field or zone are submitted to the Board.

 

       (3)    When the operator completes a pilot scheme, the operator shall ensure that a report issubmitted to the Board that sets out

 

                (a)    the results of the scheme and supporting data and analyses; and

 

                (b)    the operator’s conclusions as to the potential of the scheme for application tofull-scale production.

Daily reports

85   The operator shall ensure that a copy of the following is submitted to the Board daily:

 

                (a)    the daily drilling report;

 

                (b)    the daily geological report, including any formation evaluation logs and data;and

 

                (c)    in the case of a production installation, a summary, in the form of a dailyproduction report, of the records referred to in clause 79(d) and the dailyproduction record.

Monthly production report

86   (1)    The operator shall ensure that a report summarizing the production data collectedduring the preceding month is submitted to the Board not later than the 15th day ofeach month.

 

       (2)    The report shall use established production accounting procedures.

Annual production report

87   The operator shall ensure that, not later than March 31 of each year, an annual productionreport for a pool, field or zone is submitted to the Board providing information thatdemonstrates how the operator manages and intends to manage the resource withoutcausing waste, including,

 

                (a)    for the preceding year, details on the performance, production forecast, reserverevision, reasons for significant deviations in well performance frompredictions in previous annual production reports, gas conservation resources,efforts to maximize recovery and reduce costs and the operating and capitalexpenditures, including the cost of each well operation; and

 

                (b)    for the current year and the next two years, estimates of the operating andcapital expenditures, including the cost of each well operation.

Environmental reports

88   (1)    For each production project, the operator shall ensure that, not later than March 31 ofeach year, an annual environmental report relating to the preceding year is submittedto the Board and includes

 

                (a)    for each installation, a summary of the general environmental conditionsduring the year and a description of ice management activities; and

 

                (b)    a summary of environmental protection matters during the year, including asummary of any incidents that may have an environmental impact, dischargesthat occurred and waste material that was produced, a discussion of effortsundertaken to reduce pollution and waste material and a description ofenvironmental contingency plan exercises.

 

       (2)    For each drilling installation for an exploration or delineation well, the operator shallensure that an environmental report relating to each well is submitted to the Boardwithin 90 days after the rig release date and includes

 

                (a)    a description of the general environmental conditions during the drillingprogram and a description of ice management activities and downtime causedby weather or ice; and

 

                (b)    a summary of environmental protection matters during the drilling program,including a summary of spills, discharges occurred and waste materialproduced, a discussion of efforts undertaken to reduce them, and a descriptionof environmental contingency plan exercises.

Annual safety report

89   The operator shall ensure that, not later than March 31 of each year, an annual safetyreport relating to the preceding year is submitted to the Board and includes

 

                (a)    a summary of lost or restricted workday injuries, minor injuries andsafety-related incidents and near-misses that have occurred during thepreceding year; and

 

                (b)    a discussion of efforts undertaken to improve safety.

Well history report

90   (1)    The operator shall ensure that a well history report is prepared for every well drilledby the operator under the well approval and that the report is submitted to the Board.

 

       (2)    The well history report shall contain a record of all operational, engineering,petrophysical and geological information that is relevant to the drilling andevaluation of the well.

Well operations report

91   (1)    The operator shall ensure that a report including the following information issubmitted to the Board within 30 days after the end of a well operation:

 

                (a)    a summary of the well operation, including any problems encountered duringthe well operation;

 

                (b)    a description of the completion fluid properties;

 

                (c)    a schematic of, and relevant engineering data on, the down-hole equipment,tubulars, Christmas tree and production control system;

 

                (d)    details of any impact of the well operation on the performance of the well,including any effect on recovery; and

 

                (e)    for any well completion, suspension or abandonment, the rig release date.

 

       (2)    The report shall be signed and dated by the operator or the operator’s representative.

Other reports

92   The operator shall ensure that the Board is made aware, at least once a year, of any reportcontaining relevant information regarding applied research work or studies obtained orcompiled by the operator relating to the operator’s work or activities and that a copy of it issubmitted to the Board on request.

Transitional provision

93   An operator at the time of the coming into force of these regulations shall comply with therequirements of Section 6.