Oil and Gas Conservation Rules (Alta. Reg. 151/1971)

Alta. Reg. 151/1971

Alberta — Regulations

© Published by Alberta King’s Printer Alberta King’s Printer Suite 700, Park Plaza 10611 - 98 Avenue Edmonton, AB T5K 2P7 Phone: 780-427-4952 E-mail: kings-printer@gov.ab.ca Shop on-line at kings-printer.alberta.ca Province of Alberta Office Consolidation Alberta Regulation 151/1971 With amendments up to and including Alberta Regulation 64/2026 Current as of March 31, 2026 OIL AND GAS CONSERVATION ACT OIL AND GAS CONSERVATION RULES

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Note All persons making use of this consolidation are reminded that it has no legislative sanction, that amendments have been embodied for convenience of reference only. The official Statutes and Regulations should be consulted for all purposes of interpreting and applying the law.

(Consolidated up to 64/2026) ALBERTA REGULATION 151/71 Oil and Gas Conservation Act OIL AND GAS CONSERVATION RULES

Part 1

Interpretation and Application Title 1.010 These Rules may be cited as the “Oil and Gas Conservation Rules”. AR 151/71 s1.010;89/2013

Definitions 1.020(1) The terms defined in

section 1 of the Oil and Gas Conservation Act have the same meaning in these Rules.

(2) In these Rules, 1. “Act” means the Oil and Gas Conservation Act; 2. “base MRL” means the maximum rate of production that would apply where a maximum rate limitation is prescribed if no penalty factor, whether its purpose be for proration, for the avoidance of waste or for protection of the rights of others, were to be applied; 2.1. “Basic Well Rate” or “BWR” means the lowest unpenalized allowable assigned to a producing oil well, related to the average well depth, and as tabulated in

Schedule 5 of these Rules; 3. repealed AR 203/2011 s2; 3.05. “closure” means the phase of the energy resource development life cycle that involves the permanent end of operations, and includes the abandonment and reclamation of wells, facilities, well sites and facility sites; 3.1. “coal” means a lithostratigraphic unit having 50% or greater by weight organic matter and being thicker than 0.30 metres;

Section 1.020 AR 151/71 OIL AND GAS CONSERVATION RULES 2 4. “common ownership” means, (

a) when that term is used in connection with a block, holding or project, (

i) that the ownership of the lessors’ interest throughout the block, holding or project is the same and the ownership of the lessees’ interests throughout the block, holding or project is the same, or (ii) that the owners of the lessor’s interests and the lessee’s interests throughout the block, holding or project have agreed to pool their interests, o r (

b) when that term is used in connection with a drilling spacing unit, (

i) that the owners of the lessee’s interest throughout the drilling spacing unit are the same, or (ii) that the owners of tracts within the drilling spacing unit, as defined in

section 78 of the Act, have agreed to pool their interests or the Regulator has ordered that all tracts within the drilling spacing unit be operated as a unit under

Part 12 of the Act; 4.05. “complaint level” means the reference rate, if less than the BWR, or the BWR plus 70% of the difference between the reference rate and the BWR; 4.1. “compressor station” means an installation of service equipment that receives natural gas from a well, battery or gathering system prior to delivery to market or other disposition and is intended to maintain or increase the flowing pressure of the gas, and includes any equipment for measurement; 5. “control well” means a well that is capable of producing oil, is within a block or project and is completed in a drilling spacing unit that is contiguous to a drilling spacing unit that contains a producing well that is outside the block or project; 5.1. “development entity” means an entity, consisting of multiple formations in a specific area described in an order of the Regulator, from which gas may be produced

Section 1.020 AR 151/71 OIL AND GAS CONSERVATION RULES 3 without segregation in the well bore in accordance with

section 3.051; 5.11. “Directive 001” means Directive 001: Requirements for Site-Specific Liability Assessments; 5.12. repealed AR 12/2025 s2; 5.13. “Directive 007” means Directive 007: Volumetric and Infrastructure Requirements; 5.14. “Directive 011” means Directive 011: Estimated Liability; 5.14001. “Directive 013” means Directive 013: Suspension Requirements for Wells; 5.1401. “Directive 020” means Directive 020: Well Abandonment; 5.141. “repealed AR 12/2025 s2; 5.15. “Directive 036” means Directive 036: Drilling Blowout Prevention Requirements and Procedures; 5.16. “Directive 037” means Directive 037: Service Rig Inspection Manual; 5.161. “Directive 039” means Directive 039: Revised Program to Reduce Benzene Emissions from Glycol Dehydrators; 5.17. “Directive 040” means Directive 040: Pressure and Deliverability Testing Oil and Gas Wells; 5.171. “Directive 047” means Directive 047: Waste Reporting Requirements for Oilfield Waste Management Facilities; 5.18. “Directive 055” means Directive 055: Storage Requirements for the Upstream Petroleum Industry; 5.19. “Directive 056” means Directive 056: Energy Development Applications and Schedules; 5.191. “Directive 058” means Directive 058: Oilfield Waste Management Requirements for the Upstream Petroleum Industry; 5.192. “Directive 060” means Directive 060: Upstream Petroleum Industry Flaring, Incinerating and Venting;

Section 1.020 AR 151/71 OIL AND GAS CONSERVATION RULES 4 5.2. “Directive 065” means “Directive 065: Resources Applications for Oil and Gas Reservoirs”; 5.201. “Directive 067” means Directive 67: Eligibility Requirements for Acquiring and Holding Energy Licences and Approvals; 5.21. “Directive 068” means Directive 068: Security Deposits; 5.3. “Directive 071” means Directive 071: Emergency Preparedness and Response; 5.4. repealed AR 12/2025 s2; 5.41. “Directive 076” means Directive 076: Operator Declaration Regarding Measurement and Reporting Requirements; 5.5. “Directive 079” means Directive 079: Surface Development in Proximity to Abandoned Wellbores; 5.51 “Directive 080” means Directive 080: Well Logging; 5.6. “Directive 083” means Directive 083: Hydraulic Fracturing – Subsurface Integrity; 5.7. “Directive 084” means Directive 084: Requirements for Hydrocarbon Emission Controls and Gas Conservation in the Peace River Area; 5.8. “Directive 087” means Directive 087: Well Integrity Management; 5.9. “Directive 088” means Directive 088: Licensee Life- Cycle Management; 6. repealed AR 226/93 s2; 7. “finished drilling date” means the date at which the total depth of a well is reached; 8. “gas well” means (

i) a well that produces primarily gas from (

A) a pool or portion of a pool in which the hydrocarbon system is gaseous or exhibits a dew point on reduction of pressure, or (

B) coal by in situ gasification,

Section 1.020 AR 151/71 OIL AND GAS CONSERVATION RULES 5 a n d (ii) any well designated as a gas well by the Regulator; 9. “good production practice” or “GPP” means production of crude oil or raw gas at a rate (

i) not governed by a base allowable, but (ii) limited to what can be produced without adversely and significantly affecting conservation, the prevention of waste, or the opportunity of each owner in the pool to obtain his share of production; 9.1. “in situ coal scheme evaluation well” means an evaluation well as defined in the Coal Conservation Act; 10. “maximum rate limitation” or “MRL” is the maximum rate of oil production prescribed for the avoidance of waste or the protection of the rights of others, after application of any applicable penalty factor; 10.1. “minimum level” means the lesser of the BWR and the reference rate; 11. “multi-zone well” means a well for the segregated production from or injection to more than one pool; 11.1. “oil sands strata” means the geological intervals defined in the Regulator’s Oil Sands Area Orders OSA 1, 2 and 3, as amended from time to time; 12. “oil well” means (

i) a well that produces pri marily liquid hydrocarbons from a pool or portion of a pool in which the hydrocarbon system is liquid or exhibits a bubble point on reduction of pressure, and (ii) any well designated as an oil well by the Regulator; 12.1. “oilfield waste” means an unwanted substance or mixture of substances that results from the construction, operation, abandonment or reclamation of (

i) a well, facility, well s ite, facility site or pipeline, (ii) a well, facility, well site or facility site under the Geothermal Resource Development Act, or (iii) a well, facility, well site or facility site under the Mineral Resource Development Act,

Section 1.020 AR 151/71 OIL AND GAS CONSERVATION RULES 6 but does not include an unwanted substance or mixture of substances that is received for storage, treatment, disposal or recycling at a facility that is regulated by the Department of Environment and Protected Areas; 12.2. “oilfield waste management facility” means a facility, the operation of which is approved by the Regulator, including, without limitation, a waste processing facility, a waste storage facility, a waste transfer station, a surface facility associated with a disposal well, a biodegradation facility, an oilfield landfill, a thermal treatment facility and any other facility for the processing, treatment, storage, disposal or recycling of oilfield waste; 12.3. “operator”, when the term is used in connection with Directive 076, means the person or organization who keeps records and submits production reports to the Regulator or to the electronic information system called Petrinex that is administered by the Department of Energy and Minerals; 13. “operator of a battery” includes (

i) a person who has control of the operation of the wells or equipment at a battery, (ii) a person permitted to keep records or file reports on a battery or group basis under

section 92 of the Act, (iii) the holder of an approval issued under

section 7.001, and (iv) a person who receives from a well or battery a part of the production that requires separate handling, including, without limitation, a tank bottom, so that it may be disposed of; 14. “operator of the scheme” or “operator of the facility”, when the term is used in connection with a scheme approved under

section 39 of the Act, includes (

i) a person who applied, or on whose behalf an application was made, for the approval of the scheme, and (ii) any person who undertakes to perform an operation pursuant to the scheme by an agreement with a person referred to in subclause (i);

Section 1.020 AR 151/71 OIL AND GAS CONSERVATION RULES 7 15. “penalty factor” means the factor determined due to gas-oil ratio or off-target location and applied against the base allowable to determine the allowable; 16., 17., 18. repealed AR 226/93 s2; 18.1. “production entity” means a well, block or project; 19. “productive well” means an oil well that (

i) has produced either a cumulative volume of 400 cubic metres of oil or its full base allowable for two consecutive months, and (ii) is, in the opinion of the Regulator, capable of producing an amount equal to 2.5 cubic metres per day; 20., 21., 22., 23. repealed AR 226/93 s2; 24. “publication of notice” means the service, circulation or advertising by the Regulator, in accordance with its rules or practice, of a notice that, in the absence of objection by a person having a bona fide interest in the matter, it may grant an application or take such other action in a proceeding as the notice may specify; 25. “Qmax” means the maximum daily allowable of a gas well, determined in accordance with

section 10.300; 26. repealed AR 226/93 s2; 26.1. “reference rate” means the average oil production rate for the most recent unrestricted 3-month production period, not exceeding the MRL, as reported to and available from the Regulator’s records, or such other rate as the Regulator may specify; 26.2 “regulatory authority” means an entity having lawful authority respecting the regulation of oil and gas exploration, development and operations and the abandonment of wells and facilities in a jurisdiction other than Alberta; 27. “segregate” means to confine each fluid in a well to its proper pool or flow channel so that it is separate from the fluid in, or passing from or to, any other pool; 27.1. “shale” means a lithostratigraphic unit having less than 50% by weight organic matter, with

Section 1.020 AR 151/71 OIL AND GAS CONSERVATION RULES 8 (

i) less than 10% of the se dimentary clasts having a grain size greater than 62.5 micrometres, and (ii) more than 10% of the se dimentary clasts having a grain size less than 4 micrometres; 28. “surface improvement” means a railway, pipeline or other right of way, road allowance, surveyed roadway, dwelling, industrial plant, aircraft runway or taxiway, building used for military purposes, permanent farm buildings, school or church; 28.1. repealed AR 197/2016 s2; 29. “target area” means the part of a drilling spacing unit within which a well for the purpose of producing oil or gas may be completed without reduction of its base allowable because of its location; 30. “unique identifier” means a number assigned by the Regulator to a well licenced by it to provide a unique numerical identity for the well; 31. repealed AR 36/2002 s2.

(2.01) Where these Rules refer to a directive by its directive’s number or title or both, the reference is to be construed as a reference to that directive as published by the Regulator and amended from time to time.

(2.1) For the purposes of

section 91 of the Act and these Rules, (

a) a licensee or approval ho lder who is an individual is resident in a jurisdiction if the individual makes his or her home in and is ordinarily present in that jurisdiction, and (

b) a licensee or approval holder that is a corporation is resident in a jurisdiction if a director or officer of the corporation or a person employed or retained to provide services to the corporation makes his or her home in that jurisdiction, is ordinarily present in that jurisdiction and is authorized to (

i) make decisions respec ting a licence for a well or facility issued by (

A) the regulatory authority in that jurisdiction, or (

B) in the case of Alberta, the Regulator, (ii) operate the well or facility, and

Section 1.030 AR 151/71 OIL AND GAS CONSERVATION RULES 9 (iii) implement directions fro m the regulatory authority or in the case of Alberta, the Regulator, relating to the well or facility.

(2.2) Repealed AR 159/2008 s3.

(3) Where, in an order by the Regulator, the words “spacing unit”, “spacing units”, “production spacing unit” or “production spacing units” occur, they shall be read as “drilling spacing unit” or “drilling spacing units”, as the case may be.

AR 151/71 s1.020;2/76;179/76;229/79;399/83;264/84;350/87;217/88; 374/91;226/93;144/96;229/98;47/99;36/2002;185/2005;269/2006; 115/2008;159/2008;203/ 2011;208/2011;209/2011;31/2012; 121/2012;157/2012;170/2012;222/2012;2/2013;41/2013; 44/2013;55/2013;62/2013;89/2013;115/2013;88/2014; 140/2014;197/2016;30/2017;243/2017;259/2020;52/2021; 113/2021;209/2021;117/2022;216/2022;18/2023; 98/2023;12/2025;4/2026 Exemption - agents 1.030(1) In this section, “mutual recognition agreement” means a valid and subsisting agreement made between the Minister and a regulatory authority of another jurisdiction for the purpose of recognizing substantial regulatory equivalency and enabling reciprocity between Alberta and that jurisdiction.

(2) The Regulator, on application, may grant an exemption from the requirement under

section 91(2) of the Act to appoint an agent if the licensee or approval holder applying for the exemption (

a) is resident in a jurisdictio n outside Alberta that is a party to a mutual recognition agreement and is subject to the authority of the regulatory authority in that jurisdiction, (

b) is in compliance with all ap plicable legislation in Alberta and in the jurisdiction in which the licensee or approval holder is resident and all applicable directives, orders, decisions, directions and other instruments of the regulatory authority referred to in clause (

a) and of the Regulator, (

c) provides evidence satisfactory to the Regulator that the licensee or approval holder meets, and during the time the licence or approval is in effect will continue to meet, the requirements set out in subsection (3), and (

d) agrees to attorn to the ju risdiction of Alberta with respect to all matters, obligations and liabilities pertaining to licences and approvals issued by the Regulator.

Section 1.100 AR 151/71 OIL AND GAS CONSERVATION RULES 10

(3) An exemption under subsection (2) is subject to the condition that, in substitution for the requirements of

section 91(2)(a), (

b) and (

c) of the Act, the licensee or approval holder must have (

a) sufficient numbers of individuals who are trained and competent to (

i) carry out operations rel ating to a well or facility, as the case may be, in compliance with the requirements of all applicable legislation and all applicable directives, orders, decisions, directions and other instruments of the Regulator, and (ii) respond sufficiently to incidents, including emergencies, a n d (

b) representatives at a we ll site during any drilling, completion, stimulation, servicing and abandonment operations at the well site who are authorized to make decisions respecting all aspects of those operations.

(4) An exemption under subsection (2) ceases to have effect immediately on (

a) the licensee or approva l holder ceasing to meet a requirement referred to in subsection (2)(a), (

b) or (d), or (

b) the Regulator determining t hat it is no longer satisfied that the licensee or approval holder meets or will continue to meet the requirements set out in subsection (3). AR 159/2008 s4;85/2009;222/2012;89/2013;4/2026

Part 1.1 Security Deposit for Wells and Facilities 1.100 An applicant for (

a) a licence or approval, or (

b) an amendment of a licence or approval shall provide a security deposit in accordance with Directive 068. AR 83/2002 s2;189/2005;89/2013;12/2025

Section 1.110 AR 151/71 OIL AND GAS CONSERVATION RULES 11 1.110 Where an application for a transfer of a licence or approval is made, the following shall provide a security deposit in accordance with Directive 068: (

a) the applicant for the transf er of the licence or approval; (

b) the licensee or approval holder who holds the licence or approval to be transferred. AR 12/2025 s3 1.120 A licensee or approval holder shall provide a security deposit in accordance with Directive 068 where (

a) the licensee or approval ho lder is the holder of a licence or approval respecting any well or facility that is in either an inactive or abandoned state, (

b) the licensee or approval ho lder is the holder of a licence or approval respecting any well or facility for which a site-specific liability assessment must be conducted and submitted, (

c) the licensee’s or approval holder’s level of financial distress is high, according to the results of a licensee capability assessment conducted under Directive 088, or (

d) the licensee or approval holder has not complied with any requirement applicable to the licensee or approval holder respecting closure, including a closure quota. AR 12/2025 s3 1.130 The Regulator may require a licensee or approval holder to provide a security deposit at any time the Regulator considers it appropriate to do so to offset the estimated costs of (

a) suspending, abandoning, remediating or reclaiming a well, facility, well site or facility site, (

b) providing reasonable care and measures to prevent impairment of or damage to a well, facility, well site or facility site, or (

c) carrying out any other ac tivities necessary to ensure the protection of the public and the environment. AR 12/2025 s3 1.140 The Regulator may require a security deposit to be provided, and may administer a security deposit,

Section 1.150 AR 151/71 OIL AND GAS CONSERVATION RULES 12 (

a) relative to a particular w ell, facility, well site or facility site, or (

b) relative to the operations of the applicant, licensee or approval holder generally, and may convert a security deposit from one such basis to the other. AR 12/2025 s3 1.150 A security deposit must be in one of the following forms, as determined by the Regulator: (

a) cash; (

b) an irrevocable letter of cre dit in a form acceptable to the Regulator; (

c) any other form of secur ity that is acceptable to the Regulator. AR 12/2025 s3 1.160 The Regulator may require that a security deposit be provided all at the same time or in portions in the amounts and at the times specified by the Regulator. AR 12/2025 s3 1.170 Where the Regulator determines that a security deposit currently held by the Regulator is inadequate to meet the obligation or carry out the activity in respect of which the security deposit was provided, the Regulator may require the applicant, licensee or approval holder to provide any additional amounts that the Regulator considers necessary.

AR 12/2025 s3 1.180 Where an applicant, licensee or approval holder fails to meet an obligation or carry out an activity in respect of which a security deposit was provided, the Regulator may, (

a) in the case of a cash secu rity deposit, apply all or part of the security deposit held in the name of the applicant, licensee or approval holder and any earned interest towards the costs required to meet the obligation or carry out the activity; (

b) in the case of a security d eposit in the form of a letter of credit, cash the letter of credit and apply any or all of the

Section 1.190 AR 151/71 OIL AND GAS CONSERVATION RULES 13 cash towards the costs required to meet the obligation or carry out the activity; (

c) in the case of a security deposit in another form of security, call on the security and apply any or all of the funds towards the costs required to meet the obligation or carry out the activity. AR 12/2025 s3 1.190 Where a person other than the applicant, licensee or approval holder does anything for the purposes of meeting the obligation or carrying out the activity in respect of which the security deposit was provided, the Regulator may distribute any or all of the security deposit to that person for that purpose.

AR 12/2025 s3 1.200 On the request of an applicant, licensee or approval holder, the Regulator shall return a security deposit, together with earned interest, where the Regulator is satisfied that the applicant, licensee or approval holder (

a) has fully met all of the obligations and carried out all o f the activities in respect of which the security deposit was provided, and (

b) has met the other eligibility requirements of the Regulator for a full refund of the security deposit. AR 121/2012 s3;89/2013;209/2021;12/2025 1.210 On the request of an applicant, licensee or approval holder, the Regulator may return part of a security deposit where the Regulator is satisfied that the applicant, licensee or approval holder (

a) has partially met the oblig ations and carried out the activities in respect of which the security deposit was required, and (

b) has met the other eligibility requirements of the Regulator for a partial refund of the security deposit. AR 12/2025 s3 1.220 If a licensee or approval holder fails to provide a security deposit as required under

section 1.120 or 1.130, the Regulator may direct that operations of the licensee or approval holder be suspended until the security deposit is provided. AR 12/2025 s3

Section 1.230 AR 151/71 OIL AND GAS CONSERVATION RULES 14 1.230 Where, before the coming into force of this section, a licence or approval is granted, the licensee or approval holder shall provide a security deposit in accordance with this Part. AR 12/2025 s3 1.240 Any amount of security that has been provided under (

a) section 1.100 as it read immediately before the coming into force of this section, or (

b) Part 16.6 as it read immediately before the coming into force of this

section shall be retained by the Regulator and applied to offset any security deposit required under this Part. AR 12/2025 s3 1.250 A licensee or approval holder must comply with the requirements set out in Directives 001, 011, 068 and 088, as applicable. AR 12/2025 s3 1.260 If a licensee or approval holder fails to conduct and submit a site-specific liability assessment as required under Directive 001 or 011, the Regulator may direct that operations of the licensee or approval holder be suspended until the site-specific liability assessment is conducted and submitted. AR 12/2025 s3

Part 1.3 Eligibility to Hold Licences or Approvals Eligibility to hold a licence 1.300(1) An applicant must meet the licence or approval eligibility requirements set out in Directive 067 in order to be eligible to hold a licence or approval issued under the Act.

(2) If an applicant meets the licence or approval eligibility requirements of Directive 067 to the satisfaction of the Regulator, the Regulator may grant licence or approval eligibility subject to any restrictions, terms or conditions the Regulator considers appropriate.

Section 2.010 AR 151/71 OIL AND GAS CONSERVATION RULES 15

(3) If an applicant does not meet the licence or approval eligibility requirements of Directive 067 to the satisfaction of the Regulator, the Regulator may refuse to grant licence or approval eligibility.

(4) The Regulator may revoke or restrict the licence or approval eligibility of an applicant if the applicant fails to acquire licences or approvals under the Act within a year of the day of the licence or approval eligibility being granted by the Regulator.

(5) A licensee or approval holder must continue to meet the licence or approval eligibility requirements of Directive 067.

(6) The Regulator may restrict a licensee’s or approval holder’s eligibility to hold a licence or approval if the licensee or approval holder does not meet the licence eligibility requirements of Directive 067.

(7) The Regulator shall restrict a licensee’s or approval holder’s eligibility to hold a licence or approval if the licensee or approval holder fails to provide a security deposit as required under

section 1.120 or 1.130. AR 243/2017 s3;12/2025

Part 2 Licensing of Wells Application for Licence 2.010(1) An application for a licence shall (

a) be made on the form prescribed for that purpose by, and obtainable from, the Regulator, and (

b) include the documentation required by Directive 056.

(2) A licence shall be subject to such conditions as may be set out therein or attached thereto.

(3) The well name shall be in accordance with

section 13.020. AR 151/71 s2.010;11/98;47/99;269/2006;208/2011;89/2013 2.020(1) This

section applies to an application for a licence for a well other than (

a) repealed AR 103/73 s2, (

b) repealed AR 144/96 s3,

Section 2.020 AR 151/71 OIL AND GAS CONSERVATION RULES 16 (

c) a well which is one of a gr oup of experimental wells, oil sands evaluation wells or test holes referred to in

section 2.030, and (

d) any other water supply well of a depth of more than 150 metres.

(2) Repealed AR 179/98 s2.

(3) An application for a licence under this

section shall be accompanied by a suitable plan showing (

a) the location of a well, tied by bearings and distance to a monument, or, in the case of a well located in an unsurveyed territory, determined in accordance with the Alberta Land Surveyors’ Association Manual of Standard Practice, (

b) the relation of the well location to the boundaries of the quarter

section shown by the co-ordinates from the two boundaries of the quarter

section that are also boundaries of the section, assuming a 20 metre wide road allowance, and by calculated distances to the interior boundaries of the quarter section, (

c) the relation of the well lo cation to the surface topography within 200 metres of the well, including (

i) repealed AR 277/2020 s2, (ii) elevations of any significant water bodies, (iii) sufficient information to establish the general character of the topography and any predominant drainage pattern, (

d) the relation of the well location to (

i) surface improvements, (ii) wells, (iii) coal mines, whether working or abandoned, (iv) water wells, within 200 metres of the well, (

e) where it is proposed to dr ill the well in a water covered area, the depth of the water.

(3.1) A plan submitted in accordance with subsection (3), shall be

Section 2.030 AR 151/71 OIL AND GAS CONSERVATION RULES 17 (

a) repealed AR 11/98 s3; (

b) on a readable scale, (

c) prepared from a survey made under the direct supervision of an Alberta Land Surveyor, (

d) certified by the Surveyor.

(4) An applicant under this

section shall (

a) notify any landowners or r esidents as necessary of the applicant’s plans to drill a well, in accordance with Directive 056, and (

b) provide to the Regulator such further particulars concerning the well or proposed surface location of the well as the Regulator, after examination of the application, may require. AR 151/71 s2.020;103/73;144/74;264/74;295/78;350/87; 144/96;11/98;179/98;269/2006;208/2011;209/2011;89/2013; 277/2020 2.030(1) This

section applies to an application for a licence for one or more oil sands evaluation wells, in situ coal scheme evaluation wells, test holes or experimental wells, but does not apply to holes drilled under permit pursuant to the Coal Conservation Act.

(2) Application may be made under this

section for a licence for, (

a) where the setting of surf ace casing in the wells is not required by the Regulator, not more than 12 wells to be included in a single scheme or program of drilling, or (

b) where the setting of surf ace casing is required by the Regulator, one well.

(3) Repealed AR 179/98 s3.

(4) If the licensee of a licence granted under this

section for oil sands evaluation wells, in situ coal scheme evaluation wells or test holes wishes to use one or more of such wells otherwise than as oil sands evaluation wells, in situ coal scheme evaluation wells or test holes, the licensee shall (

a) apply to the Regulator for the removal of the well or well s from the licence and for the issue of a separate licence for each well so removed, and

Section 2.040 AR 151/71 OIL AND GAS CONSERVATION RULES 18 (

b) forward to the Regulator the deposit and data that would have been set out in or accompany an application under

section 2.020.

(5) As soon as possible but not more than 30 days after an oil sands evaluation well, in situ coal scheme evaluation well or test hole is drilled, the licensee shall furnish the Regulator on the form prescribed for that purpose by, and obtainable from, the Regulator, full information as to the location and depth of the well, the strata penetrated by it, the abandonment plugs and such further information as the Regulator may require. AR 151/71 s2.030;2/76;179/98;55/2013;89/2013 2.040(1) This

section applies to an application for a licence for a well (

a) repealed AR 103/73 s3, (

b) to obtain gas for use solely on a farm or ranch or for oth er domestic uses of the applicant, or (

c) repealed AR 103/73 s3, (

d) to supply water for any purpose and being of a depth of over 150 metres.

(2) Repealed AR 144/96 s4.

(3) Repealed AR 2/76 s4.

(4) Repealed AR 179/98 s4. Application to change authorized purpose of well 2.041(1) If a licensee intends to change the authorized purpose of the licensee’s well under the Act to a purpose authorized under the Geothermal Resource Development Act or the Mineral Resource Development Act, the licensee must apply to the Regulator to amend the licence to change the authorized purpose of the well.

(2) An application to amend a licence to change the authorized purpose of the well must be made in accordance with Directive 056 and as directed by the Regulator. AR 151/71 s2.040;103/73;2/76;295/78;144/96;179/98;117/2022; 18/2023 Application to change authorized purpose of facility 2.042(1) If a licensee intends to change the authorized purpose of the licensee’s facility under the Act to a purpose authorized under the Geothermal Resource Development Act or the Mineral

Section 2.050 AR 151/71 OIL AND GAS CONSERVATION RULES 19 Resource Development Act, the licensee must apply to the Regulator to amend the licence to change the authorized purpose of the facility.

(2) An application to amend a licence to change the authorized purpose of the facility must be made in accordance with Directive 056 and as directed by the Regulator. AR 18/2023 s4 Transfer of Licence 2.050(1) An application for a transfer of a licence must be on the form established for that purpose by, and obtainable from, the Regulator and the transfer is not effective unless this subsection is complied with.

(2) Where the Regulator directs the transfer of a licence pursuant to

section 24(6) of the Act, the person to whom the licence is so transferred shall pay to the Regulator the fee prescribed by

section 17.010(1)(d.1).

(3) If a licensee changes its name or amalgamates with another company that results in a change of name, the licensee must submit certificates of proof satisfactory to the Regulator in accordance with Directive 067. AR 151/71 s2.050;350/87;9/93;144/96;179/98;209/2011;89/2013; 18/2023 2.060 to 2.080 Repealed AR 27/86 s2. 2.081 Repealed AR 83/2002 s3. Agent 2.082 An application for the approval of an agent or for consent to the discharge of an agent must be made on the form established for that purpose by, and obtainable from, the Regulator.

AR 144/96 s6;179/98;89/2013 Well Near Aerodrome 2.090 A person proposing to drill a well within 5 kilometres of a lighted aerodrome, or within 1.6 kilometres of an unlighted aerodrome shall, before applying for a well licence, advise the Regional Manager, Air Navigation Requirements, Transport Canada, Edmonton, Alberta, of the proposed well site, the height of the derrick to be used and the approximate dates between which drilling operations are expected to take place.` AR 151/71 s2.090;295/78;350/87

Section 2.100 AR 151/71 OIL AND GAS CONSERVATION RULES 20 Coal Mines 2.100(1) If the applicant for a licence intends to drill through a bed or seam of coal, the applicant shall notify in writing the lessee of the coal lease.

(2) Where an applicant intends to drill through a bed or seam of coal, then, before a licence may be granted, the applicant shall satisfy the Director of Mines that it is practicable to drill through the bed or seam.

(3) The location of a well to be drilled through a bed or seam of coal, and its drilling, completion, operation and abandonment, shall be in accordance with sections 6.140 to 6.190. AR 151/71 s2.100;11/98 Surface Improvements 2.110(1) No well shall be drilled at any point that is within (a) 100 metres of any surf ace improvement other than a surveyed roadway or road allowance, or (b) 40 metres of a surveyed roadway or road allowance unless there exist special circumstances which in the opinion of the Regulator justify the drilling of a well within a lesser distance. AR 151/71 s2.110;295/78;89/82’89/2013 Water Pollution Control 2.120(1) No person shall (

a) drill a well or cause or permit a well to be drilled, or (

b) construct a pit for containing mud, oil, water and other fluid associated with the well or cause or permit such a pit to be constructed, closer than 100 metres, or such greater distance as the Regulator may direct, to the normal high water mark of a water body or permanent stream unless he has obtained written approval from the Regulator of his plans to prevent pollution of the water.

(2) The plans referred to in subsection (1) shall (

a) indicate the elevations of th e normal high water mark and surrounding land, and

Section 3.010 AR 151/71 OIL AND GAS CONSERVATION RULES 21 (

b) set forth measures to meet the particular circumstances that may be encountered including (

i) the construction and maintenance of dikes, reservoirs and other installations, as may be required, and (ii) the final disposal of mud , oil, water and other fluid associated with the well or drilling operation. AR 151/71 s2.120;2/76;295/78;89/2013;18/2023

Part 3 Approval of Drilling and Completion Operations Approval of Certain Operations 3.010(1) The licensee of a well shall apply for and obtain the permission of the Regulator before performing any of the following operations, or causing or permitting them to be performed, (

a) suspend normal drilling operations; (b) - (

d) repealed AR 12/98; (

e) resume drilling operations a fter a previous completion, suspension or abandonment of the well; (

f) abandon or plug back the well with a mechanical well bore problem; (

g) undertake remedial operations for the purposes of eliminating a vent flow or gas migration in accordance with Directive 087; (

h) undertake remedial operations for the purposes of eliminating a leaking open-hole abandonment.

(2) An application under subsection (1)(

e) shall be made on a form prescribed for that purpose by, and obtainable from, the Regulator.

(3) The Regulator may, in writing and after consultation with the applicant and in time to be received by the applicant prior to commencement of the approved program, vary a program approved or alter a condition prescribed in an approval granted under this section.

(4) If an operation approved under this

section will deepen a well beyond the formation authorized by the well licence, the Regulator shall amend the licence accordingly.

Section 3.011 AR 151/71 OIL AND GAS CONSERVATION RULES 22

(5) A member or authorized employee of the Regulator may first give orally an approval required under this section.

(6) If the well is an experimental well, the Regulator’s approval of the experimental scheme is sufficient approval of any operation referred to in subsection (1) that is part of the performance of the scheme.

(7) Repealed AR 185/2005 s3. AR 151/71 s3.010;12/98;185/2005;89/2013;52/2021 3.011 No person shall produce gas from a well completed in the oil sands strata prior to obtaining an approval from the Regulator in accordance with

section 3 of the Oil Sands Conservation Rules (AR 76/88), unless the Regulator has exempted the well from the application of this section. AR 47/99 s3;89/2013 Abandoned Wells 3.012 A licensee shall abandon a well or facility (

a) on the termination of the m ineral lease, surface lease or right of entry, (

b) where the licensee fails t o obtain the necessary approval for the intended purpose of the well, if the licensee does not hold the right to drill for and produce oil or gas from the well, (

c) if the licensee has contrave ned

an Act, a rule, a regulation or an order or direction of the Regulator and the Regulator has suspended or cancelled the licence, (

d) if the Regulator notifies the licensee that in the opinion of the Regulator the well or facility may constitute an environmental or a safety hazard, (

e) if the licensee is not or cea ses to be a working interest participant in the well or facility, (e.1) if the licensee (

i) is not or ceases to be resident in Alberta, (ii) has not appointed an agent in accordance with

section 91 of the Act, and (iii) does not hold a subsisting exemption under

section 1.030 from the requirement to appoint an agent,

Section 3.013 AR 151/71 OIL AND GAS CONSERVATION RULES 23 (

f) if the licensee is (

i) a corporation registered, incorporated or continued under the Business Corporations Act whose status is not active or has been dissolved or if the corporate registry status of the corporation is struck or rendered liable to be struck under any legislation governing corporations, or (ii) an individual who is deceased, (

g) if the licensee has suspen ded the well in contravention of the requirements established by the Regulator under

section 3.020, (g.1) when required by the Regulator pursuant to timelines set out in Directives related to closure published by the Regulator, or (

h) where otherwise ordered to do so by the Regulator. AR 185/2005 s4;159/2008;222/2012;89/2013;259/2020 Abandonment Operations 3.013(1) Abandonment operations, including well abandonment, casing removal, zone abandonments and plug backs, shall be conducted in accordance with the current edition of Directive 020.

(2) A licensee must comply with all of the requirements of Directive 079, including requirements for locating and testing wells which are considered abandonment operations for the purposes of sections 27, 28, 29, 30, 101 and

Part 11 of the Act. AR 185/2005 s4;208/2011;157/2013 3.014(1) The Regulator may establish closure quotas that are applicable to some or all licensees with respect to the required amount of work or the amount to be spent, or both, as directed by the Regulator and for the period determined by the Regulator, with respect to the closure of the licensee’s wells and facilities.

(2) A licensee shall comply with any closure quota applicable to it, unless otherwise directed by the Regulator. AR 259/2020 s4 3.015(1) When requested by the Regulator, a licensee must submit a closure plan regarding some or all of its wells and facilities, in accordance with any direction of the Regulator given under subsection (3).

(2) A closure plan must contain the information required by the Regulator and the plan must be approved by the Regulator subject to any terms and conditions imposed by the Regulator.

Section 3.016 AR 151/71 OIL AND GAS CONSERVATION RULES 24

(3) The Regulator may direct the timing and priority for performing work with respect to the closure of the licensee’s wells and facilities.

(4) A licensee shall comply with any terms and conditions of the licensee’s approved closure plan. AR 259/2020 s4 3.016(1) Where (

a) a well or facility has remained in either an inactive or abandoned state for 5 or more years, and (

b) a request has been made to the Regulator by an eligible requester, unless otherwise directed by the Regulator, the licensee of the well or facility shall prepare a closure plan respecting the well or facility.

(2) For the purpose of this section, “eligible requester” means (

a) in the case of a well or f acility situated on private land, the landowner, (

b) in the case of a well or f acility situated on public land, (

i) the Minister responsible for the Public Lands Act, and (ii) the holder, if any, of a disposition issued under

Part 3 of the Public Lands Administration Regulation (AR 187/2011), (

c) in the case of a well or facility situated on an Indian reserve, the reserve as represented by the council of the band as defined in the Indian Act (Canada), (

d) in the case of a well or facility situated on a Metis settlement, the Metis settlement, and (

e) in the case of a well or f acility situated on land owned by a municipality as defined in the Municipal Government Act, the municipality. AR 259/2020 s4;18/2023 Suspended Wells 3.020(1) A licensee shall suspend a well when required by and in accordance with Directive 013, or as otherwise directed by the Regulator.

Section 3.040 AR 151/71 OIL AND GAS CONSERVATION RULES 25 (2) -

(3) Repealed AR 78/98 s2. AR 151/71 s3.020;350/87;144/96;78/98;89/2013;197/2016 3.030 Repealed AR 144/96 s8. Production from more than One Pool 3.040(1) The licensee of a multi-zone well shall within 30 days after the well has been completed in more than one pool, advise the Regulator of the effective date of each completion on the form prescribed for that purpose by, and obtainable from, the Regulator, and submit in duplicate to the Regulator a diagrammatic sketch showing (

a) the type and make of each component of the subsurface installation, (

b) the depth below a stated reference in the well of each component of the subsurface installation, the casing, liner and tubing, setting depths and sizes, the upper and lower limits of the porous intervals, and fluid interfaces of each completion pool and the perforated intervals, and (

c) the flow channels for the fluids.

(2) The licensee of a multi-zone well shall, within 30 days after modification of the subsurface installation or producing interval, submit to the Regulator revisions to the sketch required by subsection (1). AR 151/71 s3.040;89/2013 3.050(1) The Regulator may, by order, approve two or more pools in a field as pools from which production may be taken or to which injection may be made without segregation in the well bore, and may, where in its opinion exceptional circumstances so require, limit the application of the order to production or injection in wells named in the order.

(2) An application for an order under this

section must be made in accordance with Directive 065 and must include any other information that the Regulator requires. AR 151/71 s3.050;169/90;203/2011;89/2013 3.051(1) In the absence of an approval under

section 3.050, a licensee may produce gas from all formations in a development entity without segregation in the well bore where

Section 3.051 AR 151/71 OIL AND GAS CONSERVATION RULES 26 (

a) there are no completions a bove or below the stratigraphic interval of the development entity, (

b) anticipated or actual wate r production is less than 30.0 cubic metres per well per month if there are completions above the base of the groundwater protection, (

c) repealed AR 50/2012 s2, (

d) there is no hydrogen sulphide in the production stream, (

e) the licensee has resolved any concerns of lessors or lessees of the mineral rights whose rights may be directly and adversely affected by the unsegregated production, (

f) the reservoir pressure of any interval completed for production does not exceed 90% of the fracture pressure of any other interval completed for production, and (

g) there is no production of gas associated with an oil accumulation.

(2) In the absence of an approval under

section 3.050, a licensee may produce gas from all formations without segregation in the well bore, on a self-declared basis, where (

a) the criteria set out in subsection (1)(

b) to (

g) are met, (

b) the well is not in a designated oil sands area or in a poo l that overlaps a designated oil sands area, and (

c) repealed AR 130/2010 s2. (

d) the pools or intervals are not subject to any existing or proposed enhanced recovery scheme.

(3) In the absence of an approval under

section 3.050, a licensee may produce oil from all formations without segregation in the well bore, on a self-declared basis, where (

a) the criteria set out in subsection (1)(

b) to (

f) and subsection (2)(

b) and (

d) are met, (

b) there is no production of gas that is not associated with an oil accumulation, (

c) the oil pools have the same rate administration, (

d) there are no oil pools that have associated gas caps that have not been approved for concurrent production, and

Section 3.060 AR 151/71 OIL AND GAS CONSERVATION RULES 27 (

e) the unsegregated flow rate of every well in the pools proposed for commingling is less than 3 cubic metres per day when calculated over 3 consecutive months of production.

(4) A licensee shall initially report production from each well producing in accordance with this section, using the field and pool codes set out by the Regulator (

a) for production in a development entity, or (

b) for unsegregated production occurring on a self-declared basis. AR 269/2006 s5;130/2010;50/2012;89/2013 3.060 A well shall not be completed or operated with casing perforated or left open in more than one pool unless (

a) such completion or operation occurs in accordance with the requirements of

section 3.040 or 3.050, or (

b) the commingling is in compliance with

section 3.051. AR 151/71 s3.060;269/2006 Wells Completed Above Base of Groundwater Protection 3.061 A licensee of a well that is completed above the base of groundwater protection, other than a water well or a well that is part of a water recycle program, shall operate the well in accordance with Directive 044: Requirements for Surveillance of Water Production in Hydrocarbon Wells Completed Above the Base of Groundwater Protection. AR 208/2011 s5;277/2020 Hydraulic Fracturing Operations 3.062 A licensee of a well shall comply with Directive 083.

AR 115/2013 s3 3.068 Repealed AR 185/2005 s5. 3.069 Repealed AR 83/2002 s4. 3.070 Repealed AR 12/98 s3. Application for Determination of Costs 3.071(1) An application under

section 30(2) of the Act

Section 3.071 AR 151/71 OIL AND GAS CONSERVATION RULES 28 (

a) for a determination of the costs of providing reasonable care and measures to prevent impairment or damage, suspension costs, abandonment costs, remediation costs or reclamation costs for a well, facility, well site or facility site, and (

b) for the allocation of the c osts in clause (

a) to each working interest participant in accordance with its proportionate share in the well or facility made by a person who conducted the work where ordered or directed by the Regulator must be made in accordance with this section.

(2) Unless otherwise directed by the Regulator, an application referred to in subsection (1) must include (

a) the applicant’s full lega l name, business address, telephone number, email address and the name of a contact person for the applicant, (

b) the legal descriptio n and licence number of (

i) the well, facility, well site or facility site that has been provided with reasonable care and measures to prevent impairment or damage, (ii) the well, facility, well s ite or facility site that has been suspended or abandoned, or (iii) the well site or facility s ite that has been remediated or reclaimed, (

c) a complete list, totalling 100 per cent of the working interest, of the working interest participants in the well or facility at the time the costs were incurred, (

d) each working interest partic ipant’s full legal name, last known business address, telephone number and email address, the name of a contact person for each working interest participant and the proportionate share of the costs for each working interest participant for which the application is being made, (

e) a detailed description of the total costs incurred in the provision of reasonable care and measures to prevent impairment or damage or in the work of suspension, abandonment, remediation or reclamation, supported by receipts for the costs incurred and for salvage revenue, if any,

Section 3.071 AR 151/71 OIL AND GAS CONSERVATION RULES 29 (

f) in the case of a determination of costs for (

i) the provision of reasonable care and measures to prevent impairment or damage, a statement that (

A) the provision of reasonable care and measures in respect of the well, facility, well site or facility site was carried out in accordance with the Regulator’s rules and other requirements, and (

B) the Regulator’s recor ds have been updated to reflect the work performed, (ii) suspension or abandonment, a statement that the suspension or abandonment of the well, facility, well site or facility site has been completed and was carried out in accordance with the Regulator’s rules and other requirements and that the Regulator’s records have been updated to reflect the work performed, (iii) remediation, a statement (

A) that an environmental site assessment has been completed in accordance with the applicable requirements and that the Regulator’s records have been updated to reflect the work performed, or (

B) that provides the number of the remediation certificate issued for the well site or facility site, o r (iv) reclamation, a statement t hat a reclamation certificate has been issued for the well site or facility site and that provides the number of the reclamation certificate issued for the well site or facility site, a n d (

g) any other information required by the Regulator.

(3) An application for a determination of costs under subsection (2)(f)(

i) or (iii) may be made only after the abandonment or remediation work is completed, unless otherwise permitted by the Regulator. AR 185/2005 s6;89/2013;109/2020

Section 3.080 AR 151/71 OIL AND GAS CONSERVATION RULES 30 Variation of Program 3.080(1) On application by a licensee, the Regulator may approve a departure from or variation of a program of operations approved or prescribed by the Regulator.

(2) In case of an emergency in which an immediate departure from or variation in the program is necessary, such departure or variation may be made to the extent that it is necessary, and the licensee shall immediately advise the Regulator thereof by the quickest effective means and shall further advise the Regulator thereof in writing signed by him. AR 151/71 s3.080;12/98;89/2013

Part 4 Drilling Spacing Units and Target Areas Application 4.005 This Part does not apply in respect of any wells associated with an in situ coal scheme. AR 55/2013 s4 Drilling Spacing Unit 4.010(1) The drilling spacing unit for a well is the surface area of the drilling spacing unit and (

a) the subsurface vertica lly beneath that area, or (

b) where the drilling spacing unit is prescribed with respect to a specified pool, geological formation, member or zone, the pool, geological formation, member or zone vertically beneath that area.

(2) A drilling spacing unit does not include the area of a road allowance.

(3) Unless the Regulator otherwise prescribes under

section 4.040, the surface area of a drilling spacing unit for (

a) an oil well is one quarter section, or (

b) a gas well is one section. AR 151/71 s4.010;374/91;12/98;203/2011;89/2013 4.020 Repealed AR 203/2011 s5.

Section 4.021 AR 151/71 OIL AND GAS CONSERVATION RULES 31 4.021(1) The Regulator, on its own motion, may by order limit the number of wells that may be produced in a drilling spacing unit.

(2) No well shall be produced unless there is common ownership throughout the drilling spacing unit. AR 153/2006 s2;12/2007;39/2010;203/2011; 89/2013;70/2021;104/2023 Target Areas 4.030(1) Unless the Regulator otherwise prescribes under

section 4.040, the target area for wells drilled or to be drilled must be within the drilling spacing unit, as follows: (

a) in a drilling spacing unit fo r a gas well, the target area must be the central area within the drilling spacing unit having sides of 150 metres from the sides of the drilling spacing unit and parallel to them; (

b) in a drilling spacing unit fo r an oil well, the target area must be the central area within the drilling spacing unit having sides of 100 metres from the sides of the drilling spacing unit and parallel to them.

(2) Notwithstanding subsection (1), the target area for those gas wells drilled or to be drilled in the area of the Province outlined in

Schedule 13A must be located at least 150 metres from the south and west boundaries of the drilling spacing unit. AR 151/71 s4.030;264/74;374/91;12/98;153/2006; 39/2010;203/2011;89/2013 4.035 Repealed AR 374/91 s2. Special Drilling Spacing Units 4.040(1) The Regulator, on application, may prescribe the surface area or target area of a drilling spacing unit or number of wells to be produced in a drilling spacing unit.

(2) An application under subsection (1) must be made in accordance with Directive 065 and must include any other information that the Regulator requires.

(3) The Regulator shall not grant an application for an order pursuant to subsection (1) that would increase the number of wells that may be produced in a drilling spacing unit unless the applicant shows that (

a) improved recovery will be obtained,

Section 4.050 AR 151/71 OIL AND GAS CONSERVATION RULES 32 (

b) additional wells are necessary to provide capacity to drain the pool at a reasonable rate that will not adversely affect the recovery of the pool, or (

c) the proposed drilling spacing unit would be in a pool in a substantial part of which there are existing drilling spacing units that allow the same number of wells that may be produced.

(4) The Regulator may prescribe for an approved oil sands scheme or after publication of notice, for an experimental scheme (

a) special drilling spacing un its as to size, shape and target area, or (

b) an area not having any specific drilling spacing units as to size, shape or target area within which wells may be drilled.

(5) The Regulator may, on application or on its own motion, (

a) vary an order or direction issued under this section, or (

b) rescind the order. AR 151/71 s4.040;374/91;203/2011;89/2013 Fractional Tracts of Land 4.050(1) A fractional tract of land that is equal to or greater than half the size of a drilling spacing unit, as described in

section 4.010(3), is deemed to be a drilling spacing unit.

(2) If a fractional tract of land is less than half the size of a drilling spacing unit, as described in

section 4.010(3), it must be joined with an adjacent drilling spacing unit and is deemed to be a drilling spacing unit where (

a) the lands to be joined are of common ownership, (

b) the adjacent drilling spacing unit is the size of a drilli ng spacing unit, as described in

section 4.010(3), and (

c) the adjacent drilling spacing unit is located directly to the east or west of the fractional tract of land.

(3) If a fractional tract of land is deemed to be a drilling spacing unit under subsection (1), the Regulator may apply either a production penalty based on the ratio of the area that the deemed drilling spacing unit bears to a drilling spacing unit, as described in

section 4.010(3), or an off-target penalty. AR 151/71 s4.050;374/91;203/2011;89/2013

Section 4.060 AR 151/71 OIL AND GAS CONSERVATION RULES 33 Off-target Penalties 4.060(1) Where the Regulator has prescribed a special drilling spacing unit, it may prescribe a factor to be applied in reduction of the base allowable of the well if the well is not completed within its target area.

(2) Notwithstanding any other provision of this section, where a well is off-target, the Regulator may specify that the off-target penalty factor prescribed for the well pursuant to

section 4.070 shall not apply, or may be modified or changed, subject to such terms and conditions as the Regulator may prescribe.

(3) If a drilling spacing unit exists that is smaller than one quarter legal subdivision, but is similar in configuration as to shape and target area as to the larger drilling spacing units, and where an off-target well exists in the smaller drilling spacing unit, the Regulator, in order to determine the off-target penalty factor, may use and adapt the figures referred to in

Schedule 14 to fit the boundary and area of the smaller drilling spacing unit.

(4) If a well is completed within its target area, its base allowable shall not be reduced because of its location within its drilling spacing unit.

(5) Where a well is spudded on or after 1 April 1994 and is the first well in a new pool, the off-target penalty factor prescribed for the well under

section 4.070 shall not apply.

(6) For the purposes of this section, (a) “capable”, when the term is used in connection with a first well, means (

i) an oil well that is placed on production within 6 months of the spud date, and (ii) a gas well that is comple ted and a suitable test has demonstrated to the Regulator’s satisfaction that the well has the ability to produce gas at commercial rates on a sustained basis; (b) “first well” means the well in a new pool with the earliest spud date that is capable of production. AR 151/71 s4.060;350/87;374/91;226/93;12/98;89/2013 4.070(1) If a well is completed outside of its target area, its base allowable shall be reduced by a penalty factor determined in accordance with

Schedule

Section 4.090 AR 151/71 OIL AND GAS CONSERVATION RULES 34

(2) The point at which the off-target penalty factor is determined is the minimum horizontal distance, measured in metres, from any portion of the well bore within the oil or gas productive part of the producing pool to the nearest boundary of the drilling spacing unit.

(3) Notwithstanding subsection (1), a well drilled prior to 1 April 1994, with an off-target penalty that is less than the off-target penalty factor determined by

Schedule 14, shall retain its current penalty factor. AR 151/71 s4.070;69/72;2/76;202/76;250/77;295/78; 469/78;229/79;267/82;374/91;12/98 4.080 Repealed AR 12/98 s9. 4.090(1) If the Regulator, by order, rule or regulation, changes the drilling spacing unit so that a well in the drilling spacing unit that was on-target before the issuance of the order, rule or regulation, is off-target, the base allowable shall not be reduced because of its location within the drilling spacing unit unless the Regulator otherwise directs.

(2) Where any well was spudded on or before January 1, 1992, it shall not become off-target nor have its off-target penalty changed due to the change in rules or regulations. AR 374/91 s3;89/2013

Part 5 Blocks, Projects and Holdings 5.005 Repealed AR 203/2011 s10. 5.010 to 5.090 Repealed AR 226/93 s6. 5.100(1) The Regulator, on application and by order, may establish blocks in oil pools.

(2) An application for an order for the establishment of a block shall contain (

a) a

summary of the current ga s-oil ratio, water-oil ratio and productive capability of each well proposed to be included in the block, (

b) a depletion plan for the blo ck, along with a discussion of the conservation benefits to be achieved by producing in accordance with a block,

Section 5.110 AR 151/71 OIL AND GAS CONSERVATION RULES 35 (

c) a discussion of the imp act on wellbore performance by producing selected wells at higher oil rates, and (

d) a statement verifying that the lands being included in the block are of common ownership. AR 151/71 s5.100;264/74;226/93;89/2013 5.110 A block shall contain only (

a) whole, contiguous drilling spacing units of common ownership, and (

b) drilling spacing units tha t contain a well capable of production, but the Regulator may, where in its opinion circumstances that are not hereby provided for are present, vary these requirements in a particular case. AR 151/71 s5.110;264/74;15/84;217/88;226/93;89/2013 5.120 Repealed AR 226/93 s8. 5.130 The Regulator may, on application or on its own motion, rescind the order establishing a block or amend the order to vary the area of a block. AR 151/71 s5.130;264/74;226/93;89/2013 5.140 Repealed AR 226/93 s10.

Establishment of Projects 5.150(1) If, upon the application by an operator of an approved scheme for the enhanced recovery of oil, the Regulator is satisfied that operations are proceeding in accordance with the scheme, it may, in accordance with sections 5.160 and 5.170 establish a project.

(2) An application for an order for the establishment of a project shall contain a statement verifying that the lands being included in the project are of common ownership. AR 151/71 s5.150;226/93;36/2002;89/2013 5.160 A project shall contain only whole contiguous drilling spacing units of common ownership, but the Regulator may, where in its opinion circumstances not hereby provided for are present, vary these requirements in a particular case. AR 151/71 s5.160;226/93;89/2013

Section 5.170 AR 151/71 OIL AND GAS CONSERVATION RULES 36 5.170 The Regulator may, on application or on its own motion, rescind the order establishing a project or amend the order to vary the area of a project. AR 151/71 s5.170;89/2013 5.180 Repealed AR 226/93 s14. Establishment of Holdings 5.190(1) The Regulator, on application and by order, may establish holdings.

(2) An application to establish holdings must be made in accordance with Directive 065 and must include any other information that the Regulator requires.

(3) The Regulator shall not grant an application for an order pursuant to subsection (1) unless, in the opinion of the Regulator, the applicant shows that (

a) improved recovery will be obtained, (

b) additional wells are necessary to provide capacity to drain the pool at a reasonable rate that will not adversely affect the recovery of the pool, or (

c) the proposed holding would be in a pool, in a substantial part of which there are existing drilling spacing units or holdings with similar provisions. AR 217/88 s5;203/2011;89/2013 5.200 A holding shall contain only (

a) a single drilling spacing u nit of common ownership, or (

b) whole, contiguous drilling spacing units of common ownership. AR 217/88 s5;226/93;203/2011 5.210 The Regulator may specify in an order establishing a holding any terms and conditions respecting the establishment, continuation and termination of the holding that it considers appropriate in the circumstances. AR 217/88 s5;89/2013 5.220 The Regulator may, on application or on its own motion, where a holding fails to meet the requirements of

section 5.200 or

Section 6.010 AR 151/71 OIL AND GAS CONSERVATION RULES 37 the terms and conditions specified in an order establishing the holding, (

a) vary the area of the hold ing or any term or condition contained in the order establishing the holding by amending the order, or (

b) rescind the order. AR 217/88 s5;89/2013

Part 6 Drilling, Completing and Servicing Posting of Licence and Signs 6.010(1) During drilling operations, the licensee shall post and keep prominently displayed at the well site a duplicate of the licence for the well, together with a duplicate of any amendment thereof.

(2) Repealed AR 321/90 s2. AR 151/71 s6.010;321/90;9/93 6.020(1) Repealed AR 36/2002 s4.

(2) This

section applies to all wells and facilities and to LPG facilities and oil loading and unloading terminals as if they were facilities.

(3) The licensee of a well shall identify a well and the operator of a facility shall identify a facility by the use of a conspicuous sign erected at the primary entrance to the well or facility that indicates (

a) the name and telephone number of the licensee or operator, and (

b) the legal description of t he surface location of the well or facility. (4) Subsection (3) does not apply to a licensee of a well during drilling and initial completion operations.

(5) A licensee or operator shall maintain a sign that is erected pursuant to subsection (3) in a manner that is satisfactory to the Regulator.

(6) An operator who operates more than one facility at one location may erect one sign to identify all of the facilities at that location.

Section 6.021 AR 151/71 OIL AND GAS CONSERVATION RULES 38

(7) A licensee who drills more than one well from one surface location shall identify the bottom hole location of each well on a sign affixed to the wellhead.

(8) The licensee of a well or the operator of a facility shall post one of the following categories of warning symbol: (

a) Category I: Flammable (gas or liquid); Class 3; (

b) Category II: Poison Gas; Class 2.

(9) A Category II warning symbol shall be used in the following cases: (

a) where a facility handles or a well may produce gas containing .01 moles per kilomole of hydrogen sulphide or greater; (

b) where the Regulator so directs; and a Category I warning symbol shall be used in all other cases.

(10) Warning symbols must be of the size, design and color shown in

Schedule 12.

(11) Warning symbols shall be posted adjacent to all entrances to the developed area of wells and facilities or, for wells and facilities that have no access roads or developed areas, warning symbols shall be posted at the wellhead or facility.

(12) A warning symbol may be posted on a sign that is erected at the primary entrance to a well or facility pursuant to subsection (3).

(13) No licensee or operator may (

a) post warning symbols if a hazard does not exist, or (

b) post warning symbols that are not in compliance with this

section and

Schedule 12. AR 151/71 s6.020;321/90;67/98;36/2002 Notification of Commencement of Drilling 6.021 On commencement of the drilling of a well, other than a well of the kind referred to in

section 2.030 or 2.040(1)(d), the licensee shall, within 12 hours or as otherwise arranged with the Regulator, advise the appropriate field centre of the Regulator. AR 69/72 s3;19/90;36/2002;89/2013

Section 6.030 AR 151/71 OIL AND GAS CONSERVATION RULES 39 Deviation and Directional Surveys 6.030(1) Unless the Regulator otherwise directs in writing, the licensee of a well shall make or cause to be made during drilling, tests, at depth intervals not exceeding 150 metres, for the purpose of ascertaining to what extent the well deviates from the vertical.

(2) Repealed AR 36/2002 s6.

(3) The licensee shall, immediately upon the making of a directional survey, send to the Regulator the report of the survey.

(4) The Regulator may order the licensee to make such further deviation or directional surveys as it deems necessary, and may give directions as to the manner in which such tests or surveys shall be made. AR 151/71 s6.030;295/78;36/2002;89/2013 Removal of Rig 6.040(1) The licensee shall not remove or cause or permit to be removed the rig, derrick or other equipment from a well without first obtaining written approval of the Regulator, unless he has (

a) completed the well in acc ordance with the licence, or (

b) suspended operations or ab andoned the well in accordance with the approval of the Regulator pursuant to

section 3.010.

(2) Notwithstanding subsection (1), the Regulator may first give an approval required under this

section verbally. AR 151/71 s6.040;89/2013;18/2023 Control of Fluids Encountered 6.050 The licensee of a well and the operator of equipment at a well shall, at all times during which the well is being drilled, tested, completed or reconditioned, (

a) conduct operations, and (

b) maintain casing and control equipment, so that any oil, gas or water encountered shall be effectively controlled. AR 151/71 s6.050

Section 6.060 AR 151/71 OIL AND GAS CONSERVATION RULES 40 Casing and Equipment at a Well 6.060 The licensee shall comply with the specifications stipulated in the licence for a well and with such further equipment specifications as the Regulator, after consultation with the licensee, may from time to time stipulate. AR 151/71 s6.060;89/2013 6.070(1) The licensee of a well must case it in a manner prescribed by the Regulator in Directive 010: Minimum Casing Design Requirements.

(2) Notwithstanding subsection (1), the Regulator may, on application by the licensee of a well, (

a) consider and approve the use of a casing engineered to an alternative standard, or (

b) if the Regulator is satis fied that in the particular circumstances casing is not required, dispense with the requirement to case the well. AR 151/71 s6.070;36/2002;209/2011;89/2013 6.080(1) Repealed AR 186/93 s2.

(2) The licensee shall set surface casing and meet requirements as prescribed in Directive 008: Surface Casing Depth Requirements.

(3) Repealed AR 216/2010 s2.

(4) Where the required surface casing setting depth is less than (a) 180 metres, or (

b) the Base of Groundwater Protection (BGWP) depth, the casing string next to the surface casing shall be cemented full length.

(5) Notwithstanding any other provision hereof, for any specific well or area, the Regulator may prescribe and require the licensee of the well to ensure that surface casing is installed at such greater or lesser depth as it considers appropriate in the circumstances.

(6) The licensee shall ensure that surface casing is cemented full length before drilling more than 10 metres beyond the casing setting depth. AR 151/71 s6.080;15/77;229/79;205/81;206/82;19/90; 186/93;269/2006;216/2010;208/2011;89/2013

Section 6.081 AR 151/71 OIL AND GAS CONSERVATION RULES 41 6.081 The licensee of a well shall not drill beyond a depth of 3600 metres without first setting intermediate casing unless the Regulator is satisfied that such casing is not required. AR 15/77 s3;89/2013 6.090 The licensee shall cement casing as required by Directive 009: Casing Cementing Minimum Requirements, unless the Regulator (

a) exempts the licensee from the requirements, or (

b) prescribes another method for cementing the casing for a particular well or area. AR 151/71 s6.090;460/82;269/2006;208/2011;89/2013 6.100(1) The licensee of a well completed to produce oil or gas or to inject any fluid shall leave the annulus between the second casing string and the surface casing open to the atmosphere in the manner described in subsection (2).

(2) The licensee shall vent the annulus by a line which, subject to such other specifications as the Regulator may prescribe in a particular case, shall (

a) have a minimum diameter of 50 millimetres, (

b) extend at least 60 centim etres above ground level, (

c) terminate so that any f low is directed either in a downward direction or parallel to the ground, and (

d) be equipped with a valve where the hydrogen sulphide concentration in a representative sample of gas from the well is found to exceed 50 moles per kilomole.

(3) The working pressure rating in kilopascals of all parts of the surface casing vent shall be at least 25 times the numerical equivalent of the surface casing depth in metres required.

(4) The Regulator may exempt a well from the requirements of this

section in accordance with Directive 087 where, in the opinion of the Regulator, the circumstances warrant the exemption. AR 151/71 s6.100;295/78;51/81;36/2002;89/2013;52/2021 6.101(1) All production from or injection to a well, except production of sweet gas or injection of fresh water, shall be through tubing.

Section 6.110 AR 151/71 OIL AND GAS CONSERVATION RULES 42

(2) The Regulator may, upon application by the licensee, exempt a well from the requirements of subsection (1) where in the opinion of the Regulator, circumstances warrant the exemption.

(3) A licensee applying for an exemption under subsection (2) shall demonstrate that the measures he has taken to reduce the risk of escape of fluids resulting from corroded materials are adequate.

(4) Repealed AR 36/2002 s9. AR 241/71 s2;69/72;36/2002;89/2013;45/2014 6.110 No casing recovered from a well shall be run as intermediate or production casing unless it has been tested in a manner satisfactory to the Regulator and shown to meet the Regulator’s requirements. AR 151/71 s6.110;89/2013 6.120(1) Before any fluid other than potable water is injected to a subsurface formation through a well, the licensee shall (

a) set a production packer in the well as closely above the injection interval as is practicable, and (

b) fill the space between the tubing and outer steel casing with a non-corrosive, corrosion inhibited liquid, but the Regulator, upon application and in writing, may relieve the licensee from any requirement of this section.

(2) Where a well is equipped with a production packer as required by subsection (1), the licensee must report test results in accordance with Directive 087.

(3) If requested by the Regulator, the licensee shall submit (

a) evidence to show, to the sa tisfaction of the Regulator, that the liquid between the tubing and casing is isolated from the fluid being injected, and (

b) the data that substantiates the isolation. AR 151/71 s6.120;233/72;103/73;89/2013;52/2021 6.130(1) The surface and subsurface equipment of a completed oil or gas well shall be of such nature and so arranged as to permit the ready measurement of the tubing pressure, production casing pressure, surface casing pressure and bottom hole pressure, and to permit any reasonable test required by the Regulator except insofar as a completion technique approved by the Regulator precludes such measurement or test.

Section 6.131 AR 151/71 OIL AND GAS CONSERVATION RULES 43

(2) The surface equipment shall include such valve connections as are necessary to sample the oil, gas or water produced.

(3) The licensee of an oil or gas well, on completion of the well and on any subsequent alteration, shall keep and make readily available to the Regulator an accurate and detailed description of all subsurface equipment in the well and its location therein. AR 151/71 s6.130;51/81;89/2013 6.131 A licensee must test, report and repair packer isolation, vent flows, gas migrations and casing failures in accordance with Directive 087.

AR 52/2021 s6 Drilling through Coal 6.140(1) No person shall drill within 3 kilometres of any subsurface mine workings which are not abandoned or within 400 metres of any subsurface mine workings which are abandoned unless he complies with sections 6.150 to 6.170 of these Rules, but the Regulator may, in writing, (

a) grant relief from any of the provisions of sections 6.150 to 6.170, or (

b) direct, in a particular case, a change in any of the provisions of sections 6.150 and 6.160.

(2) The Regulator, in a particular case, may require compliance with sections 6.150 to 6.170 by a person drilling at a greater distance than stipulated in subsection (1) from subsurface mine workings, and in such case the said sections shall be deemed to read as applying to such drilling operations. AR 151/71 s6.140;15/77;295/78;89/2013 6.150 No person shall drill a well closer to subsurface mine workings whether active or abandoned than 15 metres. AR 151/71 s6.150;295/78

Section 6.160 AR 151/71 OIL AND GAS CONSERVATION RULES 44 6.160 No person shall drill a well through a coal seam in which subsurface mining has been undertaken unless the well is so located that there can be left surrounding the well bore a pillar of coal of a radius measured from the well bore of 15 metres, but if permission in writing is obtained from the Regulator and subject to whatever direction the Regulator makes for the drilling, completion and abandonment of the well, a well may be drilled through subsurface mine workings which are abandoned without provision for a pillar of coal.

AR 151/71 s6.160;295/78;89/2013 6.170(1) Where a well is drilled through a seam of coal within 3 kilometres of subsurface mine workings which are not abandoned or within 400 metres of abandoned subsurface mine workings, the diameter of the hole to a depth of at least 50 metres below the base of the lowest workable coal seam shall be at least 90 millimetres larger than the diameter of the first casing string to be set through the coal.

(2) The first casing string in the well to be set through the coal shall be (

a) new, (

b) equipped with suitable fl oat equipment and a positive means of insuring that the cement in the casing is not displaced from the bottom 10 metres of the casing string, (

c) assembled with the lowest tw o lengths of casing fastened together by a suitable thread bonding material or other equivalent means, (

d) run and set at a point at l east 50 metres below the base of the lowest workable coal seam, and (

e) equipped with suitably locat ed centralizers and scratchers on the lowest length of casing and both above and below each coal seam; but, where the distance between coal seams is less than 15 metres, not more than one centralizer and three scratchers are required for each 15 metres of casing.

(3) The licensee shall (

a) cement the well’s first casin g string to be set through the coal as required by subsection (2) from bottom to top by the circulation method with cement containing a proportion of accelerator of not more than 0.04 tonne per

Section 6.170 AR 151/71 OIL AND GAS CONSERVATION RULES 45 tonne or other proportion as the Regulator may approve for a particular well or area, (

b) if cement returns are not r eceived at the surface, have a survey made before the shoe of the casing is drilled out, to determine to the satisfaction of the Regulator the position of the top of the cement, and (

c) following the survey under clause (b), take such action to recement as the Regulator may require.

(4) The cement at the shoe of the casing string set through the coal shall not be drilled out until 24 hours after the completion of cementing or such greater period as the Regulator may require in a particular case.

(5) Where the lowest workable coal seam is below prudent surface casing depth, the Regulator may require that the surface casing be set at a shallower depth and that (

a) an intermediate string be r un, to which the provisions of subsections (1) to (4) shall apply, or (

b) the provisions of subsections (1) to (3) shall apply to th e part of the hole and the production casing extending from the shoe of the first casing string to 50 metres below the base of lowest workable coal seam.

(6) If a subsequent string of casing is run (

a) its equipment shall include an approved type of float shoe or collar, and an adequate program of centralizers and scratchers, (

b) it shall be cemented in compliance with the conditions prescribed by the Regulator, (

c) the upper 150 metres of cement around the casing shall contain not more than 0.03 tonne per tonne additives and the remainder of the cement shall develop not less than the minimum 24-hour strength specified by the Regulator, (

d) the licensee shall, before any testing or producing of the well, have a temperature or other approved survey made to determine the fill-up of cement which, if it is a temperature survey, shall be made within 24 hours of the placement of cement, (

e) if the cement does not r each the required level, the licensee immediately shall advise the Regulator and take such action to recement as the Regulator may require, and

Section 6.180 AR 151/71 OIL AND GAS CONSERVATION RULES 46 (

f) the cement shall not be dr illed out until at least 24 hours after the completion of cementing.

(7) The licensee shall notify the Regulator through its appropriate area office of his intention to cement any casing string or to run plugs at least 12 hours before commencing such operations and shall not proceed with such operations until a representative of the Regulator is present to inspect the casing and witness the cementing.

(8) The Regulator, where in its opinion special circumstances are present, may alter the requirements of subsections (1) to (6) of this

section or specify such other requirements or provisions as it deems necessary. AR 151/71 s6.170;2/76;295/78;229/79;89/2013 6.180 For the purpose of sections 6.140 to 6.170, the decision of the Regulator as to (

a) whether mine workings are or are not abandoned, or (

b) whether a coal seam is workable, is final. AR 151/71 s6.180;15/77;89/2013 6.190(1) The licensee of a well that has been drilled through coal shall not abandon the well unless he has obtained the approval of the Regulator under

section 3.010.

(2) The Regulator may approve the abandonment of the well subject to such conditions as it may prescribe.

(3) The licensee must abandon the well in accordance with the conditions and specifications directed by the Regulator.

(4) The licensee shall notify the appropriate area office of the Regulator of his intention to do so at least 12 hours before the commencing the abandonment, and shall not proceed with the abandonment until a representative of the Regulator is present to witness the abandonment. AR 151/71 s6.190;15/77;89/2013;18/2023 6.191 An in situ coal scheme evaluation well must be drilled through the target coal seam in a manner and location acceptable to the Regulator. AR 55/2013 s5;45/2014

Section 6.192 AR 151/71 OIL AND GAS CONSERVATION RULES 47 6.192 Unless otherwise approved by the Regulator, a well associated with an in situ coal scheme, other than an in situ coal scheme evaluation well, must be drilled only to the base or above the base of the target coal seam. AR 55/2013 s5;45/2014 Drilling in the Oil Sands Strata 6.200 Any well drilled in the oil sands strata must be drilled deep enough to be able to log over the base of the oil sands deposit containing the zone to be produced, unless the licensee has obtained an exemption from the Regulator. AR 47/99 s4;89/2013

Part 7 Production Operations Construction of Facilities 7.001 No person shall commence construction of or modification to a battery (other than a battery receiving production from a single well which produces gas containing less than 0.01 moles per kilomole of hydrogen sulphide), an oilfield waste management facility or a compressor station, unless the Regulator has, on application, approved the location and construction of or modification to the battery, oilfield waste management facility or compressor station.

AR 51/74 s2;144/74;399/83;70/88;14/98;36/2002;89/2013 7.002(1) An application for the location and construction of or modification to a battery or compressor station shall be submitted in accordance with

section 15.210.

(2) An application for the construction of or modification to an oilfield waste management facility shall be submitted in accordance with

section 15.212. AR 51/74 s2;144/74;399/83;70/88;14/98;36/2002 7.003 An approval or licence for the location, construction or modification of a battery, oilfield waste management facility or compressor station shall be subject to any conditions set out in the approval. AR 51/74 s2;399/83;70/88;14/98;36/2002 7.004(1) The operator of a battery shall install, at the battery, equipment that will provide for

Section 7.020 AR 151/71 OIL AND GAS CONSERVATION RULES 48 (

a) the separation and co ntinuous measurement of all produced gas in accordance with

section 14.040, (

b) the accurate determination of oil, condensate and water production in accordance with

Part 14, and (

c) the protection of the environment from spills or uncontrolled releases of well effluents from the battery site.

(2) The Regulator may, on application, exempt from the operation of subsection (1)(

a) any single well oil or oil sands battery where, in the opinion of the Regulator, circumstances warrant the exemption.

(3) An application submitted under subsection (2) shall be in accordance with

section 15.140. AR 70/88 s2;89/2013 7.010 Repealed AR 229/79 s10. Common Flow Lines 7.020 Where production from more than one well is received at a battery, the production from each well or each zone in each well, as the case may be, shall be carried to the battery in a separate flow line unless a test measurement of the oil, gas and water production can be made at any time without separate flow lines. AR 151/71 s7.020;229/79;36/2002 Control Wells 7.025 Repealed AR 113/2021 s3.

Testing of Wells in a Battery 7.030(1) Unless the Regulator stipulates otherwise, where the production of wells is commingled before measurement, the operator of the battery shall test each well in accordance with this

section and

Schedule 16.

(2) Repealed AR 36/2002 s15.

(3) The well test production shall be determined within the measurement guidelines listed in

Schedule 9.

(4) Repealed AR 36/2002 s15.

Section 7.035 AR 151/71 OIL AND GAS CONSERVATION RULES 49

(5) An application to reduce the test frequency of a well or wells must set out the reasons why a lesser standard should be accepted. (5.1) to

(10) Repealed AR 229/79 s12. AR 151/71 s7.030;241/71;69/72;93/73;229/79; 326/79;70/88;36/2002;89/2013 Air Emissions Management 7.035 The licensee, in the case of a well or facility, the operator, in the case of a facility that is exempted from the requirement to obtain a licence or approval, and the approval holder, in the case of an oilfield waste management facility, must comply with the requirements of Directive 060, Directive 039 and Directive 084, as applicable. AR 209/2011 s7;2/2013;75/2013;30/2017 7.040(1) No person shall burn, and no (

a) licensee, in the case of a well or facility, (

b) operator, in the case of a facility that is exempted from the requirement to obtain a licence or approval, or (

c) approval holder, in the case of an oilfield waste management facility, shall cause or permit to be burned any oil, gas, oily waste or other material produced or used at a well, facility or in the operation of a scheme, except under conditions of controlled combustion where there is no significant or visible emission of smoke. (1.1) Subsection (1) does not apply where the Regulator or its authorized representative approves the burning.

(2) Notwithstanding subsection (1), burning of effluent from a well or facility is permissible under emergency conditions and due to equipment failure, but such burning shall be immediately reported to the Regulator. AR 151/71 s7.040;36/2002;209/2011;89/2013 7.050(1) This

section applies to a well at which the hydrogen sulphide concentration in a representative sample of gas from the well is found to exceed 50 moles per kilomole, or such higher or lower ratio as the Regulator may, by order, stipulate with respect to any well or group of wells in a battery, pool or area, having regard to pressures, nature of production, remoteness of the area and other circumstances.

(2) Repealed AR 241/71 s4.

Section 7.050 AR 151/71 OIL AND GAS CONSERVATION RULES 50

(3) Unless the well is produced by artificial lift, the licensee shall equip the well with (

a) two master valves, (

b) a production packer set a s closely above the producing formation as is practicable, with the annular space between the tubing and production casing filled with a suitable non-corrosive, corrosion inhibited liquid, and (

c) a well head whose working p ressure rating is not less than the bottom hole pressure of the producing formation, but the surface casing vent may be in accordance with

section 6.100, subsection (3).

(3.1) Where a well is equipped with a production packer, as required by subsection (3), clause (b), the licensee must report test results in accordance with Directive 087.

(3.2) If requested by the Regulator, the licensee shall submit (

a) evidence to show, to the sa tisfaction of the Regulator, that the liquid between the tubing and casing is isolated from the fluid being produced, and (

b) the data that substantiates the isolation.

(4) If a hot oil circulating string is used inside the production casing of a well, the licensee shall install a check valve in the injection line and an automatic shut-off valve on the return line.

(5) Stimulation treatments employing maximum pressures in excess of 75 per cent of the minimum internal yield pressure of the production casing shall be carried out through the tubing and below a packer seated as near to the producing formation as is practicable.

(6) Repealed AR 2/76 s9.

(7) Where a well that is not on pump and (

a) is located within 800 metres of an occupied dwelling or within 8 kilometres of the limits of a city, town or village and has, in the opinion of the Regulator, the potential to produce more than 140 thousand cubic metres of gas per day, or (

b) the Regulator so directs, the licensee shall install in the tubing of the well, at a minimum depth of 30 metres below the surface, or such other depth as the Regulator may prescribe, a valve that may be controlled from the surface and which will close automatically in the event of an

Section 7.055 AR 151/71 OIL AND GAS CONSERVATION RULES 51 uncontrolled flow of oil or gas or a failure in the system which operates the valve. (7.1) to

(7.4) Repealed AR 70/2013 s2.

(8) Repealed AR 79/80 s2.

(9) The Regulator may, upon application, exempt from any provision of this

section a well or group of wells in a battery, pool or area where, in the opinion of the Regulator, the pressures, nature of production, remoteness of the area or other circumstances warrant the exemption. AR 151/71 s7.050;241/71;69/72;93/73;103/73;51/74;144/74; 264/74; 2/76;295/78;79/80;36/2002;70/2013;89/2013;52/2021; 18/2023;51/2025 7.055(1) Where gas (

a) from a well producing gas containing more than 50 moles per kilomole of hydrogen sulphide, or any higher or lower ratio stipulated by the Regulator, or (

b) produced from a well design ated as a critical sour well is flared during any test, during any period of cleaning out the well or during well servicing operations, the licensee shall obtain approval from the Regulator of the method, stack height and equipment to be used to flare the gas.

(2) An application submitted under subsection (1) must be in accordance with Directive 060. AR 79/91 s2;36/2002;269/2006;209/2011;89/2013 7.060(1) This

section applies to any well which produces gas containing more than 10 moles per kilomole hydrogen sulphide, or such higher or lower ratio as the Regulator may stipulate with respect to any well, pool or area, having regard to pressures, nature of production, remoteness of the area and other circumstances.

(1.5) Where no gas analysis has been taken from the well within the preceding 12-month period, gas from the formation produced at the well shall be tested at the commencement of flaring to determine the hydrogen sulphide content.

(2) Where a flare line is installed at a gas well for burning gas produced during normal depressurizing operations or other routine flaring, the licensee shall provide a flare stack constructed in accordance with the specifications for a flare line set out in subsection (4).

Section 7.060 AR 151/71 OIL AND GAS CONSERVATION RULES 52

(3) Where a pressure relief valve, rupture disk or burst plate is installed on a separator, dehydrator or other pressure vessel which receives production from a gas well, the valve, rupture disk or burst plate fitting shall be connected to the flare stack required by subsection (2).

(3.1) Where a pressure relief valve, rupture disk or burst plate is installed on a separator, treater or other pressure vessel that receives production from an oil well, the vessel shall be equipped with pressure and liquid level sensors that cause a valve installed on the inlet to close and isolate the vessel from the flow stream.

(3.2) The Regulator may, on application, exempt an operator from the requirements of subsection (3.1) and permit the use of a tank referred to in

section 8.031 where, in the opinion of the Regulator, the nature of the production, the remoteness of the area or any other circumstance warrants the exemption.

(4) Where gas is produced from any well to the atmosphere for a period exceeding 10 minutes during a drill stem test, the licensee shall burn the gas through a flare line which shall (

a) terminate with a vertical r iser of at least 12 metres or such greater or lesser height as the Regulator directs in a particular case, (

b) be provided with a suitable guard to prevent the wind from extinguishing the flame, (

c) if the gas flow may be in termittent, be provided with a sweet gas pilot or ignition device to ensure continuous ignition of any vented gas, and (

d) be provided with a suitabl e vessel to separate and collect any liquids to prevent the liquids from reaching the flame. (5) and

(6) Repealed AR 79/91 s3.

(7) Where liquids are produced from a well during any test, during any period of cleaning out the well or during well servicing operations, the liquids shall be separated and piped to a storage tank and all gas shall be discharged to a flare stack that meets the requirements of subsection (4)(a), (

b) and (c).

(8) Unless the licensee of a well equips and operates the well so that the maximum operating flow line gauge pressure cannot exceed 1400 kilopascals, the licensee shall install on the wellhead a mechanism that halts the flow of oil or gas in the event of an uncontrolled drop in pressure or an equipment failure.

Section 7.070 AR 151/71 OIL AND GAS CONSERVATION RULES 53

(9) The licensee of the well shall, when requested to do so by the Regulator, file with the Regulator an outline of emergency procedures to ensure public safety that will be followed by the licensee in the event of an uncontrolled emission of oil or gas.

(9.5) Repealed AR 209/2011 s11.

(10) The Regulator may by order and upon application exempt a well, pool or field from any provision of this

section where, in the opinion of the Regulator, the pressure, nature of production, remoteness of area or other circumstances warrant the exemption. AR 151/71s7.060;69/72;93/73;144/74;2/76;295/78;79/80;51/81;70/88; 19/90;79/91;36/2002;209/2011;89/2013 7.070(1) This

section applies to any facility that receives gas containing more than 10 moles per kilomole of hydrogen sulphide or a higher or lower ratio as the Regulator may by order stipulate having regard to the nature of production, the remoteness of the area and other circumstances.

(2) Repealed AR 321/90 s4.

(3) The licensee of a well or the operator of a facility shall not discharge or permit to be discharged to the atmosphere stock tank vapours or any other gas produced from the well, unless they are burned so that essentially all sulphur compounds are converted to sulphur dioxide, but the Regulator on written application may approve another method of disposal.

(4) Gas burned or disposed of by a method approved under subsection (3) shall be burned or disposed of so as to ensure that the concentrations of hydrogen sulphide and sulphur dioxide do not exceed (

a) the maximum permissible concentrations set out in the Alberta Ambient Air Quality Guidelines as established and amended from time to time by the Department of Environment and Protected Areas, (

b) standards to which the facility is subject under the Environmental Protection and Enhancement Act, and (

c) standards specified by the Regulator.

(5) Gas that is required under subsection (3) to be burned shall be discharged from a flare line that is in accordance with the specifications outlined in

section 7.060(4).

(6) The Regulator may, on application, exempt a facility from any provision of this

section where, in the opinion of the Regulator, the

Section 7.080 AR 151/71 OIL AND GAS CONSERVATION RULES 54 nature of production, the remoteness of the area or any other circumstance warrants the exemption. AR 151/71s7.070;241/71;69/72;71/74;144/74;264/74; 229/79;70/88;321/90;25/98;206/2001;36/2002; 31/2012;170/2012;89/2013;216/2022 7.080 A licensee of a pumping well that has the potential to flow to atmosphere at sustained rates of at least 8 m3 per day of liquids and has a hydrogen sulphide content of 10 moles per kilomole or greater in the gas phase shall ensure that the well is equipped with a full opening master valve, a hydraulic rod blowout preventer and an environmental blowout preventer. AR 70/2013 s3

Part 8 Emergency Preparedness and Other Operational Requirements Emergency Preparedness and Response 8.001 In this Part, (

a) repealed AR 4/2006 s5; (b) “corporate ERP” means an ERP that applies to all wells and facilities of a licensee; (c) “emergency” means a present or imminent event, outside the scope of normal operations, that requires prompt co-ordination of resources to protect the health, safety or welfare of people or to limit damage to property and the environment; (d) “ERP” means an emergency response plan to protect the public and the environment that includes (

i) criteria for assessing an emergency, (ii) procedures to mobilize response personnel and agencies, and (iii) procedures to establish communications and ensure coordination of the emergency response; (e), (

f) repeal ed AR 4/2026 s5 (e.1) “operation-specific ERP” me ans an ERP that applies to a specified geographic area or to a specified well, facility or operation of a licensee. AR 151/71 s8.001;4/2026

Section 8.0011 AR 151/71 OIL AND GAS CONSERVATION RULES 55 8.0011(1) In this section, “EMP” means a corporate emergency management program to (

a) identify, assess and mitig ate hazards associated with all wells and facilities of a licensee, and (

b) manage the preparation for and response to an emergency.

(2) A licensee shall, in accordance with Directive 071, develop, implement and maintain an EMP. AR 4/2026 s6 8.002 A licensee shall, in accordance with Directive 071, (

a) develop a corporate ERP, and (

b) submit the corporat e ERP to the Regulator. AR 4/2026 s6 8.003(1) If required by Directive 071, a licensee shall, in accordance with Directive 071, develop an operation-specific ERP.

(2) A licensee shall, in accordance with Directive 071, submit each operation-specific ERP to the Regulator for approval. AR 4/2026 s6 8.004 to 8.005 Repealed AR 4/2026 s6. 8.006 A licensee shall, in accordance with Directive 071, (

a) maintain the corporate ER P and any operation-specific ERP, and (

b) undertake training and exer cises related to the corporate ERP and any operation-specific ERP.AR 190/2003 s3;269/2006;208/2011;89/2013 AR 4/2026 s6 8.007 If, in the opinion of the Regulator, a well or facility of a licensee is a risk to a water body due to its location near the water body, the Regulator may require the licensee to demonstrate that the licensee has the equipment and the ability to implement all applicable ERPs. AR 4/2026 s6 8.008 A licensee shall, in accordance with Directive 071,

Section 8.009 AR 151/71 OIL AND GAS CONSERVATION RULES 56 (

a) maintain and submit records to the Regulator, (

b) submit forms to the Regulator, and (

c) provide notifications to the Regulator in relation to emergency preparedness and responses. AR 4/2026 s6 8.009 A licensee shall, in accordance with Directive 071, (

a) manage incidents, and (

b) in the case of an incid ent that is an emergency, (

i) implement all applicable ERPs, and (ii) report the emergency to the Regulator. AR 4/2026 s6 Storage 8.010 Earthen structures or excavations shall not be used as receptacles for crude bitumen, liquid hydrocarbon, process chemicals, produced water, process water or oilfield wastes (other than drilling wastes) produced from a well or facility, either by design or normal operating practice, without the written approval of the Regulator.

AR 151/71 s8.010;13/98;36/2002;89/2013 8.020 Repealed AR 13/98 s3. 8.030(1) Materials that are used, produced or generated at a well site or facility, other than fresh water and inert solids, shall be stored in accordance with the requirements of Directive 055.

(2) Aboveground tanks, underground tanks, containers, lined earthen excavations, bulk pads and any other storage device or system referred to in Directive 055 shall meet the requirements set out in Directive 055.

(3) The Regulator, on application, may approve storage methods, systems or devices alternative to those set out in Directive 055 if in the Regulator’s opinion the level of environmental protection provided is at least equal to that outlined in the Directive.

(4) Tanks or batteries of tanks containing fluids other than fresh water at a well or facility shall be located so that the distance from

Section 8.031 AR 151/71 OIL AND GAS CONSERVATION RULES 57 the outer perimeter of the dike to any surface improvement other than a public roadway is not less than 60 metres or a lesser distance permitted by the Regulator. AR 151/71 s8.030;341/74;229/79;36/2002; 269/2006;208/2011;89/2013;45/2022 8.031 Notwithstanding

section 7.060(3.1), where a pressure relief valve, rupture disk or burst plate is installed on a separator, treater or other pressure vessel which receives production from an oil well, the licensee shall connect the valve, rupture disk or burst plate fitting by suitable piping to an open tank, but the Regulator, upon application, may allow a licensee to use a system of automatic controls or other method of avoiding oil spills if it is satisfied that the degree of protection provided is equivalent to or better than the venting of relief devices to an open tank.

AR 241/71 s6;70/88;89/2013 Water Disposal 8.040 All water produced at a well or facility shall be disposed of in accordance with a scheme approved by the Regulator pursuant to

section 39 of the Act. AR 151/71 s8.040;241/71;51/74;229/79;350/87; 13/98;36/2002;89/2013 Control of Spills 8.050(1) When oil, water or unrefined product is spilled or released from a break or leak in a wellhead, tank, separator, treater or process vessel, the licensee of the well or operator of the facility from which the spill or release occurred shall immediately take reasonable steps to contain and clean up the spill or release and shall ensure that the spilled or released material is processed in the operator’s facilities, if appropriate, or is treated or disposed of, or both, in accordance with Directive 058.

(2) Where a spill or release referred to in subsection (1) (

a) is not confined to the s ite of the well or facility from which the spill or release occurred, (

b) is on-site and is in excess of 2 cubic metres, or (

c) is on-site and of a size that may cause, is causing or has caused an adverse effect as defined in the Environmental Protection and Enhancement Act,

Section 8.051 AR 151/71 OIL AND GAS CONSERVATION RULES 58 the licensee or operator shall immediately report the size and location of the spill or release to the Regulator by telephoning the Energy and Environmental Response Line.

(3) When so directed by the Regulator, a report made pursuant to subsection (2) shall be confirmed in a written report to the Regulator and be supplemented with at least the following additional information: (

a) the time the spill or release occurred; (

b) a description of the circu mstances leading to the spill or release; (

c) a discussion of the spill or release containment and recovery procedures; (

d) a discussion of steps to be taken to prevent similar futur e spills or releases; (d.1) the size and locati on of the spill or release; (

e) any other information that the Regulator may require. AR 151/71 s8.050;69/72;144/74;2/76;179/76;229/79; 399/83;36/2002;269/2006;208/2011;89/2013;4/2026 8.051 Where oil, water or unrefined product is spilled or released while being transported, otherwise than by pipeline, from a well, pipeline or other facility over which the Regulator has jurisdiction to any other like facility, the licensee of a well or pipeline or operator of the facility and the owner of the transportation facility shall immediately (

a) report the size and location of the spill or release to th e Regulator by telephoning the Energy and Environmental Response Line, (

b) take reasonable steps to contain and clean up the spilled or released material, and (

c) ensure that the spilled or released material is treated or disposed of in accordance with Directive 058, unless otherwise approved by the Regulator. AR 93/73 s5;399/83;25/98;206/2001;36/2002; 269/2006;208/2011;89/2013;45/2014;4/2026 8.052 Repealed AR 4/2026 s9. 8.060 Where a well or facility is located closer than 100 metres to the normal high water mark of a water body or permanent stream

Section 8.070 AR 151/71 OIL AND GAS CONSERVATION RULES 59 or is in a location such that in the opinion of the Regulator a spill or leak may reach the water, the licensee or operator shall (

a) where a well is not on pump, install on the well head a valve which closes automatically to shut off an uncontrolled flow of effluent from the well in the event of a failure of the well head, surface facilities or gathering line, (

b) at the direction of the R egulator, install in the well a packer and a subsurface valve to shut off automatically an uncontrolled flow of effluent from the well in the event of a failure of the well head or production casing, (

c) construct pits, dikes, trenches or other structures or installations to contain effluent or spill material, and (

d) submit, at the request of the Regulator, a plan to limit the spread of effluent or spill material and to recover effluent or spill material from the surface of the water in the event of a leak or spill, such plan to include details of procedures, materials and equipment proposed to be used. AR 151/71 s8.060;250/77;295/78;36/2002;89/2013;18/2023 8.070 Where in the opinion of the Regulator, the location or condition of a well or facility is such that it may become a source of serious water pollution, the Regulator may require that the well or facility be abandoned.

AR 151/71 s8.070;36/2002;89/2013 Burning Vented Gas 8.080(1) The licensee of a well or the operator of a facility or oil sands scheme shall burn any significant volume of gas that is vented to the atmosphere.

(2) Vented gas shall not be flared to an earthen pit at a well or facility that was constructed after July 1, 1996.

(3) The licensee or operator shall (

a) safeguard all flare pits con structed before July 1, 1996, and (

b) construct and safegua rd all ends of flare lines so that no hazard to public property or forest cover will be created and so that they are not located closer than 100 metres to a surface improvement, except a surveyed roadway, but the Regulator,

Section 8.090 AR 151/71 OIL AND GAS CONSERVATION RULES 60 where, in its opinion, special circumstances exist, may prescribe a greater or lesser distance.

(4) The licensee of a well or operator of a facility that was constructed before July 1, 1996 and on which vented gas is flared to an earthen pit shall prevent produced liquids from entering the pit by installing appropriate flow shut-off and emergency containment devices.

(5) Subject to subsection (6), (

a) no flare pit or open end of a flare line shall be located or remain within 50 metres of a well or oil storage tank, or within 25 metres of any oil or gas processing equipment, and (

b) no flare stack or incinerator shall be located or remain within the minimum distances set out in Directive 060 in respect of wells, oil storage tanks, processing equipment or other sources of ignitable vapour.

(6) The Regulator may, having regard to the combustion equipment used, the volume and nature of the gas and the flash point and other characteristics of the oil being produced, vary the minimum distances referred to in subsection (5). AR 151/71 s8.080;295/78;36/2002;89/2013;219/2018 Fired Equipment and Engine Exhausts 8.090(1) In this

section (a) “fire” means any open or enclosed flame or other source of ignition except (

i) an open or enclosed flame from a flare stack or incinerator, or (ii) a source of ignition associated with the installation and operation of electrical equipment; (b) “flame type equipment” m eans any fired equipment using an open or enclosed flame and includes, without limitation, a space heater, torch, heated process vessel, boiler, open flame welder and thermo electric generator, but does not include a flare stack or incinerator; (c) “process vessel” means a h eater, dehydrator, separator, treater or any vessel used in the processing or treatment of produced gas or oil.

Section 8.090 AR 151/71 OIL AND GAS CONSERVATION RULES 61

(2) No person shall create or cause to be created any fire within 50 metres of a well, oil storage tank or other source of ignitable vapour.

(3) No oil storage tank shall be placed or remain within 50 metres of any well, but the Regulator may prescribe a distance of less than 50 metres but not less than 15 metres in any field or at any well, having regard to the products of the well.

(4) No flame type equipment shall be placed or operated within 25 metres of a well, oil storage tank, or other source of ignitable vapour, except (

a) where the well is (

i) a water supply well, or (ii) a water injection well equipped with a suitable packer and with the surface casing annulus vented outside any building, o r (

b) that emergency work requiring the use of flame type equipment may be conducted within 25 metres of a well, if the wellhead valves and the blow out preventer, if one is installed, are closed, or (

c) where extenuating circumstances exist, the Regulator suspends the application of this subsection in any field or area.

(5) No flame type equipment shall be placed or operated within 25 metres of any process vessels unless, where such is applicable, the flame type equipment is fitted with an adequate flame arrestor.

(6) No flame type equipment shall be located in the same building as any process vessel or other source of ignitable vapour, unless (

a) the air intakes and flues o f all burners are located outside the building, (

b) relief valves, safety heads , and other sources of ignitable vapours are vented outside the building and discharged above roof level, and (

c) the building is adequately cross ventilated.

(7) All process vessels and equipment from which any ignitable vapour may issue shall be safely vented to the atmosphere, and all vent lines from oil storage tanks which are vented to flare pits or

Section 8.110 AR 151/71 OIL AND GAS CONSERVATION RULES 62 flare stacks shall be provided with flame arrestors or other equivalent safety devices.

(8) All installations at or near any well, process vessel, oil storage tank or other source of ignitable vapour shall be made in compliance with regulations made under the Safety Codes Act or under the Occupational Health and Safety Act.

(9) An exhaust pipe from an internal combustion engine, located within 25 metres of any well, process vessel, oil storage tank or other source of ignitable vapour, shall be so constructed that (

a) any emergence of flame along its length or at its end is prevented, and (

b) the end is not closer to th e vertical centre line of the well projected upward than 6 metres and is directed away from the well.

(10) Each licensee of a well or operator of a facility at which there is located an oil storage tank or other source of ignitable vapour shall enforce the provisions of this section. AR 151/71 s8.090;93/73;2/76;179/76;295/78;416/83; 36/2002;209/2011;18/2012;89/2013;219/2018 8.100 Repealed AR 208/2011 s14. Use of High Vapour Pressure Hydrocarbons 8.110(1) In this

section a “high vapour pressure hydrocarbon” means any hydrocarbon and stabilized hydrocarbon mixture with a Reid vapour pressure greater than 14 kilopascals.

(2) Where the licensee or operator of a well uses a high vapour pressure hydrocarbon in an operation at a well other than in the hydraulic fracturing of a formation, he shall observe the following rules: (

a) no open tanks shall be used for storing or gauging or measuring the pumping rate; (

b) a minimum distance of 5 0 metres shall be maintained between the wellhead and storage tank; (

c) positive shut-off valves shall be installed between the ta nk and pump and between the pump and wellhead; (

d) a check valve shall be installed between the pump and the well to prevent backflow from the well;

Section 8.120 AR 151/71 OIL AND GAS CONSERVATION RULES 63 (

e) all surface lines downstrea m from the pump shall be pressure tested to 10 000 kilopascals above anticipated maximum pressure to be encountered; (

f) no significant wastage shall occur.

(3) High vapour pressure hydrocarbons shall not be blended with propping agents for the purpose of hydraulically fracturing a formation, but the Regulator may, on application, approve a given fracturing program if conclusive evidence is submitted to show that there is not another carrying fluid available that will be similarly effective. AR 151/71 s8.110;69/72;286/82;89/2013 Smoking 8.120(1) No person shall smoke within 25 metres of a well, separator, oil storage tank or other unprotected source of ignitible vapour or on a rig or derrick at a well site.

(2) Each licensee of a well and each contractor who has contracted to manage or perform any operation at a well shall enforce the provisions of subsection (1) at the well.

(3) Where a person contravenes subsection (1), the licensee and the contractor referred to in subsection (2) who is the employer of that person are in contravention of subsection (2) regardless of whether they had knowledge of the smoking or took steps to guard against the smoking. AR 151/71 s8.120;295/78;36/2002 Blowout Prevention Requirements 8.129(1) The requirements of Directive 036 and Directive 037 apply to any well that is being drilled, tested, abandoned, completed, reconditioned or serviced.

(2) A licensee of a well referred to in subsection (1) shall comply with Directive 036 and Directive 037 and with any other requirements as directed by the Regulator.

(3) Repealed AR 208/2011 s15.

(4) The Regulator may, upon its own motion or upon application, vary or specify the blowout prevention requirements which apply to any well or wells.

(5) The Regulator may, upon its own motion or upon application, vary a classification set out in Directive 036 or Directive 037 for any well or wells in any pool, field or area.

Section 8.149 AR 151/71 OIL AND GAS CONSERVATION RULES 64

(6) The Regulator may, upon its own motion or upon application, vary the design or requirements for any classification set out in Directive 036 or Directive 037.

(7) Prior to making application for a well licence, the licensee shall (

a) research offset well record s to determine maximum pore pressures and hole problems which may be encountered while drilling the proposed well, and (

b) incorporate the information determined under clause (

a) into the well design.

(8) A licensee shall make the information determined under subsection (7)(

a) available to the Regulator on request. (9),

(10) Repealed AR 208/2011 s15. AR 15/77 s6;51/81;36/2002;208/2011;89/2013 8.130 to 8.148 Repealed AR 208/2011 s16. Drilling and Servicing Inspections 8.149(1) The Regulator or its authorized representative may make a direction requiring the licensee of the well to (

a) test the operation and eff ectiveness of blowout prevention equipment required by Directive 036 and Directive 037, (

b) conduct a pressure test of the blowout prevention equipment referred to in clause (a), using where necessary a hanger plug or casing packer, and (

c) perform a blowout prevention drill.

(2) Upon a direction made by the Regulator or its authorized representative and if the licensee believes it is safe to do so, the licensee of a well shall suspend or cause to be suspended any operation or service being performed at a well until any test required to be made, pursuant to subsection (1), has been completed.

(3) Any direction made by the Regulator or its authorized representative pursuant to subsection (1) may be made to the licensee of the well or to any contractor or other person performing an operation or service, referred to in subsection (2). AR 51/81 s5;208/2011;89/2013

Section 8.150 AR 151/71 OIL AND GAS CONSERVATION RULES 65 Waste Management at Well and Facility Site 8.150(1) In this section, “oilfield waste” does not include drilling mud and cuttings.

(2) The licensee of a well or pipeline and the operator of a facility generating oilfield waste shall (

a) properly characterize an d classify oilfield wastes, (

b) use appropriate oilfield w aste storage, treatment and disposal practices, (

c) understand the capabilities and limitations of the methods selected for the treatment and disposal of oilfield wastes that are generated, (

d) complete and maintain accurate oilfield waste documentation and records, (

e) disclose to waste carriers and receivers the characteristi cs and classification of the oilfield wastes, and (

f) ensure that waste operatio nal requirements have been satisfied and, if applicable, approvals are in place for on-site oilfield waste handling, treatment, and disposal methods in accordance with the requirements outlined in Directive 058 and any other requirements as directed by the Regulator.

(3) The operator of a facility receiving oilfield waste shall (

a) ensure that all required approvals are in place and operational requirements have been satisfied for all oilfield waste storage, handling, treatment and disposal methods, (

b) understand the capabilities and limitations of the treatment and disposal methods of the facility and communicate those capabilities and limitations to oilfield waste generators, (

c) accept only those oilfield wastes that the facility is approved to receive, (

d) maintain accurate and complete oilfield waste documentation and records, (

e) operate the facility in comp liance with required licences and approvals, and

Section 8.151 AR 151/71 OIL AND GAS CONSERVATION RULES 66 (

f) upgrade equipmen t and operating practices as necessary to comply with changes in regulatory requirements, in accordance with the requirements outlined in Directive 058, Directive 047 and any other requirements as directed by the Regulator.

(4) The licensee of a well or pipeline and the operator of a facility shall maintain the well, pipeline or facility in a clean condition and shall ensure that oilfield wastes do not create or constitute a safety hazard or nuisance or adversely affect air, soil, surface water or groundwater. AR 151/71 s8.150;241/71;69/72;51/81;399/83;36/2002; 269/2006;208/2011;41/2013;89/2013 8.151(1) In this section, “drilling waste” m

Document details

Collection	Alberta — Regulations
Citation	Alta. Reg. 151/1971
Type	regulation
Volume / chapter	1971 151
Language	en
Format	pdf
Source	PROVINCIAL
Identifier	3d55953afd20a9a264f69c839b0668d26429e5e8

Source file is stored in the law ingest library (pdf).