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Canada-Nova Scotia Offshore Area Petroleum Operations Framework Regulations

made under

Section 146 of the

Canada-Nova Scotia Offshore Petroleum Resources

Accord Implementation (Nova Scotia) Act

S.N.S. 1987, c. 3

O.I.C. 2025-22 (effective February 4, 2025), N.S. Reg. 28/2025

Table of Contents

Please note: this table of contents is provided for convenience of reference and does not form part of the regulations.

Click here to go to the text of the regulations .

Part 1—General

Citation

Definitions

Incorporation by reference

Part 2—Experience, Training, Qualifications and Competence

Requirements

Part 3—Management System

Requirements

Human resources

Implementation

Continual improvement

Part 4—Authorization

Application

Documents and information

Safety plan

Environmental protection plan

Contingency plan

Spill-treating agent—Section 136BA of Act

Field data acquisition program

Flow system, calculation and allocation

Decommissioning and abandonment plan

Requirements for Authorization

Definitions—clause 135(4)(

c) of Act

Well Approvals

Well operation

Well data acquisition program

Well verification scheme

Suspension of well approval

Revocation of well approval

Suspension or abandonment of well

Development Plan

Well approval—subsection 136(1) of Act

Concept safety analysis

Review of risk assessment

Resource management plan—clause 136(3)(

b) of Act

Part 5—Certificate of Fitness

Application

Prescribed installations—Section 136B of Act

Definition of installation

Requirements for Certification

Issuance of certificate—requirements and conditions

Conflict of interest—clause 136B(4)(

b) of Act

Certification plan

Scope of work

Period of validity

Applicable site or region

Revalidation—scope of work

Renewal of certificate

Invalidity

Change of certifying authority

Certifying Authority

Organizational structure

Reports and information

Part 6—General Requirements for Authorized Works and Activities

General

Installation manager

Safety and protection of environment

Physical and environmental conditions

Location of infrastructure or equipment

Storage and handling of chemical substances

Misuse of equipment

Cessation of work or activity

Document Availability

Copy of authorization and approvals

Emergency response procedures and other documentation

Plans

Implementation

Part 7—Geoscientific Programs, Geotechnical Programs and Environmental Programs

Equipment, Materials and Property

Measures

Certification

Damage to property

Energy Sources

General requirements

Testing of energy sources

Primary Vessel

Classification

Destruction, Discard or Removal from Canada

Prohibited without approval

Part 8—Drilling and Production

General

Allocation of areas

Name, classification or status of well

Pool, zone or field

Evaluation of Wells, Pools and Fields

Data acquisition programs

Formation evaluation, testing and sampling

Formation flow test

Samples and cores

Notice before disposal

Location of Wells

Depth measurements

Directional and deviation surveys

Well Integrity

Well control

Casing and wellhead system

Formation leak-off or integrity test

Completion, testing and operation of development wells

Production tubing

Measurements

Flow and volume

Allocation of group production

Allocation over multiple pools or zones

Testing and maintenance

Calibration

Production Conservation

Resource management

Commingled production

Pilot scheme

Prohibition against flaring or venting

Gas emissions

Prohibition against oil burning

Spill-treating Agent

Determination of net environmental benefit

Small-scale test

Variation of approval

Use of spill-treating agent

Well Abandonment, Suspension or Completion

Conditions for suspension or abandonment

Additional condition for suspension

Additional condition for abandonment

Conditions for drilling installation removal

Part 9—Diving Projects

Vessel used in diving project

Dynamic positioning system

Light dive craft

Part 10—Installations, Wells and Pipelines

Definitions

Definitions

Installations

General

Safety and environmental protection

Design of installation

Quality Assurance

Quality assurance program

Work Permits

Requirements

Operator obligations

Requirements

Innovations

Physical and environmental conditions

Design for intended use and location

Conditions for safe operation and survival

Risk assessment—fire, explosion and hazardous gas

Reliability and availability

Monitoring program for physical and environmental conditions

Inspection, monitoring, testing and maintenance

Materials for installations

Passive fire and blast protection

Hazardous and non-hazardous areas

Ventilation of enclosed hazardous areas

Ignition prevention

Means of escape, evacuation and rescue

Temporary safe refuge

Exits, access and escape routes

Life-saving appliances for installation

Installation designed for removal

Transportation and positioning

Systems and Equipment: Design, Installation, Commission and Other Requirements

Electrical system

Control system

Integrated software-dependent control system

Safety-critical software

Emergency electrical power supply

Lights and sound-signalling appliances

Radar

General alarm system

Gas release system

Fire and gas detection system

Emergency shutdown system

Fire protection systems and equipment

Boilers and pressure systems

Mechanical equipment

Materials handling equipment

Subsea production system

Temporary or portable equipment

Additional Requirements for Platforms

Classification

Air gap

Stability

Self-elevating mobile offshore platform

Ballast and bilge systems

Watertight and weathertight integrity and freeboard

Station-keeping

Mooring system

Disconnectable mooring system

Dynamic positioning system

Disconnect system

Decisions and exemptions

Gap analysis

Asset Integrity

Requirements

Non-destructive examination

Corrosion management

Operation and Maintenance

Limits and requirements

Operations manual

Programs

Maintenance program

Preservation program

Weight control program

Safety-critical element—repair, replacement or modification

Wells

Drilling fluid systems

Drilling riser

Fail-safe subsurface safety valves

Well tubulars, trees and wellheads

Formation flow test equipment

Pipelines

Pipeline integrity—standard

Monitoring of Installations, Wells and Pipelines

Monitoring of systems

Deterioration

Part 11—Support Operations

Support craft

Rescue boat—vessel

Safety zone

Landing area

Procedures

Aircraft service provider

Classification

Part 12 —Notice, Records, Reports and Other Information for Authorized Works and Activities

General

Definition of shotpoint

Reportable incidents

Critical information

Safety report

Annual reports

Geoscientific, Geotechnical and Environmental Programs

Notice—key dates

Weekly status reports

Environmental report—programs

Final reports

Exception—data made available to public

Data purchases

Drilling and Production

Reference

Results, data, analyses and schematics

Survey

Critical information

Daily production record

Formation flow test records and report

Pilot scheme

Daily reports

Monthly production report

Well records and reports

Environmental report—drilling

Annual environmental report—production and pipeline

Annual production report

Gas venting records

Compressor records

Fugitive emission records

Record retention period

Diving Projects or Construction Activities

Weekly status reports

Schedule 1: Certificate of Fitness

Part 1—Provisions of these regulations

Part 2—Provisions of the Canada-Nova Scotia Offshore AreaOccupational Health and

Safety Regulations

Schedule 2: Verification of Certificate of Fitness Requirements

Part 1—General

Citation

These regulations may be cited as the Canada-Nova Scotia Offshore Area Petroleum

Operations Framework Regulations .

Definitions

1 The following

definitions apply in these regulations:

“accidental event” means an unexpected or unplanned event or circumstance or

series of unexpected or unplanned events or circumstances that may lead to the

loss of life or damage to the environment, including pollution;

“accommodations area” means the area of an installation or vessel that contains the

sleeping quarters, dining areas, food preparation areas, general recreation areas,

offices and medical rooms and includes all washrooms in that area;

“accommodations installation” means an installation that is used to accommodate

persons at a production site, drill site or dive site and that functions independently

of a production installation, drilling installation or diving installation;

“Act” means the Canada-Nova Scotia Offshore Petroleum Resources Accord

Implementation (Nova Scotia) Act ;

“authorization” means an authorization issued by the Board under clause 135(1)(

b) of the Act;

“authorized inspector” means a person who is recognized under the laws of a

province or Canada as qualified to inspect boilers and pressure systems or a

representative of a certifying authority who is qualified to carry out that function;

“barrier element” means a physical element that on its own does not prevent the

flow of fluids but that in combination with other physical elements forms a well

barrier;

“barrier envelope” means an envelope consisting of a set of barrier elements that

prevents any unintended flow of fluids from the formation into the well-bore,

another formation or the environment;

“ Canada-Nova Scotia Offshore Area Occupational Health and Safety

Regulations ” means the Canada-Nova Scotia Offshore Area Occupational Health

and Safety Regulations made under the Act;

“certificate of fitness” means a certificate referred to in

Section 136B of the Act;

“certifying authority” means the American Bureau of Shipping, Bureau Veritas,

Det norske Veritas or Lloyd’s Register;

“classification society” means a member of the International Association of

Classification Societies that has recognized and relevant competence and

experience in, and established rules and procedures for, the classification of fixed

and floating structures, including vessels, that are used in oil or gas activities in

locations with physical and environmental conditions similar to those of the

offshore area;

“commingled production” means the production of petroleum from more than 1

pool or zone through a common well where the production from each pool or zone

is not measured separately;

“completion interval” means a

section within a well that is prepared to permit

(

i) the production of fluids from the well,

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

(iii) the injection of fluids into the well;

“control centre” means a continuously staffed work area in which a control system

that is critical to the operation of an installation or a pipeline, to safety or to the

prevention of waste and pollution is located;

“control system” means any system, station or panel used to monitor the status and

control the operation of equipment used for or in support of the drilling for, or the

production, processing or transportation of, petroleum or any system, station or

panel used to monitor and control the operation of an installation;

“decommissioning and abandonment” means the carrying out of the following

processes in accordance with any applicable Act of the Legislature, any applicable

regulation made under

an Act of the Legislature, the applicable authorization and

any approved development plans:

(

i) the cessation of operations,

(ii) the controlled abandonment of all wells,

(iii) the retirement from service and abandonment or removal of all

installations, including their systems and equipment, and

(iv) the retirement from service and abandonment or removal of all

pipelines and materials;

“delineation well” has the same meaning as in subsection 121(1) of the Act;

“development well” has the same meaning as in subsection 121(1) of the Act;

“diving installation” means an installation or vessel on which a diving system is

installed;

“diving project” means any work or activity that is related to the exploration or

drilling for, or the production, conservation, processing or transportation of,

petroleum and that involves diving;

“diving system” means the equipment that is required to execute a dive, including

that required for compression, decompression, rescue and recovery;

“drill site” means a location where a drilling rig is or is proposed to be installed;

“drilling installation” means a drilling unit or a drilling rig, and the stable

foundation on which it is installed—including an artificial island, an ice platform, a

floating platform, a platform fixed to the seabed and any other foundation

specifically used for drilling—and any associated accommodations area;

“drilling program” means a program for the drilling of 1 or more wells within a

specified time and within specified areas through the use of 1 or more drilling

installations and includes any work or activity related to the program;

“drilling rig” means the equipment used to conduct well operations and associated

systems, including power systems, control systems and monitoring systems;

“drilling riser” means the connection between a subsea blowout preventer and a

mobile offshore platform;

“drilling unit” means a fixed or mobile offshore platform, or a vessel used in any

well operation, that is fitted with a drilling rig, including all systems and equipment

installed on the platform or vessel that are related to well operations and marine

activities;

“environmental load” means a load imposed by meteorological or oceanographic

conditions, such as winds, waves, tides, currents or snow, ice conditions, regional

ice features, such as sea ice or icebergs, a seismic event or any other naturally

occurring phenomenon;

“environmental program” means a program pertaining to an environmental study

as defined in subsection 121(1) of the Act;

“exploratory well” has the same meaning as in subsection 121(1) of the Act;

“floating platform” means a column-stabilized mobile offshore platform, a surface

mobile offshore platform or a fixed floating offshore platform, including a tension

leg platform or a spar platform;

“flow allocation procedure” means the procedure

(

i) to allocate total measured quantities of petroleum and water produced

from or injected into a pool or zone back to individual wells in a pool

or zone where individual well production or injection is not

measured separately, and

(ii) to allocate production among fields whose petroleum is combined for

the purpose of storage or processing;

“flow calculation” procedure means the procedure to convert raw meter output to a

measured quantity of petroleum or water;

“flow system” means the flow meters, auxiliary equipment attached to the flow

meters, fluid sampling devices, production test equipment, master meter and meter

prover used to measure and record the rate and volumes at which fluids are

(

i) produced from or injected into a pool,

(ii) used as a fuel,

(iii) used for artificial lift, or

(iv) flared, vented or transferred from a production installation;

“flowline” means any line, other than a pipeline, that is used to transport fluids

between a well and equipment used for the production of petroleum that is located

at a production site or to transport fluids between a well and any systems or

equipment that are used in support of that production and between those systems or

equipment and the production equipment;

“formation flow” test means an operation

(

i) to induce the flow of formation fluids to procure reservoir fluid

samples and determine reservoir flow characteristics, or

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

“functional load” means any construction load or operating load other than an

environmental load or accidental load;

“geoscientific program” means any program that involves geological work or

geophysical work, as those terms are defined in subsection 121(1) of the Act;

“geotechnical program” means any program that involves geotechnical work, as

defined in subsection 121(1) of the Act, that is undertaken to assess whether the

seabed or shallow subsurface, as the case may be, is suitable to support

installations or any other structures;

“installation” means, except in

Part 5, a drilling installation, production installation

or accommodations installation;

“life-saving appliances” includes lifebuoys, survival craft, launching and

embarkation appliances, marine evacuation systems and visual signals;

“load” includes a functional load, environmental load, accidental load and

abnormal load;

“LSA Code” means the annex to International Maritime Organization resolution

MSC.48(66), International Life-Saving Appliance (LSA) Code ;

“major accidental event” means an unexpected or unplanned event or circumstance

or series of unexpected or unplanned events or circumstances that may lead to the

loss of more than 1 life or uncontrolled pollution;

“marine activities” means activities related to the stability, station-keeping and

collision avoidance of floating platforms and includes mooring, dynamic

positioning and ballasting;

“mobile offshore platform” means a platform that is designed to operate in a

floating or buoyant mode or that can be moved from place to place without major

dismantling or modification, whether or not it has its own motive power;

“operations site” means a site where an authorized work or activity is carried out;

“operator” means a person that holds an operating licence issued by the Board

under clause 135(1)(

a) of the Act and applies for or has been granted an

authorization;

“physical and environmental conditions” means the physical, geotechnical,

seismic, oceanographic, meteorological or ice conditions that might affect an

authorized work or activity;

“pipeline” has the same meaning as in the CSA Group standard CSA Z662, Oil

and gas pipeline systems , as it relates to offshore pipelines;

“pollution” means the introduction into the environment of any substance or form

of energy outside the limits applicable to an authorized work or activity;

“pressure system” means piping, pressure vessels, safety components and pressure

components, including elements attached to pressurized parts, such as flanges,

nozzles, couplings, supports, lifting lugs, safety valves and gauges;

“production installation” means

(

i) the systems and equipment used for or in support of the production

of petroleum, including those that are used for separation, treatment

and processing,

(ii) the systems and equipment used to conduct well operations,

(iii) any systems and equipment related to marine activities,

(iv) any associated aircraft landing areas, storage areas or tanks and

accommodations areas, and

(

v) any associated platforms, artificial islands, subsea production systems

and offshore loading systems;

“production project” means a project for the purpose of developing a production

site on, or producing petroleum from, a pool or field, including any work or

activity related to the project;

“production riser” means the connection between subsea production equipment

and a production platform;

“production site” means a site where a production installation is or is proposed to

be installed;

“recovery of petroleum” means the recovery of petroleum under foreseeable

economic and operational conditions;

“relief well” means a well that is drilled to assist in controlling a blowout in an

existing well;

“reportable incident” means an event that resulted in any of the following

occurrences or in which an occurrence referred to in any of subclauses (

i) to (ix)

was narrowly avoided:

(

i) loss of life,

(ii) fire or explosion,

(iii) collision,

(iv) pollution,

(

v) leak of a hazardous substance,

(vi) loss of well control,

(vii) impairment of a support craft or of any of the structural elements of

an installation—or any system or equipment—that is critical to

safety,

(viii) impairment of any of the structural elements of an installation—or

any system or equipment—critical to environmental protection,

(ix) implementation of emergency response procedures;

“safety-critical element” means any system or equipment, including software and

temporary or portable equipment, that is critical to the safety or integrity of an

installation or to preventing the installation from polluting, including

(

i) any system or equipment

(

A) that is intended to prevent or limit the effects of a hazard that

could cause a major accidental event, or

(

B) whose failure could

(

I) cause a hazard that could cause a major accidental event,

(II) worsen the effects on the installation of a major

accidental event, and

(ii) any software or temporary or portable equipment that affects any

system or equipment referred to in subclause (i);

“subsea production system” means equipment and structures that are located on or

below the seabed for the production of petroleum from, or for the injection of

fluids into, a field under a production site and includes production risers, flowlines

and associated control systems that are located upstream of the isolation valve;

“support craft” means a vessel, vehicle, aircraft or other craft used to provide

transportation or assistance to persons at an operations site;

“waste material” means any garbage, refuse, sewage or waste fluids or any other

useless material that is generated during the carrying out of any work or activity,

including used or surplus drill cuttings and drilling fluid as well as produced water;

“watertight” means designed and constructed to withstand a static head of water

without any leakage;

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

“well operation” means an operation related to the drilling, completion,

recompletion, re-entry, intervention, workover, suspension or abandonment of a

well;

“workover” means an operation on a completed well that requires removal of the

tree or the tubing;

“zone” means any stratum or any sequence of strata, including a zone that has been

designated as such by the Board under clause 60(a).

Incorporation by reference

(1) In these regulations, any incorporation by reference of a document is an

incorporation of that document as amended from time to time.

Bilingual documents

(2) Despite subsection (1), if a document that is incorporated by reference is available

in both official languages, any amendment to it is incorporated only when the

amended version is available in both official languages.

Part 2—Experience, Training, Qualifications and Competence

Requirements

(1) An operator must ensure that any person to whom a duty is assigned or who

carries out a work or [an] activity under these regulations has the necessary

experience, training, qualifications and competence to carry out that duty, work or

activity safely, in a manner that protects the environment and in compliance with

these regulations.

Sufficient number and supervision

(2) The operator must ensure that the persons referred to in subsection (1) are

sufficient in number and receive the necessary supervision to ensure safety and the

protection of the environment.

Part 3—Management System

Requirements

(1) An operator must, for the purposes of reducing safety and environmental risks,

preventing pollution and ensuring the conservation of petroleum resources,

develop a management system that meets the following requirements:

(

a) it must be set out in writing;

(

b) it must apply to all of the works and activities referred to in the operator’s

application for authorization;

(

c) it must correspond to the scope, nature and complexity of the works and

activities and the associated hazards and risks;

(

d) it must be explicit, comprehensive and proactive;

(

e) it must foster a culture of safety;

(

f) it must establish conditions under which a person who makes a report that

relates to safety or protection of the environment will be protected from

reprisal;

(

g) it must include processes for integrating works and activities and technical

systems with the management of human and financial resources;

(

h) it must include processes to ensure that all persons have the necessary

experience, training, qualifications and competence and receive the

necessary supervision to carry out the duties they are assigned;

(

i) it must set out the roles, responsibilities and authorities of all persons

exercising functions under it, as well as the processes for making those

persons aware of their roles, responsibilities and authorities;

(

j) it must include processes for coordinating the carrying out and management

of the works and activities among the operator, employers, suppliers, service

providers and other persons that are subject to it;

(

k) it must include processes for the internal and external communication of

documents and information relating to safety or the protection of the

environment;

(

l) it must include a process for the efficient and immediate transmission, at

every shift handover, of documents and information relating to any

conditions, mechanical or procedural deficiencies or other problems that

may have an impact on safety or the protection of the environment;

(

m) it must include processes

(

i) for identifying hazards that may arise during routine and non-routine

operations,

(ii) for assessing the risks associated with those hazards and for reducing

those risks through the implementation of control measures, and

(iii) for establishing an inventory of those hazards and control measures

and for maintaining that inventory;

(

n) it must include processes for investigating and reporting, for the purposes of

Section 171, the root causes of any reportable incident, the contributing

factors and the measures to be implemented to prevent recurrence of the

incident;

(

o) it must include a process for establishing a system to analyze trends in

hazards and reportable incidents;

(

p) it must include processes for identifying, evaluating and managing all

systems and equipment that are critical to safety or to the protection of the

environment;

(

q) it must include processes for identifying, evaluating and managing any

changes that could affect safety, the protection of the environment and the

conservation of petroleum resources;

(

r) it must include processes for identifying tasks that are critical to safety, the

protection of the environment and the conservation of petroleum resources;

(

s) it must include processes for establishing and maintaining measurable goals

and performance indicators that are applicable to it;

(

t) it must include processes for its periodic internal audit and review to

identify areas for improvement and the preventive and corrective measures

to be taken if deficiencies are identified;

(

u) it must include processes for monitoring compliance and preventing non-compliance with the requirements of these regulations, the provisions of

Part III of the Act and any requirements that are determined by the Board

under that Part;

(

v) it must include processes for inspection, monitoring, testing and

maintenance to ensure the continued integrity of all installations, including

their systems and equipment, pipelines and vessels, and for the taking of

corrective measures if deficiencies are identified;

(

w) it must include the policies and indicate the standards on which it is based;

(

x) it must include a process to ensure that all documents associated with it are

approved by a person with the necessary authority, periodically reviewed

and updated when necessary;

(

y) it must include a process for establishing a system to manage any records

associated with it, and the records necessary to support operational and

regulatory requirements, for the purpose of ensuring that those records are

generated, identified, controlled and retained and are readily accessible for

consultation and examination; and

(

z) it must include processes for controlling and coordinating work, including

with respect to the issuance of work permits required under

Part 10 and the

identification of the works and activities for which a work permit is

required.

Documentation

(2) The operator must ensure that the processes and policies included in the

management system and the standards referred to in it are readily accessible for

consultation and examination.

Organization

(3) The documentation associated with the management system must be organized and

set out in a logical fashion to allow for ease of understanding and efficient

implementation.

Processes and procedures

(4) In this Section, a reference to a process includes any procedures that are necessary

to implement the process.

Human resources

(1) An operator must put in place an organizational structure that includes sufficient

human resources to implement and continually improve the management system.

Accountable person

(2) The operator must designate an employee as the accountable person for the

management system and must ensure that the accountable person has the

necessary authority over the human and financial resources that are required to

implement and continually improve the system.

Name, position and contact information

(3) The operator must ensure that the name, position and contact information of the

accountable person is [are] submitted to the Board at the time the application for an

authorization is made, when a new designation is made under subsection (2) and

any time a change is made to the name, position or contact information of the

accountable person.

Implementation

(1) An operator must ensure that the management system is implemented before the

commencement of any authorized work or activity.

Compliance

(2) The operator must ensure that all employees, employers, suppliers, service

providers and other persons that are subject to the management system comply

with the requirements of the management system.

Continual improvement

7 The accountable person referred to in subsection 5(2) must ensure that the management

system is continually improved.

Part 4—Authorization

Application

Documents and information

8 The application for an authorization must be accompanied by the following documents

and information:

(

a) the scope of the proposed work or activity;

(

b) an execution plan and

schedule for undertaking the proposed work or

activity;

(

c) the safety plan referred to in

Section 9;

(

d) the environmental protection plan referred to in

Section 10;

(

e) the contingency plan referred to in

Section 11;

(

f) a description of the installations, including their systems and equipment,

pipelines, vessels and support craft, that are to be used for carrying out the

work or activity, including the layouts of the installations;

(

g) in the case of a production project, a description of the field data acquisition

program referred to in

Section 13;

(

h) in the case of a drilling program or a production project,

(

i) information on

(

A) any proposed flaring or venting of gas, including the rationale

for flaring or venting and the estimated rate, quantity and

period of the flaring or venting, and

(

B) any proposed burning of oil, including the rationale for burning

and the estimated quantity of oil to be burned, and

(ii) the decommissioning and abandonment plan referred to in

Section

15;

(

i) in the case of a geoscientific program, geotechnical program or

environmental program,

(

i) a map illustrating the location of the program works and activities

and their proximity to any man-made structures or vulnerable natural

structures, as well as any territorial or other boundaries,

(ii) a description of the methods to be used in carrying out the program

works and activities and a description of any aircraft or vessel to be

used, and

(iii) a description of the proposed data acquisition plan;

(

k) in the case of a diving project, the dive project plan required under

Section

172 of the Canada-Nova Scotia Offshore Area Occupational Health and

Safety Regulations ; and

(

l) if applicable, the list required under clause 151(a), the records made in the

course of conducting the risk assessment required under clause 151(

b) and

the action plan required under clause 151(c).

Safety plan

(1) An operator must develop a safety plan that sets out the procedures, practices,

resources, sequence of key safety-related activities and monitoring measures that

are necessary to safely carry out a proposed work or activity, as well as the target

levels of safety in respect of the work or activity and measures for hazard

management.

Documents and information

(2) The safety plan must include the following documents and information:

(

a) specific references to and detailed descriptions of the provisions of the

management system that relate to safety, sufficient to demonstrate how the

obligations set out in these regulations with regard to safety will be fulfilled;

(

b) a document that includes

(

i) a

summary of the studies that have been carried out, and a description

of the processes that will be followed, for the purposes of

(

A) identifying hazards related to the proposed work or activity that

may occur during routine and non-routine operations, including

any hazards posed by any other activities taking place near the

proposed work or activity, and

(

B) assessing safety risks associated with the identified hazards,

(ii) a description of the identified hazards referred to in paragraph (i)(

A) and the results of the assessments referred to in paragraph (i)(B),

(iii) a

summary of the measures to be implemented to anticipate safety

risks related to the identified hazards,

(iv) a

summary and evaluation of the measures to be implemented to

reduce the safety risks associated with the identified hazards,

including, if the possibility of ice hazards exists, measures for ice

detection, forecasting, surveillance and reporting, including data

collection, and any measures for ice avoidance or deflection,

(

v) a detailed description of the measures to be implemented to reduce

safety risks to a level that is as low as reasonably practicable in

respect of

(

A) the design of all installations, including their systems and

equipment,

(

B) the design, winterization and operation of any installation that

is to be operated in a cold climate,

(

C) the design, arrangement, installation and maintenance of

barriers to provide fire and blast protection,

(

D) the design of all control systems,

(

E) the design, selection, location, installation, commissioning,

protection, operation, inspection and maintenance of

mechanical equipment,

(

F) the design, construction, installation, commissioning, operation,

inspection, monitoring, testing and maintenance of any subsea

production system under all foreseeable physical and

environmental conditions and operating conditions for all

modes of operation,

(

G) the management of temporary or portable equipment, and

(

H) the arrangement and specification of watertight and

weathertight appliances,

(vi) a detailed description of the measures to be implemented in respect

(

A) the design and location of any vent that is used to release gas

into the atmosphere without combustion in order to minimize

the risk of accidental ignition of the gas,

(

B) the design, selection, operation, inspection, testing and

maintenance of fire protection systems and equipment in order

to minimize the risk of hazards to persons who use those

systems and equipment,

(

C) the design of boilers and pressure systems in order to minimize

the risk of hazards to the installation and to persons present on

it and to any other installations, vessel or persons in proximity

to it, and

(

D) the design and maintenance of any disconnectable mooring

system on a floating platform to ensure that the risk that the

system will fail to safely disconnect if exposed to situations that

would exceed the platform’s structural limits or the system’s

design limits is reduced to a level that is as low as reasonably

practicable, without compromising the ability to achieve the

target levels of safety set out in the safety plan and

environmental protection plan, and

(vii) a

summary of the measures to be implemented for communicating

the identified hazards and for mitigating the safety risks associated

with those hazards to all persons who are directly affected;

(

c) a description of all installations or vessels that are to be used during the

proposed work or activity, a description of their systems and equipment that

are critical to safety and a brief description of the systems in place for the

inspection, testing and maintenance of those systems and that equipment;

(

d) a description of the organizational structure and chain of command for the

proposed work or activity that

(

i) explains the relationship between the organizational structure and

chain of command, and

(ii) includes the name, position and contact information of the employee

who is responsible for the management of the safety plan; and

(

e) a description of the measures to be implemented to monitor compliance

with the plan and to evaluate performance in relation to its objectives.

Environmental protection plan

(1) An operator must develop an environmental protection plan that sets out the

procedures, practices, resources and monitoring measures that are necessary to

protect the environment from the effects of a proposed work or activity, the target

levels of safety in respect of the work or activity and measures for hazard

management.

Documents and information

(2) The environmental protection plan must include the following documents and

information:

(

a) specific references to and detailed descriptions of the provisions of the

management system that relate to the protection of the environment,

sufficient to demonstrate how the obligations set out in these regulations

with regard to environmental protection will be fulfilled;

(

b) a document that includes

(

i) a

summary of the studies that have been carried out, and a description

of the processes that will be followed, for the purposes of

(

A) identifying hazards related to the proposed work or activity that

may occur during routine and non-routine operations, including

any hazards posed by any other activities taking place near the

proposed work or activity, and

(

B) assessing environmental risks associated with the identified

hazards,

(ii) a description of the identified hazards referred to in paragraph (i)(

A) and the results of the assessments referred to in paragraph (i)(B),

(iii) a

summary of the measures to be implemented to anticipate

environmental risks related to the identified hazards,

(iv) a

summary and evaluation of the measures to be implemented to

reduce the environmental risks associated with the identified hazards,

(

v) a detailed description of the measures to be implemented to reduce

environmental risks to a level that is as low as reasonably practicable

in respect of

(

A) the design of all installations, including their systems and

equipment,

(

B) the design, winterization and operation of any installation that

is to be operated in a cold climate,

(

C) the design, arrangement, installation and maintenance of

barriers to provide fire and blast protection,

(

D) the design of all control systems,

(

E) the design, selection, location, installation, commissioning,

protection, operation, inspection and maintenance of

mechanical equipment,

(

F) the design, construction, installation, commissioning, operation,

inspection, monitoring, testing and maintenance of any subsea

production system under all foreseeable physical and

environmental conditions and operating conditions for all

modes of operation, and

(

G) the management of temporary or portable equipment,

(vi) a detailed description of the measures to be implemented in respect

of the design and location of any vent that is used to release gas into

the atmosphere without combustion in order to minimize the risk of

accidental ignition of the gas, and

(vii) a

summary of the measures to be implemented for communicating

the identified hazards and for mitigating the environmental risks

associated with those hazards to all persons who are directly affected;

(

c) a description of all installations or vessels that are to be used during the

proposed work or activity, a description of their systems and equipment that

are critical to the protection of the environment and a brief description of the

systems in place for the inspection, testing and maintenance of those

systems and that equipment;

(

d) in the case of a drilling program or a production project, the procedures for

the selection, evaluation and use of chemical substances, including process

chemicals and drilling fluid ingredients;

(

e) a description of the equipment and procedures for the treatment, handling

and disposal of waste material;

(

f) a description of all of the discharge streams and the limits of any discharge

into the environment, including any discharge of waste material;

(

g) a description of the system for monitoring compliance with the discharge

limits referred to in clause (f), including the sampling and analytical

programs for determining whether discharges are within the specified limits;

(

h) a description of the organizational structure and chain of command for the

proposed work or activity that

(

i) explains the relationship between the organizational structure and

chain of command, and

(ii) includes the name, position and contact information of the employee

who is responsible for the management of the environmental

protection plan;

(

i) a description of the measures to be implemented to monitor compliance

with the plan and to evaluate performance in relation to its objectives; and

(

j) a description of the procedure to be followed if an archaeological site or a

burial ground is discovered during the proposed work or activity.

Contingency plan

(1) An operator must develop a contingency plan that sets out the procedures,

including emergency response procedures, and the practices, resources and

monitoring measures that are necessary to effectively prepare for and mitigate the

effects of any accidental event.

Documents and information

(2) The contingency plan must include the following documents and information:

(

a) a description of the method to be used for classifying accidental events and

a description of the emergency response procedures for each event;

(

b) a description of the procedures for the internal and external reporting of

accidental events;

(

c) a description of the procedures for accessing safety-related and

environmental information that is necessary to mitigate the effects of any

accidental event;

(

d) a description of the organizational structure, chain of command and

resources for managing any accidental event, including

(

i) a list of key emergency response positions and a description of the

roles, responsibilities and authorities associated with each of those

positions, including a description of related tasks and checklists of

actions that must be taken in the context of the contingency plan,

(ii) a description of the available support craft and the contact

information for its crew or a reference to the number or title of a

document that provides that description and contact information,

(iii) a description, or a reference to the number or title of a document that

provides the description, of available emergency response equipment,

including life-saving appliances, and the equipment’s location, as

well as the limits on its use and the mitigation measures to be taken

in the event that it is not available,

(iv) a description, or a reference to a number or title of a document that

provides the description, of all available medical equipment and the

equipment’s location,

(

v) a description of the communication system referred to in

Section 128

and the operating procedures for that system,

(vi) a description of all emergency response operations centres and their

locations,

(vii) a description of any good or service that must be obtained on a

contractual basis for each response measure, and

(viii) a description of the location and the contents of any temporary safe

refuges or a reference to the number or title of a document that

provides that description;

(

e) details of all mutual aid agreements entered into with other operators;

(

f) a description of the procedures for coordinating and liaising with all relevant

emergency response organizations;

(

g) a description of the communication protocols with all relevant federal,

provincial, territorial and municipal agencies and Indigenous governing

bodies;

(

h) a copy of all personnel evacuation plans, including any evacuation plan for

divers engaged in a dive; and

(

i) an indication of the frequency with which emergency response drills and

exercises are to be completed and their scope.

Uncontrolled flow

(3) In the case of a drilling program or a production project, the contingency plan must

also include a description of the source control and containment measures to be

taken to stop uncontrolled flow from a well and to minimize the duration and

environmental effects of any resulting spill, as well as the following documents

and information:

(

a) a description of the source control and containment equipment to be used in

the event of a loss of well control;

(

b) details of the contractual arrangements for the source control and

containment equipment, other than a relief well drilling installation,

including

(

i) the name and contact information of the owner or owners of the

equipment,

(ii) the arrangements for transport of the equipment to the location of the

uncontrolled well, and

(iii) the arrangements for the mode of deployment of the equipment at the

location of the uncontrolled well;

(

c) the

schedule and plan for the mobilization, deployment and operation of the

source control and containment equipment, including measures to minimize

deployment time that take required regulatory approvals into account;

equipment and the documents and information referred to in clauses (

a) to

(c);

(

e) an explanation of the adequacy of each of the source control and

containment measures; and

(

f) a description of any support systems and equipment that are available,

including vessels and remotely operated vehicles and any consumables that

may be used, such as, in the case of a relief well, a spare wellhead, spare

casing and spare bulk additives.

Spill-treating agent

(4) If a spill-treating agent is being considered for use as a spill response measure, the

contingency plan must include the following additional documents and

information:

(

a) the name of the chosen spill-treating agent and details of an assessment of

its efficacy in treating the potential sources of pollutants, including the

results of any tests conducted for the assessment and a description of those

tests;

(

b) the results of an analysis that demonstrates that a net environmental benefit

is likely to be achieved through the use of the spill-treating agent under

certain circumstances;

(

c) a description of the circumstances under which the spill-treating agent will

be used and the estimated period within which its use will be effective;

(

d) a description of the methods and protocols, including the amount and

application rate, for safe, effective and efficient use of the spill-treating

agent;

(

e) a list of the personnel roles, equipment and materials that an operator will

have available for the purpose of using the spill-treating agent, including

any to be provided through contractual arrangements, and a description of

the requirements that must be met for those contracts to be activated; and

(

f) a monitoring plan for the use of the spill-treating agent.

Assessment of efficacy

(5) The assessment of efficacy under clause (4)(

a) must be carried out using oil

obtained directly from the operations site where the spill-treating agent is being

considered for use or, if oil is not available from that operations site, it must be

carried out using an oil that most closely resembles the oil that is expected to be

obtained from the operations site and must be repeated when oil becomes available

from that operations site.

International standard or alternative

(6) The assessment, analysis, methods and protocols referred to in clauses (4)(a), (

b) and (

d) must be based, taking the local environment into account, on an

international standard or an alternative recognized by the Board and the

contingency plan must identify each of those standards or alternatives.

Methods and protocols

(7) The methods and protocols referred to in clause (4)(

d) and the monitoring plan

referred to in clause (4)(

f) must conform to industry standards and best practices

for spill-treating agent use, taking the local environment into account.

Definition of source control and containment equipment

(8) In this Section, “source control and containment equipment” means the capping

stack, containment dome, any subsea and surface equipment, devices or vessels

and any relief well drilling installations that are used to contain and control a spill

source and to minimize the duration of a spill and its environmental effects until

well control is regained.

Spill-treating agent—Section 136BA of Act

12 In determining for the purpose of

Section 136BA of the Act whether the use of a spill-treating agent is likely to achieve a net environmental benefit, the Board must take into

account

(

a) the assessment of the spill-treating agent’s efficacy referred to in clause

11(4)(a);

(

b) the results of the analysis referred to in clause 11(4)(b);

(

c) the circumstances referred to in clause 11(4)(c);

(

d) the methods and protocols referred to in clause 11(4)(d); and

(

e) the monitoring plan referred to in clause 11(4)(f).

Field data acquisition program

13 In the case of a production project, an operator must develop a field data acquisition

program that

(

a) provides for the collection of sufficient pool pressure measurements, drill

cutting and fluid samples, cores and well logs, and the carrying out of

sufficient formation flow tests, analyses and surveys, to enable a

comprehensive assessment of the field, of the performance of development

wells, of the pool depletion scheme and of any injection scheme; and

(

b) identifies the quantity of samples and cores, the evaluation data and any

associated analyses, surveys and reports that are to be provided to the Board.

Flow system, calculation and allocation

(1) If the application for an authorization is in respect of a production project, the

operator must submit to the Board for its approval the flow system, the flow

calculation procedure and the flow allocation procedure that will be used to

conduct the measurements referred to in Sections 74 to 78, as well as any alternate

measurements referred to in subsection 74(2) that the operator proposes to

conduct.

Board approval

(2) The Board must approve the flow system, the flow calculation procedure and the

flow allocation procedure if the applicant demonstrates that the system and

procedures facilitate accurate measurements and the allocation, on a pool or zone

basis, of the production from and injection into individual wells.

Decommissioning and abandonment plan

(1) An operator must, in the case of a drilling program or production project, develop

a decommissioning and abandonment plan that includes the following

information:

(

a) a description of the safety and environmental protection measures to be

implemented during the decommissioning and abandonment to comply with

the requirements of these regulations, the provisions of

Part III of the Act

and any provincial or federal legislation or international conventions or

agreements relating to safety and the protection of the environment;

(

b) a description of the potential effects of the decommissioning and

abandonment on the environment and on any future uses of the site where

the program or project is carried out;

(

c) the methods for restoring the site after the decommissioning and

abandonment; and

(

d) the forecasted costs of the decommissioning and abandonment and the

manner in which the operator will finance or pay for those costs.

Costs and financing or payment

(2) The operator must submit to the Board an update on the forecasted costs of

decommissioning and abandonment and the manner in which the operator will

finance or pay for those costs

(

a) whenever there is a significant change to that information; and

(

b) beginning no less than 5 years before the day on which the

decommissioning and abandonment is forecasted to begin, at least once a

year.

Requirements for Authorization

Definitions—clause 135(4)(

c) of Act

16 The following

definitions apply for the purposes of clause 135(4)(

c) of the Act:

“production facility” means the systems and equipment referred to in subclause (

i) of the definition of “production installation”, other than a diving system, as well as

any associated aircraft landing areas, storage areas or tanks and accommodations

areas;

“production platform” means a production installation.

Well Approvals

Well operation

(1) Subject to subsection (2), an operator that intends to conduct a well operation must

obtain a well approval.

Approval not necessary

(2) A well approval is not necessary to conduct a wire line operation, slick line

operation, coiled tubing operation or other similar operation through a tree located

above sea level if

(

a) the operation does not alter the completion interval or is not expected to

adversely affect the recovery of petroleum; and

(

b) the equipment, operating procedures and qualifications of the persons

carrying out the work are in compliance with the requirements of the

authorization.

Definitions

(3) The following

definitions apply in subsection (2):

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

“wire line” means a line that contains a conductor wire and that is used to run

survey instruments or other tools in a well.

Approval application contents

(4) The application for a well approval must include the estimated cost breakdown of

the well operation and the following information:

(

a) if the well approval is being sought to drill a well,

(

i) a comprehensive description of the drilling program, a geoscientific

description of the reservoir targets and a description of any

geohazard,

(ii) the digital data necessary to allow for an independent geohazard

assessment,

(iii) a description of the well data acquisition program referred to in

Section 18, and

(iv) a description of the well verification scheme referred to in

Section

19;

(

b) if the well approval is being sought to perform a workover on, to re-enter, to

complete or to recomplete a well or to suspend or abandon a well or a part

of one, a description of the well or part, a description of the proposed work

or activity and the rationale for carrying it out and barrier envelope diagrams

that demonstrate that 2 barrier envelopes will be in place throughout the

operation;

(

c) if the well approval is being sought to complete a well, information that

demonstrates that

Section 71 will be complied with;

(

d) if the well approval is being sought to suspend a well or a part of one, an

indication of the period within which the suspended well or part will be

abandoned or completed; and

(

e) if the well approval is being sought to suspend or abandon a well or a part

of one, the methods for verifying the effectiveness of the isolation of pools

and zones that is required under subclause 90(1)(b)(i).

Well approval granted by the Board

(5) The Board must grant the well approval if the operator demonstrates that the well

operation will be conducted safely, without waste or pollution and in compliance

with these regulations.

Well data acquisition program

18 In the case of a drilling program, an operator must develop a well data acquisition

program that

(

a) provides for the collection of sufficient pressure measurements, drill cutting

and fluid samples, conventional cores, sidewall cores and well logs, and the

carrying out of sufficient formation flow tests, analyses and surveys, to

enable a comprehensive geophysical, geological and reservoir evaluation to

be made; and

(

b) identifies the quantity of samples and cores, the evaluation data and any

associated analyses, surveys and reports that are to be provided to the Board.

Well verification scheme

(1) An operator must establish a well verification scheme based on criteria that the

operator establishes to ensure that the design of any well is in accordance with

industry standards and best practices so that the well’s integrity is maintained

throughout its life cycle.

Well ranking

(2) For the purposes of subsection (1), the operator must rank a well according to its

level of risk and ensure that the well ranking is confirmed by an independent

person.

Verification requirements

(3) The verification scheme must set out the verification requirements that are

applicable to the design of a well according to the well’s ranking and to any

changes made to the design during the well’s construction or operation that would

affect any previously undertaken verification.

Verification by independent person

(4) The operator must ensure that the required verifications are carried out by an

independent person that was not involved in the original design.

Suspension of well approval

(1) The Board may suspend a well approval if

(

a) the operator conducts the well operation other than as described in the

application for the well approval;

(

b) the physical and environmental conditions encountered in the area of the

work or activity for which the well approval was granted are more severe

than those on the basis of which the manufacturer of any equipment used in

the well operation established the equipment’s operating limits; or

(

c) the operator uses a flow system, flow calculation procedure or flow

allocation procedure that has not been approved under subsection 14(2),

conducts a formation flow test that has not been approved under subsection

63(5) or engages in commingled production that has not been approved

under subsection 80(2).

Factors for suspension

(2) In deciding whether to suspend a well approval, the Board must consider

(

a) the effects or potential effects of the applicable situation referred to in

subsection (1) on safety, the environment and the conservation of petroleum

resources; and

(

b) the operator’s history of non-compliance with the requirements of these

regulations, the provisions of

Part III of the Act or any requirements that are

established by the Board under that Part with respect to well operations.

Revocation of well approval

21 The Board must revoke a well approval if

(

a) the operator fails to remedy the situation that caused the suspension of the

well approval as soon as the circumstances permit within 60 days after the

date of that suspension unless, on written request by the operator, the Board

grants the operator an extension of time to remedy the situation; or

(

b) the operator continues to operate the well despite the suspension of the well

approval.

Suspension or abandonment of well

22 If a well approval is revoked, the operator must ensure that the well is suspended or

abandoned in accordance with

Part 8.

Development Plan

Well approval—subsection 136(1) of Act

23 For the purposes of subsection 136(1) of the Act, a well approval relating to a production

project is prescribed.

Concept safety analysis

(1) The approvals referred to in subsection 136(4) of the Act are subject to the

operator’s submission of a concept safety analysis to the Chief Safety Officer at the

time the operator submits the application and proposed development plan to the

Board under subsection 136(2) of the Act.

Content

(2) The concept safety analysis must

(

a) be based on the development concept chosen by the operator as a general

approach and described in

Part I of the development plan;

(

b) take into account all works and activities associated with each phase in the

life cycle of the development;

(

c) determine target levels of safety that are to be achieved to ensure safety and

the protection of the environment for all works and activities within each

phase of the life cycle of an installation, including its systems and

equipment, from the installation’s design up to and including its

decommissioning and abandonment;

(

d) identify all hazards having the potential to cause a major accidental event;

(

e) include a systematic assessment of the unmitigated risks associated with

each of the identified hazards, including the likelihood of a major accidental

event occurring and the consequences that would result;

(

f) identify the control measures that are to be implemented to reduce the risks

associated with the identified hazards to a level that is as low as reasonably

practicable;

(

g) identify the effects of any additional risks that may result from the

implementation of the identified control measures; and

(

h) identify all assumptions on which any aspect of the concept safety analysis

is based.

Quantitative and qualitative risk assessments

(3) The target levels of safety must be based on risk assessments that are

(

a) quantitative, if it can be demonstrated that input data are available in the

quantity and quality necessary to demonstrate the reliability of the results; or

(

b) qualitative, if the criteria in clause (

a) are not met or if a quantitative

assessment would otherwise be inappropriate.

Contents of risk assessment

(4) The operator must include in the risk assessment a description of the

circumstances that will necessitate an update of the risk assessment, including

changes in

(

a) the physical and environmental conditions;

(

b) the operating conditions and the limits taken into account in the design

assumptions; and

(

c) the operating procedures.

Review of risk assessment

(5) The operator must update the risk assessment as often as necessary and at least

once every 5 years throughout the life cycle of the development to

(

a) account for the circumstances described in subsection (4); and

(

b) ensure the ongoing suitability of the control measures to maintain risks at a

level as low as reasonably practicable.

Resource management plan—clause 136(3)(

b) of Act

(1) For the purposes of clause 136(3)(

b) of the Act,

Part II of the development plan

must contain a resource management plan.

Contents of resource management plan

(2) The resource management plan must include a description and analysis of the

following:

(

a) the geological setting and features of the field and of each pool or

petroleum-bearing reservoir;

(

b) the petrophysical data and analytical procedures for each pool;

(

c) the reservoir engineering data for each pool;

(

d) estimates of in-place resources and recoverable reserves for each pool, fault

block and reservoir subdivision;

(

e) the proposed reservoir exploitation scheme;

(

f) potential developments and the reasons why they are not included in the

proposed development of the field or pool;

(

g) any past drilling in the area related to the proposed development of the field

or pool as well as the proposed drilling program and typical completion

designs for the development wells;

(

h) the production and export systems related to the proposed development of

the field or pool;

(

i) the expected overall operating efficiency and reliability of the proposed

development of the field or pool; and

(

j) past expenditures and predicted capital and operating cost data, with

sufficient detail to permit an economic analysis of the proposed

development of the field or pool.

Organizational structure

(3) The resource management plan must also contain a description of the operator’s

organizational structure as it relates to the implementation of the plan.

Part 5—Certificate of Fitness

Application

Prescribed installations—Section 136B of Act

26 For the purpose of

Section 136B of the Act, a production installation, drilling

installation, accommodations installation and diving installation are prescribed

installations.

Definition of installation

27 In this Part, “installation” means an installation referred to in

Section 26.

Requirements for Certification

Issuance of certificate—requirements and conditions

(1) Before a certifying authority issues a certificate of fitness in respect of an

installation,

(

a) the person that applies for the certificate must

(

i) provide the certifying authority with all the information that the

certifying authority requires in relation to the application for

certification, such as design specifications for the installation,

including its systems and equipment,

(ii) conduct or assist the certifying authority in conducting any

inspection, test or survey that the certifying authority requires,

(iii) except in the case of a diving installation, submit to the certifying

authority for approval [of] a maintenance program that meets the

requirements set out in

Section 159 and a weight control program

that meets the requirements set out in

Section 161, and

(iv) in the case of a diving installation, submit a maintenance program to

the certifying authority for approval;

(

b) the certifying authority must determine that, in relation to the production

site, the drill site or the region in which the particular installation is to be

operated,

(

i) the installation, including its systems and equipment, is fit for the

purposes for which it is to be used and can be operated without

posing a threat to persons or the environment,

(ii) in the case of an installation other than a diving installation, the

requirements set out in the following provisions have been met:

(

A) the provisions of these regulations listed in

Part 1 of

Schedule

1, and

(

B) the provisions of the Canada-Nova Scotia Offshore Area

Occupational Health and Safety Regulations listed in

Part 2 of

Schedule 1, other than clause 23(5)(b), subsection 29(3), clause

29(5)(a), subsection 172(3) and clauses 173(1)(a), (g), (

j) to

(m), (

o) and (p), (2)(

e) and (3)(

c) and (

f) of those regulations,

(iii) in the case of a diving installation, the requirements set out in the

following provisions have been met:

(

A) Section 174 and the provisions of

Part 9, and

(

B) the provisions of the Canada-Nova Scotia Offshore Area

Occupational Health and Safety Regulations listed in

Part 2 of

Schedule 1, and

(iv) the installation, including its systems and equipment, will continue to

meet the requirements set out in subclause (

i) and the applicable

requirements set out in subclause (ii) or (iii), as the case may be, for

the time set out in the certificate of fitness if

(

A) the installation—other than a diving installation—including its

systems and equipment, is inspected, monitored, tested and

maintained in accordance with the maintenance program and is

maintained in accordance with the weight control program

referred to in subclause (a)(iii), or

(

B) the diving installation, including its systems and equipment, is

maintained in accordance with the maintenance program

referred to in subclause (a)(iv);

(

c) the certifying authority must

(

i) in the case of an installation other than a diving installation,

determine that the maintenance program and the weight control

program are adequate to ensure the continued integrity of the

installation, including its systems and equipment, and approve them,

and

(ii) in the case of a diving installation, determine that the maintenance

program is adequate to ensure the continued integrity of the

installation, including its systems and equipment, and approve it; and

(

d) the certifying authority must carry out the scope of work in respect of which

the certificate of fitness is issued.

Substitution—Section 147 and subsection 202BS(1) of Act

(2) For the purposes of subclauses (1)(b)(ii) and (iii), the certifying authority may

substitute, for any equipment, methods, measures, standards or other things

required under any regulation referred to in those subclauses, any other equipment,

methods, measures, standards or other things the use of which is authorized by the

Chief Safety Officer or the Chief Conservation Officer, as the case may be, under

Section 147 of the Act or subsection 202BS(1) of the Act.

Limitations

(3) The certifying authority must set out in any certificate of fitness that it issues the

details of any limitation on the operation of the installation that is necessary to

ensure that the installation, including its systems and equipment, meets the

requirements set out in clause (1)(b).

Conflict of interest—clause 136B(4)(

b) of Act

(1) For the purposes of clause 136B(4)(

b) of the Act, the extent to which a certifying

authority may participate in the design, construction or installation of an

installation in respect of which a certificate of fitness is issued is as follows:

(

a) the certifying authority or one of its subsidiaries or affiliates may be the

certifying authority or classification society for the original design,

construction or installation of the installation or any modification to it; and

(

b) a subsidiary or affiliate of the certifying authority may participate in the

design, construction or installation of the installation to any other extent as

long as it does not participate in any of the certification or verification

activities in respect of the installation.

Notice of non-compliance

(2) The certifying authority must monitor for any participation beyond that described

in subsection (1) and must, without delay, inform the person that applied for the

certificate and the Board of any such participation.

Certification plan

(1) A person that applies for a certificate of fitness must submit a certification plan to

the Chief Safety Officer and to the certifying authority for the purposes of the

approval of the scope of work under

Section 31.

Contents

(2) The certification plan must include the following documents and information:

(

a) a description of the installation that is to be certified, including its systems

and equipment;

(

b) a list of the standards that will apply to the installation to be certified,

including its systems and equipment, and a list of the standards on which

the measures to reduce risks that are described in the safety plan and the

environmental protection plan are based or, if there are no applicable

standards, any studies and analyses that demonstrate that the measures to be

implemented are adequate to reduce the risks to safety and the environment

to a level that is as low as reasonably practicable or to minimize the risk of

hazards, as the case may be; and

(

c) other than in the case of a diving installation, a list of all safety-critical

elements, as well as a description of how the associated performance

standards are to be developed.

Scope of work

(1) A certifying authority must submit to the Chief Safety Officer for approval a scope

of work that takes into account the certification plan.

Contents of scope of work

(2) The scope of work must include

(

a) a description of the following activities to be conducted by the certifying

authority:

(

i) activities to verify compliance with the requirements referred to in

clause 28(1)(b),

(ii) activities to verify the validity of the certificate of fitness, and

(iii) any additional activities to be carried out before the renewal of the

certificate; and

(

b) a

schedule of the activities referred to in clause (a).

Approval of scope of work

(3) The Chief Safety Officer must approve the scope of work if the Chief Safety

Officer determines that

(

a) in the case of any installation, the scope of work

(

i) is sufficiently detailed to permit the certifying authority to determine

whether the requirements referred to in clause 28(1)(

b) are met,

(ii) describes the type and extent of reporting in respect of continual

monitoring of the certification process being undertaken by the

certifying authority, and

(iii) demonstrates how the certifying authority has complied with

Section

29;

(

b) in the case of an installation other than a diving installation, the scope of

work

(

i) provides the means for determining whether

(

A) the environmental criteria for the region or site and the loads

estimated for the installation are correct,

(

B) the list of safety-critical elements included in the certification

plan is complete and the elements are in place and functioning

as intended,

(

C) in respect of any installation referred to in a development plan,

the concept safety analysis submitted under

Section 24 meets

the requirements set out in that Section,

(

D) in respect of a new installation, the installation has been

constructed in accordance with the quality assurance program

referred to in

Section 100,

(

E) the operations manual meets the requirements set out in

Section

157, and

(

F) the installation’s construction and installation, including the

materials used for those purposes, meet the design

specifications,

(ii) includes the list of performance standards and methods that the

certifying authority will use to verify compliance with those

standards and to verify whether the installation, including its systems

and equipment, continues to be fit for the purposes for which it is to

be used, and

(iii) provides the means for determining whether the provisions listed in

Schedule 2 have been complied with and whether the structures,

systems and equipment referred to in those provisions are in place

and functioning as intended; and

(

c) in the case of a diving installation, the scope of work provides the means for

determining whether the processes referred to in subclause 4(1)(m)(iii) and

clause 4(1)(

v) that are included in the operator’s management system have

been implemented.

Period of validity

(1) A certificate of fitness is valid for 5 years from the day on which it is issued if the

certifying authority determines that the requirements referred to in clause 28(1)(

b) will be met for a period of at least 5 years from that day.

Less than 5 years

(2) If the certifying authority determines that the requirements referred to in clause

28(1)(

b) can be met only for a period that is less than 5 years, the certificate of

fitness is valid for the corresponding lesser period.

Expiry date

(3) The certifying authority must indicate on the certificate of fitness its expiry date.

Extension of period of validity

(4) The certifying authority may, on request of the holder of a certificate of fitness,

extend the period of validity of the certificate of fitness for a period of up to 3

months, subject to the approval of the Chief Safety Officer.

Approval by Chief Safety Officer

(5) The Chief Safety Officer must approve the extension of the period of validity of

the certificate of fitness if the extension does not compromise safety or the

protection of the environment.

Applicable site or region

(1) A certifying authority must indicate on a certificate of fitness the site or region

where the installation is to be operated.

Validity

(2) A certificate of fitness is valid for the operation of the installation at the site or in

the region that is indicated on the certificate of fitness.

Revalidation—scope of work

(1) The certifying authority must revalidate the scope of work against the criteria

referred to in subsection 31(3) and make any modifications that are necessary

(

a) before renewing a certificate of fitness; and

(

b) if new circumstances such as the following arise that have or could have a

significant impact on the scope of work:

(

i) these regulations or the Canada-Nova Scotia Offshore Area

Occupational Health and Safety Regulations are amended,

(ii) new information regarding a major accidental event that occurred in

any place is disclosed,

(iii) amendments are made to any of the standards on which the

certification was based, or

(iv) the installation has transitioned from one life cycle phase to another.

Revalidation approval

(2) The revalidated scope of work must be submitted to the Chief Safety Officer for

approval under subsection 31(3).

Renewal of certificate

35 The certifying authority must renew the certificate of fitness in relation to an installation

before or on its expiry date if

(

a) the certifying authority determines that the requirements referred to in clause

28(1)(

b) have been met;

(

b) the certifying authority has carried out the activities referred to in subclause

31(2)(a)(iii); and

(

c) the certifying authority has revalidated the scope of work and it has been

approved by the Chief Safety Officer.

Invalidity

(1) Subject to subsections (2) and (3), a certificate of fitness ceases to be valid if

(

a) the certifying authority or the Chief Safety Officer determines that

(

i) any of the information provided under subclause 28(1)(a)(

i) on the

basis of which the certificate of fitness was issued is incorrect,

(ii) any of the requirements referred to in clause 28(1)(

b) are no longer

being met, or

(iii) any limitation set out in the certificate of fitness under subsection

28(3) has not been respected; or

(

b) the Chief Safety Officer determines that the certifying authority has failed to

carry out the scope of work relating to the installation in respect of which

the certificate of fitness was issued.

Notice in writing

(2) At least 30 days before a determination referred to in subsection (1) is made, notice

of the impending determination must be given in writing

(

a) in the case of a determination to be made by the certifying authority, by the

certifying authority to the Chief Safety Officer and to the holder of the

certificate of fitness; and

(

b) in the case of a determination to be made by the Chief Safety Officer, by the

Chief Safety Officer to the certifying authority and to the holder of the

certificate of fitness.

Consideration of information

(3) Before making a determination referred to in subsection (1), the certifying authority

or the Chief Safety Officer, as the case may be, must consider any information in

relation to that determination that is submitted by any person notified under

subsection (2).

Change of certifying authority

(1) If the person that applies for a certificate of fitness decides to change the certifying

authority in relation to an installation before the initial certificate of fitness is

issued, the new certifying authority must undertake its own independent

verification activities for the purpose of issuing the certificate of fitness.

After issuance of certificate

(2) If the holder of a certificate of fitness decides to change the certifying authority in

relation to an installation, the holder must

(

a) notify the Chief Safety Officer as soon as the circumstances permit;

(

b) develop and submit to the Chief Safety Officer a transition plan outlining all

of the activities to be carried out before transitioning from the outgoing to

the incoming certifying authority and demonstrating that there will not be

any gaps or delays in the carrying out of verification activities or any

negative effects on the extent and quality of those activities as a result of the

transition from one certifying authority to another; and

(

c) ensure that the incoming certifying authority has submitted for approval to

the Chief Safety Officer, in accordance with

Section 31, a new scope of

work before commencing transition activities.

Transition plan implementation

(3) The holder of a certificate of fitness must ensure that the transition plan referred to

in clause (2)(

b) is implemented.

One certificate—one authority

(4) There must be no more than 1 certificate of fitness and certifying authority in

relation to an installation at any given time.

Certifying Authority

Organizational structure

38 A certifying authority must, without delay, notify the Board, the Provincial and the

Federal Minister of any changes to its organizational structure, including amalgamations

and legal name changes.

Reports and information

(1) A certifying authority must submit to the Board, the Provincial Minister and the

Federal Minister, not later than March 31 of each year, an annual report that

contains

(

a) a

summary of the certification activities the certifying authority carried out

during the previous calendar year as a certifying authority under the Act;

and

(

b) proof of its technical capabilities and experience as a certifying authority.

Monthly reports

(2) The certifying authority must submit a monthly report to the Board that describes

the certification activities it carried out during the previous month as a certifying

authority under the Act.

Information and documents to board

(3) On the Board’s request, the certifying authority must submit to the Board any

information obtained or documents generated in the course of carrying out its

certification and verification activities.

Record retention

(4) The certifying authority must retain records, including technical drawings, for any

activity carried out during its certification or verification activities in respect of an

installation until the day that is 7 years after the day on which the last certificate of

fitness issued for that installation expires.

Part 6—General Requirements for Authorized Works and Activities

General

Installation manager

40 For the purposes of

Section 190B of the Act, every installation is a prescribed

installation.

Safety and protection of environment

41 An operator must take all measures necessary to ensure safety and the protection of the

environment during any authorized work or activity, including measures to ensure that

(

a) the safety of persons at an operations site or on a support craft has priority,

at all times, over any work or activity at the operations site or on the support

craft;

(

b) safe work methods are adopted;

(

c) differences in language or other barriers to effective communication do not

jeopardize safety or the protection of the environment;

(

d) if there is a loss of well control, all other wells at the same installation are

shut in until the well that is out of control is secured;

(

e) any equipment that is necessary for safety and the protection of the

environment is available and in a condition to perform as intended at all

times;

(

f) fires can be controlled and extinguished and any related hazard to safety or

the environment is minimized;

(

g) the administrative and logistical support that is provided for any work or

activity includes accommodation and transportation and storage and repair

facilities that are fit for the purposes for which they are to be used;

(

h) every operations site is equipped with a communication system that meets

the requirements set out in subsection 129(1);

(

i) any operating procedure that creates a hazard to safety or the environment is

corrected; and

(

j) all affected persons are informed of any correction made under clause (i).

Physical and environmental conditions

42 An operator must ensure that

(

a) physical and environmental conditions, including sea states and ice

movements, are observed and forecasts of those conditions are obtained;

(

b) the observations and forecasts are recorded each day, as well as each time

there are substantial differences between the observations and the forecasts;

and

(

c) the records are maintained at the operations site.

Location of infrastructure or equipment

43 An operator must keep data or information that accurately describes the location of any

infrastructure or equipment at an operations site that is on or attached to the seabed,

including any abandoned installation or part of it.

44 An operator must ensure that explosives, fuel, spill-treating agents, spill containment

products, drilling, completion and well stimulation fluids and cement, as well as

chemicals and other consumables that are necessary for safe operations, are

(

a) readily accessible and stored in quantities that are sufficient for normal

conditions and any emergency situation; and

(

b) stored and handled in a manner that does not create a hazard to safety or the

environment, including any hazard that could result from their deterioration.

Storage and handling of chemical substances

45 An operator must ensure that all chemical substances present at an operations site,

including process fluids, fuel, lubricants, waste material, drilling fluids and drill cuttings,

are stored and handled in a manner that does not create a hazard to safety or the

environment.

Misuse of equipment

46 It is prohibited for any person to tamper with, activate without cause or otherwise misuse

equipment that is necessary for safety or the protection of the environment.

Cessation of work or activity

(1) An operator must ensure that any work or activity ceases without delay if it

(

a) endangers or is likely to endanger the safety of any other work or activity;

(

b) endangers or is likely to endanger the safety or integrity of any operations

site or well; or

(

c) causes or is likely to cause pollution.

Condition for resumption

(2) The operator must ensure that the work or activity does not resume until it can be

done safely and without causing pollution.

Document Availability

Copy of authorization and approvals

(1) The operator must ensure that a copy of the authorization and all related approvals

that are required under these regulations or

Part III of the Act is displayed in a

conspicuous location at every operations site.

Additional copy and plans

(2) An operator must keep an additional copy of the authorization and approvals, as

well as all plans that are required under these regulations or

Part III of the Act, at

every operations site and must ensure that they are readily accessible for

consultation or examination.

Emergency response procedures and other documentation

49 An operator must ensure that a copy of the most current version of the emergency

response procedures and any documentation that is necessary to carry out an authorized

work or activity and to operate and maintain an installation or pipeline is

(

a) readily accessible at all times at every operations site and emergency

response operations centre; and

(

b) usable under all foreseeable circumstances at each location referred to in

clause (a).

Plans

Implementation

(1) An operator must ensure that the safety plan referred to in

Section 9, the

environmental protection plan referred to in

Section 10 and the resource

management plan referred to in

Section 25 are implemented at the commencement

of any work or activity and that the contingency plan referred to in

Section 11 is

implemented as soon as an accidental event occurs or appears imminent.

Periodic updates

(2) The operator must ensure that the safety plan, environmental protection plan,

resource management plan and contingency plan are periodically updated;

however, the descriptions of installations, vessels, systems and equipment that are

included in the safety plan and the environmental protection plan as required by

clauses 9(2)(

c) and 10(2)(c), respectively, must be updated as soon as the

circumstances permit after the modification, replacement or addition of any major

component.

Part 7—Geoscientific Programs, Geotechnical Programs and

Environmental Programs

Equipment, Materials and Property

Measures

51 An operator must ensure that

(

a) all equipment and materials that are necessary to conduct a geoscientific

program, geotechnical program or environmental program are handled,

installed, inspected, tested, maintained and operated in a manner that takes

into account the manufacturer’s instructions and industry standards and best

practices; and

(

b) if any of the equipment, its components or the materials are defective, they

are, without delay, repaired or replaced in accordance with the

manufacturer’s recommendations.

Certification

52 An operator must ensure that a competent third party has certified that all equipment that

is installed temporarily on a vessel to conduct a geoscientific program, geotechnical

program or environmental program is fit for the purposes for which it is to be used.

Damage to property

53 An operator must take all necessary measures to ensure that no property is damaged as a

result of a geoscientific program, geotechnical program or environmental program.

Energy Sources

General requirements

(1) An operator must ensure that any energy source that is used in a geoscientific

program, geotechnical program or environmental program is

(

a) kept free from any substance that could create a hazard; and

(

b) operated in a manner that prevents inadvertent activation of the energy

source.

Electrical or electromagnetic energy source

(2) The operator must ensure that any electrical or electromagnetic energy source is

equipped with circuit breakers on the charging and discharging circuits and with

wiring that is adequately insulated and grounded to prevent current leakage and

electrical shock.

Elimination of risk to divers

(3) The operator must ensure that the program is conducted in a manner that

eliminates all safety risks to divers from any energy source used, including by

determining the minimum distances that are required to be maintained between the

divers and the energy source and ensuring compliance with those distances.

Testing of energy sources

(1) An operator must minimize energy source testing on the deck of an operations site

while a geoscientific program, geotechnical program or environmental program is

being conducted.

Energy source activation

(2) Before an energy source is activated for testing purposes, the operator must ensure

that measures are taken to protect persons at the operations site where the test will

be conducted from exposure to any hazard associated with the energy source,

including

(

a) advising those persons that a test will be conducted;

(

b) safely securing all equipment; and

(

c) in the case of an electrical or electromagnetic energy source, fully

immersing it in water.

Primary Vessel

Classification

56 An operator must ensure that the primary vessel used in a geoscientific program,

geotechnical program or environmental program holds a valid certificate of class issued

by a classification society.

Destruction, Discard or Removal from Canada

Prohibited without approval

(1) It is prohibited for any person to destroy, discard or, subject to subsection (2),

remove from Canada the following materials and information that are obtained in

the context of a geoscientific program, geotechnical program or environmental

program unless the destruction, discard or removal is approved by the Board under

subsection (3):

(

a) all field data and final processed data that are in a digital format, together

with a description of that data format;

(

b) any samples; and

(

c) all other data, observations, readings and supporting information obtained

during the program.

Exception

(2) The materials and information may be removed from Canada without the approval

of the Board for the purpose of being processed in a foreign country if they are

returned to Canada as soon as the processing is complete.

Approval of application

(3) Within 60 days after the day on which the Board receives an application for

approval to destroy, discard or remove from Canada materials or information, the

Board must approve the application if the Board is satisfied that the materials or

information are not of much use or value.

Provision of materials or information

(4) The Board may, after receiving an application referred to in subsection (3), require

that the materials or information, or a copy of the information, be provided to the

Board within the period that it specifies.

Part 8—Drilling and Production

General

Allocation of areas

58 The Board may make orders respecting the allocation of areas, including respecting the

determination of the size of spacing units and the determination of well production rates,

for the purpose of drilling for or producing petroleum.

Name, classification or status of well

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

name, classification or status.

Pool, zone or field

60 The Board may

(

a) designate a zone as such for the purposes of these regulations;

(

b) give a name to a pool, zone or field and change that name; and

(

c) define the boundaries of a pool, zone or field.

Evaluation of Wells, Pools and Fields

Data acquisition programs

(1) An operator must ensure that the field data acquisition program referred to in

Section 13 and the well data acquisition program referred to in

Section 18 are

implemented in accordance with good oilfield practices.

Partial implementation

(2) If part of the field or well data acquisition program cannot be implemented, the

operator must ensure that

(

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

(

b) measures to otherwise achieve the goals of the program are submitted to the

Board for approval; and

(

c) the measures approved by the Board are implemented.

Board approval of alternate measures

(3) The Board must approve the measures submitted under clause (2)(

b) if the operator

demonstrates that the measures can achieve the goals of the field data acquisition

program or the well data acquisition program, as the case may be, or are the only

ones that can be taken in the circumstances.

Periodic updates

(4) The operator must ensure that the field data acquisition program is periodically

updated.

Formation evaluation, testing and sampling

62 If the Board determines that data or samples from a formation in a well would contribute

substantially to the geological and reservoir evaluation, the operator must ensure that the

formation is evaluated, tested and sampled as necessary to obtain the data or samples.

Formation flow test

(1) An operator must ensure that no development well is put into production unless a

formation flow test that has been approved by the Board under subsection (5) is

conducted.

Well operation

(2) If a development well is subjected to a well operation that might change its

deliverability, productivity or injectivity, the operator must, for the purpose of

determining the effects of the operation on the well’s deliverability, productivity or

injectivity, ensure that a formation flow test that has been approved by the Board

under subsection (5) is conducted as soon as the circumstances permit after the

well operation has ended and the flow or injection conditions have stabilized.

Conditions

(3) Before conducting a formation flow test on a well drilled on a geological feature,

the operator must

(

a) submit a formation flow test program to the Board; and

(

b) obtain the Board’s approval under subsection (5) to conduct the formation

flow test.

Contribution to geological and reservoir evaluation

(4) The Board may require that the operator conduct a formation flow test on a well

drilled on a geological feature, other than the first well, if the Board determines

that the test would contribute to the geological and reservoir evaluation.

Approval of formation flow test

(5) The Board must approve a formation flow test if the operator demonstrates that the

test will be conducted in a manner that ensures safety and the protection of the

environment and in accordance with good oilfield practices and that the test will

enable the operator to

(

a) obtain data on the deliverability of the reservoir and the productivity of the

well;

(

b) establish the characteristics of the reservoir; and

(

c) obtain representative samples of the formation fluids.

Samples and cores

(1) An operator must ensure that all drill cutting and fluid samples and cores collected

as part of the field data acquisition program referred to in

Section 13 and the well

data acquisition program referred to in

Section 18 are

(

a) stored in durable containers that are correctly labelled for identification;

(

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

and

(

c) delivered to the Board within 60 days after the day on which the well is

abandoned, suspended or completed, unless the analyses are ongoing, in

which case the samples or cores, or any remaining parts, are to be delivered

to the Board on completion of the analyses.

Remaining conventional core

(2) An operator must ensure that, after any samples necessary for analysis or for

research or academic studies have been removed from a conventional core, the

remaining core, or a longitudinal slab that is not less than one half of the cross-sectional area of that core, is delivered to the Board.

Remaining sidewall core

(3) The operator must ensure that, after any samples necessary for analysis or for

research or academic studies have been removed from a sidewall core, the

remaining core is delivered to the Board.

Notice before disposal

65 Before disposing of any drill cutting or fluid samples, cores or evaluation data, an

operator must ensure that the Board is notified in writing and given an opportunity to

request delivery of the samples, cores or data.

Location of Wells

Depth measurements

66 An operator must ensure that no record is made of any depth in a well unless the depth is

measured from the rotary table of the drilling rig.

Directional and deviation surveys

67 An operator must ensure that

(

a) directional and deviation surveys are taken at intervals that allow the

position of the well-bore to be accurately known during drilling;

(

b) the directional and deviation surveys are adequate to permit the

management, in relation to the well-bore, of identified geohazards, the

intersection of the geological targets for the well and the intersection of the

well-bore in the event that a relief well is required; and

(

c) except in the case of a relief well, every well is drilled in compliance with

internationally recognized well-bore collision avoidance practices and

procedures and in a manner that does not intersect an existing well.

Well Integrity

Well control

(1) An operator must ensure that adequate procedures, materials and equipment are in

place and used throughout the life cycle of the well to prevent the loss of well

control.

Reliable well control equipment

(2) The equipment referred to in subsection (1) must include reliable well control

equipment to detect and control kicks, prevent blowouts and safely conduct all well

operations.

Shallow hazards

(3) During well operations conducted without a riser, the operator must ensure that

measures are implemented to reduce the risk of shallow hazards while drilling.

Surface casing

(4) The operator must ensure that the surface casing of the well is installed to a

sufficient depth, and in a competent formation, to establish well control for the

continuation of the drilling operations.

Blowout preventer and barrier envelopes

(5) After the surface casing has been installed and cemented, the operator must ensure

that

(

a) a blowout preventer is installed before the casing shoe is drilled out; and

(

b) there are at least 2 independent barrier envelopes—each of which is to be

verified by the operator—in place throughout the life cycle of the well.

Barrier envelope failure

(6) If there is a failure in a barrier envelope, the operator must ensure that no well

operation, other than one that is intended to replace or restore the barrier envelope,

takes place until the barrier envelope is replaced or restored.

Replacement or restoration of barrier envelope

(7) The operator must ensure that

(

a) the barrier envelope is replaced or restored as soon as the circumstances

permit;

(

b) every effort is made for the replacement or restoration to conform to the

original design specifications; and

(

c) the barrier envelope is verified after its replacement or restoration.

Drilling fluid column

(8) The operator must ensure that, during well operations, 1 of the 2 barrier envelopes

is the drilling fluid column, except when drilling under-balanced or if, when a

completion or test string is run, the other barrier envelope has already been

installed downhole and tested.

Pressure control equipment

(9) The operator must ensure that all pressure control equipment associated with well

operations is pressure-tested on installation and as often as necessary to ensure its

continued safe operation.

Corrective measures

(10) If well control is lost or if safety, the protection of the environment or resource

conservation is at risk, the operator must ensure that any necessary corrective

measures are taken without delay.

Casing and wellhead system

(1) An operator must ensure that a casing and wellhead system is designed, taking into

account the wellhead’s fatigue life, so that, throughout the life cycle of the well,

(

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

developed and waste can be prevented;

(

b) the maximum conditions, forces and stresses to which the casing and

wellhead system may be subjected are withstood; and

(

c) the integrity of gas hydrate and permafrost zones is protected.

Barrier analysis

(2) The operator must ensure that, during the design of the casing and wellhead

system, if the annulus is to be used for fluid production or injection, a barrier

analysis is conducted to confirm that 2 barrier envelopes can be maintained in

place throughout the life cycle of the well.

Casing depth

(3) The operator must ensure that each casing is installed at a depth that provides for

adequate kick tolerance and safe well control.

Wellhead fatigue life

(4) The operator must ensure that well operations do not continue beyond the

wellhead’s fatigue life.

Cement slurry

(5) The operator must ensure that the cement slurry is designed and installed so that,

throughout the life cycle of the well,

(

a) the movement of formation fluids is prevented and, when required for

safety, resource evaluation or waste prevention, the isolation of the

petroleum and water zones is ensured;

(

b) support for the casing is provided;

(

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

(

d) the integrity of gas hydrate and permafrost zones is protected.

Cement integrity and placement

(6) The operator must ensure that the cement integrity and placement are verified,

subject to subsection (7), through pressure-testing and, if the cement is a common

barrier element of the 2 barrier envelopes or if confirmation of zonal isolation is

required, also through logging.

Other methods of verification

(7) The cement integrity and placement may be verified using other methods if the

operator demonstrates that those methods provide a level of verification that is

equivalent to those referred to in subsection (6).

Cement design and slurry analysis

(8) The operator must ensure that the cement design is subjected to comprehensive

laboratory testing and pre-cementing quality control, under all foreseeable

conditions that could have an impact on cementing, so that the cement provides the

expected isolation and can be efficiently installed.

Waiting on cement time

(9) The operator must ensure that, after cementing any casing or casing liner and

before drilling out the casing shoe, the cement reaches the minimum compressive

strength sufficient to support the casing and provide zonal isolation.

Casing pressure testing

(10) The operator must ensure that, after any casing is installed and cemented and

before the casing shoe is drilled out, the casing is pressure-tested to the value

required to confirm its integrity for maximum anticipated operating pressure

throughout the life cycle of the well.

Formation leak-off or integrity test

(1) An operator must ensure that a formation leak-off test or a formation integrity test

is conducted

(

a) before drilling more than 10 m of new formation below the shoe of any

casing other than the conductor casing; and

(

b) before drilling more than 10 m when sidetracking from the previous casing

string.

Pressure

(2) The formation leak-off test or formation integrity test must be conducted at a

pressure that allows for safe drilling to the next casing depth and for the adequacy

of the cement at the level of the shoe to be verified before drilling ahead.

Completion, testing and operation of development wells

(1) The operator of a development well must ensure that

(

a) the well is completed, tested and operated in a safe manner that allows for

maximum recovery of petroleum without waste or pollution throughout the

life cycle of the well;

(

b) except in the case of commingled production, each completion interval is

isolated from any other porous or permeable interval penetrated by the well;

(

c) if applicable, the production of sand, carbonate or other solids is controlled

and does not create a safety hazard or cause waste;

(

d) the setting depth of each packer is as deep as possible and is such that any

leak through the production casing below the packer will be contained by

the barrier envelope outside the casing;

(

e) the formation and any annulus seal can withstand the pressures and

temperatures expected throughout the life cycle of the well;

(

f) if practicable, any mechanical well condition that may have an adverse

effect on the production of petroleum from, or the injection of fluids into,

the well is corrected;

(

g) the injection or production profile of the well is improved or the completion

interval of the well is changed if it is necessary to do so to prevent waste;

(

h) if different pressure and inflow characteristics of 2 or more pools might

adversely affect the recovery of petroleum from any of those pools, the well

is operated as a single pool well or as a segregated multi-pool well;

(

i) during completion operations and before the removal of pressure control

equipment and handover for operations, all barrier elements are tested to the

maximum pressure to which they are anticipated to be subjected and, if

possible, pressure testing is in the direction of flow; and

(

j) following any workover or intervention, any affected barrier elements are

pressure-tested.

Segregated multi-pool well

(2) If the development well is a segregated multi-pool well, the operator must also

ensure that

(

a) after the well is completed, segregation within and outside the well casing is

verified; and

(

b) if there is reason to doubt that segregation is being maintained, a segregation

test is conducted as soon as the circumstances permit.

Definition of multi-pool well

(3) In this Section, “multi-pool well” means a well that is completed in more than 1

pool.

Production tubing

72 An operator must ensure that the production tubing used in a well is designed and

maintained to be compatible with the fluids to which it will be exposed, to withstand the

maximum conditions, forces and stresses to which it may be subjected and to maximize

recovery of petroleum from the pool.

Safe operations and production

73 An operator must ensure that equipment and procedures are in place to recognize and

control normal and abnormal operating conditions, for the purposes of allowing for safe

and controlled well operations and production and of preventing pollution.

Measurements

Flow and volume

(1) Subject to subsection (2), an operator must ensure that the following are measured:

(

a) the rate of flow and the volume of the fluid that is produced from each well;

(

b) the rate of flow and the volume of the fluid or waste material that is injected

into each well; and

(

c) the volume of the fluid that is produced from each well that is used, flared,

vented, burned or otherwise disposed of.

Alternate measurements

(2) Alternate measurements may be conducted if approved by the Board under

Section

Method

(3) The operator must ensure that all measurements are conducted using the flow

system, flow calculation procedure and flow allocation procedure approved under

subsection 14(2).

Allocation of group production

75 An operator must ensure that group production of oil, gas and water from wells and the

volume of fluids injected into those wells are allocated on a pro rata basis using the flow

system, flow calculation procedure and flow allocation procedure approved under

subsection 14(2).

Allocation over multiple pools or zones

(1) If a well is completed over multiple pools or zones, the operator must ensure that

the production of oil, gas and water from the well and the volume of fluids

injected into the well are allocated on a pro rata basis to the pools or zones using

the flow allocation procedure approved under subsection 14(2).

Proration tests

(2) The operator must ensure that sufficient proration tests are conducted to measure

the rates at which fluids are produced from the well to ensure that the allocation of

oil, gas and water production to the pools and zones as a result of the flow

allocation procedure is accurate.

Testing and maintenance

(1) An operator must ensure that

(

a) meters and other associated components of the flow system are calibrated

and maintained to ensure their accuracy;

(

b) the equipment used to calibrate the flow system is calibrated in accordance

with good measurement practices; and

(

c) any component of the flow system that may have an impact on the accuracy

or integrity of the flow system and that is not functioning in accordance with

the manufacturer’s specifications is repaired or replaced without delay or, if

it is not possible to do so without delay, corrective measures are taken to

minimize the impact on the accuracy and integrity of the flow system while

the repair or replacement is in progress.

Notice

(2) The operator must ensure that a conservation officer is notified, as soon as the

circumstances permit, of any modification to or malfunction or failure of any flow

system component that may have an impact on the accuracy of the flow system and

of the corrective measures taken.

Calibration

78 An operator must ensure that

(

a) a conservation officer is notified of the calibration of any transfer meter

prover or master meter used in conjunction with a transfer meter at least 30

days before the day on which it is calibrated or as agreed to in writing by the

Chief Conservation Officer; and

(

b) following completion of the calibration, a copy of the calibration certificate

is submitted to the Chief Conservation Officer as soon as the circumstances

permit.

Production Conservation

Resource management

79 An operator must, in respect of the recovery of petroleum, ensure that

(

a) recovery from a pool or zone is maximized in accordance with good oilfield

practices;

(

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

pool or zone; and

(

c) if there is reason to believe that infill drilling or the implementation of an

enhanced recovery plan might result in increased recovery from a pool or

field, studies on those methods are conducted and submitted to the Board.

Commingled production

(1) It is prohibited for an operator to engage in commingled production unless

approved by the Board.

Approval by the board

(2) The Board must approve commingled production if the operator demonstrates that

it will maximize the recovery of petroleum.

Measurement and allocation

(3) If the operator engages in commingled production, it must ensure that the total

volume and the rate of production of each fluid produced is measured and the

volume from each pool or zone is allocated in accordance with the requirements

set out in Sections 74 to 78.

Pilot scheme

(1) An operator may develop and implement a pilot scheme that applies technology in

relation to the commercial production of petroleum from a pool, field or zone that

is accessible from a production installation and in relation to which there is an

approved development plan for the purpose of obtaining information on reservoir,

production or technology performance in order to optimize production

performance under the development plan or to determine whether the

development plan requires an amendment for production performance to be

optimized.

Duration and interim evaluations

(2) The Board must establish

(

a) the duration of the pilot scheme, based on the time required to achieve the

stated objectives; and

(

b) the intervals at which interim evaluations of the pilot scheme are to be

conducted and reported to the Board.

Completion of pilot scheme

(3) On completion of the pilot scheme, the operator must ensure that any production

activities undertaken for the purpose of the scheme are discontinued.

Prohibition against flaring or venting

82 It is prohibited for an operator to flare or vent gas unless

(

a) the Board authorizes flaring or venting as part of the authorization;

(

b) the flaring or venting occurs during a formation flow test approved by the

Board under subsection 63(5); or

(

c) it is necessary in order to remediate an emergency situation that may cause

serious risk to human health or safety and the Board is notified, as soon as

the circumstances permit, of the flaring or venting and of the volume flared

or vented.

Venting limit

(1) An operator must ensure that the volume of gas vented under clause 82(

a) per

installation during a year is not greater than 15 000 standard m3.

Definition of vented

(2) For the purpose of subsection (1), “vented” means emitted in a controlled manner,

other than as a result of combustion, from an installation due to

(

a) the design of equipment or operational procedures at the installation; or

(

b) the occurrence of an event that pressurizes the gas beyond the capacity of

the equipment at the installation to retain the gas.

Gas emissions

(1) The operator must ensure that the emissions of gas from the seals of a centrifugal

compressor or reciprocating compressor at an installation are

(

a) captured and routed to gas conservation equipment or gas destruction

equipment; or

(

b) routed to vents that release those emissions into the atmosphere.

Flow rate measurement device

(2) The operator must ensure that the flow rate of emissions of gas released from vents

referred to in clause (1)(

b) is measured by means of a continuous monitoring

device that is

(

a) calibrated in accordance with the manufacturer’s recommendations such

that its measurements have a maximum margin of error of +10%;

(

b) operated continuously, other than during periods when it is undergoing

normal servicing or timely repairs; and

(

c) equipped with an alarm that is triggered when the applicable flow rate limit

referred to in subsections (3) and (4) for the vents of the compressor is

reached.

Flow rate limit—centrifugal compressor

(3) The operator must ensure that the flow rate limit of emissions from the vents of a

centrifugal compressor on an installation is

(

a) in the case of a compressor that is installed before January 1, 2023,

(i) 0.68 standard m3/min if the compressor has a rated brake power of

greater than or equal to 5 MW, and

(ii) 0.34 standard m3/min if the compressor has a rated brake power of

less than 5 MW; and

(

b) in the case of a compressor that is installed on or after January 1, 2023,

0.14 standard m3/min.

Flow rate limit—reciprocating compressor

(4) The operator must ensure that the flow rate limit of emissions that are from the rod

packings and distance pieces of a reciprocating compressor on an installation is

(

a) if the compressor is installed before January 1, 2023, the product of

0.023 standard m3/min and the number of pressurized cylinders that the

compressor has; or

(

b) if the compressor is installed on or after January 1, 2023, the product of

0.001 standard m3/min and the number of pressurized cylinders that the

compressor has.

Corrective measures

(5) If the alarm referred to in clause (2)(

c) is triggered, the operator must ensure that

corrective measures are taken as soon as the circumstances permit to reduce the

flow rate to below or equal to the applicable flow rate limit.

Prohibition against oil burning

85 It is prohibited for an operator to burn oil unless

(

a) the Board authorizes burning as part of the authorization;

(

b) the burning occurs during a formation flow test approved by the Board

under subsection 63(5); or

(

c) it is necessary in order to remediate an emergency situation that may cause

serious risk to human health or safety and the Board is notified, as soon as

the circumstances permit, of the burning and of the amount burned.

Spill-treating Agent

Determination of net environmental benefit

86 In determining for the purpose of subsection 158A(3) of the Act whether the use of a

spill-treating agent is likely to achieve a net environmental benefit, the Chief

Conservation Officer must take into account

(

a) the assessment of the spill-treating agent’s efficacy referred to in clause

11(4)(a);

(

b) the results of the analysis referred to in clause 11(4)(b);

(

c) the circumstances referred to in clause 11(4)(c);

(

d) the methods and protocols referred to in clause 11(4)(d);

(

e) the monitoring plan referred to in clause 11(4)(f); and

(

f) the results of any small-scale test conducted in respect of the agent.

Small-scale test

(1) An operator must, in respect of any small-scale test of a spill-treating agent

referred to in

Section 158A of the Act, ensure that

(

a) before the test is conducted, the Chief Conservation Officer approves the

carrying out of the test;

(

b) during the test, the quantity of spill-treating agent applied is measured and

recorded, the efficacy of the spill-treating agent is monitored and the factors

that affect that efficacy are evaluated; and

(

c) after the test, the following information is submitted in writing, without

delay, to the Chief Conservation Officer:

(

i) the volume of oil released and the volume treated,

(ii) the quantity of spill-treating agent that was used to conduct the test,

(iii) the circumstances under which the test was conducted, and

(iv) the efficacy of the use of the spill-treating agent.

Conditions

(2) The following conditions must be met before a small-scale test is approved:

(

a) the operator must demonstrate that the quantity of spill-treating agent to be

used in the test is the minimum required to evaluate the efficacy of it