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NEWFOUNDLAND AND LABRADOR

REGULATION 71/24

Offshore Area Petroleum Operations Framework Regulations

under the

Canada-Newfoundland and Labrador Atlantic Accord Implementation Newfoundland and Labrador Act

(O.C. 2024-168)

(Filed October 28, 2024)

Under the authority of

section 145 of the Canada-Newfoundland and Labrador Atlantic Accord Implementation Newfoundland and Labrador Act,

the Lieutenant-Governor in Council makes the following regulations.

Dated at St. Johns, October 28, 2024.

Krista Quinlan

Clerk of the Executive Council

REGULATIONS

Analysis

Short title

PART I

GENERAL

Definitions

Incorporation by reference

PART II

EXPERIENCE, TRAINING, QUALIFICATIONS AND COMPETENCE

Requirements

PART III

MANAGEMENT SYSTEM

Requirements

Human resources

Implementation

Continual improvement

PART IV

AUTHORIZATION

Application

Safety plan

Environmental protection plan

Contingency plan

Spill-treating agent

section 134.5 of Act

Field data acquisition program

Flow system, calculation

and allocation

Decommissioning and abandonment plan

Definitions paragraph 134(5)(

c) of Act

Well operation

Well data acquisition program

Well verification scheme

Suspension of well approval

Revocation of well approval

Suspension or abandonment of well

Well approval subsection 135(1) of Act

Concept safety analysis

Resource management plan paragraph 135(3)(

b) of Act

PART V

CERTIFICATE OF FITNESS

Prescribed installations

section 135.2 of Act

Definition of installation

Issuance of certificate requirements and conditions

Conflict of interest paragraph135.2(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

Organizational structure

Reports and information

PART VI

GENERAL REQUIREMENTS FOR AUTHORIZED WORKS AND ACTIVITIES

Installation manager

Safety and protection of environment

Physical and environmental conditions

Location of infrastructure or equipment

and handling of consumables

Storage and handling of chemical substances

Misuse of equipment

Cessation of work or activity

Copy of authorization and approvals

Emergency response procedures and other documentation

Implementation

PART VII

GEOSCIENTIFIC PROGRAMS, GEOTECHNICAL PROGRAMS AND ENVIRONMENTAL PROGRAMS

Measures

Certification

Damage to property

General requirements

Testing of energy sources

Classification

Prohibited without approval

PART VIII

DRILLING AND PRODUCTION

Allocation of areas

Name, classification

or status of well

Pool, zone

or field

Data acquisition programs

Formation evaluation, testing and sampling

Formation flow test

Samples and cores

Notice before disposal

Depth measurements

Directional and deviation surveys

Well control

Casing and wellhead system

Formation leak-off or integrity test

Completion, testing and operation of development wells

Production tubing

Safe operations and production

Flow and volume

Allocation of group production

Allocation over multiple pools or zones

Testing and maintenance

Calibration

Resource management

Commingled production

Pilot scheme

Prohibition against flaring or venting

Venting limit

Gas emissions

Prohibition against oil burning

Determination of net environmental benefit

Small-scale test

Variation of approval

Use of spill-treating agent

Conditions for suspension or abandonment

Additional condition for suspension

Additional condition for abandonment

Conditions for drilling installation removal

PART IX

DIVING PROJECTS

Vessel used in diving project

Dynamic positioning system

Light dive craft

PART X

INSTALLATIONS, WELLS AND PIPELINES

Definitions

Safety and environmental protection

Design of installation

Quality assurance program

Requirements work permit

Operator obligations

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

Electrical system

Control system

Integrated software-dependent control system

Safety-critical software

Emergency electrical power supply

Lights and sound-signalling appliances

Radar

Communication system

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

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

Requirements asset integrity

Non-destructive examination

Corrosion management

Limits and requirements

Operations manual

Programs

Maintenance program

Preservation program

Weight control program

Safety-critical element - repair, replacement

or modification

Drilling fluid systems

Drilling riser

Fail-safe subsurface safety valves

Well tubulars, trees

and wellheads

Formation flow test equipment

Pipeline integrity - standard

Monitoring of systems

Deterioration

PART XI

SUPPORT OPERATIONS

Support craft

Rescue boat - vessel

Safety zone

Landing area

Procedures

Airport service provider

Classification

PART XII

NOTICE, RECORDS, REPORTS AND OTHER INFORMATION FOR AUTHORIZED WORKS AND ACTIVITIES

Definition of shotpoint

Reportable incidents

Critical information

Safety report

Annual reports

Notice key dates

Weekly status reports

Environmental report - programs

Final reports

Exception data made available to public

Data purchases

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

Weekly status reports

PART XIII

REPEAL AND COMMENCEMENT

CNLR 1/96 Rep.

NLR 16/97 Rep.

NLR 18/97 Rep.

NLR 120/09 Rep.

NLR 20/97 Rep.

Commencement

SCHEDULE A

SCHEDULE B

Short title

These regulations may be cited as the Offshore Area Petroleum Operations Framework Regulations

71/24 s1

PART I

GENERAL

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Definitions

In these regulations,

(a)

"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;

(b)

"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;

(c)

"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;

(d)

"Act" means the CanadaNewfoundland and Labrador Atlantic Accord Implementation Newfoundland and Labrador Act ;

(e)

"authorization" means an authorization issued by the board under paragraph 134(1)(

b) of the Act;

(f)

"authorized inspector" means a person who is recognized under the laws of Canada or of a province as qualified to inspect boilers and pressure systems or a representative of a certifying authority who is qualified to carry out that function;

(g)

"authorized work or activity" means a work or activity that is subject to an authorization;

(h)

"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;

( i

"barrier envelope" means an envelope consisting of a set of barrier elements that prevents the unintended flow of fluids from the formation into the well-bore, another formation or the environment;

(j)

"certificate of fitness" means a certificate referred to in

section 135.2 of the Act;

(k)

"certifying authority" means the American Bureau of Shipping, Bureau Veritas, Det norske

Veritas or Lloyds Register;

(l)

"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;

(m)

"commingled production" means the production of petroleum from more than one pool or zone through a common well where the production from each pool or zone is not measured separately;

(n)

"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;

(o)

"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;

(p)

"control system" means a system, station or panel used to

( i

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

(ii)

monitor and control the operation of an installation;

(q)

"decommissioning and abandonment" means the carrying out of the following processes in accordance with an applicable Act of the legislature, an applicable regulation made under

an Act of the legislature, the applicable authorization and 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;

(r)

"delineation well" has the same meaning as in paragraph 115(1)(

a) of the Act;

(s)

"development well" has the same meaning as in paragraph 115(1)(

b) of the Act;

(t)

"diving installation" means an installation or vessel on which a diving system is installed;

(u)

"diving project" means a work or activity that is related to the exploration or drilling for, or the production, conservation, processing or transportation of, petroleum that involves diving;

(v)

"diving system" means the equipment that is required to execute a dive, including the equipment required for compression, decompression, rescue and recovery;

(w)

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

(x)

"drilling installation" means a drilling unit or a drilling rig, and the stable foundation on which the drilling unit or drilling rig 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;

(y)

"drilling program" means a program for the drilling of one or more wells within a specified time and within specified areas through the use of one or more drilling installations and includes a work or activity related to the program;

(z)

"drilling rig" means the equipment used to conduct well operations and associated systems, including power systems, control systems and monitoring systems;

(aa)

"drilling riser" means the connection between a subsea blowout preventer and a mobile offshore platform;

(bb)

"drilling unit" means a fixed or mobile offshore platform, or a vessel used in a well operation, that is fitted with a drilling rig, including the systems and equipment installed on the platform or vessel that are related to well operations and marine activities;

(cc)

"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;

(dd)

"environmental program" means a program pertaining to an environmental study as that term is defined in paragraph 115(1)(

d) of the Act;

( ee

"exploratory well" has the same meaning as in paragraph 115(1)(

f) of the Act;

(ff)

"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;

(gg)

"flow allocation procedure" means the procedure to allocate

( i

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)

production among fields whose petroleum is combined for the purpose of storage or processing;

( hh

"flow calculation procedure" means the procedure to convert raw meter output to a measured quantity of petroleum or water;

(ii)

"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;

( jj

"flowline" means a 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 the systems or equipment that are used in support of that production and between those systems or equipment and the production equipment;

(kk)

"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;

( ll

"functional load" means a construction load or operating load other than an environmental load or accidental load;

(mm)

"geoscientific program" means a program that involves geological work or geophysical work, as those terms are defined in paragraphs 115(1)(

g) and (

h) of the Act;

( nn

"geotechnical program" means a program that involves geotechnical work, as that term is defined in paragraph 115(1)(

i) 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;

( oo

"installation" means, except in

Part V, a drilling installation, production installation or accommodations installation;

(pp)

"life-saving appliances" includes lifebuoys, survival craft, launching and embarkation appliances, marine evacuation systems and visual signals;

( qq

"load" includes a functional load, environmental load, accidental load and abnormal load;

( rr

"LSA Code" means the annex to International Maritime Organization Resolution MSC.48(66), International Life-Saving Appliance (LSA) Code;

(ss)

"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 one life or uncontrolled pollution;

( tt

"marine activities" means activities related to the stability, station-keeping and collision avoidance of floating platforms and includes mooring, dynamic positioning and ballasting;

( uu

"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 the platform has its own motive power;

( vv

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

(ww)

"operator" means a person who holds an operating licence issued by the board under paragraph 134(1)(

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

(xx)

"physical and environmental conditions" means the physical, geotechnical, seismic, oceanographic, meteorological or ice conditions that might affect an authorized work or activity;

( yy

"pipeline" has the same meaning as in CSA Group standard Z662, "Oil and gas pipeline systems", as it relates to offshore pipelines;

( zz

"pollution" means the introduction into the environment of a substance or form of energy outside the limits applicable to an authorized work or activity;

( aaa

"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;

( bbb

"production installation" means

( i

the systems and equipment used for or in support of the production of petroleum, including the systems and equipment that are used for separation, treatment

and processing,

(ii)

the systems and equipment used to conduct well operations,

(iii)

the systems and equipment related to marine activities,

(iv)

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

(

v) the associated platforms, artificial islands, subsea production systems and offshore loading systems;

(ccc)

"production project" means a project for the purpose of developing a production site on, or producing petroleum from, a pool or field, including a work or activity related to the project;

( ddd

"production riser" means the connection between subsea production equipment and a production platform;

( eee

"production site" means a site where a production installation is or is proposed to be installed;

( fff

"recovery of petroleum" means the recovery of petroleum under foreseeable economic and operational conditions;

( ggg

"relief well" means a well that is drilled to assist in controlling a blowout in an existing well;

( hhh

"reportable incident" means an event that resulted in any of the following occurrences or in which an occurrence referred to in subparagraphs (

i) to (vi) 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 any of the structural elements of an installation, or a system or equipment, that is critical to safety,

(viii)

impairment of any of the structural elements of an installation, or a system or equipment, that is critical to environmental protection, or

(ix)

implementation of emergency response procedures;

(iii)

"safety critical element" means a 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

a 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, or

(II)

worsen the effects on the installation of a major accidental event, and

(ii)

software or temporary or portable equipment that affects a system or equipment referred to in subparagraph ( i

( jjj

"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;

( kkk

"support craft" means a vessel, vehicle, aircraft or other craft used to provide transportation or assistance to persons at an operations

site;

( lll

"waste material" means garbage, refuse, sewage or waste fluids or other useless material that is generated during the carrying out of a work or activity, including used or surplus drill cuttings and drilling fluid as well as produced water;

(mmm)

"watertight" means designed and constructed to withstand a static head of water without leakage;

( nnn

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

( ooo

"well operation" means an operation related to the drilling, completion, recompletion, re-entry, intervention, workover, suspension or abandonment of a well;

( ppp

"workover" means an operation on a completed well that requires removal of the tree or the tubing; and

( qqq

"zone" means a stratum or sequence of strata, including a zone that has been designated as such by the board under paragraph 61(a).

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Incorporation by reference

(1) In these regulations, the incorporation by reference of a document is an incorporation of that document as amended from time to time.

(2) Notwithstanding subsection (1), where a document that is incorporated by reference is available in both official languages, an amendment to the document is incorporated only when the amended version is available in both official languages.

71/24 s3

PART II

EXPERIENCE, TRAINING, QUALIFICATIONS AND COMPETENCE

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Requirements

(1)An operator shall ensure that a person to whom a duty is assigned or who carries out a work or 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 complies with these regulations.

(2) The operator shall 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.

71/24 s4

PART III

MANAGEMENT SYSTEM

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Requirements

(1)An operator shall develop a management system for the purpose of reducing safety and environmental risks, preventing pollution

and ensuring the conservation of petroleum resources.

(2) The management system referred to in subsection (1) shall

(

a) be set out in writing;

(

b) apply to the works and activities referred to in the operators application for an authorization;

(

c) correspond to the scope, nature and complexity of the works and activities and the associated hazards and risks;

(

d) be explicit, comprehensive and proactive;

(

e) foster a culture of safety;

(

f) 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) include processes for integrating works and activities and technical systems with the management of human and financial resources;

(

h) 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

set out the roles, responsibilities and authorities of the persons exercising functions under the management system, as well as the processes for making those persons aware of their roles, responsibilities and authorities;

(

j) 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 the management system;

(

k) include processes for the internal and external communication of documents and information relating to safety or the protection of the environment;

(

l) 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) include processes for

( i

identifying hazards that may arise during routine and non-routine operations,

(ii)

assessing the risks associated with those hazards and for reducing those risks through the implementation of control measures, and

(iii)

establishing an inventory of those hazards and control measures and for maintaining that inventory;

(

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

section 180, the root causes of a reportable incident, the contributing factors and the measures to be implemented to prevent recurrence of the reportable incident;

(

o) include a process for establishing a system to analyze trends in hazards and reportable incidents;

(

p) include processes for identifying, evaluating and managing the systems and equipment that are critical to safety or to the protection of the environment;

(

q) include processes for identifying, evaluating and managing changes that could affect safety, the protection of the environment and the conservation of petroleum resources;

(

r) include processes for identifying tasks that are critical to safety, the protection of the environment and the conservation of petroleum resources;

(

s) include processes for establishing and maintaining measurable goals and performance indicators that are applicable to the management system;

(

t) include processes for periodic internal audit and review of the management system to identify areas for improvement and the preventive and corrective measures to be taken where deficiencies are identified;

(

u) 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) 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 where deficiencies are identified;

(

w) include the policies and indicate the standards on which the management system is based;

(

x) include a process to ensure that all documents associated with the management system are approved by a person with the necessary authority, periodically reviewed and updated when necessary;

(

y) include a process for establishing a system to manage records associated with the management system, 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) include processes for controlling and coordinating work, including with respect to the issuance of work permits required under

Part X and the identification of the works and activities for which a work permit is required.

(3) The operator shall ensure that the processes and policies included in the management system and the standards referred to in the management system are readily accessible for consultation and examination.

(4) The documentation associated with the management system shall be organized and set out in a logical fashion to allow for ease of understanding and efficient implementation.

(5) In this section, a reference to a process includes the procedures that are necessary to implement the process.

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Human resources

(1)An operator shall put in place an organizational structure that includes sufficient human resources to implement and continually improve the management system.

(2) An operator shall designate an employee as the accountable person for the management system and shall ensure that the accountable person has the necessary authority over the human and financial resources that are required to implement and continually improve the management system.

(3) An operator shall ensure that the name, position and contact information of the accountable person is submitted to the board

(

a) at the time the application for an authorization is made;

(

b) when a new designation is made under subsection (2); and

(

c) any time a change is made to the name, position or contact information of the accountable person.

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Implementation

(1)An operator shall ensure that the management system is implemented before the commencement of an authorized work or activity.

(2) An operator shall ensure that employees, employers, suppliers, service providers and other persons that are subject to the management system comply with the requirements of the management system.

71/24 s7

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Continual improvement

The accountable person referred to in subsection 6(2) shall ensure that the management system is continually improved.

71/24 s8

PART IV

AUTHORIZATION

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Application

An application for an authorization shall 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 10;

(

d) the environmental protection plan referred to in

section 11;

(

e) the contingency plan referred to in

section 12;

(

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 14;

(

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

( i

information on

(

A) the 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) the 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 16;

( i

in the case of a geoscientific program, geotechnical program

or environmental program,

( i

a map illustrating the location of the programs proposed works and activities and proximity to manmade 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 programs proposed works and activities and a description of the aircraft or vessel to be used, and

(iii)

a description of the proposed data acquisition plan;

(

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

section 171 of the Offshore Area Occupational Health and Safety Regulations

; and

(

k) where applicable, the list required under paragraph 152(a), the records made in the course of

conducting the risk assessment required under paragraph 152(

b) and the action plan required under paragraph 152(c).

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Safety plan

(1)An operator shall 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.

(2) The safety plan referred to in subsection (1) shall 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 the hazards posed by 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 clause ( i

)(

A) and the results of the assessments referred to in clause ( 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, where the possibility of ice hazards exist

, measures for ice detection, forecasting, surveillance and reporting, including data collection, and 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 an 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 a 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 of

(

A) the design and location of a 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 the installation and to other installations, vessels or persons in proximity to the installation, and

(

D) the design and maintenance of a 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 platforms structural limits or the systems 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 the 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 safety plan and to evaluate performance in relation to the safety plan's objectives.

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Environmental protection plan

(1)An operator shall 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.

(2) The environmental protection plan referred to in subsection (1) shall 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 the hazards posed by 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 clause ( i

)(

A) and the results of the assessments referred to in clause ( 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, and

(

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 the installations, including their systems and equipment,

(

B) the design, winterization and operation of an 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 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 a 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 a 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 the 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 the discharge streams and the limits of the discharge into the environment, including the discharge of waste material;

(

g) a description of the system for monitoring compliance with the discharge limits referred to in paragraph (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 environmental protection plan and to evaluate performance in relation to the environmental protection plans 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.

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Contingency plan

(1) An operator shall 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 an accidental event.

(2) The contingency plan referred to in subsection (1) shall 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 an accidental event;

(

d) a description of the organizational structure, chain of command and resources for managing an 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 are required to 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 equipments location, as well as the limits on the equipments use and the mitigation measures to be taken in the event that

the equipment 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 equipments location,

(

v) a description of the communication system referred to in

section 130 and the operating procedures for that system,

(vi)

a description and the location of the emergency response operations centres,

(vii)

a description of a good or service that is required to be obtained on a contractual basis for each response measure, and

(viii)

a description of the location and the contents of temporary safe refuges or a reference to the number or title of a document that provides that description;

(

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

(

f) a description of the procedures for coordinating and liaising with the relevant emergency response organizations;

(

g) a description of the communication protocols with the relevant federal, provincial, territorial and municipal agencies and Indigenous governing bodies;

(

h) a copy of personnel evacuation plans, including the 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.

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

(d)

(

e) an explanation of the adequacy of each of the source control and containment measures; and

(

f) a description of the support systems and equipment that are available, including vessels and remotely operated vehicles and the consumables that may be used, such as, in the case of a relief well, a spare wellhead, spare casing and spare bulk additives.

(4) Where a spill-treating agent is being considered for use as a spill response measure, the contingency plan shall 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 the personnel, equipment and materials to be provided through contractual arrangements, and a description of the requirements that are required to be met for those contracts to be activated; and

(

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

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

a) shall be carried out using oil obtained directly from the operations site where the spill-treating agent is being considered for use or, where oil is not available from that operations site, the assessment of efficacy shall be carried out using an oil that most closely resembles the oil that is expected to be obtained from the operations site and shall be repeated when oil becomes available from that operations site.

(6) The assessment, analysis, methods

and protocols referred to in paragraphs (4)(a), (

b) and (

d) shall be based, taking the local environment into account, on an international standard or an alternative recognized by the board and the contingency plan shall identify each of those standards or alternatives.

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

d) and the monitoring plan referred to in paragraph (4)(

f) shall conform to industry standards and best practices for spill-treating agent use, taking the local environment into account.

(8) In this section, "source control and containment equipment" means the capping stack, containment dome, subsea and surface equipment, devices or vessels and 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.

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Spill-treating agent

section 134.5 of Act

For the purpose of

section 134.5 of the Act, in determining whether the use of a spill-treating agent is likely to achieve a net environmental benefit, the board shall take into account

(

a) the assessment of the spill-treating agents efficacy referred to in paragraph 12(4)(a );

(

b) the results of the analysis referred to in paragraph 12(4)(b );

(

c) the circumstances referred to in paragraph 12(4)(c );

(

d) the methods and protocols referred to in paragraph 12(4)(d); and

(

e) the monitoring plan referred to in paragraph 12(4)(f).

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Field data acquisition program

In the case of a production project, an operator shall 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 the associated analyses, surveys and reports that are to be provided to the board.

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Flow system, calculation and allocation

(1)Where the application for an authorization is in respect of a production project, the operator shall submit the following to the board for approval:

(

a) the flow system, the flow calculation procedure and the flow allocation procedure that will be used to conduct the measurements referred to in sections 75 to 79; and

(

b) any alternate measurements referred to in subsection 75(2) that the operator proposes to conduct.

(2) The board shall approve the flow system, the flow calculation procedure and the flow allocation procedure referred to in subsection (1) where the applicant demonstrates that the system and procedures facilitate accurate measurements and allocation, on a pool or zone basis, of the production from and injection into individual wells.

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Decommissioning and abandonment plan

(1)An operator shall, 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 federal or provincial 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 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.

(2) An operator shall submit to the board an update on the forecasted costs of decommissioning and abandonment of the drilling program or production project 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.

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Definitions paragraph 134(5)(

c) of Act

The following

definitions apply for the purposes of paragraph 134(5)(

c) of the Act:

(a)

"production facility" means the systems and equipment referred to in subparagraph 2( bbb

)( i

), other than a diving system, as well as associated aircraft landing areas, storage areas or tanks and accommodations areas; and

(b)

"production platform" means a production installation.

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Well

operation

(1)An operator that intends to conduct a well operation shall obtain a well approval.

(2) Notwithstanding subsection (1), a well approval is not required to conduct a wire line operation, slick line operation, coiled tubing operation or other similar operation through a tree located above sea level where

(

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.

(3) The following

definitions apply in subsection (2):

(a)

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

(b)

"wire line" means a line that contains a conductor wire and that is used to run survey instruments or other tools in a well.

(4) An application for a well approval shall include the estimated cost breakdown of the well operation and the following information:

(

a) where 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 a 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 19, and

(iv)

a description of the well verification scheme referred to in

section 20;

(

b) where 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 a well,

( i

a description of the well or part of the well,

(ii)

a description of the proposed work or activity and the rationale for carrying out the proposed work or activity, and

(iii)

barrier envelope diagrams that demonstrate that 2 barrier envelopes will be in place throughout the operation;

(

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

section 72 will be complied with;

(

d) where the well approval is being sought to suspend a well or a part of a well, an indication of the period within which the suspended well or part of the well will be abandoned or completed; and

(

e) where the well approval is being sought to suspend or abandon a well or a part of a well, the methods for verifying the effectiveness of the isolation of pools and zones that is required under subparagraph 91(1)(b)( i

(5) The board shall approve the well operation where the operator demonstrates that the well operation will be conducted safely, without waste or pollution and in compliance with these regulations.

71/24 s18

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Well data acquisition program

In the case of a drilling program, an operator shall 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 associated analyses, surveys and reports that are to be provided to the board.

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Well verification scheme

(1)An operator shall establish a well verification scheme based on criteria that the operator establishes to ensure that the design of a well is in accordance with industry standards and best practices so that the wells integrity is maintained throughout the wells life cycle.

(2) For the purposes of subsection (1), the operator shall rank a well according to the wells level of risk and ensure that the wells ranking is confirmed by an independent person.

(3) The well verification scheme referred to in subsection (1) shall set out the verification requirements that are applicable to the design of a well according to the wells ranking and to any changes made to the design of the well during the wells construction or operation that would affect a prior verification.

(4) An operator shall ensure that the required verifications are carried out by an independent person that was not involved in the original design of the well.

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Suspension of well approval

(1)The board may suspend a well approval where

(

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 the physical and environmental conditions that the manufacturer of the equipment used in the well operation established as the equipments operating limits; or

(

c) the operator uses a flow system, flow calculation procedure or flow allocation procedure that has not been approved under subsection 15(2), conducts a formation flow test that has not been approved under subsection 64(5) or engages in commingled production that has not been approved under subsection 81(2).

(2) In deciding whether to suspend a well approval, the board shall 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 operators 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.

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Revocation of well approval

The board shall revoke a well approval where

(

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;

(

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

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Suspension or abandonment of well

Where a well approval is revoked, the operator shall ensure that the well is suspended or abandoned in accordance with

Part VIII.

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Well approval subsection 135(1) of Act

For the purposes of subsection 135(1) of the Act, a well approval relating to a production project is prescribed.

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Concept safety analysis

(1)The approvals referred to in subsection 135(4) of the Act are subject to the operators 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 135(2) of the Act.

(2) The concept safety analysis referred to in subsection (1) shall

(

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 the 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 the works and activities within each phase of the life cycle of an installation, including the installations systems and equipment, from the installations design up to and including the installations decommissioning and abandonment;

(

d) identify the 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 additional risks that may result from the implementation of the identified control measures; and

(

h) identify the assumptions on which an aspect of the concept safety analysis is based.

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

(

a) quantitative, where 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, where the criteria in paragraph (

a) are not met or where a quantitative assessment would otherwise be inappropriate.

(4) The operator shall 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.

(5) The operator shall 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.

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Resource management plan paragraph 135(3)(

b) of Act

(1)For the purposes of paragraph 135(3)(

b) of the Act,

Part II of a development plan shall contain a resource management plan.

(2) The resource management plan referred to in subsection (1) shall 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.

(3) A resource management plan shall also contain a description of the operators organizational structure as it relates to the implementation of the resource management plan.

71/24 s26

PART V

CERTIFICATE OF FITNESS

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Prescribed installations

section 135.2 of Act

For the purpose of

section 135.2 of the Act, a production installation, drilling installation, accommodations installation and diving installation are prescribed installations.

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Definition of installation

In this Part, "installation" means an installation referred to in

section 27.

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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 shall

( i

provide the certifying authority with the information that the certifying authority requires in relation to the application for certification, such as design specifications for the installation, including the installation's systems and equipment,

(ii)

conduct or assist the certifying authority in conducting an 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 a maintenance program that meets the requirements set out in

section 160 and a weight control program that meets the requirements set out in

section 162, and

(iv)

in the case of a diving installation, submit a maintenance program to the certifying authority for approval;

(

b) the certifying authority shall 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 the installation's 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 I of

Schedule A, and

(

B) the provisions of the Offshore Area Occupational Health and Safety Regulations

listed in

Part II of

Schedule A, other than paragraph 22(5)(b), subsection 28(3), paragraph 28(5)(a), subsection 171(3) and paragraphs 172(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 175 and the provisions of

Part IX, and

(

B) the provisions of the Offshore Area Occupational Health and Safety Regulations

listed in

Part II of

Schedule A, and

(iv)

the installation, including the installation's systems and equipment, will continue to meet the requirements set out in subparagraph (

i) and the applicable requirements set out in subparagraph (ii) or (iii), as the case may be, for the time set out in the certificate of fitness where

(

A) the installation, other than a diving installation, including the installation's 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 subparagraph (a)(iii), or

(

B) the diving installation, including the diving installation's systems and equipment, is maintained in accordance with the maintenance program referred to in subparagraph (a)(iv );

(

c) the certifying authority shall

( 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 the installation's systems and equipment, and approve the programs, 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 the diving installation's systems and equipment, and approve the maintenance program; and

(

d) the certifying authority shall carry out the scope of work in respect of which the certificate of fitness is issued.

(2) For the purposes of subparagraphs (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 subparagraphs, 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 146 of the Act or subsection 201.66(1) of the Act.

(3) The certifying authority shall set out in the certificate of fitness the details of any limitation on the operation of the installation that is necessary to ensure that the installation, including the installation's systems and equipment, meets the requirements set out in paragraph (1)(b).

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Conflict of interest paragraph135.2(4)(

b) of Act

(1)For the purposes of paragraph 135.2(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 the installation; 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 the subsidiary or affiliate does not participate in the certification or verification activities in respect of the installation.

(2) The certifying authority shall monitor for participation beyond that described in subsection (1) and shall, without delay, inform the person that applied for the certificate and the board of such participation.

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Certification plan

(1)A person that applies for a certificate of fitness shall 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 32.

(2) The certification plan referred to in subsection (1) shall include the following documents and information:

(

a) a description of the installation to be certified, including the installation's systems and equipment;

(

b) a list of the standards that will apply to the installation to be certified, including the installation's 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, where there are no applicable standards, the 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 the safety-critical elements, as well as a description of how the associated performance standards are to be developed.

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Scope of work

(1)A certifying authority shall submit to the chief safety officer for approval a scope of work that takes into account

the certification plan.

(2) The scope of work referred to in subsection (1) shall 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 paragraph 29(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 paragraph (a).

(3) The chief safety officer shall approve the scope of work where 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 paragraph 29(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 30;

(

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 an installation referred to in a development plan, the concept safety analysis submitted under

section 25 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 101,

(

E) the operations manual meets the requirements set out in

section 158, and

(

F) the installations 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 the installations systems and equipment, continues to be fit for the purposes for which the installation is to be used, and

(iii)

provides the means for determining whether the provisions listed in

Schedule B 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 subparagraph 5(2)(m)(iii) and paragraph 5(2)(

v) that are included in the operators management system have been implemented.

71/24 s32

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Period of validity

(1)A certificate of fitness is valid for 5 years from the day on which it is issued where the certifying authority determines that the requirements referred to in paragraph 29(1)(

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

(2) Where the certifying authority determines that the requirements referred to in paragraph 29(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.

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

(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.

(5) The chief safety officer shall approve the extension of the period of validity of the certificate of fitness where the extension does not compromise safety or the protection of the environment.

71/24 s33

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Applicable site or region

(1)A certifying authority shall indicate on a certificate of fitness the site or region where the installation is to be operated.

(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.

71/24 s34

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Revalidation scope of work

(1)The certifying authority shall revalidate the scope of work against the criteria referred to in subsection 32(3) and make any modifications that are necessary

(

a) before renewing a certificate of fitness; and

(

b) where 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 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 the standards on which the certification was based, or

(iv)

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

(2) The revalidated scope of work shall be submitted to the chief safety officer for approval under subsection 32(3).

71/24 s35

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Renewal of certificate

The certifying authority shall renew a certificate of fitness in relation to an installation before or on its expiry date where

(

a) the certifying authority determines that the requirements referred to in paragraph 29(1)(

b) have been met;

(

b) the certifying authority has carried out the activities referred to in subparagraph 32(2)(a)(iii); and

(

c) the certifying authority has revalidated the scope of work

and the scope of work has been approved by the chief safety officer.

71/24 s36

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Invalidity

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

(

a) the certifying authority or the chief safety officer determines that

( i

any of the information provided under subparagraph 29(1)(a)(

i) on the basis of

which the certificate of fitness was issued is incorrect,

(ii)

any of the requirements referred to in paragraph 29(1)(

b) are no longer being met, or

(iii)

any limitation set out in the certificate of fitness under subsection 29(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.

(2) At least 30 days before a determination referred to in subsection (1) is made, notice of the impending determination shall 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.

(3) Before making a determination

referred to in subsection (1), the certifying authority or the chief safety officer, as the case may be, shall consider any information in relation to that determination that is submitted by any person notified under subsection (2).

71/24 s37

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Change of certifying authority

(1)Where 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 shall undertake its own independent verification activities for the purpose of issuing the certificate of fitness.

(2) Where the holder of a certificate of fitness decides to change the certifying authority in relation to an installation, the holder shall

(

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 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 32, a new scope of work before commencing transition activities.

(3) The holder of a certificate of fitness shall ensure that the transition plan referred to in paragraph (2)(

b) is implemented.

(4) There shall be no more than one certificate of fitness and certifying authority in relation to an installation at any given time.

71/24 s38

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Organizational structure

A certifying authority shall, without delay, notify the board, the federal minister

and the provincial minister of any changes to its organizational structure, including amalgamations and legal name changes.

71/24 s39

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Reports and information

(1)A certifying authority shall submit to the board, the federal minister

and the provincial 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 the certifying authority's technical capabilities and experience as a certifying authority.

(2) The certifying authority shall submit a monthly report to the board that describes the certification activities the certifying authority carried out during the previous month as a certifying authority under the Act.

(3) When requested by the board, the certifying authority shall submit to the board any information the certifying authority obtained or documents generated in the course of

carrying out certification and verification activities.

(4) The certifying authority shall 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.

71/24 s40

PART VI

GENERAL REQUIREMENTS FOR AUTHORIZED WORKS AND ACTIVITIES

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Installation manager

For the purposes of

section 189.2 of the Act, every installation is a prescribed installation.

71/24 s41

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Safety and protection of environment

An operator shall take the measures necessary to ensure safety and the protection of the environment during an 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 a 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) where 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) the 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 the related hazard to safety or the environment is minimized;

(

g) the administrative and logistical support that is provided for a 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 130(1);

( i

an operating procedure that creates a hazard to safety or the environment is corrected; and

(

j) affected persons are informed of a correction made under paragraph ( i

71/24 s42

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Physical and environmental conditions

An operator shall 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.

71/24 s43

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Location of infrastructure or equipment

An operator shall keep data or information that accurately describes the location of infrastructure or equipment at an operations site that is on or attached to the seabed, including an abandoned installation or part of it.

71/24 s44

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and handling of consumables

An operator shall 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 a hazard that could result from their deterioration.

71/24 s45

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Storage and handling of chemical substances

An operator shall ensure that 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.

71/24 s46

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Misuse of equipment

A person shall not tamper with, activate without cause

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

71/24 s47

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Cessation of work or activity

(1)An operator shall ensure that a work or activity ceases without delay where the work or activity

(

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.

(2) An operator shall ensure that the work or activity does not resume until the work or activity can be done safely and without causing pollution.

71/24 s48

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Copy of authorization and approvals

(1)An operator shall ensure that a copy of the authorization and related approvals that are required under these regulations or

Part III of the Act is displayed in a conspicuous location at every operations site.

(2) An operator shall keep an additional copy of the authorization and approvals, as well as the plans that are required under these regulations or

Part III of the Act, at every operations site and shall ensure that they are readily accessible for consultation or examination.

71/24 s49

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Emergency response procedures and other documentation

An operator shall ensure that a copy of the most current version of the emergency response procedures and the 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 paragraph (a).

71/24 s50

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Implementation

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

section 10, the environmental protection plan referred to in

section 11 and the resource management plan referred to in

section 26 are implemented at the commencement of a work or activity and that the contingency plan referred to in

section 12 is implemented as soon as an accidental event occurs or appears imminent.

(2) An operator shall 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 paragraphs 10(2)(

c) and 11(2)(c), respectively, shall be updated as soon as the circumstances permit after the modification, replacement or addition of a major component.

71/24 s51

PART VII

GEOSCIENTIFIC PROGRAMS, GEOTECHNICAL PROGRAMS AND ENVIRONMENTAL PROGRAMS

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Measures

An operator shall ensure that

(

a) the 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 manufacturers instructions and industry standards and best practices; and

(

b) where the equipment, its components or the materials are defective, the equipment, components or materials are, without delay, repaired or replaced in accordance with the manufacturers recommendations.

71/24 s52

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Certification

An operator shall ensure that a competent third party has certified that the 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.

71/24 s53

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Damage to property

An operator shall take the necessary measures to ensure that property is not damaged as a result of

a geoscientific program, geotechnical program or environmental program.

71/24 s54

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General requirements

(1) An operator shall ensure that an energy source that is used in a geoscientific program, geotechnical program or environmental program is

(

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

(

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

(2) An operator shall ensure that an 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.

(3) An operator shall ensure that the program is conducted in a manner that eliminates the safety risks to divers from the 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.

71/24 s55

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Testing of energy sources

(1) An operator shall minimize energy source testing on the deck of an operations site while a geoscientific program, geotechnical program or environmental program is being conducted.

(2) Before an energy source is activated for testing purposes, an operator shall ensure that measures are taken to protect persons at the operations site where the test will be conducted from exposure to a 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.

71/24 s56

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Classification

An operator shall 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.

71/24 s57

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Prohibited without approval

(1) A person shall not destroy, discard

or 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 (

(

a) field data and final processed data that are in a digital format, together with a description of that data format;

(

b) samples; and

(

c) other data, observations, readings and supporting information obtained during the program.

(2) Notwithstanding subsection (1), the

materials and information referred to in subsection (1) may be removed from Canada without the approval of the board for the purpose of being processed in a foreign country where the materials and information are returned to Canada as soon as the processing is complete.

(3) Within

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 shall approve the application where the board is satisfied that the materials or information are not of much use or value.

(4) The board may, after receiving an application referred to in subsection (

), require that the materials or information, or a copy of the information, be provided to the board within the period that it specifies.

71/24 s58

PART VIII

DRILLING AND PRODUCTION

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Allocation of areas

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.

71/24 s59

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Name, classification or status of well

The board may give a name, classification

or status to a well and may change that name, classification or status.

71/24 s60

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Pool, zone

or field

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.

71/24 s61

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Data acquisition programs

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

section

and the well data acquisition program referred to in

section

are implemented in accordance with good oilfield practices.

(2) Where part of the field or well data acquisition program cannot be implemented, the operator shall 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.

(3) The board shall approve the measures submitted under paragraph (

)(

b) where 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.

(4) An operator shall ensure that the field data acquisition program is periodically updated.

71/24 s62

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Formation evaluation, testing and sampling

Where the board determines that data or samples from a formation in a well would contribute substantially to the geological and reservoir evaluation, the operator shall ensure that the formation is evaluated, tested

and sampled as necessary to obtain the data or samples.

71/24 s63

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Formation flow test

(1) An operator shall ensure that a development well is not put into production unless a formation flow test that has been approved by the board under subsection (

) is conducted.

(2) Where a development well is subjected to a well operation that might change its deliverability, productivity or injectivity, the operator shall, for the purpose of determining the effects of the operation on the wells deliverability, productivity or injectivity, ensure that a formation flow test that has been approved by the board under subsection (

) is conducted as soon as the circumstances permit after the well operation has ended and the flow or injection conditions have stabilized.

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

(

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

(

b) obtain the boards approval under subsection (

) to conduct the formation flow test.

(4) The board may require that an operator conduct a formation flow test on a well drilled on a geological feature, other than the first well, where the board determines that the test would contribute to the geological and reservoir evaluation.

(5) The board shall approve a formation flow test where an 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.

71/24 s64

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Samples and cores

(1) An operator shall ensure that a drill cutting

and fluid samples and cores collected as part of the field data acquisition program referred to in

section

and the well data acquisition program referred to in

section

are

(

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

(

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

(

c) delivered to the board within

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 remaining parts, are to be delivered to the board on completion of the analyses.

(2) An operator shall ensure that, after the 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.

(3) An operator shall ensure that, after the 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.

71/24 s65

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Notice before disposal

Before disposing of a drill cutting or fluid samples, cores or evaluation data, an operator shall ensure that the board is notified in writing and given an opportunity to request delivery of the drill cutting or fluid samples, cores

or evaluation data.

71/24 s66

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Depth measurements

An operator shall ensure that a record of the depth in a well is measured from the rotary table of the drilling rig.

71/24 s67

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Directional and deviation surveys

An operator shall 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, a 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.

71/24 s68

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Well

control

(1) An operator shall 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.

(2) The equipment referred to in subsection (

) shall include reliable well control equipment to detect and control kicks, prevent blowouts

and safely conduct well operations.

(3) During well operations conducted without a riser, the operator shall ensure that measures are implemented to reduce the risk of shallow hazards while drilling.

(4) An operator shall 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.

(5) After the surface casing has been installed and cemented, the operator shall 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.

(6) Where there is a failure in a barrier envelope, the operator shall ensure that well operations, other than one that is intended to replace or restore the barrier envelope, do not take place until the barrier envelope is replaced or restored.

(7) An operator shall 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.

(8) An operator shall ensure that, during well operations, one of the 2 barrier envelopes is the drilling fluid column, except when drilling is under-balanced or where, when a completion or test string is run, the other barrier envelope has already been installed downhole and tested.

(9) An operator shall ensure that the pressure control equipment associated with well operations is pressure-tested when the equipment is installed and as often as necessary to ensure its continued safe operation.

(10) Where well control is lost or where safety, the protection of the environment or resource conservation is at risk, the operator shall ensure that the necessary corrective measures are taken without delay.

71/24 s69

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Casing and wellhead system

(1) An operator shall ensure that a casing and wellhead system is designed, taking into account

the wellheads 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.

(2) An operator shall ensure that, during the design of the casing and wellhead system, where 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.

(3) An operator shall ensure that each casing is installed at a depth that provides for adequate kick tolerance and safe well control.

(4) An operator shall ensure that well operations do not continue beyond the wellheads fatigue life.

(5) An operator shall 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.

(6) An operator shall ensure that the cement integrity and placement are verified through pressure-testing and, where the cement is a common barrier element of the 2 barrier envelopes or where confirmation of zonal isolation is required, also through logging.

(7) Notwithstanding subsection (6), t

he cement integrity and placement may be verified using other methods where an operator demonstrates that those methods provide a level of verification that is equivalent to the methods referred to in subsection (

(8) An operator shall ensure that the cement design is subjected to comprehensive laboratory testing and pre-cementing quality control, under foreseeable conditions that could have an impact on cementing, so that the cement provides the expected isolation and can be efficiently installed.

(9) An operator shall ensure that, after cementing a 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.

(10) An operator shall ensure that, after a casing is installed and cemented and before the casing shoe is drilled out, the casing is pressure-tested to the value required to confirm the casings integrity for maximum anticipated operating pressure throughout the life cycle of the well.

71/24 s70

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Formation leak-off or integrity test

(1) An operator shall ensure that a formation leak-off test or a formation integrity test is conducted

(

a) before drilling more than

metres of new formation below the shoe of a casing other than the conductor casing; and

(

b) before drilling more than

metres when sidetracking from the previous casing string.

(2) The formation leak-off test or formation integrity test shall 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 casing shoe to be verified before continuing drilling.

71/24 s71

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Completion, testing and operation of development wells

(1) An operator of a development well shall 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 other porous or permeable intervals penetrated by the well;

(

c) where 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 will ensure that a leak through the production casing below the packer will be contained by the barrier envelope outside the casing;

(

e) the formation and an annulus seal can withstand the pressures and temperatures expected throughout the life cycle of the well;

(

f) where practicable, the 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 modified where necessary to prevent waste;

(

h) where different pressure and inflow characteristics of 2 or more pools might adversely affect the recovery of petroleum from 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, the barrier elements are tested to the maximum pressure to which the barrier elements are anticipated to be subjected and, where possible, pressure testing is in the direction of flow; and

(

j) following a workover or intervention, the affected barrier elements are pressure-tested.

(2) In addition to the requirements referred to in subsection (1), w

here the development well is a segregated multi-pool well, the operator shall ensure that

(

a) after the well is completed, segregation within and outside the well casing is verified; and

(

b) where there is reason to doubt that segregation is being maintained, a segregation test is conducted as soon as the circumstances permit.

(3) In this section, multi-pool well means a well that is completed in more than one pool.

71/24 s72

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Production tubing

An operator shall ensure that the production tubing used in a well is designed and maintained to be compatible with the fluids to which production tubing will be exposed, to withstand the maximum conditions, forces and stresses to which production tubing may be subjected and to maximize recovery of petroleum from the pool.

71/24 s73

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Safe operations and production

An operator shall ensure that equipment and procedures are in place to recognize and control normal and abnormal operating conditions, to permit safe and controlled well operations and production and to prevent pollution.

71/24 s74

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Flow and volume

(1) An operator shall 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.

(2) Notwithstanding subsection (1), a

lternate measurements may be conducted where approved by the board under section

(3) An operator shall ensure that the measurements are conducted using the flow system, flow calculation procedure and flow allocation procedure approved under subsection

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Allocation of group production

An operator shall 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

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Allocation over multiple pools or zones

(1) Where a well is completed over multiple pools or zones, the operator shall 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

(2) An operator shall 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.

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Testing and maintenance

(1) An operator shall ensure that

(

a) the

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) a 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 manufacturers specifications is repaired or replaced without delay or, where 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.

(2) An operator shall ensure that a conservation officer is notified, as soon as the circumstances permit, of a modification to or malfunction or failure of a flow system component that may have an impact on the accuracy of the flow system and of the corrective measures taken.

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Calibration

An operator shall ensure that

(

a) a conservation officer is notified of the calibration of a transfer meter prover or master meter used in conjunction with a transfer meter at least

days before the day on which the transfer meter prover or master meter 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.

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Resource management

An operator shall, 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) where 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.

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Commingled production

(1)An operator shall not in engage

in commingled production unless approved by the board.

(2) The board shall approve commingled production where the operator demonstrates that the commingled production will maximize the recovery of petroleum.

(3) Where an operator engages in commingled production, the operator shall 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

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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.

(2) The board shall 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.

(3) On completion of the pilot scheme, the operator shall ensure that production activities undertaken for the purpose of the scheme are discontinued.

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Prohibition against flaring or venting

n operator shall not flare or vent gas unless

(

a) the board authorizes the 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

); or

(

c) the flaring or venting 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.

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Venting limit

(1) An operator shall ensure that the volume of gas vented under paragraph

(

a) per installation during a year is not greater than

15,000

standard m

(2) For the purpose of subsection (

), 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.

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Gas emissions

(1) An operator shall ensure that 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.

(2) An operator shall ensure that the flow rate of emissions of gas released from vents referred to in paragraph (

)(

b) is measured by means of a continuous monitoring device that is

(

a) calibrated in accordance with the manufacturers recommendations such that the continuous monitoring devices measurements have a maximum margin of error of plus or minus

percent;

(

b) operated continuously, other than during periods when the continuous monitoring device 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 (

) and (

) for the vents of the compressor is reached.

(3) An operator shall 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 m 3

/min if the compressor has a rated brake power of greater than or equal to 5 MW, and

(ii)

0.34 standard m 3

/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 m 3

/min.

(4) An operator shall 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) where the compressor is installed before January

, the product of

0.023

standard m

/min and the number of pressurized cylinders that the compressor has;

(

b) where the compressor is installed on or after January

, the product of

0.001

standard m

/min and the number of pressurized cylinders that the compressor has.

(5) Where the alarm referred to in paragraph (

)(

c) is triggered, the operator shall 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.

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Prohibition against oil burning

n operator shall not 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

); or

(

c) the burning 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.

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Determination of net environmental benefit

In determining for the purpose of subsection

156.1

) of the Act whether the use of a spill-treating agent is likely to achieve a net environmental benefit, the chief conservation officer shall take into account

(

a) the assessment of the spill-treating agents efficacy referred to in paragraph

)(a );

(

b) the results of the analysis referred to in paragraph

)(b );

(

c) the circumstances referred to in paragraph

)(c );

(

d) the methods and protocols referred to in paragraph

)(d );

(

e) the monitoring plan referred to in paragraph

)(f); and

(

f) the results of any small-scale test conducted in respect of the spill-treating agent.

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Small-scale test

(1) An operator shall, in respect of a small-scale test of a spill-treating agent referred to in

section

156.1

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 conduc