Canada Oil and Gas Drilling and Production Regulations (SOR/2009-315)

Production Tubing

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

Monitoring and Control of Process Operations

45 The operator shall ensure that

• (a) operations such as processing, transportation, storage, re-injection and handling of oil and gas on the installation are effectively monitored to prevent incidents and waste;

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

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

Well Completion

• 46 (1) An operator that completes a well shall ensure that

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

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

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

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

  • (e) each packer is set as close as practical to the top of the completion interval and that the pressure testing of the packer to a differential pressure is greater than the maximum differential pressure anticipated under the production or injection conditions;

  • (f) if practical, any mechanical well condition that may have an adverse effect on production of oil and gas from, or the injection of fluids into, the well is corrected;

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

  • (h) if different pressure and inflow characteristics of two or more pools might adversely affect the recovery from any of those pools, the well is operated as a single pool well or as a segregated multi-pool well;

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

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

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

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

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

Subsurface Safety Valve

• 47 (1) The operator of an offshore development well capable of flow shall ensure that the well is equipped with a fail-safe subsurface safety valve that is designed, installed, operated and tested to prevent uncontrolled well flow when it is activated.

• (2) If a development well is located in a zone where permafrost is present in unconsolidated sediments, the operator shall ensure that a subsurface safety valve is installed in the tubing below the base of the permafrost.

Wellhead and Christmas Tree Equipment

48 The operator shall ensure that the wellhead and Christmas tree equipment, including valves, are designed to operate safely and efficiently under the maximum load conditions anticipated during the life of the well.

PART 5Evaluation of Wells, Pools and Fields

General

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

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

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

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

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

Testing and Sampling of Formations

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

Formation Flow Testing

• 52 (1) The operator shall ensure that

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

  • (b) if a development well is subjected to a well operation that might change its deliverability, productivity or injectivity, a formation flow test is conducted within a reasonable time frame after the well operation is ended to determine the effects of that operation on the well’s deliverability, productivity or injectivity.

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

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

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

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

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

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

  • (b) establish the characteristics of the reservoir; and

  • (c) obtain representative samples of the formation fluids.

Submission of Samples and Data

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

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

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

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

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

55 Before disposing of cutting samples, fluid samples, cores or evaluation data under these Regulations, the operator shall ensure that the Board is notified in writing and is given an opportunity to request delivery of the samples, cores or data.

PART 6Well Termination

Suspension or Abandonment

56 The operator shall ensure that every well that is suspended or abandoned can be readily located and left in a condition that

• (a) provides for isolation of all oil or gas bearing zones and discrete pressure zones; and, in the case of an onshore well, potable water zones; and

• (b) prevents any formation fluid from flowing through or escaping from the well-bore.

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

58 The operator shall ensure that, on the abandonment of any offshore well, the seafloor is cleared of any material or equipment that might interfere with other commercial uses of the sea.

Installation Removal

59 No operator shall remove or cause to have removed a drilling installation from a well drilled under these Regulations unless the well has been terminated in accordance with these Regulations.

PART 7Measurements

Flow and Volume

• 60 (1) Unless otherwise included in the approval issued under subsection 7(2), the operator shall ensure that the rate of flow and the volume of the following are measured and recorded:

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

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

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

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

• (2) The operator shall ensure that any measurements are conducted in accordance with the flow system, flow calculation procedure and flow allocation procedure, approved under subsection 7(2).

• 61 (1) The operator shall ensure that group production of oil and gas from wells and injection of a fluid into wells is allocated on a pro rata basis, in accordance with the flow system, flow calculation procedure and flow allocation procedure approved under subsection 7(2).

• (2) If a well is completed over multiple pools or zones, the operator shall ensure that production or injection volumes for the well are allocated on a pro rata basis to the pools or zones in accordance with the flow allocation procedure approved under subsection 7(2).

Testing, Maintenance and Notification

62 The operator shall ensure

• (a) that meters and associated equipment are calibrated and maintained to ensure their continued accuracy;

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

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

• (d) that a conservation officer is notified, as soon as the circumstances permit, of any malfunction or failure of any flow system component that may have an impact on the accuracy of the flow system and of the corrective measures taken.

Transfer Meters

63 The operator shall ensure that

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

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

Proration Testing Frequency

64 The operator of a development well that is producing oil or gas shall ensure that sufficient proration tests are performed to permit reasonably accurate determination of the allocation of oil, gas and water production on a pool and zone basis.

PART 8Production Conservation

Resource Management

65 The operator shall ensure that

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

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

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

Commingled Production

• 66 (1) No operator shall engage in commingled production except in accordance with the approval granted under subsection (2).

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

• (3) The operator engaging in commingled production 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 of Part 7.

Gas Flaring and Venting

67 No operator shall flare or vent gas unless

• (a) it is otherwise permitted in the approval issued under subsection 52(4) or in the authorization; or

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