Canada–Newfoundland and Labrador Offshore Area Petroleum Operations Framework Regulations (SOR/2024-25)

Marginal note:Contingency plan

• 11 (1) An operator must develop a contingency plan that sets out the procedures, including emergency response procedures, and the practices, resources and monitoring measures that are necessary to effectively prepare for and mitigate the effects of any accidental event.

• Marginal note:Documents and information

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

  • (a) a description of the method to be used for classifying accidental events and a description of the emergency response procedures for each event;

  • (b) a description of the procedures for the internal and external reporting of accidental events;

  • (c) a description of the procedures for accessing safety-related and environmental information that is necessary to mitigate the effects of any accidental event;

  • (d) a description of the organizational structure, chain of command and resources for managing any accidental event, including

    • (i) a list of key emergency response positions and a description of the roles, responsibilities and authorities associated with each of those positions, including a description of related tasks and checklists of actions that must be taken in the context of the contingency plan,

    • (ii) a description of the available support craft and the contact information for its crew or a reference to the number or title of a document that provides that description and contact information,

    • (iii) a description, or a reference to the number or title of a document that provides the description, of available emergency response equipment, including life-saving appliances, and the equipment’s location, as well as the limits on its use and the mitigation measures to be taken in the event that it is not available,

    • (iv) a description, or a reference to a number or title of a document that provides the description, of all available medical equipment and the equipment’s location,

    • (v) a description of the communication system referred to in section 129 and the operating procedures for that system,

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

    • (vii) a description of any good or service that must be obtained on a contractual basis for each response measure, and

    • (viii) a description of the location and the contents of any temporary safe refuges or a reference to the number or title of a document that provides that description;

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

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

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

  • (h) a copy of all personnel evacuation plans, including any evacuation plan for divers engaged in a dive; and

  • (i) an indication of the frequency with which emergency response drills and exercises are to be completed and their scope.

• Marginal note:Uncontrolled flow

  (3) In the case of a drilling program or a production project, the contingency plan must also include a description of the source control and containment measures to be taken to stop uncontrolled flow from a well and to minimize the duration and environmental effects of any resulting spill, as well as the following documents and information:

  • (a) a description of the source control and containment equipment to be used in the event of a loss of well control;

  • (b) details of the contractual arrangements for the source control and containment equipment, other than a relief well drilling installation, including

    • (i) the name and contact information of the owner or owners of the equipment,

    • (ii) the arrangements for transport of the equipment to the location of the uncontrolled well, and

    • (iii) the arrangements for the mode of deployment of the equipment at the location of the uncontrolled well;

  • (c) the schedule and plan for the mobilization, deployment and operation of the source control and containment equipment, including measures to minimize deployment time that take required regulatory approvals into account;

  • (d) details regarding the accessibility of the source control and containment equipment and the documents and information referred to in paragraphs (a) to (c);

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

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

• Marginal note:Spill-treating agent

  (4) If a spill-treating agent is being considered for use as a spill response measure, the contingency plan must include the following additional documents and information:

  • (a) the name of the chosen spill-treating agent and details of an assessment of its efficacy in treating the potential sources of pollutants, including the results of any tests conducted for the assessment and a description of those tests;

  • (b) the results of an analysis that demonstrates that a net environmental benefit is likely to be achieved through the use of the spill-treating agent under certain circumstances;

  • (c) a description of the circumstances under which the spill-treating agent will be used and the estimated period within which its use will be effective;

  • (d) a description of the methods and protocols, including the amount and application rate, for safe, effective and efficient use of the spill-treating agent;

  • (e) a list of the personnel roles, equipment and materials that an operator will have available for the purpose of using the spill-treating agent, including any to be provided through contractual arrangements, and a description of the requirements that must be met for those contracts to be activated; and

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

• Marginal note:Assessment of efficacy

  (5) The assessment of efficacy under paragraph (4)(a) must be carried out using oil obtained directly from the operations site where the spill-treating agent is being considered for use or, if oil is not available from that operations site, it must be carried out using an oil that most closely resembles the oil that is expected to be obtained from the operations site and must be repeated when oil becomes available from that operations site.

• Marginal note:International standard or alternative

  (6) The assessment, analysis, methods and protocols referred to in paragraphs (4)(a), (b) and (d) must be based, taking the local environment into account, on an international standard or an alternative recognized by the Board and the contingency plan must identify each of those standards or alternatives.

• Marginal note:Methods and protocols

  (7) The methods and protocols referred to in paragraph (4)(d) and the monitoring plan referred to in paragraph (4)(f) must conform to industry standards and best practices for spill-treating agent use, taking the local environment into account.

• Marginal note:Definition of source control and containment equipment

  (8) In this section, source control and containment equipment means the capping stack, containment dome, any subsea and surface equipment, devices or vessels and any relief well drilling installations that are used to contain and control a spill source and to minimize the duration of a spill and its environmental effects until well control is regained.

Marginal note:Spill-treating agent — section 138.21 of Act

12 In determining for the purpose of section 138.21 of the Act whether the use of a spill-treating agent is likely to achieve a net environmental benefit, the Board must take into account

• (a) the assessment of the spill-treating agent’s efficacy referred to in paragraph 11(4)(a);

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

• (c) the circumstances referred to in paragraph 11(4)(c);

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

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

Marginal note:Field data acquisition program

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

• (a) provides for the collection of sufficient pool pressure measurements, drill cutting and fluid samples, cores and well logs, and the carrying out of sufficient formation flow tests, analyses and surveys, to enable a comprehensive assessment of the field, of the performance of development wells, of the pool depletion scheme and of any injection scheme; and

• (b) identifies the quantity of samples and cores, the evaluation data and any associated analyses, surveys and reports that are to be provided to the Board.

Marginal note:Flow system, calculation and allocation

• 14 (1) If the application for an authorization is in respect of a production project, the operator must submit to the Board for its approval the flow system, the flow calculation procedure and the flow allocation procedure that will be used to conduct the measurements referred to in sections 74 to 78, as well as any alternate measurements referred to in subsection 74(2) that the operator proposes to conduct.

• Marginal note:Board approval

  (2) The Board must approve the flow system, the flow calculation procedure and the flow allocation procedure if the applicant demonstrates that the system and procedures facilitate accurate measurements and the allocation, on a pool or zone basis, of the production from and injection into individual wells.

Marginal note:Decommissioning and abandonment plan

• 15 (1) An operator must, in the case of a drilling program or production project, develop a decommissioning and abandonment plan that includes the following information:

  • (a) a description of the safety and environmental protection measures to be implemented during the decommissioning and abandonment to comply with the requirements of these Regulations, the provisions of Part III of the Act and any 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 any future uses of the site where the program or project is carried out;

  • (c) the methods for restoring the site after the decommissioning and abandonment; and

  • (d) the forecasted costs of the decommissioning and abandonment and the manner in which the operator will finance or pay for those costs.

• Marginal note:Costs and financing or payment

  (2) The operator must submit to the Board an update on the forecasted costs of decommissioning and abandonment and the manner in which the operator will finance or pay for those costs

  • (a) whenever there is a significant change to that information, and

  • (b) beginning no less than five years before the day on which the decommissioning and abandonment is forecasted to begin, at least once a year.

Requirements for Authorization

Marginal note:Definitions — paragraph 138(4)(c) of Act

16 The following definitions apply for the purposes of paragraph 138(4)(c) of the Act.

production facility

production facility means the systems and equipment referred to in paragraph (a) of the definition production installation, other than a diving system, as well as any associated aircraft landing areas, storage areas or tanks and accommodations areas. (installation de production)

production platform

production platform means a production installation. (plate-forme de production)

Well Approvals

Marginal note:Well operation

• 17 (1) Subject to subsection (2), an operator that intends to conduct a well operation must obtain a well approval.

• Marginal note:Approval not necessary

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

  • (a) the operation does not alter the completion interval or is not expected to adversely affect the recovery of petroleum; and

  • (b) the equipment, operating procedures and qualifications of the persons carrying out the work are in compliance with the requirements of the authorization.

• Marginal note:Definitions

  (3) The following definitions apply in subsection (2).

  slick line

  slick line means a single steel cable that is used to run tools in a well. (câble lisse)

  wire line

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

• Marginal note:Approval application contents

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

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

    • (i) a comprehensive description of the drilling program, a geoscientific description of the reservoir targets and a description of any geohazard,

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

    • (iii) a description of the well data acquisition program referred to in section 18, and

    • (iv) a description of the well verification scheme referred to in section 19;

  • (b) if the well approval is being sought to perform a workover on, to re-enter, to complete or to recomplete a well or to suspend or abandon a well or a part of one, a description of the well or part, a description of the proposed work or activity and the rationale for carrying it out and barrier envelope diagrams that demonstrate that two barrier envelopes will be in place throughout the operation;

  • (c) if the well approval is being sought to complete a well, information that demonstrates that section 71 will be complied with;

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

  • (e) if the well approval is being sought to suspend or abandon a well or a part of one, the methods for verifying the effectiveness of the isolation of pools and zones that is required under subparagraph 90(1)(b)(i).

• Marginal note:Well approval granted by the Board

  (5) The Board must grant the well approval if the operator demonstrates that the well operation will be conducted safely, without waste or pollution and in compliance with these Regulations.

Marginal note:Well data acquisition program

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

• (a) provides for the collection of sufficient pressure measurements, drill cutting and fluid samples, conventional cores, sidewall cores and well logs, and the carrying out of sufficient formation flow tests, analyses and surveys, to enable a comprehensive geophysical, geological and reservoir evaluation to be made; and

• (b) identifies the quantity of samples and cores, the evaluation data and any associated analyses, surveys and reports that are to be provided to the Board.

Marginal note:Well verification scheme

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

• Marginal note:Well ranking

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

• Marginal note:Verification requirements

  (3) The verification scheme must set out the verification requirements that are applicable to the design of a well according to the well’s ranking and to any changes made to the design during the well’s construction or operation that would affect any previously undertaken verification.

• Marginal note:Verification by independent person

  (4) The operator must ensure that the required verifications are carried out by an independent person that was not involved in the original design.