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Canada Oil and Gas Drilling and Production Regulations (C.R.C., c. 1517)

Regulations are current to 2020-11-02

Well Spacing

  •  (1) Every development well shall be drilled

    • (a) within a target area; or

    • (b) in such manner as will permit the well to be drilled into a target area before being completed.

  • (2) The Chief may designate a grid area as a well spacing area and no person shall drill a well within a well spacing area except within a target area approved by the Chief.

Oil and Gas to Be Conserved

 Whenever a stratum penetrated in a well or structure test hole is capable of producing gas, the licensee, permittee or lessee shall take all reasonable precautions and confine such gas to its original stratum until such time when such gas can be produced and utilized without waste.

  •  (1) The licensee, permittee or lessee shall make provision to the satisfaction of the Oil Conservation Engineer for the control and conservation of oil and gas at every well and structure test hole and he shall take all reasonable steps to maintain his equipment for such purpose in proper condition.

  • (2) Where at any time, in the opinion of the Oil Conservation Engineer, such equipment is inadequate, he may prescribe the remedial measures that shall be instituted and completed before any further drilling or production is undertaken.

Precaution Against Waste

 Every licensee, permittee or lessee shall take all precautions to the satisfaction of the Minister to prevent waste.

Testing of Wells

 The surface and subsurface equipment of every oil and gas well shall be so arranged as to allow the taking of closed-in pressure, bottom hole pressure, the working pressure and the making of any reasonable tests required.

Equipment Required

  •  (1) No equipment, casing or tubing used in drilling or production shall be used unless it is in good general condition and complies in all respects with these Regulations.

  • (2) Each well shall be cased in such manner as may be prescribed or approved by the Oil Conservation Engineer, unless he is satisfied that casing is not required in any particular case.

Defective or Inadequate Equipment

  •  (1) Where it appears to the Oil Conservation Engineer that any equipment, casing or tubing used in drilling or production is inadequate, defective or hazardous, he may require the replacement or reconditioning of the equipment, casing or tubing, and may require that operations be discontinued until the required action is taken.

  • (2) The subsurface equipment shall include a pincollar or its equivalent at the lower end of the production tubing as a safeguard against loss of testing equipment, but the Oil Conservation Engineer may grant permission to dispense with the pincollar.

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

Plan to Be Furnished

 The lessee shall furnish to the Oil Conservation Engineer upon request a plan in duplicate showing the position of all wells, pipelines, tanks, buildings or other structures on the leased area.

Minister May Take Remedial Measures

  •  (1) The licensee, permittee or lessee shall at all times take reasonable measures to the satisfaction of the Oil Conservation Engineer to prevent or to remedy the injurious access of water, gas or oil into a formation.

  • (2) Where any well is a menace to oil, or water-bearing formations or to life or property, and if remedial measures are considered necessary and the licensee, permittee or lessee of the well fails to use such measures as may be directed by the Minister, the Minister shall, at the expense of the licensee, permittee or lessee, take such steps and employ such persons as he considers necessary to carry out the remedial measures and for that purpose may

    • (a) enter upon, seize and take possession of any such well, together with the whole or part of the movable and immovable property in, on or about the well or used in connection therewith or appertaining thereto; and

    • (b) take over the management and control thereof for the time necessary to carry out the remedial measures.

Excavations and Disposal of Earth, Rock and Waste

  •  (1) The permittee or lessee shall enclose and keep enclosed all openings or excavations made in connection with or for the purpose of exploring for and producing oil and gas or other operations.

  • (2) The licensee, permittee or lessee shall at all times make such provisions to the satisfaction of the Oil Conservation Engineer for the disposal of the earth, rock, waste or refuse that it shall not be an inconvenience, nuisance or obstruction to any roadway, pass, passage, river, creek or place or to any private or Canada lands, or conflict or embarrass the operating of any mines on the said lands, or in any manner whatsoever occasion unnecessary private or public damage, nuisance or inconvenience.

Salt Water

 The licensee, permittee or lessee shall take all reasonable care and carry out such measures as may be satisfactory to the Oil Conservation Engineer with regard to the disposal of salt water.

Storage

 When an area is designated as a field by the Minister, or where it is expected that oil and gas will be encountered, adequate provision shall be made

  • (a) for the conservation of oil and gas before a well is drilled in; and

  • (b) for producing and storage equipment before a well is placed on production.

Safety Precautions to Be Taken

  •  (1) No oil shall be stored in an unprotected excavation or in storage receptacles that are inadequate or likely to cause reasonably avoidable waste or loss.

  • (2) All tanks or batteries of tanks shall be surrounded by a dike or ditch of a capacity greater than that of the tank or battery of tanks and the dike or ditch shall be maintained in good condition and free from high grass, weeds or combustible material.

  • (3) All oil tanks or batteries of tanks shall be located at least 200 feet from the outer perimeter of the ditch or dike to any road allowance, surveyed road, railway other than siding, high voltage power line or other right-of-way, dwelling, industrial plant, existing or proposed aircraft runway or taxiway, building used for military purposes, farm building, school, church or cemetery and shall not be located in the flightway of an airfield within 1,000 feet of the end of the runway without a special permit.

  • (4) Reasonable precautions shall be taken to prevent salt water, drilling fluid, waste, oil or refuse from tanks or wells from flowing over the land.

  • (5) Any rubbish or debris that might constitute a fire hazard shall be removed to a distance of at least 150 feet from the vicinity of any well, tank or pump station.

  • (6) All waste, oil and refuse from tanks or wells shall be drained into proper receptacles located not less than 100 feet from any tank, well or building and shall be burned immediately or transported from the premises, and when necessary and practicable, surrounded by a fireguard.

  • (7) No flammable product or waste produce of any kind from any oil or gas well shall be permitted to run into any lake, stream or other body of water or on to any highway or public road.

  • (8) No flare pit or end of flare line shall be located closer than 250 feet to any road allowance, surveyed road, railway, pipeline, high voltage power line or other right-of-way, dwelling, industrial plant, aircraft runway or taxiway, building used for military purposes, permanent farm building, school, church or cemetery, except where the Oil Conservation Engineer finds a lesser distance is justified under the circumstances.

Gas Metering

  •  (1) A well producing gas shall be equipped with a gas meter of a type approved by the Oil Conservation Engineer, and no gas shall be produced at a well unless it is metered or the Oil Conservation Engineer gives permission to dispense with a meter.

  • (2) Each orifice meter shall be installed in accordance with the regulations made under the Gas Inspection Act.

  • (3) Where gas from several wells is brought to a common point for metering, each meter shall be marked clearly to indicate the source of gas being measured.

  • (4) Any by-pass around a meter shall be closed by valves or stop-cocks that effectively stop all flow of gas when closed, and, on every occasion when the by-pass is operated and on any extraordinary occasion where gas does not reach the meter, a suitable entry shall be made on the meter chart.

  • (5) Whenever an orifice plate is installed or changed, a record of the time and the size of the orifice removed and inserted shall be recorded on the meter chart.

  • (6) Each orifice meter-run installed shall be equipped with a thermometer well and pressure gauge connection.

  • (7) The measured inside diameter of the pipe at the orifice shall be clearly marked on the pipe near the orifice flanges.

  • (8) The orifice plate shall show clearly the size of orifice, in inches and decimals, by figures stamped or cut into the metal of the plate, and a plate shall not be rebored or the orifice size increased without first removing or permanently defacing the old marking.

  • (9) Each meter shall be maintained in good and usable condition.

  • (10) Purchasers shall keep meter charts and records of gas purchased in a permanent file for a period of at least two years and such information shall be made available to the Oil Conservation Engineer at his request.

Orifice Meter Charts

  •  (1) Orifice meter charts shall be clearly marked in such manner as to indicate the well or wells being metered and the time and the date of start and finish of records.

  • (2) Charts shall be computed and shall be preserved for a period of one year.

  • (3) In computing the quantity of gas passing the meter during the period covered by a chart, all metered gas shall be recorded together with a fair estimate of all gas passed during all periods in which the meter for any reason fails to record.

  • (4) Coefficients for calculating meter charts shall be computed in accordance with the regulations made under the Gas Inspection Act.

 
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