PART 3Operator’s Duties (continued)
Handling of Chemical Substances, Waste Material and Oil
23 The operator shall ensure that all chemical substances, including process fluids and diesel fuel, waste material, drilling fluid and drill cuttings generated at an installation, are handled in a way that does not create a hazard to safety or the environment.
Cessation of a Work or Activity
24 (1) The operator shall ensure that any work or activity ceases without delay if that work or activity
(a) endangers or is likely to endanger the safety of persons;
(b) endangers or is likely to endanger the safety or integrity of the well or the installation; or
(c) causes or is likely to cause pollution.
(2) If the work or activity ceases, the operator shall ensure that it does not resume until it can do so safely and without pollution.
PART 4Equipment and Operations
Wells, Installations, Equipment, Facilities and Support Craft
25 The operator shall ensure that
(a) all wells, installations, equipment and facilities are designed, constructed, tested, maintained and operated to prevent incidents and waste under the maximum load conditions that may be reasonably anticipated during any operation;
(b) a comprehensive inspection that includes a non-destructive examination of critical joints and structural members of an installation and any critical drilling or production equipment is made at an interval to ensure continued safe operation of the installation or equipment and in any case, at least once in every five-year period; and
(c) records of maintenance, tests and inspections are kept.
26 The operator shall ensure that
(a) the components of an installation and well tubulars, Christmas trees and wellheads are operated in accordance with good engineering practices; and
(b) any part of an installation that may be exposed to a sour environment is designed, constructed and maintained to operate safely in that environment.
27 (1) The operator shall ensure that any defect in the installation, equipment, facilities and support craft that may be a hazard to safety or the environment is rectified without delay.
(2) If it is not possible to rectify the defect without delay, the operator shall ensure that it is rectified as soon as the circumstances permit and that mitigation measures are put in place to minimize the hazards while the defect is being rectified.
Drilling Fluid System
28 The operator shall ensure that
(a) the drilling fluid system and associated monitoring equipment is designed, installed, operated and maintained to provide an effective barrier against formation pressure, to allow for proper well evaluation, to ensure safe drilling operations and to prevent pollution; and
(b) the indicators and alarms associated with the monitoring equipment are strategically located on the drilling rig to alert onsite personnel.
29 (1) The operator shall ensure that every marine riser is capable of
(a) furnishing access to the well;
(b) isolating the well-bore from the sea;
(c) withstanding the differential pressure of the drilling fluid relative to the sea;
(d) withstanding the physical forces anticipated in the drilling program; and
(e) permitting the drilling fluid to be returned to the installation.
(2) The operator shall ensure that every marine riser is supported in a manner that effectively compensates for the forces caused by the motion of the installation.
30 The operator shall ensure that adequate equipment, procedures and personnel are in place to recognize and control normal and abnormal pressures, to allow for safe, controlled drilling operations and to prevent pollution.
Reference for Well Depths
31 The operator shall ensure that any depth in a well is measured from a single reference point, which is either the kelly bushing or the rotary table of the drilling rig.
Directional and Deviation Surveys
32 The operator shall ensure that
(a) directional and deviation surveys are taken at intervals that allow the position of the well-bore to be determined accurately; and
(b) except in the case of a relief well, a well is drilled in a manner that does not intersect an existing well.
Formation Leak-Off Test
33 The operator shall ensure that
(a) a formation leak-off test or a formation integrity test is conducted before drilling more than 10 m below the shoe of any casing other than the conductor casing;
(b) the formation leak-off test or the formation integrity test is conducted to a pressure that allows for safe drilling to the next planned casing depth; and
(c) a record is retained of each formation leak-off test and the results included in the daily drilling report referred to in paragraph 83(a) and in the well history report referred to in section 88.
Formation Flow and Well Testing Equipment
34 (1) The operator shall ensure that
(a) the equipment used in a formation flow test is designed to safely control well pressure, properly evaluate the formation and prevent pollution;
(b) the rated working pressure of formation flow test equipment upstream of and including the well testing manifold exceeds the maximum anticipated shut-in pressure; and
(c) the equipment downstream of the well testing manifold is sufficiently protected against overpressure.
(2) The operator of an offshore well or a well in a sour environment shall ensure that the formation flow test equipment includes a down-hole safety valve that permits closure of the test string above the packer.
(3) The operator shall ensure that any formation flow test equipment used in testing an offshore well that is drilled with a floating drilling unit has a subsea test tree that includes
(a) a valve that may be operated from the surface and automatically closes when required to prevent uncontrolled well flow; and
(b) a release system that permits the test string to be hydraulically or mechanically disconnected within or below the blow-out preventers.
35 The operator shall ensure that adequate procedures, materials and equipment are in place and utilized to minimize the risk of loss of well control in the event of lost circulation.
36 (1) The operator shall ensure that, during all well operations, reliably operating well control equipment is installed to control kicks, prevent blow-outs and safely carry out all well activities and operations, including drilling, completion and workover operations.
(2) After setting the surface casing, the operator shall ensure that at least two independent and tested well barriers are in place during all well operations.
(3) If a barrier fails, the operator shall ensure that no other activities, other than those intended to restore or replace the barrier, take place in the well.
(4) The operator shall ensure that, during drilling, except when drilling under-balanced, one of the two barriers to be maintained is the drilling fluid column.
37 The operator shall ensure that pressure control equipment associated with drilling, coil tubing, slick line and wire line operations is pressure-tested on installation and as often as necessary to ensure its continued safe operation.
38 If the well control is lost or if safety, environmental protection or resource conservation is at risk, the operator shall ensure that any action necessary to rectify the situation is taken without delay, despite any condition to the contrary in the well approval.
Casing and Cementing
39 The operator shall ensure that the well and casing are designed so that
(a) the well can be drilled safely, the targeted formations evaluated and waste prevented;
(b) the anticipated conditions, forces and stresses that may be placed upon them are withstood; and
(c) the integrity of gas hydrate and permafrost zones — and, in the case of an onshore well, potable water zones — is protected.
40 The operator shall ensure that the well and casing are installed at a depth that provides for adequate kick tolerances and well control operations that provide for safe, constant bottom hole pressure.
41 The operator shall ensure that cement slurry is designed and installed so that
(a) the movement of formation fluids in the casing annuli is prevented and, where required for safety, resource evaluation or prevention of waste, the isolation of the oil, gas and water zones is ensured;
(b) support for the casing is provided;
(c) corrosion of the casing over the cemented interval is retarded; and
(d) the integrity of gas hydrate and permafrost zones — and, in the case of an onshore well, potable water zones — is protected.
Waiting on Cement Time
42 After the cementing of any casing or casing liner and before drilling out the casing shoe, the operator shall ensure that the cement has reached the minimum compressive strength sufficient to support the casing and provide zonal isolation.
Casing Pressure Testing
43 After installing and cementing the casing and before drilling out the casing shoe, the operator shall ensure that the casing is pressure-tested to the value required to confirm its integrity for maximum anticipated operating pressure.
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.
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
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.
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