Nova Scotia Offshore Petroleum Drilling and Production Regulations (SOR/2009-317)

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 petroleum 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.

Oil Burning

68 No operator shall burn oil 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 burning and the amount burned.

PART 9Support Operations

Support Craft

69 The operator shall ensure that all support craft are designed, constructed and maintained to supply the necessary support functions and operate safely in the foreseeable physical environmental conditions prevailing in the area in which they operate.

• 70 (1) The operator of a manned installation shall ensure that at least one support craft is

  • (a) available at a distance that is not greater than that required for a return time of twenty minutes; and

  • (b) suitably equipped to supply the necessary emergency services including rescue and first aid treatment for all personnel on the installation in the event of an emergency.

• (2) If the support craft exceeds the distance referred to in paragraph (1)(a), both the installation manager and the person in charge of the support craft shall log this fact and the reason why the distance or time was exceeded.

• (3) Under the direction of the installation manager, the support craft crew shall keep the craft in close proximity to the installation, maintain open communication channels with the installation and be prepared to conduct rescue operations during any activity or condition that presents an increased level of risk to the safety of personnel or the installation.

Safety Zone

• 71 (1) For the purposes of this section, the safety zone around an installation consists of the area within a line enclosing and drawn at a distance of 500 m from the outer edge of the installation.

• (2) A support craft shall not enter the safety zone without the consent of the installation manager.

• (3) The operator shall take all reasonable measures to warn persons who are in charge of vessels and aircraft of the safety zone boundaries, of the facilities within the safety zone and of any related potential hazards.

PART 10Training and Competency

72 The operator shall ensure that

• (a) all personnel have, before assuming their duties, the necessary experience, training and qualifications and are able to conduct their duties safely, competently and in compliance with these Regulations; and

• (b) records of the experience, training and qualifications of all personnel are kept and made available to the Board upon request.

Impairment and Fatigue

• 73 (1) Subject to subsection (2), the operator shall ensure that no person works when their ability to function is impaired and that no person is required to work

  • (a) any shift in excess of 12.5 continuous hours; or

  • (b) two successive shifts of any duration unless that person has had at least eight hours’ rest between the shifts.

• (2) The operator may allow a person to work in excess of the hours or without the rest period referred to in subsection (1) if the operator has assessed the risk associated with the person working the extra hours and determined that such work can be carried out without increased risk to safety or to the environment.

• (3) If an operator allows a person to work in excess of the hours or without the rest period referred to in subsection (1), the operator shall ensure that a description of the work, the names of the persons performing the work, the hours worked and the risk assessment referred to in subsection (2) are recorded.

PART 11Submissions, Notifications, Records and Reports

Reference to Names and Designations

74 When submitting any information for the purposes of these Regulations, the operator shall refer to each well, pool and field by the name given to it under sections 3 and 4, or if a zone, by its designation by the Board under section 4.

Surveys

• 75 (1) The operator shall ensure that a survey is used to confirm the location of the well on the seafloor.

• (2) The survey shall be certified by a person licensed under the Canada Lands Surveyors Act.

• (3) The operator shall ensure that a copy of the survey plan filed with the Canada Lands Surveys Records is submitted to the Board.

Incidents and Near-misses

• 76 (1) The operator shall ensure that

  • (a) the Board is notified of any incident or near-miss as soon as the circumstances permit; and

  • (b) the Board is notified at least 24 hours in advance of any press release or press conference held by the operator concerning any incident or near-miss during any activity to which these Regulations apply, except in an emergency situation, in which case it shall be notified without delay before the press release or press conference.

• (2) The operator shall ensure that

  • (a) any incident or near-miss is investigated, its root cause and causal factors identified and corrective action taken; and

  • (b) for any of the following incidents or near-misses, a copy of an investigation report identifying the root cause, causal factors and corrective action taken is submitted to the Board no later than 21 days after the day on which the incident or near-miss occurred:

    • (i) a lost or restricted workday injury,

    • (ii) death,

    • (iii) fire or explosion,

    • (iv) a loss of containment of any fluid from a well,

    • (v) an imminent threat to the safety of a person, installation or support craft, or

    • (vi) a significant pollution event.

Submission of Data and Analysis

• 77 (1) The operator shall ensure that a final copy of the results, data, analyses and schematics obtained from the following sources is submitted to the Board:

  • (a) testing, sampling and pressure surveys carried out as part of the well and field data acquisition programs referred to in section 49 and testing and sampling of formations referred to in section 51; and

  • (b) any segregation test or well operation.

• (2) Unless otherwise indicated in these Regulations, the operator shall ensure that the results, data, analyses and schematics are submitted within 60 days after the day on which any activity referred to in paragraphs (1)(a) and (b) is completed.

Records

78 The operator shall ensure that records are kept of

• (a) all persons arriving, leaving or present on the installation;

• (b) the location and movement of support craft, the emergency drills and exercises, incidents, near-misses, the quantities of consumable substances that are required to ensure the safety of operations and other observations and information critical to the safety of persons on the installation or the protection of the environment;

• (c) daily maintenance and operating activities, including any activity that may be critical to the safety of persons on the installation, the protection of the environment or the prevention of waste;

• (d) in the case of a production installation,

  • (i) the inspection of the installation and related equipment for corrosion and erosion and any resulting maintenance carried out,

  • (ii) the pressure, temperature and flow rate data for compressors and treating and processing facilities,

  • (iii) the calibration of meters and instruments,

  • (iv) the testing of surface and subsurface safety valves,

  • (v) the status of each well and the status of well operations, and

  • (vi) the status of the equipment and systems critical to safety and protection of the environment including any unsuccessful test result or equipment failure leading to an impairment of the systems; and

• (e) in the case of a floating installation, all installation movements, data, observations, measurements and calculations related to the stability and station-keeping capability of the installation.

Meteorological Observations

79 The operator of an installation shall ensure

• (a) that the installation is equipped with facilities and equipment for observing, measuring and recording physical environmental conditions and that a comprehensive record of observations of physical environmental conditions is maintained onboard the installation; and

• (b) that forecasts of meteorological conditions, sea states and ice movements are obtained and recorded each day and each time during the day that they change substantially from those forecasted.

Daily Production Record

80 The operator shall ensure that a daily production record, which includes the metering records and other information relating to the production of petroleum and other fluids in respect of a pool or well, is retained and readily accessible to the Board until the field or well in which the pool is located is abandoned and at that time shall offer the record to the Board before destroying it.

Management of Records

81 The operator shall ensure that

• (a) all processes are in place and implemented to identify, generate, control and retain records necessary to support operational and regulatory requirements; and

• (b) the records are readily accessible for inspection by the Board.

Formation Flow Test Reports

82 The operator shall ensure that

• (a) in respect of exploration and delineation wells, a daily record of formation flow test results is submitted to the Board; and

• (b) in respect of all wells, a formation flow test report is submitted to the Board as soon as the circumstances permit, following completion of the test.

Pilot Scheme

• 83 (1) For the purposes of this section, pilot scheme means a scheme that applies existing or experimental technology over a limited portion of a pool to obtain information on reservoir or production performance for the purpose of optimizing field development or improving reservoir or production performance.

• (2) The operator shall ensure that interim evaluations of any pilot scheme respecting a pool, field or zone are submitted to the Board.

• (3) When the operator completes a pilot scheme, the operator shall ensure that a report is submitted to the Board that sets out

  • (a) the results of the scheme and supporting data and analyses; and

  • (b) the operator’s conclusions as to the potential of the scheme for application to full-scale production.

Daily Reports

84 The operator shall ensure that a copy of the following is submitted to the Board daily:

• (a) the daily drilling report;

• (b) the daily geological report, including any formation evaluation logs and data; and

• (c) in the case of a production installation, a summary, in the form of a daily production report, of the records referred to in paragraph 78(d) and the daily production record.

Monthly Production Report

• 85 (1) The operator shall ensure that a report summarizing the production data collected during the preceding month is submitted to the Board not later than the 15th day of each month.

• (2) The report shall use established production accounting procedures.

Annual Production Report

86 The operator shall ensure that, not later than March 31 of each year, an annual production report for a pool, field or zone is submitted to the Board providing information that demonstrates how the operator manages and intends to manage the resource without causing waste, including:

• (a) for the preceding year, details on the performance, production forecast, reserve revision, reasons for significant deviations in well performance from predictions in previous annual production reports, gas conservation resources, efforts to maximize recovery and reduce costs and the operating and capital expenditures, including the cost of each well operation; and

• (b) for the current year and the next two years, estimates of the operating and capital expenditures, including the cost of each well operation.

• 87 (1) For each production project, the operator shall ensure that, not later than March 31 of each year, an annual environmental report relating to the preceding year is submitted to the Board and includes

  • (a) for each installation, a summary of the general environmental conditions during the year and a description of ice management activities; and

  • (b) a summary of environmental protection matters during the year, including a summary of any incidents that may have an environmental impact, discharges that occurred and waste material that was produced, a discussion of efforts undertaken to reduce pollution and waste material and a description of environmental contingency plan exercises.

• (2) For each drilling installation for an exploration or delineation well, the operator shall ensure that an environmental report relating to each well is submitted to the Board within 90 days after the rig release date and includes

  • (a) a description of the general environmental conditions during the drilling program and a description of ice management activities and downtime caused by weather or ice; and

  • (b) a summary of environmental protection matters during the drilling program, including a summary of spills, discharges occurred and waste material produced, a discussion of efforts undertaken to reduce them, and a description of environmental contingency plan exercises.