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

Marginal note:Certification

52 An operator must ensure that a competent third party has certified that all equipment that is installed temporarily on a vessel to conduct a geoscientific program, geotechnical program or environmental program is fit for the purposes for which it is to be used.

Marginal note:Damage to property

53 An operator must take all necessary measures to ensure that no property is damaged as a result of a geoscientific program, geotechnical program or environmental program.

Energy Sources

Marginal note:General requirements

• 54 (1) An operator must ensure that any energy source that is used in a geoscientific program, geotechnical program or environmental program is

  • (a) kept free from any substance that could create a hazard; and

  • (b) operated in a manner that prevents inadvertent activation of the energy source.

• Marginal note:Electrical or electromagnetic energy source

  (2) The operator must ensure that any electrical or electromagnetic energy source is equipped with circuit breakers on the charging and discharging circuits and with wiring that is adequately insulated and grounded to prevent current leakage and electrical shock.

• Marginal note:Elimination of risk to divers

  (3) The operator must ensure that the program is conducted in a manner that eliminates all safety risks to divers from any energy source used, including by determining the minimum distances that are required to be maintained between the divers and the energy source and ensuring compliance with those distances.

Marginal note:Testing of energy sources

• 55 (1) An operator must minimize energy source testing on the deck of an operations site while a geoscientific program, geotechnical program or environmental program is being conducted.

• Marginal note:Energy source activation

  (2) Before an energy source is activated for testing purposes, the operator must ensure that measures are taken to protect persons at the operations site where the test will be conducted from exposure to any hazard associated with the energy source, including

  • (a) advising those persons that a test will be conducted;

  • (b) safely securing all equipment; and

  • (c) in the case of an electrical or electromagnetic energy source, fully immersing it in water.

Primary Vessel

Marginal note:Classification

56 An operator must ensure that the primary vessel used in a geoscientific program, geotechnical program or environmental program holds a valid certificate of class issued by a classification society.

Destruction, Discard or Removal from Canada

Marginal note:Prohibited without approval

• 57 (1) It is prohibited for any person to destroy, discard or, subject to subsection (2), remove from Canada the following materials and information that are obtained in the context of a geoscientific program, geotechnical program or environmental program unless the destruction, discard or removal is approved by the Board under subsection (3):

  • (a) all field data and final processed data that are in a digital format, together with a description of that data format;

  • (b) any samples; and

  • (c) all other data, observations, readings and supporting information obtained during the program.

• Marginal note:Exception

  (2) The materials and information may be removed from Canada without the approval of the Board for the purpose of being processed in a foreign country if they are returned to Canada as soon as the processing is complete.

• Marginal note:Approval of application

  (3) Within 60 days after the day on which the Board receives an application for approval to destroy, discard or remove from Canada materials or information, the Board must approve the application if the Board is satisfied that the materials or information are not of much use or value.

• Marginal note:Provision of materials or information

  (4) The Board may, after receiving an application referred to in subsection (3), require that the materials or information, or a copy of the information, be provided to the Board within the period that it specifies.

PART 8Drilling and Production

General

Marginal note:Allocation of areas

58 The Board may make orders respecting the allocation of areas, including respecting the determination of the size of spacing units and the determination of well production rates, for the purpose of drilling for or producing petroleum.

Marginal note:Name, classification or status of well

59 The Board may give a name, classification or status to any well and may change that name, classification or status.

Marginal note:Pool, zone or field

60 The Board may

• (a) designate a zone as such for the purposes of these Regulations;

• (b) give a name to a pool, zone or field and change that name; and

• (c) define the boundaries of a pool, zone or field.

Evaluation of Wells, Pools and Fields

Marginal note:Data acquisition programs

• 61 (1) An operator must ensure that the field data acquisition program referred to in section 13 and the well data acquisition program referred to in section 18 are implemented in accordance with good oilfield practices.

• Marginal note:Partial implementation

  (2) If part of the field or well data acquisition program cannot be implemented, the operator must ensure that

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

  • (b) measures to otherwise achieve the goals of the program are submitted to the Board for approval; and

  • (c) the measures approved by the Board are implemented.

• Marginal note:Board approval of alternate measures

  (3) The Board must approve the measures submitted under paragraph (2)(b) if the operator demonstrates that the measures can achieve the goals of the field data acquisition program or the well data acquisition program, as the case may be, or are the only ones that can be taken in the circumstances.

• Marginal note:Periodic updates

  (4) The operator must ensure that the field data acquisition program is periodically updated.

Marginal note:Formation evaluation, testing and sampling

62 If the Board determines that data or samples from a formation in a well would contribute substantially to the geological and reservoir evaluation, the operator must ensure that the formation is evaluated, tested and sampled as necessary to obtain the data or samples.

Marginal note:Formation flow test

• 63 (1) An operator must ensure that no development well is put into production unless a formation flow test that has been approved by the Board under subsection (5) is conducted.

• Marginal note:Well operation

  (2) If a development well is subjected to a well operation that might change its deliverability, productivity or injectivity, the operator must, for the purpose of determining the effects of the operation on the well’s deliverability, productivity or injectivity, ensure that a formation flow test that has been approved by the Board under subsection (5) is conducted as soon as the circumstances permit after the well operation has ended and the flow or injection conditions have stabilized.

• Marginal note:Conditions

  (3) Before conducting a formation flow test on a well drilled on a geological feature, the operator must

  • (a) submit a formation flow test program to the Board; and

  • (b) obtain the Board’s approval under subsection (5) to conduct the formation flow test.

• Marginal note:Contribution to geological and reservoir evaluation

  (4) 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 the Board determines that the test would contribute to the geological and reservoir evaluation.

• Marginal note:Approval of formation flow test

  (5) The Board must approve a formation flow test if the operator demonstrates that the test will be conducted in a manner that ensures safety and the protection of the environment and in accordance with good oilfield practices and that the test will enable the operator to

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

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

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

Marginal note:Samples and cores

• 64 (1) An operator must ensure that all drill cutting and fluid samples and cores collected as part of the field data acquisition program referred to in section 13 and the well data acquisition program referred to in section 18 are

  • (a) stored in durable containers that are correctly labelled for identification;

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

  • (c) delivered to the Board within 60 days after the day on which the well is abandoned, suspended or completed, unless the analyses are ongoing, in which case the samples or cores, or any remaining parts, are to be delivered to the Board on completion of the analyses.

• Marginal note:Remaining conventional core

  (2) An operator must 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 delivered to the Board.

• Marginal note:Remaining sidewall core

  (3) The operator must ensure that, after any samples necessary for analysis or for research or academic studies have been removed from a sidewall core, the remaining core is delivered to the Board.

Marginal note:Notice before disposal

65 Before disposing of any drill cutting or fluid samples, cores or evaluation data, an operator must ensure that the Board is notified in writing and given an opportunity to request delivery of the samples, cores or data.

Location of Wells

Marginal note:Depth measurements

66 An operator must ensure that no record is made of any depth in a well unless the depth is measured from the rotary table of the drilling rig.

Marginal note:Directional and deviation surveys

67 An operator must ensure that

• (a) directional and deviation surveys are taken at intervals that allow the position of the well-bore to be accurately known during drilling;

• (b) the directional and deviation surveys are adequate to permit the management, in relation to the well-bore, of identified geohazards, the intersection of the geological targets for the well and the intersection of the well-bore in the event that a relief well is required; and

• (c) except in the case of a relief well, every well is drilled in compliance with internationally recognized well-bore collision avoidance practices and procedures and in a manner that does not intersect an existing well.

Well Integrity

Marginal note:Well control

• 68 (1) An operator must ensure that adequate procedures, materials and equipment are in place and used throughout the life cycle of the well to prevent the loss of well control.

• Marginal note:Reliable well control equipment

  (2) The equipment referred to in subsection (1) must include reliable well control equipment to detect and control kicks, prevent blowouts and safely conduct all well operations.

• Marginal note:Shallow hazards

  (3) During well operations conducted without a riser, the operator must ensure that measures are implemented to reduce the risk of shallow hazards while drilling.

• Marginal note:Surface casing

  (4) The operator must ensure that the surface casing of the well is installed to a sufficient depth, and in a competent formation, to establish well control for the continuation of the drilling operations.

• Marginal note:Blowout preventer and barrier envelopes

  (5) After the surface casing has been installed and cemented, the operator must ensure that

  • (a) a blowout preventer is installed before the casing shoe is drilled out; and

  • (b) there are at least two independent barrier envelopes — each of which is to be verified by the operator — in place throughout the life cycle of the well.

• Marginal note:Barrier envelope failure

  (6) If there is a failure in a barrier envelope, the operator must ensure that no well operation, other than one that is intended to replace or restore the barrier envelope, takes place until the barrier envelope is replaced or restored.

• Marginal note:Replacement or restoration of barrier envelope

  (7) The operator must ensure that

  • (a) the barrier envelope is replaced or restored as soon as the circumstances permit;

  • (b) every effort is made for the replacement or restoration to conform to the original design specifications; and

  • (c) the barrier envelope is verified after its replacement or restoration.

• Marginal note:Drilling fluid column

  (8) The operator must ensure that, during well operations, one of the two barrier envelopes is the drilling fluid column, except when drilling under-balanced or if, when a completion or test string is run, the other barrier envelope has already been installed downhole and tested.

• Marginal note:Pressure control equipment

  (9) The operator must ensure that all pressure control equipment associated with well operations is pressure-tested on installation and as often as necessary to ensure its continued safe operation.

• Marginal note:Corrective measures

  (10) If well control is lost or if safety, the protection of the environment or resource conservation is at risk, the operator must ensure that any necessary corrective measures are taken without delay.

Marginal note:Casing and wellhead system

• 69 (1) An operator must ensure that a casing and wellhead system is designed, taking into account the wellhead’s fatigue life, so that, throughout the life cycle of the well,

  • (a) the well can be drilled safely, targeted formations can be evaluated and developed and waste can be prevented;

  • (b) the maximum conditions, forces and stresses to which the casing and wellhead system may be subjected are withstood; and

  • (c) the integrity of gas hydrate and permafrost zones is protected.

• Marginal note:Barrier analysis

  (2) The operator must ensure that, during the design of the casing and wellhead system, if the annulus is to be used for fluid production or injection, a barrier analysis is conducted to confirm that two barrier envelopes can be maintained in place throughout the life cycle of the well.

• Marginal note:Casing depth

  (3) The operator must ensure that each casing is installed at a depth that provides for adequate kick tolerance and safe well control.

• Marginal note:Wellhead fatigue life

  (4) The operator must ensure that well operations do not continue beyond the wellhead’s fatigue life.

• Marginal note:Cement slurry

  (5) The operator must ensure that the cement slurry is designed and installed so that, throughout the life cycle of the well,

  • (a) the movement of formation fluids is prevented and, when required for safety, resource evaluation or waste prevention, the isolation of the petroleum and water zones is ensured;

  • (b) support for the casing is provided;

  • (c) corrosion of the casing over the cemented interval is minimized; and

  • (d) the integrity of gas hydrate and permafrost zones is protected.

• Marginal note:Cement integrity and placement

  (6) The operator must ensure that the cement integrity and placement are verified, subject to subsection (7), through pressure-testing and, if the cement is a common barrier element of the two barrier envelopes or if confirmation of zonal isolation is required, also through logging.

• Marginal note:Other methods of verification

  (7) The cement integrity and placement may be verified using other methods if the operator demonstrates that those methods provide a level of verification that is equivalent to those referred to in subsection (6).

• Marginal note:Cement design and slurry analysis

  (8) The operator must ensure that the cement design is subjected to comprehensive laboratory testing and pre-cementing quality control, under all foreseeable conditions that could have an impact on cementing, so that the cement provides the expected isolation and can be efficiently installed.

• Marginal note:Waiting on cement time

  (9) The operator must ensure that, after cementing any casing or casing liner and before drilling out the casing shoe, the cement reaches the minimum compressive strength sufficient to support the casing and provide zonal isolation.

• Marginal note:Casing pressure testing

  (10) The operator must ensure that, after any casing is installed and cemented and before the casing shoe is drilled out, the casing is pressure-tested to the value required to confirm its integrity for maximum anticipated operating pressure throughout the life cycle of the well.