Canada–Nova Scotia Offshore Area Petroleum Operations Framework Regulations (SOR/2024-26)

Marginal note:Allocation of group production

75 An operator must ensure that group production of oil, gas and water from wells and the volume of fluids injected into those wells are allocated on a pro rata basis using the flow system, flow calculation procedure and flow allocation procedure approved under subsection 14(2).

Marginal note:Allocation over multiple pools or zones

• The following provision is not in force.

  76 (1) If a well is completed over multiple pools or zones, the operator must ensure that the production of oil, gas and water from the well and the volume of fluids injected into the well are allocated on a pro rata basis to the pools or zones using the flow allocation procedure approved under subsection 14(2).

• The following provision is not in force.

  Marginal note:Proration tests

  (2) The operator must ensure that sufficient proration tests are conducted to measure the rates at which fluids are produced from the well to ensure that the allocation of oil, gas and water production to the pools and zones as a result of the flow allocation procedure is accurate.

Marginal note:Testing and maintenance

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  77 (1) An operator must ensure that

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    (a) meters and other associated components of the flow system are calibrated and maintained to ensure their accuracy;

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    (b) the equipment used to calibrate the flow system is calibrated in accordance with good measurement practices; and

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    (c) 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 in progress.

• The following provision is not in force.

  Marginal note:Notice

  (2) The operator must ensure that a conservation officer is notified, as soon as the circumstances permit, of any modification to or 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.

Marginal note:Calibration

78 An operator must ensure that

• The following provision is not in force.

  (a) a conservation officer is notified of the calibration of any transfer meter prover or master meter used in conjunction with a transfer meter at least 30 days before the day on which it is calibrated or as agreed to in writing by the Chief Conservation Officer; and

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  (b) following completion of the calibration, a copy of the calibration certificate is submitted to the Chief Conservation Officer as soon as the circumstances permit.

Marginal note:Resource management

79 An operator must, in respect of the recovery of petroleum, ensure that

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  (a) recovery from a pool or zone is maximized in accordance with good oilfield practices;

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  (b) wells are located and operated to provide for maximum recovery from a pool or zone; and

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  (c) if there is reason to believe that infill drilling or the implementation of an enhanced recovery plan might result in increased recovery from a pool or field, studies on those methods are conducted and submitted to the Board.

Marginal note:Commingled production

• The following provision is not in force.

  80 (1) It is prohibited for an operator to engage in commingled production unless approved by the Board.

• The following provision is not in force.

  Marginal note:Approval by the Board

  (2) The Board must approve commingled production if the operator demonstrates that it will maximize the recovery of petroleum.

• The following provision is not in force.

  Marginal note:Measurement and allocation

  (3) If the operator engages in commingled production, it must 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 set out in sections 74 to 78.

Marginal note:Pilot scheme

• The following provision is not in force.

  81 (1) An operator may develop and implement a pilot scheme that applies technology in relation to the commercial production of petroleum from a pool, field or zone that is accessible from a production installation and in relation to which there is an approved development plan for the purpose of obtaining information on reservoir, production or technology performance in order to optimize production performance under the development plan or to determine whether the development plan requires an amendment for production performance to be optimized.

• The following provision is not in force.

  Marginal note:Duration and interim evaluations

  (2) The Board must establish

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    (a) the duration of the pilot scheme, based on the time required to achieve the stated objectives; and

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    (b) the intervals at which interim evaluations of the pilot scheme are to be conducted and reported to the Board.

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  Marginal note:Completion of pilot scheme

  (3) On completion of the pilot scheme, the operator must ensure that any production activities undertaken for the purpose of the scheme are discontinued.

Marginal note:Prohibition against flaring or venting

82 It is prohibited for an operator to flare or vent gas unless

• The following provision is not in force.

  (a) the Board authorizes flaring or venting as part of the authorization;

• The following provision is not in force.

  (b) the flaring or venting occurs during a formation flow test approved by the Board under subsection 63(5); or

• The following provision is not in force.

  (c) it is necessary in order to remediate an emergency situation that may cause serious risk to human health or safety and the Board is notified, as soon as the circumstances permit, of the flaring or venting and of the volume flared or vented.

Marginal note:Venting limit

• The following provision is not in force.

  83 (1) An operator must ensure that the volume of gas vented under paragraph 82(a) per installation during a year is not greater than 15 000 standard m³.

• The following provision is not in force.

  Marginal note:Definition of vented

  (2) For the purpose of subsection (1), vented means emitted in a controlled manner, other than as a result of combustion, from an installation due to

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    (a) the design of equipment or operational procedures at the installation; or

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    (b) the occurrence of an event that pressurizes the gas beyond the capacity of the equipment at the installation to retain the gas.

Marginal note:Gas emissions

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  84 (1) The operator must ensure that the emissions of gas from the seals of a centrifugal compressor or reciprocating compressor at an installation are

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    (a) captured and routed to gas conservation equipment or gas destruction equipment; or

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    (b) routed to vents that release those emissions into the atmosphere.

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  Marginal note:Flow rate measurement device

  (2) The operator must ensure that the flow rate of emissions of gas released from vents referred to in paragraph (1)(b) is measured by means of a continuous monitoring device that is

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    (a) calibrated in accordance with the manufacturer’s recommendations such that its measurements have a maximum margin of error of ±10%;

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    (b) operated continuously, other than during periods when it is undergoing normal servicing or timely repairs; and

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    (c) equipped with an alarm that is triggered when the applicable flow rate limit referred to in subsections (3) and (4) for the vents of the compressor is reached.

• The following provision is not in force.

  Marginal note:Flow rate limit — centrifugal compressor

  (3) The operator must ensure that the flow rate limit of emissions from the vents of a centrifugal compressor on an installation is

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    (a) in the case of a compressor that is installed before January 1, 2023,

    • (i) 0.68 standard m³/min if the compressor has a rated brake power of greater than or equal to 5 MW, and

    • (ii) 0.34 standard m³/min if the compressor has a rated brake power of less than 5 MW; and

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    (b) in the case of a compressor that is installed on or after January 1, 2023, 0.14 standard m³/min.

• The following provision is not in force.

  Marginal note:Flow rate limit — reciprocating compressor

  (4) The operator must ensure that the flow rate limit of emissions that are from the rod packings and distance pieces of a reciprocating compressor on an installation is

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    (a) if the compressor is installed before January 1, 2023, the product of 0.023 standard m³/min and the number of pressurized cylinders that the compressor has; or

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    (b) if the compressor is installed on or after January 1, 2023, the product of 0.001 standard m³/min and the number of pressurized cylinders that the compressor has.

• The following provision is not in force.

  Marginal note:Corrective measures

  (5) If the alarm referred to in paragraph (2)(c) is triggered, the operator must ensure that corrective measures are taken as soon as the circumstances permit to reduce the flow rate to below or equal to the applicable flow rate limit.

Marginal note:Prohibition against oil burning

85 It is prohibited for an operator to burn oil unless

• The following provision is not in force.

  (a) the Board authorizes burning as part of the authorization;

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  (b) the burning occurs during a formation flow test approved by the Board under subsection 63(5); or

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  (c) it is necessary in order to remediate an emergency situation that may cause serious risk to human health or safety and the Board is notified, as soon as the circumstances permit, of the burning and of the amount burned.

Marginal note:Determination of net environmental benefit

86 In determining for the purpose of subsection 166.1(3) of the Act whether the use of a spill-treating agent is likely to achieve a net environmental benefit, the Chief Conservation Officer must take into account

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

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

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

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

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  (e) the monitoring plan referred to in paragraph 11(4)(f); and

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  (f) the results of any small-scale test conducted in respect of the agent.

Marginal note:Small-scale test

• The following provision is not in force.

  87 (1) An operator must, in respect of any small-scale test of a spill-treating agent referred to in section 166.1 of the Act, ensure that

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    (a) before the test is conducted, the Chief Conservation Officer approves the carrying out of the test;

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    (b) during the test, the quantity of spill-treating agent applied is measured and recorded, the efficacy of the spill-treating agent is monitored and the factors that affect that efficacy are evaluated; and

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    (c) after the test, the following information is submitted in writing, without delay, to the Chief Conservation Officer:

    • (i) the volume of oil released and the volume treated,

    • (ii) the quantity of spill-treating agent that was used to conduct the test,

    • (iii) the circumstances under which the test was conducted, and

    • (iv) the efficacy of the use of the spill-treating agent.

• The following provision is not in force.

  Marginal note:Conditions

  (2) The following conditions must be met before a small-scale test is approved:

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    (a) the operator must demonstrate that the quantity of spill-treating agent to be used in the test is the minimum required to evaluate the efficacy of its use; and

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    (b) in the case of a request to conduct an offshore subsurface test, the operator must demonstrate that, due to physical and environmental conditions, a surface test cannot be done or its efficacy cannot be readily determined.

• The following provision is not in force.

  Marginal note:Net environmental benefit already determined

  (3) No small-scale test is to be approved if the Chief Conservation Officer has made a determination for the purpose of section 166.1 of the Act regarding the net environmental benefit of the use of the spill-treating agent whose efficacy the test is intended to evaluate.

• The following provision is not in force.

  Marginal note:Oral or written approval

  (4) Approval of a small-scale test may be provided orally or in writing but, if approval is provided orally, the Chief Conservation Officer must, as soon as the circumstances permit, provide to the operator written confirmation of the approval.