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B.C. Reg. 390/2004, deposited August 13, 2004, pursuant to the PETROLEUM AND NATURAL GAS ACT [Sections 39 and 96]. Ministerial Order M304/2004, dated and effective August 16, 2004.
The Oil and Gas Commission orders that the Drilling and Production Regulation, B.C. Reg. 362/98, is amended as set out in the attached Schedule.
— D. DOYLE, Commissioner; K. JONES, Deputy Commissioner.
Schedule
1 Section 1 of the Drilling and Production Regulation, B.C. Reg. 362/98, is amended in the definition of "operator" by adding "or test hole" after "well".
2 The following section is added:
2.1 (1) If an authorized commission employee considers it appropriate in the circumstances of a particular case, he or she may grant to an operator an exemption in writing, subject to any conditions specified in the exemption, from the application of
(a) section 18 (1),
(b) section 34 (3),
(c) one or more of paragraphs (a) to (e) of section 35 (1),
(d) section 35 (4),
(e) section 36 (1),
(f) section 41 (4),
(g) one or more of paragraphs (a) to (h) of section 45 (2),
(h) one or more of paragraphs (a) to (d) of section 52 (1),
(i) section 58 (4),
(j) section 62,
(k) section 64,
(l) section 80 (2), or
(m) section 87 (3) and (6).
(2) An authorized commission employee may grant to an operator of a well an exemption in writing from the application of section 47 (1) or (2), in relation to specified casing or equipment, subject to any conditions specified in the exemption, if the authorized commission employee is satisfied that
(a) the proper control of the well, or
(b) the prevention of inter-zonal communication,
as the case may be, will be maintained by means other than the use of the specified casing or equipment.
3 Sections 3 and 4 are repealed.
4 Section 5 is amended
(a) by repealing subsection (2),
(b) by repealing subsections (3) and (4) and substituting the following:
(3) The holder of a well authorization must not drill a well within 100 m of the normal high water mark of a body of water or 200 m from a water well without the written approval of an authorized commission employee.
(4) If a well or facility is
(a) closer than 100 m to the normal high water mark of a body of water, or
(b) 100 m or more from the normal high water mark of a body of water, but situated so that, given the topography or other relevant factors, an authorized commission employee considers that it is likely that an uncontrolled flow of oil, gas, brine or another fluid may reach the water,
the operator must do both of the following:
(c) install equipment in the well to prevent the escape of fluids from the well;
(d) construct surface facilities to contain escaping fluids. , and
(c) by repealing subsections (5) and (6).
5 Section 6 is amended by striking out ", and must be drilled in accordance with any conditions specified by them".
6 Sections 13 to 17 are repealed and the following substituted:
13 (1) The well name must clearly identify,
(a) the operator by name or abbreviation acceptable to an authorized commission employee,
(b) the field, and
(c) the surface site of the well
(i) by legal subdivision, section, township and range for wells in the Peace River Block, or
(ii) by quarter unit, unit, block and NTS map sheet number for wells outside the Peace River Block,
in that order, indicated by letters and numbers and separated by hyphens.
(2) If it is proposed to drill a well on the same legal subdivision or quarter unit as an earlier well, a letter must prefix the legal subdivision or unit to indicate the order in which the wells are approved, using the letter "A" for the second well, the letter "B" for the third well and so forth.
(3) For each well name change by an operator, an application must be submitted to the commission by the operator in the form and including the information required by the commission.
(4) If there is compliance with section 16, the fee to change a well name that is required under the Petroleum and Natural Gas General Regulation does not apply.
(5) If the ownership of a well is changed, the application to change the well name must be accompanied by proof of the change in ownership.
14 (1) A well or portion of a well may be classified as a development well at the time the well authorization is issued or amended if it is located in a spacing area that is in or contiguous to an oil or gas pool designated under section 97 (b) of the Act and the objective formation is in the same geological formation as the designated oil or gas pool.
(2) A well or portion of a well may be classified as an exploratory outpost at the time the well authorization is issued or amended if the well or portion of the well
(a) is located at a distance less than 7 km from an oil or gas pool designated under section 97 (b) of the Act, and
(b) does not conform to subsection (1).
(3) A well may be classified as an exploratory wildcat at the time the well authorization is issued or amended if it is located not nearer than 7 km to an oil or gas pool designated under section 97 (b) of the Act.
(4) If a well has been drilled, the well or a portion of it, on application by the operator prior to the release of information pursuant to section 57 (4), may be reclassified as an exploratory wildcat and designated as a discovery well if, in the opinion of an authorized commission employee, the drilling of the well or the portion of the well resulted in the discovery of a new oil or gas pool.
(5) Despite section 57, information pertaining to the designation of a new oil or gas pool may be kept confidential by the commission until the later of
(a) the expiry date of the confidentiality period under section 57 for the discovery well designated under subsection (4), and
(b) the expiry date of the period specified under section 57 (4).
15 (1) An application for a well authorization must be submitted to the commission by the operator in the form and including the information required by the commission.
(2) The operator of a well must prominently display at the well site during drilling operations the well authorization for the well and any amendments to it.
16 An application to transfer a well authorization or test hole authorization must be submitted to the commission by the operator, in the form and including the information required by the commission.
17 An operator of a well or test hole must not make a change to a program of drilling operations for the well or test hole unless
(a) the operator applies to the commission for approval to amend the well authorization or test hole authorization to reflect the change, and
(b) the application is approved.
7 Section 18 is amended
(a) by repealing subsections (1) to (5) and substituting the following:
(1) Unless exempted under section 2.1, the operator of a test hole must ensure that the test hole is not drilled deeper than 600 m.
(2) An application for a test hole authorization must be submitted to the commission by the operator of the test hole in the form and including the information required by the commission.
(3) The operator of a test hole must prominently display at the test hole site during drilling operations the test hole authorization and any amendments to it. ,
(b) by renumbering subsection (6) as subsection (4),
(c) in subsection (7) by striking out ", whether required or not," and by renumbering the subsection as subsection (5),
(d) by renumbering subsections (8) to (12) as subsections (6) to (10),
(e) by repealing subsection (13), and
(f) by renumbering subsection (14) as subsection (11).
8 Section 20 is amended
(a) by adding the following subsection:
(0.1) An operator must ensure that the requirements of this section are met in relation to a well for which the operator is responsible. ,
(b) by repealing subsection (3) and substituting the following:
(3) When a well is being drilled, blowout prevention equipment must be continuously maintained so that the equipment
(a) consists of a minimum of one annular preventer and 2 or more ram preventers, the latter to be comprised of a blank ram and one or more rams to close off around drill pipe, tubing or casing being used in the well, and
(b) is connected to a casing bowl that is equipped with
(i) an upper flange that is an integral part of the casing bowl,
(ii) at least one side outlet that is flanged or studded for wells in Classes B, C and D, and
(iii) at least one valve. ,
(c) in subsection (4) (b) by striking out "and",
(d) in subsection (4) (c) by striking out "." and substituting ", and", and
(e) in subsection (4) by adding the following paragraph:
(d) conform to the specifications set out in the handbook.
9 Section 30 is repealed and the following substituted:
30 The operator of a well must ensure that
(a) the location of the equipment used at the well site is spaced at the minimum distance specified in the handbook, and
(b) a service rig used at the well site has an operable horn on the drilling control panel for sounding alerts.
10 Section 32 (1) is repealed.
11 Section 34 is amended
(a) by repealing subsection (1), and
(b) by repealing subsection (3) and substituting the following:
(3) Unless exempted under section 2.1, the operator of a well must ensure that all production from or injection into the well is through tubing.
12 Section 35 is amended
(a) in subsection (1) by striking out "Subject to subsection (2)," and substituting "Unless exempted under section 2.1, and subject to subsection (2),",
(b) by repealing subsection (1.1) ,
(c) by repealing subsections (2) and (4) and substituting the following:
(2) The operator of a well must ensure that surface casing cement is set under pressure and not drilled out until sufficient compressive strength has been reached to obtain a valid formation integrity test in accordance with good oilfield practice.
(4) Unless exempted under section 2.1, the operator of a well must ensure that
(a) intermediate and production casing for the well is cemented through all porous zones, to a minimum of 150 m above the casing shoe, and tested in accordance with good oilfield practice, and
(b) the cement is not drilled out until sufficient compressive strength has been reached in accordance with good oilfield practice. , and
(d) by repealing subsections (7) and (8) (a).
13 Section 36 is repealed and the following substituted
36 (1) Unless exempted under section 2.1, the operator of a completed oil or gas well must ensure that the surface and subsurface equipment of the well is arranged to permit
(a) the ready measurement of the tubing pressure, production casing pressure and surface casing pressure, and
(b) any other reasonable test required by an authorized commission employee.
(2) The operator of a completed well must ensure that the surface equipment at the well site includes
(a) the valve connections necessary to sample the oil, gas or water produced, and
(b) in the case of a gas well, facilities for determining the wellhead fluid temperature.
(3) The operator of a well must
(a) keep a detailed record of all subsurface equipment in the well at all times prior to abandonment, and
(b) make the record available to an authorized commission employee on request.
14 Section 37 is repealed.
15 Section 41 is repealed and the following substituted:
41 (1) An operator of a well must not
(a) complete a well, or
(b) allow a well to be completed,
for commingled production from more than one pool or zone unless the operator first applies for and receives permission in writing from an authorized commission employee.
(2) An authorized commission employee may approve 2 or more zones or pools in a field as zones or pools in which a multi-zone well may be completed for commingled production and operated without further approval.
(3) An application for permission to complete a well as a commingled well must include information in accordance with guidelines issued by the commission.
(4) Unless exempted under section 2.1, an operator of a multi-zone well who has not received permission under subsection (1) must
(a) conduct annual tests to confirm that segregation has been established both in and behind the well casing, and
(b) within 30 days after completion, submit in duplicate to the commission an analysis and interpretation of the tests conducted.
16 Section 42 is amended
(a) by repealing subsection (1) and substituting the following:
(1) Until an application to alter a well or test hole, in the form and including the information required by the commission, has been approved by an authorized commission employee, the operator of the well or test hole must not deepen or re-enter the well or test hole.
(1.1) Until an application to alter a well, in the form and including the information required by the commission, has been approved by an authorized commission employee, the operator of the well must not
(a) re-complete the well in order to produce oil or gas from any formation other than the formation or formations from which production is being taken or has been taken, or
(b) perform a workover on the well. , and
(b) by repealing subsection (2).
17 Section 45 is repealed and the following substituted:
45 (1) Before abandoning a cased well or a cased test hole the operator of the well must
(a) submit to the commission an application to abandon a well, in the form and including the information required by the commission, and
(b) obtain the approval of an authorized commission employee to an abandonment program for the well, which approval may be given orally and confirmed later in writing.
(2) Unless exempted under section 2.1, the operator of a well must ensure that
(a) all permeable formations are isolated with cement,
(b) cement plugs set in open hole are of a minimum length of 30 m,
(c) a cement plug of a minimum length of 30 m is centered across the shoe of the surface casing or is of a sufficient length to completely cement off any aquifer beneath the surface casing shoe,
(d) all casing is cut off a minimum of 1 m below ground level and capped with a 3 m cement plug and a welded plate,
(e) subject to paragraphs (f) and (g), the top of all plugs, except the plug placed at the bottom of the well or test hole, is confirmed and the particulars are recorded in the daily report,
(f) if the cement top is greater than seven m from the depth specified in the designed plugging program, additional cement is used to bring the plug top to the depth as designed,
(g) if there is only a bottom hole plug and one other plug in the well or test hole, the top of the plug placed at the bottom of the well is confirmed and the particulars are recorded in the daily report, and
(h) a 1.5 m signpost is welded onto the stub of a plugged well or test hole on Crown land.
(3) Cased holes may be abandoned by placing a bridge plug above the top of perforations capped with an 8 m cement plug.
18 Section 46 is repealed.
19 Section 47 is repealed and the following substituted:
47 (1) The operator of a well must ensure that casing or other equipment is not removed from the well if it is essential to the proper control of the well.
(2) The operator of a well must ensure that casing or other equipment is not removed from the well if it is essential to the prevention of inter-zonal communication.
20 Section 48 (1) is repealed and the following substituted:
(1) On completion or final abandonment of any well, test hole or facility and as soon as weather and ground conditions permit, the operator must ensure that the surface is returned, as nearly as is reasonable, to the surface condition as it was when the operations were commenced.
21 Section 49 (2) is repealed.
22 Section 50 is repealed and the following substituted:
50 (1) The operator of a well being drilled or otherwise worked on must
(a) ensure that a daily drilling report (tour sheet) that conforms to subsection (2) is kept at the well site, and
(b) submit a copy of the daily drilling report (tour sheet) to the commission at the completion of the drilling or other work.
(2) The daily drilling report (tour sheet) must set out complete data on all operations performed during the day, including but not limited to the following:
(a) the depth at the beginning and end of each tour;
(b) all casing data, including size, type, grade, weight, whether new or used and the depth at which it is set;
(c) particulars of cementing;
(d) details of any water, oil or gas encountered, even if only small showings;
(e) a report of any tests made;
(f) full details of all formation tests, unless the details are submitted on a confidential report form provided by the commission;
(g) details of all occasions when the blowout preventers are closed, with the reason for their being closed;
(h) details of any loss of drilling fluid into the formation;
(i) a report of any volume of fluid required to fill the hole in accordance with section 24 (4) (c);
(j) the allocation of time to each operation;
(k) the name of the drilling contractor or service company and rig number;
(l) the spud and rig release dates.
23 Section 51 (4) is repealed.
24 Section 52 is amended
(a) in subsection (1) by striking out "For drill cuttings the operator of a well or test hole must" and substituting "Unless exempted under section 2.1, the operator of a well or test hole must",
(b) by repealing subsection (1.1),
(c) by repealing subsection (2) and substituting the following:
(2) Within 30 days after completion of a core analysis, the operator of a well or test hole must submit to the commission, in duplicate, the result of the core analysis, including digital core analysis data. ,
(d) by repealing subsection (3), and
(e) in subsection (4) by striking out "and the cores as well as the information so obtained must be forwarded to the commission without delay".
25 Section 53 is amended
(a) by repealing subsections (3), (5) and (8),
(b) by repealing subsection (4) and substituting the following:
(4) Within 30 days after the date on which a log was run, the operator of a well or test hole must submit to the commission 2 copies of the log, including any computer enhanced logs,
(a) in both paper form and in a digital format acceptable to an authorized commission employee, and
(b) clearly labeled with the well authorization number and well name. ,
(c) in subsection (6) by striking out "clear and non-fading print of a", and
(d) in subsection (7) by striking out "If recoveries on drill stem tests or wire line tests" and substituting "If drill stem tests, wire line tests or initial production tests".
26 Sections 54 and 55 are repealed and the following substituted:
55 Within 60 days after the date of rig release of the drilling rig, the operator of a well must submit to the commission a wellsite geology report
(a) for a well or portion of a well classified exploratory outpost or exploratory wildcat, or
(b) regardless of the well classification, if a wellsite geological report has been compiled.
27 Section 57 is amended
(a) in subsection (8) (a) by adding "formation at expected total depth," after "approval of the well authorization,", and
(b) by repealing subsection (13).
28 Section 58 is amended
(a) by repealing subsection (1) (b),
(b) in subsection (2) (a) by repealing subparagraph (v),
(c) in subsection (4) by striking out everything before paragraph (c) and substituting the following:
(4) Unless exempted under section 2.1, the operator of a well must ensure
(a) that any gas to be burned through a flare line is discharged from a flare line that
(i) terminates with a vertical riser of at least 12 m in height,
(ii) is adequately anchored, and
(iii) is equipped, if the gas flow is intermittent, with an ignition device to ensure continuous ignition of any gases,
(b) that all gas to be burned is incinerated in a mechanical device, and ,
(d) in subsection (5) (a) by striking out "by a method specified by the Ministry of Water, Land and Air Protection", and
(e) by repealing subsection (6).
29 Section 60 is amended
(a) by repealing subsection (3) and substituting the following:
(3) If a valve and remote control or an injection system and remote control have been installed in accordance with subsection (2) (a) or (b), the operator of the well referred to in subsection (2) must ensure that the stopping of the engine by the remote control is tested
(a) before the cement plug at the shoe of the surface casing is drilled out,
(b) before any well completion or servicing operations commence, and
(c) at least once in each 7 day period during the drilling or servicing of the well. , and
(b) by repealing subsections (4), (6) and (7).
30 Section 62 is amended
(a) by striking out "Unless otherwise approved by an authorized commission employee fire must be controlled in the following manner:" and substituting "Unless exempted under section 2.1, an operator must ensure that fire is controlled in the following manner:",
(b) in paragraphs (a), (e), (g), (h) and (j) by striking out "must not be" and substituting "are not",
(c) by repealing paragraphs (c), (f) and (n) and substituting the following:
(c) flares, incinerators, and enclosed gas burners are located at least
(i) 50 m from a well;
(ii) 50 m from storage tanks containing flammable liquids;
(iii) 25 m from any oil or gas processing equipment;
(iv) 80 m from any right of way, easement of any road allowance, public utility, building, installation, works, place of public concourse or any reservation for national defence, except only where there may exist special circumstances that, in the opinion of an authorized commission employee, justify the position at a greater or lesser distance;
(f) boilers and steam generating equipment are located at a point not less than 25 m from any well, separator, crude oil storage tank or other unprotected source of ignitable vapours;
(n) a sufficient area beneath the flare stack is free of combustible materials and vegetation.
(d) in paragraphs (b), (d) and (i) by striking out "must be" and substituting "are",
(e) in paragraph (k) by striking out "must be" and substituting "are", and
(f) in paragraph (m) by striking out "must all be" and substituting "are"
31 Section 63 is repealed.
32 Section 64 is repealed and the following substituted:
64 Unless exempted under section 2.2, an operator must ensure that any tanks and production equipment for a well, facility or plant for which the operator is responsible are located not less than 60 m from any right of way, easement, road allowance, public utility, building, installation, works, place of public concourse or any reservation for national defence.
33 Section 71 is amended
(a) by adding the following subsection:
(0.1) An operator must ensure that the requirements of this section are met in relation to a well, facility or plant for which the operator is responsible. ,
(b) by repealing subsection (2), and
(c) by repealing subsection (4) and substituting the following:
(4) Oil or gas produced from a well or facility for which the operator is responsible is not to be flared, except in amounts required because of drill stem testing, unless
(a) permission in writing has been obtained from an authorized commission employee,
(b) approval from an authorized commission employee is given orally and confirmed later in writing, or
(c) written directions from the commission are complied with.
34 Section 73 is amended
(a) in subsection (1) by striking out "the spacing area of",
(b) in subsection (3) by adding "or if additional information becomes available" at the end,
(c) by repealing subsections (4) and (6),
(d) in subsection (8) by striking out "the commissioner or deputy commissioner" and substituting "an authorized commission employee" in both places,
(e) in subsection (11) by striking out "calender" and substituting "calendar", and
(f) by repealing subsection (14).
35 Section 75 (2) is amended by striking out "for which a DOA has been approved" at the end of the subsection.
36 Section 80 (2) is repealed and the following substituted:
(2) Unless exempted under section 2.1, an operator must ensure that
(a) the production target at the end of the month and the overproduction or underproduction at the beginning of the month for each producing oil well or group of oil wells for which the operator is responsible is calculated each month, and
(b) a production allowable report, on the form provided, is submitted to the commission in time to be received on or before the 16th day of the month.
37 Section 84 (4) is amended by striking out "the commissioner or deputy commissioner" and substituting "an authorized commission employee".
38 Section 87 is amended
(a) by adding the following subsection:
(0.1) An operator must ensure that the requirements of this section are met in relation to a gas well for which the operator is responsible. ,
(b) in subsection (3) by striking out "unless otherwise approved by an authorized commission employee" and substituting "except in accordance with an exemption under section 2.1",
(c) by repealing subsection (4), and
(d) in subsection (6) by striking out "unless otherwise approved by the commissioner or deputy commissioner" and substituting "except in accordance with an exemption under section 2.1".
39 Section 88 is amended
(a) in subsection (3) by adding "or if additional information becomes available" at the end, and
(b) by repealing subsections (4), (5) and (9).
40 Section 89 is amended
(a) in subsection (2) by striking out "all" after "October 31 must" and by striking out "by ordinary mail" before "on or before December 16", and
(b) in subsection (3) by striking out "the commissioner or deputy commissioner" and substituting "an authorized commission employee".
41 Section 95 (6) is amended by striking out "the commissioner or deputy commissioner" and substituting "an authorized commission employee".
42 Sections 96 and 98 are repealed.
43 Section 100 (2) and (3) is repealed and the following substituted:
(2) Operation of a production facility or a gas processing plant after construction or modification must not commence until the operator has given written notice to an authorized commission employee.
(3) The operator must keep a detailed flow diagram of the production facility at the facility or the field office at all times.
44 Section 101 (1) and (2) is repealed and the following substituted:
(1) On application from an owner or owners, an authorized commission employee may approve the operation of a well or group of wells in a specified area under GEP if
(a) the applicant has demonstrated to the satisfaction of an authorized commission employee that reduction in ultimate recovery will not result from the proposed scheme,
(b) letters from owners of spacing areas within the area of the proposed scheme, indicating their reaction to the proposed scheme, have been filed with the commission,
(c) a sufficient level of technical information has been filed in accordance with guidelines specified by the commission, and
(d) other information considered appropriate by an authorized commission employee has been filed.
(2) On approval of a scheme under subsection (1), an authorized commission employee may
(a) establish or remove a daily oil or gas allowable or oil and gas allowable for the GEP area, subject to section 73 (8) or 88 (7), and
(b) grant to the owner or owners referred to in subsection (1) an exemption in writing from the application of sections 9 and 10, subject to any conditions that the authorized commission employee considers prudent or necessary.
45 Section 105 is repealed.
46 Schedule 2 is amended by striking out "lesser of unity or" and substituting "lesser of 1.00 and".
47 Schedule 3 is amended in the definition of "Depth" by striking out "means the bottom of the" and substituting "means the true vertical depth at the bottom of the".
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