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

Marginal note:Flow system, calculation and allocation

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  14 (1) If the application for an authorization is in respect of a production project, the operator must submit to the Board for its approval the flow system, the flow calculation procedure and the flow allocation procedure that will be used to conduct the measurements referred to in sections 74 to 78, as well as any alternate measurements referred to in subsection 74(2) that the operator proposes to conduct.

• The following provision is not in force.

  Marginal note:Board approval

  (2) The Board must approve the flow system, the flow calculation procedure and the flow allocation procedure if the applicant demonstrates that the system and procedures facilitate accurate measurements and the allocation, on a pool or zone basis, of the production from and injection into individual wells.

Marginal note:Decommissioning and abandonment plan

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  15 (1) An operator must, in the case of a drilling program or production project, develop a decommissioning and abandonment plan that includes the following information:

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    (a) a description of the safety and environmental protection measures to be implemented during the decommissioning and abandonment to comply with the requirements of these Regulations, the provisions of Part III of the Act and any federal or provincial legislation or international conventions or agreements relating to safety and the protection of the environment;

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    (b) a description of the potential effects of the decommissioning and abandonment on the environment and on any future uses of the site where the program or project is carried out;

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    (c) the methods for restoring the site after the decommissioning and abandonment; and

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    (d) the forecasted costs of the decommissioning and abandonment and the manner in which the operator will finance or pay for those costs.

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  Marginal note:Costs and financing or payment

  (2) The operator must submit to the Board an update on the forecasted costs of decommissioning and abandonment and the manner in which the operator will finance or pay for those costs

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    (a) whenever there is a significant change to that information, and

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    (b) beginning no less than five years before the day on which the decommissioning and abandonment is forecasted to begin, at least once a year.

Marginal note:Definitions — paragraph 142(4)(c) of Act

16 The following definitions apply for the purposes of paragraph 142(4)(c) of the Act.

production facility

production facility means the systems and equipment referred to in paragraph (a) of the definition production installation, other than a diving system, as well as any associated aircraft landing areas, storage areas or tanks and accommodations areas. (installation de production)

production platform

production platform means a production installation. (plate-forme de production)

Marginal note:Well operation

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  17 (1) Subject to subsection (2), an operator that intends to conduct a well operation must obtain a well approval.

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  Marginal note:Approval not necessary

  (2) A well approval is not necessary to conduct a wire line operation, slick line operation, coiled tubing operation or other similar operation through a tree located above sea level if

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    (a) the operation does not alter the completion interval or is not expected to adversely affect the recovery of petroleum; and

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    (b) the equipment, operating procedures and qualifications of the persons carrying out the work are in compliance with the requirements of the authorization.

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  Marginal note:Definitions

  (3) The following definitions apply in subsection (2).

  slick line

  slick line means a single steel cable that is used to run tools in a well. (câble lisse)

  wire line

  wire line means a line that contains a conductor wire and that is used to run survey instruments or other tools in a well. (câble)

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  Marginal note:Approval application contents

  (4) The application for a well approval must include the estimated cost breakdown of the well operation and the following information:

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    (a) if the well approval is being sought to drill a well,

    • (i) a comprehensive description of the drilling program, a geoscientific description of the reservoir targets and a description of any geohazard,

    • (ii) the digital data necessary to allow for an independent geohazard assessment,

    • (iii) a description of the well data acquisition program referred to in section 18, and

    • (iv) a description of the well verification scheme referred to in section 19;

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    (b) if the well approval is being sought to perform a workover on, to re-enter, to complete or to recomplete a well or to suspend or abandon a well or a part of one, a description of the well or part, a description of the proposed work or activity and the rationale for carrying it out and barrier envelope diagrams that demonstrate that two barrier envelopes will be in place throughout the operation;

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    (c) if the well approval is being sought to complete a well, information that demonstrates that section 71 will be complied with;

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    (d) if the well approval is being sought to suspend a well or a part of one, an indication of the period within which the suspended well or part will be abandoned or completed; and

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    (e) if the well approval is being sought to suspend or abandon a well or a part of one, the methods for verifying the effectiveness of the isolation of pools and zones that is required under subparagraph 90(1)(b)(i).

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  Marginal note:Well approval granted by the Board

  (5) The Board must grant the well approval if the operator demonstrates that the well operation will be conducted safely, without waste or pollution and in compliance with these Regulations.

Marginal note:Well data acquisition program

18 In the case of a drilling program, an operator must develop a well data acquisition program that

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  (a) provides for the collection of sufficient pressure measurements, drill cutting and fluid samples, conventional cores, sidewall cores and well logs, and the carrying out of sufficient formation flow tests, analyses and surveys, to enable a comprehensive geophysical, geological and reservoir evaluation to be made; and

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  (b) identifies the quantity of samples and cores, the evaluation data and any associated analyses, surveys and reports that are to be provided to the Board.

Marginal note:Well verification scheme

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  19 (1) An operator must establish a well verification scheme based on criteria that the operator establishes to ensure that the design of any well is in accordance with industry standards and best practices so that the well’s integrity is maintained throughout its life cycle.

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  Marginal note:Well ranking

  (2) For the purposes of subsection (1), the operator must rank a well according to its level of risk and ensure that the well ranking is confirmed by an independent person.

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  Marginal note:Verification requirements

  (3) The verification scheme must set out the verification requirements that are applicable to the design of a well according to the well’s ranking and to any changes made to the design during the well’s construction or operation that would affect any previously undertaken verification.

• The following provision is not in force.

  Marginal note:Verification by independent person

  (4) The operator must ensure that the required verifications are carried out by an independent person that was not involved in the original design.

Marginal note:Suspension of well approval

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  20 (1) The Board may suspend a well approval if

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    (a) the operator conducts the well operation other than as described in the application for the well approval;

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    (b) the physical and environmental conditions encountered in the area of the work or activity for which the well approval was granted are more severe than those on the basis of which the manufacturer of any equipment used in the well operation established the equipment’s operating limits; or

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    (c) the operator uses a flow system, flow calculation procedure or flow allocation procedure that has not been approved under subsection 14(2), conducts a formation flow test that has not been approved under subsection 63(5) or engages in commingled production that has not been approved under subsection 80(2).

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  Marginal note:Factors for suspension

  (2) In deciding whether to suspend a well approval, the Board must consider

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    (a) the effects or potential effects of the applicable situation referred to in subsection (1) on safety, the environment and the conservation of petroleum resources; and

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    (b) the operator’s history of non-compliance with the requirements of these Regulations, the provisions of Part III of the Act or any requirements that are established by the Board under that Part with respect to well operations.

Marginal note:Revocation of well approval

21 The Board must revoke a well approval if

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  (a) the operator fails to remedy the situation that caused the suspension of the well approval as soon as the circumstances permit within 60 days after the date of that suspension unless, on written request by the operator, the Board grants the operator an extension of time to remedy the situation; or

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  (b) the operator continues to operate the well despite the suspension of the well approval.

Marginal note:Suspension or abandonment of well

22 If a well approval is revoked, the operator must ensure that the well is suspended or abandoned in accordance with Part 8.

Marginal note:Well approval — subsection 143(1) of Act

23 For the purposes of subsection 143(1) of the Act, a well approval relating to a production project is prescribed.

Marginal note:Concept safety analysis

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  24 (1) The approvals referred to in subsection 143(4) of the Act are subject to the operator’s submission of a concept safety analysis to the Chief Safety Officer at the time the operator submits the application and proposed development plan to the Board under subsection 143(2) of the Act.

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  Marginal note:Content

  (2) The concept safety analysis must

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    (a) be based on the development concept chosen by the operator as a general approach and described in Part I of the development plan;

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    (b) take into account all works and activities associated with each phase in the life cycle of the development;

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    (c) determine target levels of safety that are to be achieved to ensure safety and the protection of the environment for all works and activities within each phase of the life cycle of an installation, including its systems and equipment, from the installation’s design up to and including its decommissioning and abandonment;

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    (d) identify all hazards having the potential to cause a major accidental event;

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    (e) include a systematic assessment of the unmitigated risks associated with each of the identified hazards, including the likelihood of a major accidental event occurring and the consequences that would result;

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    (f) identify the control measures that are to be implemented to reduce the risks associated with the identified hazards to a level that is as low as reasonably practicable;

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    (g) identify the effects of any additional risks that may result from the implementation of the identified control measures; and

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    (h) identify all assumptions on which any aspect of the concept safety analysis is based.

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  Marginal note:Quantitative and qualitative risk assessments

  (3) The target levels of safety must be based on risk assessments that are

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    (a) quantitative, if it can be demonstrated that input data are available in the quantity and quality necessary to demonstrate the reliability of the results; or

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    (b) qualitative, if the criteria in paragraph (a) are not met or if a quantitative assessment would otherwise be inappropriate.

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  Marginal note:Contents of risk assessment

  (4) The operator must include in the risk assessment a description of the circumstances that will necessitate an update of the risk assessment, including changes in

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    (a) the physical and environmental conditions;

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    (b) the operating conditions and the limits taken into account in the design assumptions; and

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    (c) the operating procedures.

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  Marginal note:Review of risk assessment

  (5) The operator must update the risk assessment as often as necessary and at least once every five years throughout the life cycle of the development to

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    (a) account for the circumstances described in subsection (4); and

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    (b) ensure the ongoing suitability of the control measures to maintain risks at a level as low as reasonably practicable.