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

Application for Authorization

6 The application for authorization shall be accompanied by

• (a) a description of the scope of the proposed activities;

• (b) an execution plan and schedule for undertaking those activities;

• (c) a safety plan that meets the requirements of section 8;

• (d) an environmental protection plan that meets the requirements of section 9;

• (e) information on any proposed flaring or venting of gas, including the rationale and the estimated rate, quantity and period of the flaring or venting;

• (f) information on any proposed burning of oil, including the rationale and the estimated quantity of oil proposed to be burned;

• (g) in the case of a drilling installation, a description of the drilling and well control equipment;

• (h) in the case of a production installation, a description of the processing facilities and control system;

• (i) in the case of a production project, a field data acquisition program that allows sufficient pool pressure measurements, fluid samples, cased hole logs and formation flow tests for a comprehensive assessment of the performance of development wells, pool depletion schemes and the field;

• (j) contingency plans, including emergency response procedures, to mitigate the effects of any reasonably foreseeable event that might compromise safety or environmental protection, which shall

  • (i) provide for coordination measures with any relevant municipal, provincial, territorial or federal emergency response plan, and

  • (ii) in an area where oil is reasonably expected to be encountered, identify the scope and frequency of the field practice exercise of oil spill countermeasures; and

• (k) a description of the decommissioning and abandonment of the site, including methods for restoration of the site after its abandonment.

• 7 (1) If the application for authorization covers a production installation, the applicant shall also 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 Part 7.

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

8 The safety plan shall set out the procedures, practices, resources, sequence of key safety-related activities and monitoring measures necessary to ensure the safety of the proposed work or activity and shall include

• (a) a summary of and references to the management system that demonstrate how it will be applied to the proposed work or activity and how the duties set out in these Regulations with regard to safety will be fulfilled;

• (b) a summary of the studies undertaken to identify hazards and to evaluate safety risks related to the proposed work or activity;

• (c) a description of the hazards that were identified and the results of the risk evaluation;

• (d) a summary of the measures to avoid, prevent, reduce and manage safety risks;

• (e) a list of all facilities, structures, equipment and systems critical to safety and a summary of the system in place for their inspection, testing and maintenance;

• (f) a description of the organizational structure for the proposed work or activity and the command structure on the installation, which clearly explains

  • (i) their relationship to each other, and

  • (ii) the contact information and position of the person accountable for the safety plan and of the person responsible for implementing it;

• (g) if the possibility of pack sea ice or drifting icebergs exists at the drill or production site, the measures to address the protection of the installation, including systems for ice detection, surveillance, data collection, reporting, forecasting and, if appropriate, ice avoidance or deflection; and

• (h) a description of the arrangements for monitoring compliance with the plan and for measuring performance in relation to its objectives.

9 The environmental protection plan shall set out the procedures, practices, resources and monitoring necessary to manage hazards to and protect the environment from the proposed work or activity and shall include

• (a) a summary of and references to the management system that demonstrate how it will be applied to the proposed work or activity and how the duties set out in these Regulations with regard to environmental protection will be fulfilled;

• (b) a summary of the studies undertaken to identify environmental hazards and to evaluate environmental risks relating to the proposed work or activity;

• (c) a description of the hazards that were identified and the results of the risk evaluation;

• (d) a summary of the measures to avoid, prevent, reduce and manage environmental risks;

• (e) a list of all structures, facilities, equipment and systems critical to environmental protection and a summary of the system in place for their inspection, testing and maintenance;

• (f) a description of the organizational structure for the proposed work or activity and the command structure on the installation, which clearly explains

  • (i) their relationship to each other, and

  • (ii) the contact information and position of the person accountable for the environmental protection plan and the person responsible for implementing it;

• (g) the procedures for the selection, evaluation and use of chemical substances including process chemicals and drilling fluid ingredients;

• (h) a description of equipment and procedures for the treatment, handling and disposal of waste material;

• (i) a description of all discharge streams and limits for any discharge into the natural environment including any waste material;

• (j) a description of the system for monitoring compliance with the discharge limits identified in paragraph (i), including the sampling and analytical program to determine if those discharges are within the specified limits; and

• (k) a description of the arrangements for monitoring compliance with the plan and for measuring performance in relation to its objectives.

Well Approval

• 10 (1) Subject to subsection (2), an operator who intends to drill, re-enter, work over, complete or recomplete a well or suspend or abandon a well or part of a well shall obtain a well approval.

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

  • (a) the work does not alter the completion interval or is not expected to adversely affect recovery; and

  • (b) the equipment, operating procedures and qualified persons exist to conduct the wire line, slick line or coiled tubing operations as set out in the authorization.

11 If the well approval sought is to drill a well, the application shall contain

• (a) a comprehensive description of the drilling program; and

• (b) a well data acquisition program that allows for the collection of sufficient cutting and fluid samples, logs, conventional cores, sidewall cores, pressure measurements and formation flow tests, analyses and surveys to enable a comprehensive geological and reservoir evaluation to be made.

12 The application shall contain

• (a) if the well approval sought is to re-enter, work over, complete or recomplete a well or suspend or abandon a well or part of it, a detailed description of that well, the proposed work or activity and the rationale for conducting it;

• (b) if the well approval sought is to complete a well, in addition to the information required under paragraph (a), information that demonstrates that section 46 will be complied with; and

• (c) if the well approval sought is to suspend a well or part of it, in addition to the information required under paragraph (a), an indication of the period within which the suspended well or part of it will be abandoned or completed.

13 The Board shall grant the well approval if the operator demonstrates that the work or activity will be conducted safely, without waste and without pollution, in compliance with these Regulations.

Suspension and Revocation of a Well Approval

• 14 (1) The Board may suspend the well approval if

  • (a) the operator fails to comply with the approval and the work or activity cannot be conducted safely, without waste or without pollution;

  • (b) the safety of the work or activity becomes uncertain because

    • (i) the level of performance of the installation or service equipment, any ancillary equipment or any support craft is demonstrably less than the level of performance indicated in the application, or

    • (ii) the physical environmental conditions encountered in the area of the activity for which the well approval was granted are more severe than the equipment’s operating limits as specified by the manufacturer; or

  • (c) the operator fails to comply with the approvals issued under subsection 7(2), 52(4) or 66(2).

• (2) The Board may revoke the well approval if the operator fails to remedy the situation causing the suspension within 120 days after the date of that suspension.

Development Plans

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

16 For the purpose of paragraph 143(3)(b) of the Act, Part II of the development plan relating to a proposed development of a pool or field shall contain a resource management plan.

PART 3Operator’s Duties

Availability of Documents

• 17 (1) The operator shall keep a copy of the authorization, the well approval and all other approvals and plans required under these Regulations, the Act and the regulations made under the Act at each installation and shall make them available for examination at the request of any person at each installation.

• (2) The operator shall ensure that a copy of all operating manuals and other procedures and documents necessary to execute the work or activity and to operate the installation safely without pollution are readily accessible at each installation.

Management System

18 The operator shall ensure compliance with the management system referred to in section 5.

Safety and Environmental Protection

19 The operator shall take all reasonable precautions to ensure safety and environmental protection, including ensuring that

• (a) any operation necessary for the safety of persons at an installation or on a support craft has priority, at all times, over any work or activity at that installation or on that support craft;

• (b) safe work methods are followed during all drilling, well or production operations;

• (c) there is a shift handover system to effectively communicate any conditions, mechanical or procedural deficiencies or other problems that might have an impact on safety or environmental protection;

• (d) differences in language or other barriers to effective communication do not jeopardize safety or environmental protection;

• (e) all persons at an installation, or in transit to or from an installation, receive instruction in and are familiar with safety and evacuation procedures and with their roles and responsibilities in the contingency plans, including emergency response procedures;

• (f) any drilling or well operation is conducted in a manner that maintains full control of the well at all times;

• (g) if there is loss of control of a well at an installation, all other wells at that installation are shut in until the well that is out of control is secured;

• (h) plans are in place to deal with potential hazards;

• (i) all equipment required for safety and environmental protection is available and in an operable condition;

• (j) the inventory of all equipment identified in the safety plan and the environmental protection plan is updated after the completion of any significant modification or repair to any major component of the equipment;

• (k) the administrative and logistical support that is provided for drilling, well or production operations includes accommodation, transportation, first aid and storage, repair facilities and communication systems suitable for the area of operations;

• (l) a sufficient number of trained and competent individuals are available to complete the authorized work or activities and to carry out any work or activity safely and without pollution; and

• (m) any operational procedure that is a hazard to safety or the environment is corrected and all affected persons are informed of the alteration.

• 20 (1) No person shall tamper with, activate without cause, or misuse any safety or environmental protection equipment.

• (2) A passenger on a helicopter, supply vessel or any other support craft engaged in a drilling program or production project shall comply with all applicable safety instructions.

• 21 (1) No person shall smoke on an installation except in those areas set aside by the operator for that use.

• (2) The operator shall ensure compliance with subsection (1).

Storing and Handling of Consumables

22 The operator shall ensure that fuel, potable water, spill containment products, safety-related chemicals, drilling fluids, cement and other consumables are

• (a) readily available and stored on an installation in quantities sufficient for any normal and reasonably foreseeable emergency condition; and

• (b) stored and handled in a manner that minimizes their deterioration, ensures safety and prevents pollution.

Handling of Chemical Substances, Waste Material and Oil

23 The operator shall ensure that all chemical substances, including process fluids and diesel fuel, waste material, drilling fluid and drill cuttings generated at an installation, are handled in a way that does not create a hazard to safety or the environment.

Cessation of a Work or Activity

• 24 (1) The operator shall ensure that any work or activity ceases without delay if that work or activity

  • (a) endangers or is likely to endanger the safety of persons;

  • (b) endangers or is likely to endanger the safety or integrity of the well or the installation; or

  • (c) causes or is likely to cause pollution.

• (2) If the work or activity ceases, the operator shall ensure that it does not resume until it can do so safely and without pollution.

PART 4Equipment and Operations

Wells, Installations, Equipment, Facilities and Support Craft

25 The operator shall ensure that

• (a) all wells, installations, equipment and facilities are designed, constructed, tested, maintained and operated to prevent incidents and waste under the maximum load conditions that may be reasonably anticipated during any operation;

• (b) a comprehensive inspection that includes a non-destructive examination of critical joints and structural members of an installation and any critical drilling or production equipment is made at an interval to ensure continued safe operation of the installation or equipment and in any case, at least once in every five-year period; and

• (c) records of maintenance, tests and inspections are kept.

26 The operator shall ensure that

• (a) the components of an installation and well tubulars, Christmas trees and wellheads are operated in accordance with good engineering practices; and

• (b) any part of an installation that may be exposed to a sour environment is designed, constructed and maintained to operate safely in that environment.

• 27 (1) The operator shall ensure that any defect in the installation, equipment, facilities and support craft that may be a hazard to safety or the environment is rectified without delay.

• (2) If it is not possible to rectify the defect without delay, the operator shall ensure that it is rectified as soon as the circumstances permit and that mitigation measures are put in place to minimize the hazards while the defect is being rectified.