Growth, Enterprise and Trade
THE OIL AND GAS ACT
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Regulations |
PART 6
Drilling, Completing, Servicing and Abandoning
Drilling and Production Regulation Table of Contents
18 The licensee shall give notice to the district office as follows:
(a) not less than 24 hours before commencement of wellsite construction;
(a.1) not less than 24 hours before spudding a well;
(b) not less than two hours before pulling pipe during a drill stem test;(c) not less than two hours before cementing casing;
(d) not less than one hour before completing or servicing a well;
(e) not less than 24 hours before conducting a pressure test under subsection 50(1);
(f) not less than 24 hours before commencing a segregation test under subsection 52(3);
(g) not less than two hours before commencing the abandonment of a well in which only surface casing has been run;
(h) not less than 24 hours before commencing the abandonment of a well in which production casing has been run;
(i) not less than two hours before backfilling an abandoned well.
Variation in well operation approved under Act
Drilling and Production Regulation Table of Contents
19(1) Subject to subsection (2), no person shall vary an approved well operation for which a well licence has been issued under Part 8 of the Act without the approval of the director or an inspector.
19(2) In the case of an emergency that requires an immediate variation in an approved operation, the licensee shall advise an inspector as soon as is practicable and, when requested by the inspector, shall provide the inspector with confirmation of the variation in writing.
20(1) A licensee shall ensure that a copy of the well licence, including any amendment, is posted in a conspicuous place at the well at all times during the drilling operation.
20(2) Where gas containing hydrogen sulfide might reasonably be expected to be encountered during drilling, completion, or servicing, the licensee shall post signs in conspicuous places on or near the rig and at the entrance to the wellsite warning of the presence or potential presence of the gas.
20(3) Where explosives are to be detonated at a wellsite by electrical frequencies, the licensee shall post a sign in a conspicuous place at the entrance of the access road to the wellsite stating that equipment transmitting electrical frequencies must be switched off before entering the wellsite.
Drilling BOP requirements
Drilling and Production Regulation Table of Contents
21(1) The licensee of a well that is being drilled shall, before drilling out of the surface casing shoe plug commences, install and maintain a blow-out prevention system in accordance with this Part.
21(2) The blow-out prevention system required on a well is determined in accordance with Schedule E and the following classifications:
(a) Class 2 is a development well in which the total depth authorized by the well licence is above the base of the Devonian Three Forks Formation;
(b) Class 3 is a development well in which the total depth authorized by the well licence is below the base of the Devonian Three Forks Formation or an exploratory well.
22(1) The licensee shall ensure that a blow-out prevention system required under this regulation is hydraulically operated and is connected to an accumulator system illustrated in Schedule E that is:
(a) capable of providing, without recharge, fluid of sufficient volume and pressure to open the hydraulic valve, to fully close the annular blow-out preventer, and to maintain a pressure of 8,400 kPa on the accumulator system;
(b) installed and operated in accordance with the manufacturer’s specifications;
(c) connected to the blow-out preventer and the hydraulic valve with lines of working pressure equal to the working pressure of the accumulator, with any line located under the substructure of the rig made of steel or sheathed with approved fire resistant sleeving;
(d) recharged by an automatic pressure controlled pump that is capable of recovering in not more than five minutes any drop in the pressure of the accumulator resulting from the operation of the hydraulic valve and full closure of the annular blow-out preventer; and
(e) capable of closing any ram type blow-out preventer in not more than 30 seconds or any annular type blow-out preventer in not more than 90 seconds, using only the accumulator.
22(2) The licensee shall ensure that the nitrogen supply connected to the accumulator system:
(a) is capable of opening the hydraulic valve and closing the annular blow-out preventer and one ram type blow-out preventer; and
(b) is under a pressure of not less than 12,500 kPa.
Drilling BOP system controls
Drilling and Production Regulation Table of Contents
23(1) The licensee shall ensure that the blow-out prevention system includes accessible operating controls for each blow-out preventer and hydraulic valve, and that a set of controls is located:
(a) within 5 m of the driller’s station; and
(b) at least 15 m from the well and shielded to protect the operator from any flow of the well.
23(2) The licensee shall ensure that a ram type blow-out preventer that is not equipped with an automatic locking device has hand wheels that are installed or easily accessible for installation.
Drilling kill system requirements
24(1) The licensee shall ensure that the blow-out prevention system includes a kill system that:
(a) is capable of pumping fluid into the well;
(b) consists of an arrangement of valves and steel lines as illustrated in Schedule E; and
(c) has a working pressure equal to that of the blow-out prevention system.
24(2) A flexible hose may be used as a kill line if the hose:
(a) has a pressure rating equal to that of the blow-out prevention system;
(b) has the same internal diameter as the steel line;
(c) has factory installed connections;
(d) is installed and operated in accordance with the manufacturer’s specifications;
(e) is marked so that its manufacturer can be readily identified;
(f) is secured to prevent stresses on connecting valves and piping; and
(g) is protected from damage.
Drilling bleed-off and manifold system requirements
Drilling and Production Regulation Table of Contents
25(1) The licensee shall ensure that the blow-out prevention system includes a bleed-off system that:
(a) consists of an arrangement of valves, chokes, and steel lines as illustrated in Schedule E;
(b) has a working pressure equal to that of the blow-out prevention system, except for the portion of the bleed-off line that is located downstream from the last valve on the manifold;
(c) is securely tied down; and
(d) includes a manifold that:
(i) is located outside the substructure of the rig; and
(ii) is easily accessible and adequately lighted.
25(2) A flexible hose that conforms to subsection 24(2) may be used to connect the drilling spool to the manifold.
25(3) The licensee shall ensure that a line from the manifold to the mud system directs the flow to a mud tank through a mud gas separator except where the pump suction is taking fluid from earthen pits.
25(4) The licensee shall ensure that the section of the bleed-off line that is located downstream from the last valve on the manifold to the flare pit terminates in a slightly downward direction into an earthen pit that:
(a) is excavated to a depth of not less than one metre below ground level; and
(b) has side and back walls rising not less than one metre above ground level.
Mud gas separator
Drilling and Production Regulation Table of Contents
26 Where a mud gas separator is used, the licensee shall ensure that it is connected to a separate line that terminates in the flare pit and has a diameter that is at least 25 mm larger than the inlet line.
27 Where a mud tank is used, an inspector may require the licensee to install and maintain a device to provide warning at the driller’s station of a change in the level of fluid in the mud tank.
28(1) An inspector may require that the drilling mud system be equipped with a device to permit the measurement of the volume of drilling fluid required to fill the hole when pulling pipe out of the hole.
28(2) When pulling pipe out of a well, the licensee shall fill the hole with drilling fluid so that the fluid level in the well does not fall below a depth of 30 m.
Drilling operations conducted in cold weather
Drilling and Production Regulation Table of Contents
29 The licensee shall ensure that when an operation is conducted in temperatures below 0°C:
(a) the blow-out prevention system is provided with sufficient heat to maintain its effectiveness; and
(b) the lines in the bleed-off system are empty, filled with non-freezing fluid, or heated.
Equipment to be maintained on drilling rig
30(1) The licensee shall maintain in an easily accessible location on the drilling rig:
(a) a device capable of stopping back flow; and
(b) a full opening drill string safety valve in the open position.
30(2) The equipment referred to in subsection (1) must be designed so that it can be stripped into the well when installed in the drill string.
Air drilling
Drilling and Production Regulation Table of Contents
31 Where a well is being drilled with air, the licensee shall install and maintain:
(a) a rotating head that diverts the flow;
(b) a diverter line run to the flare pit;
(c) a reserve volume of drilling fluid equal to at least 1.5 times the capacity of the hole;
(d) a continuous hydrogen sulfide monitor on the diverter line; and
(e) a continuous ignition device at the end of the diverter line.
32(1) The licensee shall conduct a 10 minute pressure test before drilling the cement out of any casing on:
(a) each ram type blow-out preventer to 1,400 kPa; and
(b) the blow-out prevention system, including each blow-out preventer, to 7,000 kPa.
32(2) The licensee shall ensure that the blow-out prevention system is operated at least once a day and that any defective equipment is repaired before operations resume.
32(3) The licensee shall ensure that:
(a) a report of every test of the blow-out prevention system is contained in the rig tour report; and
(b) in the case of a pressure test, the report indicates the blow-out preventer that was tested, the duration of the test, and the pressures observed at the beginning and end of the test.
Drilling BOP equipment training
Drilling and Production Regulation Table of Contents
33 The licensee shall ensure that:
(a) any driller, toolpush, or wellsite supervisor employed on the rig during the drilling of the well have a valid "First Line Supervisor Certificate" issued by the Petroleum Industry Training Service or other accreditation acceptable to an inspector in blow-out prevention procedures, and that the certificate numbers and expiry dates are recorded in the rig tour report for the well;
(b) a blow-out prevention drill is performed before drilling out any casing shoe plug, and details of the drill are recorded in the rig tour report; and
(c) the procedures, calculations, formulas, and current data needed to control a kick at the well are posted at the rig in a form acceptable to an inspector.
34(1) The licensee of a well that:
(a) is being completed or recompleted; or
(b) is located in an area where, in the opinion of the director, there is a reasonable expectation of encountering positive wellhead pressure, and that is being serviced in a manner involving the movement of tubing;
shall ensure that a blow-out prevention system that is of a pressure rating and configuration adequate to shut off any flow from the well, and that conforms to the requirements of this section, is installed and maintained.
34(2) The blow-out prevention system referred to in subsection (1) shall include:
(a) a single gate blind ram blow-out preventer, and a single gate pipe ram blow-out preventer;
(b) a double gate ram type blow-out preventer that utilizes a pipe ram and a blind ram; or
(c) a single gate blind ram blow-out preventer and an annular blow-out preventer.
34(3) The licensee shall ensure that a servicing blow-out prevention system:
(a) is hydraulically operated;
(b) is equipped with a pressure source capable of providing fluid of sufficient volume and pressure to close the blow-out preventers in not more than 30 seconds;
(c) has one set of clearly-marked operating controls at the operator’s station;
(d) for a ram type blow-out preventer that is not equipped with a ram locking device, has hand wheels that are installed or easily accessible for installation; and
(e) is maintained so that its operation is not impaired by low temperatures.
34(4) The licensee shall ensure that every servicing blow-out prevention system is equipped with a back-up system capable of closing one blow-out preventer in not more than 60 seconds.
34(5) The licensee shall ensure that manual wheels used as a back-up system are positioned a minimum of 2 m from the wellhead when fully operational.
34(6) The licensee shall maintain on the service rig in an easily accessible location a full opening safety valve that is in the open position and that can be attached to the tubing or other pipe in the well.
34(7) The licensee shall ensure that appropriate measures are taken to prevent the escape of fluid from a well while installing or removing a blow-out preventer.
34(8) The licensee of a well shall ensure that the blow-out prevention equipment is operated daily and that any defective equipment is repaired before operations resume.
34(9) The operator of a service rig shall pressure test each ram type blow-out preventer for 10 minutes to 1,400 kPa and 7,000 kPa or the maximum expected wellhead pressure, whichever is the greater, before commencing completion operations at a well, or on the request of an inspector.
34(10) The operator of a service rig shall ensure that all tests are recorded in the rig tour report including, in the case of a pressure test, the blow-out preventer tested, the duration of the test, and the pressures recorded.
BOP shop servicing
Drilling and Production Regulation Table of Contents
35 Where a drilling or servicing blow-out preventer is serviced and pressure tested in a shop, the operator of the rig shall maintain a record of the test data and maintenance performed and shall, on the request of an inspector, submit a copy of the record to the district office.
Director may vary BOP requirements
36 The director may, upon application by the licensee or on the director’s own motion, vary the blow-out prevention requirements of this Part for any well.
37(1) The licensee shall ensure that no internal combustion engine air intake or exhaust is located less than 5 m from a well open to the atmosphere or any other source of ignitable vapour.
37(2) The licensee shall ensure that any internal combustion engine located within 10 m of a well that is open to the atmosphere or any other source of ignitable vapour has:
(a) air intake shut-off valves, equipped with a remote control easily accessible from the operator’s station;
(b) a system for injecting an inert gas into the engine’s cylinders equipped with a remote control easily accessible from the operator’s station;
(c) a duct that provides air for the engine from a distance of at least 10 m from the well or any source of ignitable vapour; or
(d) any other device approved for the purpose of this section.
37(3) The licensee shall ensure that the exhaust pipe of any internal combustion engine located within 10 m of a well that is open to the atmosphere or any other source of ignitable vapour is:
(a) directed away from the well or source of ignitable vapour; and
(b) constructed to prevent the emergence of flame along its length or at its end.
37(4) Where an installation is made in accordance with clause (2)(a) or (b), the licensee shall ensure that the internal combustion engine is tested for stopping by remote control:
(a) during the drilling of a well, before drilling out the surface casing shoe plug and at least once every seven days thereafter;
(b) during the completion or servicing of a well, before commencing operations, and at least once every seven days thereafter; and
(c) when requested by an inspector.
37(5) The licensee shall ensure that the results of a test under subsection (4) are recorded with full particulars in the rig tour report.
37(6) If an internal combustion engine fails to stop during a test under subsection (4), the licensee shall ensure that the operation is discontinued until the shut down system is repaired.
Construction and use of drill pit
Drilling and Production Regulation Table of Contents
38(1) The licensee shall ensure that in the construction of a drilling fluid pit:
(a) the topsoil in the pit area is removed and preserved;
(b) the pit is constructed of clay or other suitable impermeable material;
(c) the bottom of the pit is above the ground water level; and
(d) the pit is located and constructed so that it does not collect natural run-off water and, in the event of an overflow, the fluid does not travel off the wellsite.
38(2) Where a pit of sufficient capacity for the drilling operation cannot be constructed on the wellsite in accordance with subsection (1) because of subsurface soil, surface topography, or other conditions, the licensee shall insure that
(a) all drilling fluid and drill cuttings are contained in tanks and disposed of in a manner approved by an inspector; or
(b) if a pit is to be constructed off the wellsite, the location of the pit is approved by an inspector.
38(3) If a pit is used during the drilling or completion of a well, the licensee shall ensure that only drilling fluid is directed into the pit.
Clean-up of wellsite
Drilling and Production Regulation Table of Contents
39(1) Upon completion of the drilling and casing or abandonment of a well, the licensee shall as soon as weather and ground conditions allow:
(a) dispose of all drilling fluids and liquid waste in accordance with this section;
(b) fill any pit made in connection with the well;
(c) clear the wellsite of debris; and
(d) spread the topsoil referred to in clause 38(1) on the wellsite;
and advise the district office when the operation is completed.
39(2) Before any drilling fluid is spread on the wellsite, the licensee shall submit a one litre sample of the drilling fluid to the district office.
39(3) The licensee shall ensure that no drilling fluid is spread over the wellsite if the sample submitted under subsection (2) has a pH of less than five or more than 10, or a chlorides content of more than 2,000 parts per million.
39(4) Where the sample referred to in subsection (2) does not conform to the standards specified in subsection (3) or contains hydrocarbons or other contaminants, the licensee shall dispose of drilling fluids in a manner approved by the director or an inspector.
39(5) The licensee shall ensure that no drilling fluids are spread over ground off the wellsite without the written consent of the surface owner and the approval of an inspector.
40 Unless authorized by the director, the licensee shall not in the course of drilling a well remove the drilling rig unless the well has been completed in accordance with the licence or abandoned in accordance with this regulation.
Surface casing
Drilling and Production Regulation Table of Contents
41(1) The licensee shall ensure that every well has surface casing that:
(a) is installed to a depth of:
(i) 25 m below the top of the bedrock;
(ii) 10% of the true vertical depth of the well;
(iii) 100 m; or
(iv) a depth required by the director;
whichever is the greater;
(b) includes a float collar or float shoe; and
(c) is cemented by the pump and plug method with sufficient cement to circulate to the top of the hole.
41(2) If no bleed back occurs, the licensee may release pressure at the surface immediately upon completion of the cement job.
41(3) The licensee shall ensure that before the plug is drilled out:
(a) the cement is allowed to cure for not less than eight hours; and
(b) the surface casing is pressure tested to 7,000 kPa.
41(4) Where, when cementing surface casing, no cement returns occur at the top of the hole, the licensee shall immediately advise the district office and, with the approval of an inspector, conduct a remedial cement job.
41(5) The licensee shall ensure that no surface casing is removed from a well.
Surface casing vent
Drilling and Production Regulation Table of Contents
42 The licensee shall ensure that the annulus between the second casing string and the surface casing is vented by a line that:
(a) has a minimum diameter of 25 mm;
(b) has a working pressure rating of at least 3,500 kPa;
(c) extends at least 30 cm above ground level;
(d) is equipped with a threaded fitting; and
(e) terminates so that any flow is directed either downward or parallel to the ground.
43 Where a drill stem test is conducted, the licensee shall ensure that:
(a) a device is installed above the down hole test equipment to allow circulation of fluids from the drill string;
(b) during darkness:
(i) no pipe is pulled from the well unless the rig is lighted with flood lights that meet the requirements of the Manitoba Electrical Code; and
(ii) when oil or gas is recovered in the drill pipe, the recovery is reverse circulated or the discharge is controlled in a manner acceptable to an inspector;
(c) any gas released into the atmosphere during a drill stem test is flared; and
(d) any liquid recovered from a well during a drill stem test is directed into a tank isolated from the drilling mud system.
Production casing
Drilling and Production Regulation Table of Contents
44(1) The licensee shall ensure that intermediate or production casing installed in a well:
(a) includes a float collar or float shoe; and
(b) is cemented by the pump and plug method with sufficient cement to ensure that the cement top is at least 150 m above the top of the Swan River Formation.
44(2) The licensee shall ensure that before the plug is drilled out or the well is completed:
(a) the cement is allowed to cure:
(i) 24 hours for production casing; and
(ii) 12 hours for intermediate casing; and
(b) the production casing or intermediate casing is pressure tested to 7,000 kPa.
44(3) If no bleed back occurs, the licensee may release pressure at the surface immediately upon completion of the cement job.
44(4) Where the director has reasonable grounds to believe that cementing is not effective, the director may require the licensee to conduct a survey to determine the top of the cement and the quality of the cement bond or to take remedial action.
Adequate equipment and methods
Drilling and Production Regulation Table of Contents
45(1) The licensee shall ensure that equipment, tools, material, or casing used in a well is in good condition and conforms with:
(a) the specifications set out in the well licence;
(b) where applicable, specifications established by the manufacturer or the American Petroleum Institute; and
(c) any other specifications established by the director.
45(2) The director or an inspector may specify or approve methods to be used in drilling, completing, or servicing a well.
45(3) Unless otherwise authorized by an inspector, the licensee shall ensure that all wellhead equipment has a minimum working pressure rating of 7,000 kPa or the maximum expected wellhead pressure, whichever is the greater.
45(4) The licensee shall ensure that the wellhead equipment includes valve connections necessary to sample oil, gas, or water.
45(5) The licensee of a producing well shall install a high pressure control device between the wellhead and the flow line.
45(6) Where an inspector considers that wellhead equipment, casing, or down hole equipment used in drilling, completing, servicing, operating, or abandoning a well is inadequate, defective, or hazardous, the inspector may require the licensee to repair or replace the equipment or casing.
45(7) The licensee shall ensure that, during operations on a well, service rig guy lines are installed:
(a) in accordance with specifications provided by the manufacturer of the rig;
(b) in a manner certified by a qualified professional engineer; or
(c) in accordance with the American Petroleum Institute Recommended Practice for Maintenance and Use of Drilling and Well Servicing Structures, API RP 4G, dated January, 1992, as amended from time to time.
Use of condensate
Drilling and Production Regulation Table of Contents
46 Where more than 1.5 m3 of condensate or other low flash point hydrocarbon is used in completing or servicing a well, the licensee shall ensure that:
(a) open tanks are not used for storage or gauging;
(b) a minimum distance of 25 m is maintained between the wellhead and storage tanks;
(c) shut off valves are installed between the tank and any pump and between any pump and the wellhead;
(d) a check valve is installed at the wellhead; and
(e) all lines downstream from the pump are pressure tested to 7,000 kPa or twice the anticipated pumping pressure, whichever is the greater.
47(1) The licensee of a well that has been completed shall not commence operations to:
(a) suspend the well;
(b) recomplete the well;
(c) deepen the well;
(d) remove casing from the well;
(e) abandon the well;
(f) convert the well for another purpose;
(g) repair casing in the well; or
(h) isolate a casing leak and continue operating the well;
without the approval of the director obtained on application.
47(2) An application under subsection (1) must be made on a form provided by the branch and must include:
(a) a detailed program of the proposed operations;
(a.1) for an application made under clause 47(1)(h), a plan for continued operation of the well that minimizes the possibility of a packer becoming stuck in the wellbore or other downhole problems affecting the licensee's ability to abandon the well in accordance with the requirements of section 56; and(b) any additional information the director may require.
47(3) The director may approve an application made under subsection (1), subject to the regulations and any term or condition the director considers necessary or advisable.
Production and injection through tubing
Drilling and Production Regulation Table of Contents
48 The licensee shall ensure that, unless otherwise authorized by the inspector, all production from or injection into a well is through tubing landed within 15 m of the completed interval.
Packer for injection or disposal
49 The licensee shall ensure that before any fluid is injected through a subsurface formation through a well:
(a) unless otherwise authorized by an inspector, a packer is set within 15 m of the completed interval;
(b) the annular space between the tubing and the casing is filled with a non-corrosive inhibited fluid; and
(c) the annulus is pressure tested in accordance with subsection 50(1).
Isolation of tubing and casing
Drilling and Production Regulation Table of Contents
50(1) The licensee of an injection or disposal well shall, not later than September 1 of each year, pressure test the annulus between the tubing and the production casing to 3,500 kPa or such other pressure as the director may require.
50(2) Where a pressure test fails, the licensee shall advise the district office within seven days after the pressure test of the licensee’s plan to repair the well in a manner approved by an inspector.
51(1) If a licensee determines that a well has or may have a casing leak, the licensee shall notify the district office within 24 hours, and if a leak is confirmed, the licensee shall apply within 30 days of confirmation for approval in accordance with the provisions of section 47 to
(a) repair the leak;
(b) isolate the leak and continue operating the well; or
(c) abandon the well.
51(2) If an inspector suspects that a well has or may have a casing leak, the licensee shall determine if there is a leak in accordance with the instructions of the inspector and, if a leak is confirmed, the licensee shall comply with the application requirements of subsection (1).
Application to complete multi-pool well
Drilling and Production Regulation Table of Contents
52(1) An application for approval to complete a well as a multi-pool well must be made to the director on a form provided by the branch and must include:
(a) a diagram of the well showing the present and proposed completion details;
(b) a graph showing the production or injection history of the well;
(c) where it is planned to segregate production or injection in the wellbore proposed segregation measures, including:
(i) a detailed description of the equipment installed to achieve segregation; and
(ii) the proposed method of demonstrating that segregation exists between the pools;
(d) where it is proposed to commingle production or injection in the wellbore:
(i) maps showing the interpreted structure, effective reservoir thickness, areal extent and fluid interfaces of the pools; and
(ii) a discussion of:
(A) the ultimate reserves associated with each pool recoverable through the well;
(B) the proposed method of allocating production or injection to each pool, including testing frequency;
(C) reasons justifying the proposed commingling, including specific economic data; and
(D) the impact of commingling production or injection on ultimate recovery from each pool and on the correlative rights of owners; and
(e) any other information the director may require.
52(2) Unless the director approves commingling of injection or production in a multi-pool well, the licensee shall segregate in the wellbore and separately measure production from or injection into each pool.
52(3) The licensee of a multi-pool well in which segregation of production or injection is required shall conduct a test to demonstrate that segregation exists between the pools:
(a) within 30 days after the well has been completed as a multi-pool well;
(b) once every three years thereafter; and
(c) at such other time as the director may require.
52(4) The licensee of a multi-pool well shall submit to the branch the results of any segregation test conducted under subsection (3).
52(5) Where a licensee fails to comply with subsection (3), the director may establish terms and conditions under which the licensee may continue to operate the well.
52(6) The licensee of a multi-pool well in which production or injection is commingled in the wellbore shall submit, not later than April 30 of each year, a report providing for the previous year:
(a) the result of any test conducted to determine the allocation of production or injection to each pool;
(b) a graph showing the production or injection history for each pool in the well;
(c) a summary of all operations carried out at the well; and
(d) any other information the director may require.
Suspended wells
Drilling and Production Regulation Table of Contents
53(1) The licensee of a well at which normal operations are suspended for six consecutive months shall apply under subsection 47(1) for approval to suspend or abandon the well.
53(2) The director may approve suspension of a well under subsection 47(3) for a term of not more than three years from the date of approval.
53(3) The licensee of a suspended well shall, at least 30 days before the expiry of the approval of the suspension:
(a) advise the branch in writing of his or her proposed plan to reactivate the well; or
(b) submit an application under subsection 47(1) to abandon the well or to suspend the well.
Non-refundable levy for inactive well or battery
Drilling and Production Regulation Table of Contents
54(1) Subject to subsection (2), a well or battery that has been operated 15 days or less in a calendar year may be designated by the director as an inactive well or battery for the purpose of clause 172(1)(b) of the Act.
54(2) A well drilled or battery constructed in a calendar year is exempt from the provisions of this section for that calendar year.
54(3) For the purposes of this section, a well or battery designated under subsection (1) as inactive shall be classified as follows by the director:
(a) Class 1 - a well that has not been operated for five years or less;
(b) Class 2 - a well that has not been operated for more than five consecutive years but fewer than 10 consecutive years;
(c) Class 3 - a well that has not been operated for 10 consecutive years or more;
(d) Class 4 - an inactive battery.
54(4) Before April 30 of every year, the director shall mail a notice containing the following information to each operator who has one or more inactive wells or batteries;
(a) a list of the operator's wells and batteries that are designated under subsection (1) as inactive;
(b) the class of each inactive well and battery; and
(c) the amount of the non-refundable levy owing for each inactive well and battery as determined under Schedule A.
54(5) The operator shall pay the non-refundable levy for each well and battery set out in the notice provided under subsection (4) by July 31 of that year, unless a well or battery has been abandoned before July 31 of that year in accordance with section 56 or section 79, as the case may be.
54(6) If the operator fails to pay the non-refundable levy by July 31, a penalty as determined in Item 3.1 of Schedule A is assessed against the operator in addition to the requirement to pay the non-refundable levy.
Account reviewed annually
Drilling and Production Regulation Table of Contents
54.1 The director shall conduct an annual review of the Abandonment Fund Reserve Account and shall make a recommendation as to whether the amount of the non-refundable levy should be changed having regard to the account balance and anticipated deposits to and expenditures from the account.
55 Subject to section 57, where a well in which only surface casing has been set it is abandoned, the licensee shall ensure that:
(a) each porous interval is isolated with a cement plug not less than 30 m long or by a cement plug extending at least 15 m above and below the porous zone;
(b) a cement plug with a minimum length of 30 m is placed across the surface casing shoe;
(c) the interval between the cement plugs is filled with drilling mud;
(d) all cement plugs are placed in the hole by circulating them through drill pipe, or by any other method approved by an inspector;
(e) unless otherwise authorized by an inspector, a cement plug is able to withstand a force of 18 kN when probed with drill pipe after allowing the cement to cure for six hours;
(f) when a cement plug is probed with an approved wireline tool, a strip log showing the calculated and measured cement top is submitted to the district office on completion of the probing;
(g) a cement plug is reset if it fails to withstand the required force or is found to be displaced a distance that renders it inadequate for the purpose for which it was set;
(h) the surface casing is cut off at least 1.5 m below ground level; and
(i) a steel plate is welded on the end of the surface casing in order to completely close it off.
Cased hole abandonment
Drilling and Production Regulation Table of Contents
56(1) Subject to section 57, when abandoning a well completed in a Jurassic or Mississippian formation, the licensee shall:
(a) set an approved mechanical plug above the base of the upper (Evaporite) member of the Amaranth Formation and place an 8 m cement plug on top of the mechanical plug; or
(b) set a cement plug by circulating to extend from below the perforations or, in the case of an open hole completion from the bottom of the well, to at least 15 m above the base of the upper (Evaporite) member of the Amaranth Formation, and probe the plug with a force of 18 kN or such other force as may be approved by an inspector after the cement cures for at least six hours;
and, after the plug is set:
(c) pressure test the casing above the plug to 3,500 kPa;
(d) if pressure testing indicates a leak, test the plug for proper shut off;
(e) if the production casing is cemented above the surface casing shoe, pressure test the annulus between the surface and production casing to 3,500 kPa;
(f) if the pressure test required under clause (e) is successful:
(i) set an approved mechanical plug in the production casing 5 m below the surface casing shoe and place an 8 m cement plug on top of the mechanical plug; or
(ii) set a cement plug inside the production casing to extend at least 15 m above and below the surface casing shoe;
(g) if the production casing is not cemented above the surface casing shoe, or if the pressure test under clause (e) fails:
(i) squeeze cement through perforations made in the casing to ensure the presence of a cement sheath outside the production casing and a plug inside the production casing for at least 15 m above and below the surface casing shoe;
(ii) retest the annulus in accordance with clause (e); and
(iii) probe the plug with tubing.
(h) if there is a hole in the casing above the plug set under clause (a) or (b), pressure test the casing above the plug set in accordance with clause (f) or (g) to 3,500 kPa and, if a cement plug is used, probe the plug with tubing;
(i) fill the production casing and the annulus between the surface and production casing with a non-corrosive inhibited fluid;
(j) cut off the surface and production casing a minimum of 1.5 m below ground level; and
(k) weld a steel plate to completely close off the end of the surface and production casing.
56(2) A licensee shall ensure that the well is abandoned in a manner approved by the director where:
(a) the well has been completed as a multi-pool well;
(b) the well is completed in a formation other than a Jurassic or Mississippian formation; or
(c) the production casing is to be removed from the well.
Director may vary abandonment requirements
Drilling and Production Regulation Table of Contents
57 The director may on application by the licensee vary any requirement under section 55 or 56.
57.1 Unless otherwise approved by an inspector, when a well is abandoned a flow line tied into the well shall be abandoned in accordance with section 99.
58 Upon completion of the abandonment of a well or battery, and as soon as weather and ground conditions allow, the operator shall:
(a) remove from the site and properly dispose of all equipment, materials, oilfield waste, and debris;
(b) drain and fill all excavations; and
(c) contour the surface and return the site and access road to a condition as nearly as possible to their condition when operations commenced.
Rehabilitation
Drilling and Production Regulation Table of Contents
59(1) For the purpose of section 125 of the Act (operator must rehabilitate site), a site is rehabilitated when:
(a) the provisions of section 58 are complied with; and
(b) subject to subsection (2), an inspector is satisfied that plant growth on the site is comparable to plant growth on the land surrounding the site.
59(2) An inspector may accept analysis of soil samples from the site indicating soil conditions are comparable to the surrounding land in lieu of the requirement in clause (1)(b).
60(1) An application under subsection 171(1) of the Act for a Certificate of Abandonment for the site of a well or battery must be made to an inspector on a form provided by the branch and must include:
(a) a copy of:
(i) a release signed by the surface owner indicating the owner is satisfied with the clean-up and rehabilitation of the site; or
(ii) an abandonment order of The Surface Rights Board that has been fully complied with; and
(b) evidence that the surface owner is satisfied with any alteration to the site that does not conform to the requirements of clause 58(c).
60(2) An inspector may issue a Certificate of Abandonment for the site of a well or battery if:
(a) the well or battery has been abandoned in accordance with this regulation;
(b) the site has been rehabilitated in accordance with section 59; and
(c) no debts are due to the Crown in respect of the well or battery.
60(3) Where a well that is not abandoned is located on the site of a well or battery that is abandoned, an inspector may issue a Certificate of Abandonment for the abandoned well or battery if clauses (2)(a) and (c) are satisfied in respect of the abandoned well or battery.
60(4) The operator of an abandoned well or battery for which a Certificate of Abandonment has not been issued shall include the abandoned well or battery site in the operator's report required under section 103.
