Growth, Enterprise and Trade
THE OIL AND GAS ACT
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Regulations |
PART 8
Flow Line
Drilling and Production Regulation Table of Contents
90 In this Part, "licensee" means the holder of a flow line licence issued under Part 12 of the Act.
Licensee to give notice to district office
91 The licensee shall give notice to the district office as follows:
(a) not less than 24 hours before commencing construction, pressure testing, suspension, reactivation, or abandonment of a flow line;
(b) not less than one hour before commencing the repair of a flow line.
Flow line requirements
Drilling and Production Regulation Table of Contents
92(1) Except as otherwise provided in this regulation, the minimum standards for the design, construction, testing, operation, maintenance, repair, and identification of a flow line are those contained in the latest published edition of the Standard CAN/CSA Z662-99 Oil and Gas Pipeline Systems, as amended from time to time, of the Canadian Standards Association.
92(2) A licensee shall ensure that the flow line:
(a) is buried at least 1.5 m below ground level;
(b) has a check valve to prevent back flow; and
(c) is equipped with any other device that an inspector may require to prevent overpressuring or a spill, or to minimize the volume of a spill.
93(1) An application under section 146 of the Act for a flow line licence must be made to an inspector on a form provided by the district office and must include:
(a) a plan on a scale of 1:5,000 prepared from a survey that is made under the supervision of a surveyor authorized to practice under The Land Surveyors Act, and that shows the flow line right of way;
(b) a scaled plan view and cross section showing how it is proposed to cross any highway, railway, buried cable, flow line, or pipeline;
(c) a detailed drawing of the battery and well tie-in and any header facility on the flow line;
(d) a description of the corrosion mitigation features of the flow line;
(e) details of any device to be installed on the flow line to minimize the volume of a leak;
(f) a statement indicating that the necessary surface rights have been obtained, including any written consent required under section 155 of the Act to cross or be within a prescribed distance of a road or highway; and
(g) any other information that the inspector may require.
93(2) Where an application for a flow line licence has been approved, the licensee shall file a caveat in the appropriate land titles office advising of the flow line and referring to the plan of survey under clause (1)(a).
94 Unless otherwise authorized by an inspector, the licensee shall ensure that every steel flow line includes an external protective coating and is cathodically protected within one year following completion of construction of the flow line.
Temporary flow linesDrilling and Production Regulation Table of Contents
95 An inspector may approve the temporary installation of a flow line above ground subject to any terms or conditions the inspector considers necessary or advisable.
96 Where a flow line has been installed, altered, or repaired, or has not been used for six months, or where required by the director, the licensee shall pressure test the flow line:
Flow line replacement(a) to a pressure of 125% of the maximum operating pressure, but not less than 1,000 kPa;
(b) unless otherwise approved by an inspector, using fresh water as the test medium; and
(c) unless otherwise approved by an inspector, for a duration of not less than 24 hours.
Drilling and Production Regulation Table of Contents
97 Where two or more leaks have occurred on a flow line, the director may require the licensee to replace the flow line or part of it.
98 Unless otherwise approved by an inspector, if a flow line has not been used for 6 months, the licensee shall suspend the flow line by:
(a) filling the flow line with air, fresh water, or nitrogen;
(b) isolating the flow line from all pressure sources; and
(c) taking any additional measure required by an inspector to leave the flow line in a safe condition.
Abandonment of flow line
Drilling and Production Regulation Table of Contents
99 A licensee who abandons a flow line shall do so by cutting and capping both ends of the flow line at least 1.5 m below ground level and complying with clauses 98(a) and (c).
Report of suspension or abandonment
100 Where a licensee suspends or abandons the flow line, the licensee shall submit a written report of the operation to the district office within 30 days after completing the suspension or abandonment.
PART 9
Enviromental Protection
Spill report
Drilling and Production Regulation Table of Contents
101(1) Where a spill occurs from a well or oil and gas facility and:
(a) the spill occurs on or spreads to land off the wellsite or the site of the oil and gas facility; or
(b) the volume of fluid spilled is more than 0.5 m3;
the operator of the well or oil and gas facility shall, as soon as practicable, notify the owner of the land and shall, not later than 12 hours after the spill is discovered by or reported to the operator, notify the district office of the size and location of the spill, plans for disposal of any oilfield waste, and any other information that the inspector may request.
101(2) The operator shall, within seven days after the day the spill was discovered, submit a spill report to the district office on a form provided by the branch.
Operator to recover fluid during clean-up
102 On cleaning up a spill, the operator shall make every effort to recover as much of the spilled fluid as is practicable.
Reclamation of a spill or abandon siteDrilling and Production Regulation Table of Contents
103 The operator of a well or battery which is abandoned and for which a Certificate of Abandonment has not been issued or a well or oil and gas facility at which a spill site is not rehabilitated in accordance with section 59 shall, before April 1 of each year, submit to the district office:
(a) a report on the rehabilitation procedures carried out at the site in the previous year; and
(b) the rehabilitation procedures to be carried out in the current year.
104(1) Where an environmental protection plan is required by the director under section 120 of the Act, the operator shall file a plan that is acceptable to the director and that includes the following:
(a) a description of the emergency response, including notification procedures;
(b) maps showing water-covered areas, spill control points designated by the operator, access roads, municipal or industrial water supply intakes, pipelines, wells, and any other oil and gas facility;
(c) a description of any spill control points, including information respecting the volume, depth, flow, and current of water;
(d) the equipment available for containing spills and recovering the fluid, and the location of the equipment;
(e) procedure respecting any spill that could occur on the site, including the containment, recovery, and clean-up of the spill;
(f) policies respecting the safety of workers at the site of a spill;
(g) the duties of personnel in an emergency response or a training exercise.
104(2) The director may require an oil spill co-operative or the operator of a well or oil and gas facility that is required by the director to file an environmental protection plan under section 120 of the Act to conduct training exercises respecting the deployment of equipment at a control point, and to provide the director with a report on the training exercises.
PART 10Measurement
Drilling and Production Regulation Table of Contents
Measurement of oil
105(1) A record or report of any measurement of oil shall be made in units of cubic metres to one decimal place corrected to a temperature of 15° C.
105(2) An operator shall measure oil by manual gauging or an oil meter.
105(3) Where oil is measured with an oil meter, the operator shall prove the meter within 90 days after the day the meter is installed.
105(4) After the first proof, the operator shall prove an oil meter at any time the director may request, and at least once every two years.
105(5) The operator shall keep a record of the results of the most recent proof of any oil meter.
105(6) The operator shall attach to each meter and maintain a tag or label on which the operator shall record the date of the last proof, the serial number of the meter, and the meter factor.
106(1) A report or record of any measurement of gas must be made in units of 1,000 m3 to one decimal place and must be corrected to the volume that the gas would occupy at a pressure of 101.325 kPa absolute and a temperature of 15° C.
106(2) Where required by the director, the operator shall measure produced gas with a gas meter and shall keep a record of the data required to accurately calculate the volume of gas produced.
Measurement of waterDrilling and Production Regulation Table of Contents
107(1) Subject to subsection (2), section 105 applies to the measurement of water.
107(2) A record or report of any measurement of water must be made in cubic metres to one decimal place at a temperature between 0° C and 15° C.
Measurement of injection fluids
108(1) Where gas, water, or other fluid is injected into a well, the volume injected in the well must be measured using a meter installed in a manner acceptable to the director.
108(2) The licensee shall prove any injection meter in accordance with section 105.
Measurement of productionDrilling and Production Regulation Table of Contents
109 The licensee shall measure any production in a manner that is satisfactory to the director and, where a meter is used, the licensee shall:
(a) install the meter in accordance with the manufacturer’s specifications;
(b) maintain the meter in good operating condition; and
(c) protect the meter from weather and tampering.
PART 11
Well Data
Deviation and directional surveys
110(1) While drilling a well, the licensee shall conduct deviation surveys at depth intervals not exceeding 150 m.
110(2) Unless the director otherwise authorizes the licensee in writing, the licensee shall conduct a directional survey of the well, if:
(a) the surface location of the well is nearer to the boundary of its target area than 2% of the depth of the well; or
(b) the well is drilled directionally or horizontally;
and before placing the well on production shall submit a copy of the results of the survey to the branch.
Drill cutting samplesDrilling and Production Regulation Table of Contents
111(1) The licensee shall take a sample of drill cuttings at 5 m intervals over such depth as the director may specify.
111(2) The licensee shall ensure that:
(a) one set of samples is washed, dried, and preserved in vials that are labelled with the name of the well and the depth at which each sample was taken;
(b) the vials are stored in trays that are labelled with the well name and the depth at which the samples were taken;
(c) the samples are delivered prepaid to the director within 30 days after the final drilling date of the well.
112(1) The licensee shall store any core obtained from a well:
(a) in the same sequence as the core is removed from the core barrel; and
(b) in boxes labelled with the name of the well and the depth intervals.
112(2) The licensee shall protect core from loss or damage and shall, unless otherwise authorized by the director, deliver the core prepaid to the director within 60 days after the finished drilling date of the well.
112(3) No person shall destroy or damage a core, except as is reasonably necessary for the purpose of analysis, without the written approval of the director.
112(4) The licensee shall submit two copies of results of a core analysis to the branch.
Open hole logsDrilling and Production Regulation Table of Contents
113(1) Unless otherwise authorized by the director, the licensee shall run open hole logs to determine the resistivity, spontaneous potential, porosity, and gamma ray activity of the strata from the total depth of the well to the surface casing shoe, and shall record the results.
113(2) The licensee shall, within 48 hours after an open hole log is run, deliver two copies of the field prints to the district office.
113(3) The licensee shall submit one copy of a final print of any open hole log run to the district office.
114 The licensee shall submit to the branch two copies of any report of the result of a drill stem test, including pressure charts.
Licensee of exploratory well to obtain samplesDrilling and Production Regulation Table of Contents
115(1) The licensee of an exploratory well that has been completed in a new pool shall obtain a representative sample of any oil, gas, or water produced from the well within 30 days of the on-production date.
115(2) The licensee shall ensure that any sample obtained under subsection (1) or from an exploratory well under section 114 is analysed and that two copies of the analysis report are submitted to the branch.
Reservoir pressure measurement
116(1) Unless otherwise authorized by the director, the licensee of an exploratory well that is completed in a new pool shall take a subsurface pressure measurement before any production is obtained other than by test.
116(2) Where the director considers that enhanced recovery might be necessary in a pool to prevent waste, the director may require a licensee of wells in the pool to conduct a survey to determine the level and distribution of reservoir pressure in the pool.
PART 12
Records and Reports
Drilling and Production Regulation Table of Contents
117 Subject to Part 11, the licensee shall ensure that any sample or report that is required under Part 11 to be submitted to the branch is submitted within 30 days after the sample or report is obtained.
Digital submission of report under Parts 11& 12
117.1 The director may require that any report required under Part 11 or 12 to be submitted to the branch be submitted in a digital format acceptable to the director.
Tour reportsDrilling and Production Regulation Table of Contents
118(1) The licensee of a well being drilled shall keep at the rig and submit to the district office within 48 hours after the day of rig release a rig tour report on a form that is approved by the Canadian Association of Oil Well Drilling Contractors or acceptable to an inspector, and the report shall include:
(a) any cementing operation conducted, including the name of the cementing company, the method of cementing, the type and amount of cement and additives used, the weight and volume of slurry, the volume of cement return to surface, and plug down time;
(b) any kick or flow encountered;
(c) any log, drill stem test, cored interval, or other test or survey run;
(d) any abandonment plug used, including length, setting depth, the amount and type of cement and additives, the weight and volume of slurry, and depth felt;
(e) the elevation of the drilling rig’s kelly bushing, and the date and time of the rig release; and
(f) any other information an inspector may require.
118(2) The licensee of a well that has been completed, serviced, or abandoned shall submit to the branch within 30 days after the day the operation is completed a report acceptable to the director on the operation, including the following:
Weekly status report(a) the purpose and results of the operation;
(b) any wireline work, including the type of tools run and the depth;
(c) any well stimulation, including the fluid and tools used and treatment pressures and volumes;
(d) any chemical, hot oil, or hot water treatment in the wellbore;
(e) any cement job, including the type and amount of cement, the weight and volume of slurry, and pumping and squeezing pressures;
(f) any equipment integrity test;
(g) the size and depth of tubing, rods, bottom hole pump, and other downhole equipment;
(h) any other information an inspector may require.
Drilling and Production Regulation Table of Contents
119 The licensee of any well being drilled or any well at which an operation results in a change of the status of the well shall report the operation to the district office before 9:00 a.m. on the first day of each week on which the district office is open.
Production and injection report
120 The licensee of a well that:
(a) produces oil, gas, or water; or
(b) is used for injection or disposal of water or any other substance;
at any time during a month shall file a report with the registrar, on a form obtained from the branch or acceptable to the registrar, not later than the last day of the following month.
Statement by purchaser of oil and gasDrilling and Production Regulation Table of Contents
121 A person who purchases oil or gas from a licensee or transports oil or gas that was produced in Manitoba shall submit to the branch not later than the last day of the month following the day of the purchase or transport, a statement on an approved form for the preceding month showing:
(a) the quantity of oil and gas received from each licensee, by field, pool, or battery;
(b) the person’s inventory of oil and gas at the beginning and end of the month;
(c) the quantity of oil and gas delivered from the person’s inventory, and the destination of the deliveries; and
(d) any amendment required to be made to a previous statement.
Operator to report fire, blow-out or accident
122 The operator shall report a blow-out, fire, or accident to an inspector as soon as is practicable, and in all cases not more than 12 hours after it occurs, and shall submit to the district office within seven days after the day of the incident a written report that includes the following:
(a) the location of the incident, including a sketch of the area;
(b) the approximate volume of any oil, gas, or water spilled;
(c) steps taken to control the loss of oil and gas and to prevent damage to the environment or equipment;
(d) the cause of the incident;
(e) steps taken to prevent a recurrence of the incident;
(f) steps to be taken to repair or rehabilitate damage to property resulting from the incident;
(g) any other result of the incident, including the name of any person injured and the nature of the injury.
