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Canada Oil and Gas Drilling and Production Regulations (C.R.C., c. 1517)

Regulations are current to 2022-11-16

Designating Pool or Field

 The Minister may designate an area as a pool, field or both and shall name all oil and gas pools and fields in Canada lands.

Well-name Register

  •  (1) The licensee, permittee or lessee shall mark each of his wells in a conspicuous place with a sign on which is printed, in reasonably large and legible letters, the name of the licensee, permittee or lessee, the name of the well and the legal description of the location and he shall keep the sign posted and the lettering clear.

  • (2) There shall be maintained in the Department a record of official names, to be known as the well-name register, in which shall be entered

    • (a) the location of each well and the name thereof, which shall be approved by the Oil Conservation Engineer;

    • (b) the name of the licensee, permittee or lessee and his agent or operator of the well;

    • (c) the name of the drilling contractor; and

    • (d) any subsequent name or names assigned and approved by the Oil Conservation Engineer.

  • (3) The last name of the well shown in the well-name register shall be the official name and the one by which the well shall be known.

  • (4) The Oil Conservation Engineer may grant or refuse an application to change the official name, and if the application is granted, the new name shall be entered in the well-name register.

Proration

 The Minister may in his discretion fix and regulate the production and allowables from all wells or pools in order to effect economic production and the conservation of oil and gas.

Injection

  •  (1) Where an application is made to inject fluids into an underground reservoir, the Minister may authorize or refuse to authorize such action.

  • (2) The application shall set forth

    • (a) the location of each intake well;

    • (b) the location of all oil and gas wells, including abandoned and drilling wells and dry holes and the names of permittees or lessees within two miles of each intake well;

    • (c) the formations from which wells are producing or have produced;

    • (d) the name, description and depth of each formation in which fluid is to be injected;

    • (e) the well completion program and the depth of the casing shoe or liner below which it is to be injected;

    • (f) the elevations of the top of the formation into which the fluid is to be injected in the intake well and the wells producing from the same formation within a two-mile radius of each intake well;

    • (g) a log of each intake well or such information as is available;

    • (h) a description of the fluid, stating the kind, where obtained and the estimated amounts to be injected daily;

    • (i) the name and address of the applicant or person to be in charge of the injection operation; and

    • (j) such other information as the Oil Conservation Engineer may require to ascertain whether the injection may be safely and legally made.

  • (3) Application may be made to include the use of more than one intake well.

  • (4) Each application shall be executed by the lessees who are willing to participate in the proposed operations.

  • (5) Upon approval of the Minister, the applicant or the person in charge of injection operations shall notify the Oil Conservation Engineer

    • (a) of the date of commencement of such operations; and

    • (b) within the 10 days next following the discontinuance of such operations, together with reasons in writing in respect of such discontinuance.

  • (6) Each well used for the injection of gas or water into a producing formation shall be cased with sound casing so as not to permit leakage, and the casing shall be cemented so that damage will not be caused to oil, gas or fresh water reservoirs.

  • (7) The lessee of an intake well shall keep an accurate record of

    • (a) the amount of fluid injected into the intake well;

    • (b) the source of fluid injected; and

    • (c) the pressure used in injection of the fluid.

 Before fixing and regulating production under section 48 or authorizing the injection of fluids into a reservoir under section 49, the Minister shall have regard to all the circumstances that appear to be relevant and shall consider the interests of other permittees or lessees in the area.

 The Minister may direct that injection wells may be used by others than the applicant.

Records — Scrubbing Plant, Absorption Plant

  •  (1) Each person who is the owner or who has the control or management of a scrubbing plant or absorption plant in the Northwest Territories and Yukon Territory shall keep, at his office or other place of business, records of

    • (a) all gas received into a scrubbing plant or absorption plant;

    • (b) the name and address of each person from whom the gas was received;

    • (c) the quantity and quality of the gas received from each person;

    • (d) the price payable in respect thereof; and

    • (e) each disposition and price received by him of any product obtained from treating or processing gas.

  • (2) Each person operating a plant for processing gas shall keep a daily record of such gas and file in duplicate with the Chief, not later than the 25th day of each month, a full report, on a form approved by the Chief, of the gas processed during the preceding month.

Records — Oil and Gas Production and Repressuring, Cycling

  •  (1) Where a well is producing or is capable of producing oil and gas, there shall be kept, at the field office or other place of business acceptable to the Oil Conservation Engineer, a daily record, on a form approved by the Chief, of

    • (a) the oil, gas, water and sediment produced from the well;

    • (b) the average separator pressure if a separator is in use; and

    • (c) the full particulars of the disposition of all products of the well.

  • (2) Where fluid is being injected into a well, there shall be kept, at the field office or other place of business acceptable to the Oil Conservation Engineer, a daily record, on a form approved by the Chief, of

    • (a) the gas or liquid injected into the well;

    • (b) the source from which the gas or liquid was obtained; and

    • (c) the particulars of any treatment to which the gas or liquid has been subjected.

  • (3) Each permittee or lessee of a well that, during the preceding month, produced or was capable of producing oil or gas, or into which fluid was injected during the preceding month, shall file a statement in duplicate with the Chief, on forms approved by him, not later than the 25th day of the month, showing

    • (a) the oil, gas, water and sediment produced from the well during the preceding month and the disposition thereof;

    • (b) the liquid and gas injected into the well during the preceding month; and

    • (c) the average separator pressure during the preceding month if a separator is in use.

  • (4) If a well is shut in, a record so stating shall be filed in duplicate with the Chief each month until production is resumed or the well is abandoned.

  • (5) The Oil Conservation Engineer, upon application, may permit the keeping of records or the filing of reports in accordance with this section for a battery or group of wells, but in such cases

    • (a) the figures shall be apportioned in a manner satisfactory to the Oil Conservation Engineer to indicate as nearly as possible the actual production of the individual wells; and

    • (b) the apportioned figures shall represent the production of each well for all purposes.

  • (6) The permittee or lessee shall keep such other records and furnish such other reports as the Minister may require.

Accident Reports

  •  (1) A licensee, permittee, lessee or his agent shall report to the Oil Conservation Engineer immediately by telegraph, telephone or radio and confirm by letter

    • (a) any well flowing out of control;

    • (b) all fires that occur at oil or gas wells or storage tanks owned, operated or controlled by him or on his property;

    • (c) all tanks struck by lightning;

    • (d) any other fires that destroy oil or gas; and

    • (e) any breaks or leaks in tanks or pipelines from which any serious loss of oil or gas has occurred.

  • (2) In all reports of fires, breaks or leaks in pipes, or other accidents of this nature, the location and name of the well, tank or line break shall be given.

Reservoir Surveys

  •  (1) The Oil Conservation Engineer may direct permittees and lessees at such time and in such manner as he may deem advisable to conduct all reasonable tests and furnish information in respect of oil or gas reservoirs.

  • (2) Notwithstanding the generality of subsection (1), the tests and information to enable the taking of reservoir surveys may relate to

    • (a) the practices and methods employed in operating a well;

    • (b) the volume and source of oil and gas;

    • (c) the pressure of the reservoir as an average;

    • (d) the areas of the regional or differential pressure;

    • (e) gas-oil ratios;

    • (f) the producing characteristics of individual wells in any field; and

    • (g) the producing characteristics of any field.

Safety Regulations

  •  (1) A person who operates a drilling rig shall take all necessary and reasonable measures to enforce these Regulations and to ensure that they are observed by each and every employee; and a toolpusher and a driller shall take all reasonable measures to enforce the requirements of all such regulations as are applicable to the work over which he has supervision and to ensure that the same are observed by workmen under his charge and direction.

  • (2) An owner or any employee shall take all reasonable measures to carry out his duties in accordance with such rules as are applicable to the work in which he is engaged.

General Requirements

  •  (1) No derrick, buildings, draw works, links, elevator, tongs, machinery, tools or other equipment shall be used that are unsafe, unsuitable or not so constructed, protected, placed and operated as to afford reasonable safety from accidents to persons employed in or around wells.

  • (2) The spudding in or drilling operations at any oil or gas well shall not be performed until all moving parts of machinery are securely guarded and until all stairways, handrails and escape lines with escape buggy installed at the derrick platforms are properly installed and fastened in position.

Blowout Prevention

  •  (1) Where a licensee, permittee or lessee or his agent is drilling a well, he shall install, maintain and use at all times necessary control equipment as required by section 7.

  • (2) Except in instances in which loss of circulation occurs through unforeseeable circumstances, sufficient drilling fluid of proper density shall be kept in the well at all times to minimize the possibility of the well blowing out of control.

Derricks

  •  (1) Every derrick and derrick floor, walk, ladder and platform shall be substantially constructed of structurally sound material to conform with standard practice and shall be kept in good repair.

  • (2) Subject to section 60, the engineroom, pumphouse, derrick floor and fourble board shall be properly enclosed to a sufficient height to provide protection against the weather for employees.

Derrick-room Exits

  •  (1) Where practicable, an exit shall be provided on each of at least three sides of the derrick-room in addition to one from the doghouse direct to the outside.

  • (2) The pumphouse shall have two doors leading to two different directions to the outside, placed as far apart as practicable.

  • (3) All exit doors of a derrick, including all doors of the doghouse, shall open outwards from the derrick-room and shall not be held closed with a lock or an outside latch when workmen are employed in the main derrick-room.

Derrick Crown Platform and Railings

  •  (1) On every jacknife derrick constructed for drilling or equipped for redrilling, a platform at least two feet wide shall be provided on at least one side of the crown block, and shall be equipped on its outer edges with a standard two-rail railing 3 1/2 feet high and a toe-board six inches high.

  • (2) On every other derrick constructed for drilling or equipped for redrilling, a platform at least two feet wide shall be equipped on its outer edges with a standard two-rail railing 3 1/2 feet high and a toe-board six inches high.

Outside Derrick Platform for Conventional Drilling Rigs

  •  (1) A platform shall be provided completely around the derrick level with the fourble board or with the principal working platform where necessary.

  • (2) The width of such platform shall be not less than two feet.

  • (3) Platforms shall be provided with openings not exceeding 30 inches by 30 inches to permit the passage of men climbing derrick ladders.

  • (4) A platform shall be equipped on its outer edges with a standard two-rail railing 3 1/2 feet high and a toe-board six inches high.

Inside Derrick Platforms

  •  (1) Each platform erected on the inside of every derrick, except stabbing boards, shall completely cover the space from the working edge of the platform back to the legs and girts of the derrick.

  • (2) The decking plank on the working side of each platform shall be secured to the derrick girts with U and J bolts.

  • (3) Each working platform shall be equipped with a wire rope not less than 1/2 inch in diameter securely fastened under and over the platform with U or J bolts, both ends being secured to the same girt of the derrick.

  • (4) Stabbing boards shall be constructed of not less than one fir plank three inches by 12 inches and one reinforcing plank two inches by 12 inches or of material of equal strength; all planks shall be free of knots or other defects and shall project at least 12 inches beyond the support on which they rest; pieces of not less than two-inch angle iron shall be bolted near the ends of the three-inch by 12-inch board, either inside or outside the girt supporting the board, and in addition, each end of the board shall be fastened to the derrick with a safety line of 1/2 inch diameter wire rope securely fastened to the inside of the board with U or J bolts at a point not exceeding three feet towards the centre from the girts.

  • (5) The supports on opposite sides of a derrick on which the stabbing board is placed shall be reasonably level, rigid, horizontal and securely fastened.

Ginpoles

  •  (1) The ginpoles at the crown of every derrick shall have at least two uprights and a cross beam or their adequately constructed equivalent.

  • (2) The clearance between the crown platform and the crossbeam shall be not less than seven feet.

Crown Blocks

 The gudgeons of all sheaves on every derrick crown block shall be provided with bearings fitted with caps or metal straps constructed in a manner that will prevent any gudgeon from jumping out of its bearings.

Fingers

 On all rotary rigs where fingers are used at fourble platforms, each finger shall be secured to the derrick by a wire-rope safety cable not less than 1/2 inch in diameter attached to the outer end of the finger.

Ladders and Stairways

  •  (1) On every derrick a ladder shall be provided from the floor to the crown platform.

  • (2) All ladders shall be caged or provided with platforms not more than 21 feet apart or with other approved derrick ladder safety equipment.

  • (3) Caging for a ladder shall be constructed of metal hoops securely fastened to the ladder, spaced not more than six feet apart, and extended out not more than 30 inches from the rungs of the ladder, hoops shall be fastened together with metal bars at least one inch by 1/8 inch spaced not more than 12 inches apart and the lower loop of such caging shall not be more than eight feet from any landing.

  • (4) Platforms shall be not less than four feet long and shall extend at least 30 inches from the rungs of the ladder and shall be equipped with a standard two-rail railing and toe-board as described in subsection 62(4), and platforms shall be provided with openings not exceeding 30 inches by 30 inches to permit the passage of men climbing derrick ladders.

  • (5) Rungs shall be uniformly spaced not to exceed 14 inches centre to centre, and the width of the ladder shall be not less than 12 inches between stringers.

  • (6) A clearance of at least 6 1/2 inches shall be maintained back of the ladder rungs.

  • (7) Each ladder section shall be secured to the derrick with U bolts and shall project at least three feet above its platform.

  • (8) No section of the ladder shall lean back from the vertical.

  • (9) A stairway and landing platform shall be installed to connect the derrick floor to the catwalk.

  • (10) All stairways shall be securely fastened, provided with suitable handrails and kept in a state of good repair.

 
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