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PART 1Onshore Upstream Oil and Gas Facilities (continued)

Conditional Requirements (continued)

Conditions (continued)

Marginal note:Records — non-application

 If none of sections 26 to 45 apply, for a given month, in respect of an upstream oil and gas facility, a record, with supporting documents, must be made that indicates

  • (a) the gas-to-oil ratio and the volume of the hydrocarbon liquid produced or expected to be produced, expressed in standard m3, during the given month;

  • (b) the combined volume of hydrocarbon gas produced and received, expressed in standard m3, during the given month; and

  • (c) for a well at the facility that undergoes well completion during the given month, the volume expected to be produced by the well referred to in subsection 20(2).

Marginal note:Records — application

 A record must be made that indicates the following information for the first month that begins after the facility produces or receives — or is expected to produce or receive — a combined volume of more than 60 000 standard m3 of hydrocarbon gas for a period of 12 months as determined in accordance with subsection 20(1):

  • (a) that first month and the calendar year that includes that first month; and

  • (b) the combined volume, along with an indication as to which of paragraphs 20(1)(a) to (c) was used to determine that volume.

Determination of Volume of Gas

Marginal note:Applicable methods

  •  (1) For the purpose of sections 20 and 26, the volume of hydrocarbon gas produced, received, vented or destroyed at, or delivered from, an upstream oil and gas facility must be determined in accordance with the applicable method set out in

    • (a) the document entitled Measurement Guideline for Upstream Oil and Gas Operations, published by the Oil and Gas Commission of British Columbia on March 1, 2017, if the facility is located in British Columbia;

    • (b) the document entitled Measurement Requirements for Oil and Gas Operations and commonly referred to as Directive PNG017, published by the Government of Saskatchewan on August 1, 2017 (version 2.1), if the facility is located in Manitoba or Saskatchewan; and

    • (c) the document entitled Measurement Requirements for Oil and Gas Operations and commonly referred to as AER Directive 017, published by the Alberta Energy Regulator on March 31, 2016, in any other case.

  • Marginal note:Directive PNG017 and AER 017

    (2) Despite paragraphs (1)(b) and (c), for the purpose of sections 12.2.2.1 and 12.2.2.2 of the Saskatchewan Directive PNG017 and of the AER Directive 017, the gas production per well per day is to be determined

    • (a) if the expected gas production is greater than 2 000 standard m3 per day, by direct measurement; and

    • (b) in any other case,

      • (i) by direct measurement, or

      • (ii) by means of an estimate based on a gas-to-oil ratio determined

        • (A) in accordance with section 24, or

        • (B) by the formula

          −0.5Pw + 150

          where

          Pw
          is the average volume, expressed in standard m3, of oil produced by the well for a day during the most recent month of production.

Marginal note:Determination of gas-to-oil ratio

  •  (1) The determination of a gas-to-oil ratio for the purpose of clause 23(2)(b)(ii)(A) is made using the formula

    G/O

    where

    G
    is the average volume of gas produced by the well measured over a continuous period — of at least 72 hours or at least 24 hours, determined, as the case may be, in accordance with subsection (2) or (3) — under conditions, in particular in respect of flow rate and operating conditions, that are representative of the conditions that occurred during the most recent month of production; and
    O
    is the average volume of oil produced by the well over the period that is used for the determination of G, based on measurements taken in accordance with subsection (4) as prorated to that period and under conditions, in particular in respect of flow rate and operating conditions, that are representative of the conditions during the most recent month of production.
  • Marginal note:Determination of value of G

    (2) The measurements to determine the value of G must be taken over a continuous period of at least 72 hours with a continuous measuring device or using a flow meter with at least one reading taken every 20 minutes.

  • Marginal note:Exception

    (3) Despite subsection (2), the measurements to determine the value of G may be taken over a continuous period of at least 24 hours, if

    • (a) the flow rate of gas from the well is greater than 100 standard m3 per day; and

    • (b) the measurement is taken

      • (i) with a continuous measuring device and the variation of flow rate in that continuous period is such that the average flow rate for any 20-minute period is within ±5% of the average flow rate, or

      • (ii) using a flow meter with at least one reading taken every 20 minutes within that continuous period and the variation of flow rate in that continuous period is such that 95% of the readings taken are within ±5% of the average flow rate.

  • Marginal note:Determination of the value of O

    (4) The measurements to determine the value of O must be taken after the water has been separated from the liquid produced from the well and taken

    • (a) over the continuous period used to determine the value of G with a continuous measuring device that has a maximum margin of error of ±0.1 standard m3; or

    • (b) over a continuous period of at least 10 days that includes the continuous period used to measure G with a continuous measuring device that has a maximum margin of error of ±1 standard m3 and with the variation of flow rate in that continuous period such that the measured volume of oil produced for any day is within ±5% of the measured volume of oil produced for any other day in that continuous period.

  • Marginal note:Steady state

    (5) A measurement taken under any of subsections (2) to (4) must be taken while the well is operating in a steady state, that is, it must be taken only if no adjustment that could result in a change to the oil or gas production rates has been made to the production parameters for at least 48 hours before the measurement is taken.

  • Marginal note:Measuring equipment — directives

    (6) The continuous measuring device or flow meter used to determine the gas-to-oil ratio must meet the requirements of section 2 of the Saskatchewan Directive PNG017 or section 2 of the AER Directive 017.

  • Marginal note:Frequency of determination

    (7) A determination of the gas-to-oil ratio must be made

    • (a) at least once per year and at least 90 days after a previous determination, if

      • (i) in the case of an initial determination, the expected flow rate of the gas is at most 500 standard m3 per day, and

      • (ii) in any other case, the flow rate of the gas according to the most recent determination was at most 500 standard m3 per day;

    • (b) at least once every six months and at least 45 days after a previous determination, if

      • (i) in the case of an initial determination, the expected flow rate of the gas is greater than 500 standard m3 per day and at most 1 000 standard m3 per day, and

      • (ii) in any other case, the flow rate of the gas according to the most recent determination was greater than 500 standard m3 per day and at most 1 000 standard m3 per day; and

    • (c) at least once every month and at least seven days after a previous determination, if

      • (i) in the case of an initial determination, the expected flow rate of the gas is greater than 1 000 standard m3 per day and at most 2 000 standard m3 per day, and

      • (ii) in any other case, the flow rate of the gas according to the most recent determination was greater than 1 000 standard m3 per day and at most 2 000 standard m3 per day.

Marginal note:Records

 A record must be made that indicates

  • (a) all of the readings from a continuous measuring device and each reading taken using a flow meter;

  • (b) the flow rate over each period during which measurements were taken for each determination of the value of G and O;

  • (c) the dates, time and duration of each of those periods;

  • (d) the production parameters during each of those periods and the 48 hours before each of those periods begins; and

  • (e) whether the type of equipment used to take each measurement was a continuous measuring device or a flow meter and its make and model.

 
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