Canada–Newfoundland and Labrador Offshore Area Petroleum Operations Framework Regulations

Contents

Whereas, under subsection 150(1) of the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act, a copy of the proposed Canada–Newfoundland and Labrador Offshore Area Petroleum Operations Framework Regulations, substantially in the annexed form, was published in the Canada Gazette, Part I, on June 18, 2022 and a reasonable opportunity was afforded to interested persons to make representations to the Minister of Natural Resources with respect to the proposed Regulations;^noteAnd whereas, under subsection 7(1) of that Act, the Minister of Natural Resources consulted the Provincial Minister for Newfoundland and Labrador with respect to the proposed Regulations and that minister approved the making of those Regulations;^noteTherefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of Natural Resources and the Minister of the Environment, makes the annexed Canada–Newfoundland and Labrador Offshore Area Petroleum Operations Framework Regulations under section 149 of the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act.^note

Part 1 · General

1Definitions#

The following definitions apply in these Regulations.

accidental event means an unexpected or unplanned event or circumstance or series of unexpected or unplanned events or circumstances that may lead to the loss of life or damage to the environment, including pollution. (événement accidentel)

accommodations area means the area of an installation or vessel that contains the sleeping quarters, dining areas, food preparation areas, general recreation areas, offices and medical rooms and includes all washrooms in that area. (aire d’habitation)

accommodations installation means an installation that is used to accommodate persons at a production site, drill site or dive site and that functions independently of a production installation, drilling installation or diving installation. (installation d’habitation)

Act means the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act. (Loi)

authorization means an authorization issued by the Board under paragraph 138(1)(b) of the Act. (autorisation)

authorized inspector means a person who is recognized under the laws of Canada or of a province as qualified to inspect boilers and pressure systems or a representative of a certifying authority who is qualified to carry out that function. (inspecteur autorisé)

barrier element means a physical element that on its own does not prevent the flow of fluids but that in combination with other physical elements forms a well barrier. (élément de barrière)

barrier envelope means an envelope consisting of a set of barrier elements that prevents any unintended flow of fluids from the formation into the well-bore, another formation or the environment. (enveloppe de barrière)

certificate of fitness means a certificate referred to in section 139.2 of the Act. (certificat d’aptitude)

certifying authority means the American Bureau of Shipping, Bureau Veritas, Det norske Veritas or Lloyd’s Register. (autorité)

classification society means a member of the International Association of Classification Societies that has recognized and relevant competence and experience in, and established rules and procedures for, the classification of fixed and floating structures, including vessels, that are used in oil or gas activities in locations with physical and environmental conditions similar to those of the offshore area. (société de classification)

commingled production means the production of petroleum from more than one pool or zone through a common well where the production from each pool or zone is not measured separately. (production mélangée)

completion interval means a section within a well that is prepared to permit

(a)the production of fluids from the well;

(b)the observation of the performance of the reservoir; or

(c)the injection of fluids into the well. (intervalle de complétion)

control centre means a continuously staffed work area in which a control system that is critical to the operation of an installation or a pipeline, to safety or to the prevention of waste and pollution is located. (centre de commande)

control system means any system, station or panel used to monitor the status and control the operation of equipment used for or in support of the drilling for, or the production, processing or transportation of, petroleum or any system, station or panel used to monitor and control the operation of an installation. (système de commande)

decommissioning and abandonment means the carrying out of the following processes in accordance with any applicable Act of Parliament, any applicable regulation made under an Act of Parliament, the applicable authorization and any approved development plans:

(a)the cessation of operations;

(b)the controlled abandonment of all wells;

(c)the retirement from service and abandonment or removal of all installations, including their systems and equipment; and

(d)the retirement from service and abandonment or removal of all pipelines and materials. (désaffectation et abandon)

delineation well has the same meaning as in subsection 119(1) of the Act. (puits de délimitation)

development well has the same meaning as in subsection 119(1) of the Act. (puits d’exploitation)

diving installation means an installation or vessel on which a diving system is installed. (installation de plongée)

diving project means any work or activity that is related to the exploration or drilling for, or the production, conservation, processing or transportation of, petroleum and that involves diving. (projet de plongée)

diving system means the equipment that is required to execute a dive, including that required for compression, decompression, rescue and recovery. (système de plongée)

drilling installation means a drilling unit or a drilling rig, and the stable foundation on which it is installed — including an artificial island, an ice platform, a floating platform, a platform fixed to the seabed and any other foundation specifically used for drilling — and any associated accommodations area. (installation de forage)

drilling program means a program for the drilling of one or more wells within a specified time and within specified areas through the use of one or more drilling installations and includes any work or activity related to the program. (programme de forage)

drilling rig means the equipment used to conduct well operations and associated systems, including power systems, control systems and monitoring systems. (appareil de forage)

drilling riser means the connection between a subsea blowout preventer and a mobile offshore platform. (tube prolongateur de forage)

drilling unit means a fixed or mobile offshore platform, or a vessel used in any well operation, that is fitted with a drilling rig, including all systems and equipment installed on the platform or vessel that are related to well operations and marine activities. (unité de forage)

drill site means a location where a drilling rig is or is proposed to be installed. (emplacement de forage)

environmental load means a load imposed by meteorological or oceanographic conditions, such as winds, waves, tides, currents or snow, ice conditions, regional ice features, such as sea ice or icebergs, a seismic event or any other naturally occurring phenomenon. (charge environnementale)

environmental program means a program pertaining to an environmental study as defined in subsection 119(1) of the Act. (programme environnemental)

exploratory well has the same meaning as in subsection 119(1) of the Act. (puits d’exploration)

floating platform means a column-stabilized mobile offshore platform, a surface mobile offshore platform or a fixed floating offshore platform, including a tension leg platform or a spar platform. (plate-forme flottante)

flow allocation procedure means the procedure

(a)to allocate total measured quantities of petroleum and water produced from or injected into a pool or zone back to individual wells in a pool or zone where individual well production or injection is not measured separately; and

(b)to allocate production among fields whose petroleum is combined for the purpose of storage or processing. (méthode de répartition du débit)

flow calculation procedure means the procedure to convert raw meter output to a measured quantity of petroleum or water. (méthode de calcul du débit)

flowline means any line, other than a pipeline, that is used to transport fluids between a well and equipment used for the production of petroleum that is located at a production site or to transport fluids between a well and any systems or equipment that are used in support of that production and between those systems or equipment and the production equipment. (conduite d’écoulement)

flow system means the flow meters, auxiliary equipment attached to the flow meters, fluid sampling devices, production test equipment, master meter and meter prover used to measure and record the rate and volumes at which fluids are

(a)produced from or injected into a pool;

(b)used as a fuel;

(c)used for artificial lift; or

(d)flared, vented or transferred from a production installation. (système d’écoulement)

formation flow test means an operation

(a)to induce the flow of formation fluids to procure reservoir fluid samples and determine reservoir flow characteristics; or

(b)to inject fluids into a formation to evaluate injectivity. (essai d’écoulement de formation)

functional load means any construction load or operating load other than an environmental load or accidental load. (charge fonctionnelle)

geoscientific program means any program that involves geological work or geophysical work, as those terms are defined in subsection 119(1) of the Act. (programme géoscientifique)

geotechnical program means any program that involves geotechnical work, as defined in subsection 119(1) of the Act, that is undertaken to assess whether the seabed or shallow subsurface, as the case may be, is suitable to support installations or any other structures. (programme géotechnique)

installation means, except in Part 5, a drilling installation, production installation or accommodations installation. (installation)

life-saving appliances includes lifebuoys, survival craft, launching and embarkation appliances, marine evacuation systems and visual signals. (engins de sauvetage)

load includes a functional load, environmental load, accidental load and abnormal load. (charge)

LSA Code means the annex to International Maritime Organization Resolution MSC.48(66), International Life-Saving Appliance (LSA) Code. (recueil LSA)

major accidental event means an unexpected or unplanned event or circumstance or series of unexpected or unplanned events or circumstances that may lead to the loss of more than one life or uncontrolled pollution. (événement accidentel majeur)

marine activities means activities related to the stability, station-keeping and collision avoidance of floating platforms and includes mooring, dynamic positioning and ballasting. (activités maritimes)

mobile offshore platform means a platform that is designed to operate in a floating or buoyant mode or that can be moved from place to place without major dismantling or modification, whether or not it has its own motive power. (plate-forme mobile extracôtière)

operations site means a site where an authorized work or activity is carried out. (emplacement des opérations)

operator means a person that holds an operating licence issued by the Board under paragraph 138(1)(a) of the Act and applies for or has been granted an authorization. (exploitant)

physical and environmental conditions means the physical, geotechnical, seismic, oceanographic, meteorological or ice conditions that might affect an authorized work or activity. (conditions physiques et environnementales)

pipeline has the same meaning as in CSA Group standard Z662, Oil and gas pipeline systems, as it relates to offshore pipelines. (pipeline)

pollution means the introduction into the environment of any substance or form of energy outside the limits applicable to an authorized work or activity. (pollution)

pressure system means piping, pressure vessels, safety components and pressure components, including elements attached to pressurized parts, such as flanges, nozzles, couplings, supports, lifting lugs, safety valves and gauges. (système sous pression)

production installation means

(a)the systems and equipment used for or in support of the production of petroleum, including those that are used for separation, treatment and processing;

(b)the systems and equipment used to conduct well operations;

(c)any systems and equipment related to marine activities;

(d)any associated aircraft landing areas, storage areas or tanks and accommodations areas; and

(e)any associated platforms, artificial islands, subsea production systems and offshore loading systems. (ouvrage de production)

production project means a project for the purpose of developing a production site on, or producing petroleum from, a pool or field, including any work or activity related to the project. (projet de production)

production riser means the connection between subsea production equipment and a production platform. (tube prolongateur de production)

production site means a site where a production installation is or is proposed to be installed. (emplacement de production)

recovery of petroleum means the recovery of petroleum under foreseeable economic and operational conditions. (récupération des hydrocarbures)

relief well means a well that is drilled to assist in controlling a blowout in an existing well. (puits de secours)

reportable incident means an event that resulted in any of the following occurrences or in which an occurrence referred to in any of paragraphs (a) to (f) was narrowly avoided:

(a)loss of life;

(b)fire or explosion;

(c)collision;

(d)pollution;

(e)leak of a hazardous substance;

(f)loss of well control;

(g)impairment of a support craft or of any of the structural elements of an installation — or any system or equipment — that is critical to safety;

(h)impairment of any of the structural elements of an installation — or any system or equipment — critical to environmental protection;

(i)implementation of emergency response procedures. (incident à signaler)

safety-critical element means any system or equipment, including software and temporary or portable equipment, that is critical to the safety or integrity of an installation or to preventing the installation from polluting, including

(a)any system or equipment

(i)that is intended to prevent or limit the effects of a hazard that could cause a major accidental event, or

(ii)whose failure could

(A)cause a hazard that could cause a major accidental event, or

(B)worsen the effects on the installation of a major accidental event; and

(b)any software or temporary or portable equipment that affects any system or equipment referred to in paragraph (a). (élément essentiel à la sécurité)

subsea production system means equipment and structures that are located on or below the seabed for the production of petroleum from, or for the injection of fluids into, a field under a production site and includes production risers, flowlines and associated control systems that are located upstream of the isolation valve. (système de production sous-marin)

support craft means a vessel, vehicle, aircraft or other craft used to provide transportation or assistance to persons at an operations site. (véhicule de service)

waste material means any garbage, refuse, sewage or waste fluids or any other useless material that is generated during the carrying out of any work or activity, including used or surplus drill cuttings and drilling fluid as well as produced water. (déchets)

watertight means designed and constructed to withstand a static head of water without any leakage. (étanche)

well control means the control of the movement of fluids into or from a well. (maîtrise du puits)

well operation means an operation related to the drilling, completion, recompletion, re-entry, intervention, workover, suspension or abandonment of a well. (travaux relatifs au puits)

workover means an operation on a completed well that requires removal of the tree or the tubing. (reconditionnement)

zone means any stratum or any sequence of strata, including a zone that has been designated as such by the Board under paragraph 60(a). (couche)

2Incorporation by reference#

(1)In these Regulations, any incorporation by reference of a document is an incorporation of that document as amended from time to time.

(2)Despite subsection (1), if a document that is incorporated by reference is available in both official languages, any amendment to it is incorporated only when the amended version is available in both official languages.

Part 2 · Experience, Training, Qualifications and Competence

3Requirements#

(1)An operator must ensure that any person to whom a duty is assigned or who carries out a work or activity under these Regulations has the necessary experience, training, qualifications and competence to carry out that duty, work or activity safely, in a manner that protects the environment and in compliance with these Regulations.

(2)The operator must ensure that the persons referred to in subsection (1) are sufficient in number and receive the necessary supervision to ensure safety and the protection of the environment.

Part 3 · Management System

4Requirements#

(1)An operator must, for the purposes of reducing safety and environmental risks, preventing pollution and ensuring the conservation of petroleum resources, develop a management system that meets the following requirements:

(a)it must be set out in writing;

(b)it must apply to all of the works and activities referred to in the operator’s application for authorization;

(c)it must correspond to the scope, nature and complexity of the works and activities and the associated hazards and risks;

(d)it must be explicit, comprehensive and proactive;

(e)it must foster a culture of safety;

(f)it must establish conditions under which a person who makes a report that relates to safety or protection of the environment will be protected from reprisal;

(g)it must include processes for integrating works and activities and technical systems with the management of human and financial resources;

(h)it must include processes to ensure that all persons have the necessary experience, training, qualifications and competence and receive the necessary supervision to carry out the duties they are assigned;

(i)it must set out the roles, responsibilities and authorities of all persons exercising functions under it, as well as the processes for making those persons aware of their roles, responsibilities and authorities;

(j)it must include processes for coordinating the carrying out and management of the works and activities among the operator, employers, suppliers, service providers and other persons that are subject to it;

(k)it must include processes for the internal and external communication of documents and information relating to safety or the protection of the environment;

(l)it must include a process for the efficient and immediate transmission, at every shift handover, of documents and information relating to any conditions, mechanical or procedural deficiencies or other problems that may have an impact on safety or the protection of the environment;

(m)it must include processes

(i)for identifying hazards that may arise during routine and non-routine operations,

(ii)for assessing the risks associated with those hazards and for reducing those risks through the implementation of control measures, and

(iii)for establishing an inventory of those hazards and control measures and for maintaining that inventory;

(n)it must include processes for investigating and reporting, for the purposes of section 179, the root causes of any reportable incident, the contributing factors and the measures to be implemented to prevent recurrence of the incident;

(o)it must include a process for establishing a system to analyze trends in hazards and reportable incidents;

(p)it must include processes for identifying, evaluating and managing all systems and equipment that are critical to safety or to the protection of the environment;

(q)it must include processes for identifying, evaluating and managing any changes that could affect safety, the protection of the environment and the conservation of petroleum resources;

(r)it must include processes for identifying tasks that are critical to safety, the protection of the environment and the conservation of petroleum resources;

(s)it must include processes for establishing and maintaining measurable goals and performance indicators that are applicable to it;

(t)it must include processes for its periodic internal audit and review to identify areas for improvement and the preventive and corrective measures to be taken if deficiencies are identified;

(u)it must include processes for monitoring compliance and preventing non-compliance with the requirements of these Regulations, the provisions of Part III of the Act and any requirements that are determined by the Board under that Part;

(v)it must include processes for inspection, monitoring, testing and maintenance to ensure the continued integrity of all installations, including their systems and equipment, pipelines and vessels, and for the taking of corrective measures if deficiencies are identified;

(w)it must include the policies and indicate the standards on which it is based;

(x)it must include a process to ensure that all documents associated with it are approved by a person with the necessary authority, periodically reviewed and updated when necessary;

(y)it must include a process for establishing a system to manage any records associated with it, and the records necessary to support operational and regulatory requirements, for the purpose of ensuring that those records are generated, identified, controlled and retained and are readily accessible for consultation and examination; and

(z)it must include processes for controlling and coordinating work, including with respect to the issuance of work permits required under Part 10 and the identification of the works and activities for which a work permit is required.

(2)The operator must ensure that the processes and policies included in the management system and the standards referred to in it are readily accessible for consultation and examination.

(3)The documentation associated with the management system must be organized and set out in a logical fashion to allow for ease of understanding and efficient implementation.

(4)In this section, a reference to a process includes any procedures that are necessary to implement the process.

5Human resources#

(1)An operator must put in place an organizational structure that includes sufficient human resources to implement and continually improve the management system.

(2)The operator must designate an employee as the accountable person for the management system and must ensure that the accountable person has the necessary authority over the human and financial resources that are required to implement and continually improve the system.

(3)The operator must ensure that the name, position and contact information of the accountable person is submitted to the Board at the time the application for an authorization is made, when a new designation is made under subsection (2) and any time a change is made to the name, position or contact information of the accountable person.

6Implementation#

(1)An operator must ensure that the management system is implemented before the commencement of any authorized work or activity.

(2)The operator must ensure that all employees, employers, suppliers, service providers and other persons that are subject to the management system comply with the requirements of the management system.

7Continual improvement#

The accountable person referred to in subsection 5(2) must ensure that the management system is continually improved.

Part 4 · Authorization

Application

8Documents and information#

The application for an authorization must be accompanied by the following documents and information:

(a)the scope of the proposed work or activity;

(b)an execution plan and schedule for undertaking the proposed work or activity;

(c)the safety plan referred to in section 9;

(d)the environmental protection plan referred to in section 10;

(e)the contingency plan referred to in section 11;

(f)a description of the installations, including their systems and equipment, pipelines, vessels and support craft, that are to be used for carrying out the work or activity, including the layouts of the installations;

(g)in the case of a production project, a description of the field data acquisition program referred to in section 13;

(h)in the case of a drilling program or a production project,

(i)information on

(A)any proposed flaring or venting of gas, including the rationale for flaring or venting and the estimated rate, quantity and period of the flaring or venting, and

(B)any proposed burning of oil, including the rationale for burning and the estimated quantity of oil to be burned, and

(ii)the decommissioning and abandonment plan referred to in section 15;

(i)in the case of a geoscientific program, geotechnical program or environmental program,

(i)a map illustrating the location of the program works and activities and their proximity to any man-made structures or vulnerable natural structures, as well as any territorial or other boundaries,

(ii)a description of the methods to be used in carrying out the program works and activities and a description of any aircraft or vessel to be used, and

(iii)a description of the proposed data acquisition plan;

(j)in the case of a diving project, the dive project plan required under section 171 of the Canada–Newfoundland and Labrador Offshore Area Occupational Health and Safety Regulations; and

(k)if applicable, the list required under paragraph 151(a), the records made in the course of conducting the risk assessment required under paragraph 151(b) and the action plan required under paragraph 151(c).

9Safety plan#

(1)An operator must develop a safety plan that sets out the procedures, practices, resources, sequence of key safety-related activities and monitoring measures that are necessary to safely carry out a proposed work or activity, as well as the target levels of safety in respect of the work or activity and measures for hazard management.

(2)The safety plan must include the following documents and information:

(a)specific references to and detailed descriptions of the provisions of the management system that relate to safety, sufficient to demonstrate how the obligations set out in these Regulations with regard to safety will be fulfilled;

(b)a document that includes

(i)a summary of the studies that have been carried out, and a description of the processes that will be followed, for the purposes of

(A)identifying hazards related to the proposed work or activity that may occur during routine and non-routine operations, including any hazards posed by any other activities taking place near the proposed work or activity, and

(B)assessing safety risks associated with the identified hazards,

(ii)a description of the identified hazards referred to in clause (i)(A) and the results of the assessments referred to in clause (i)(B),

(iii)a summary of the measures to be implemented to anticipate safety risks related to the identified hazards,

(iv)a summary and evaluation of the measures to be implemented to reduce the safety risks associated with the identified hazards, including, if the possibility of ice hazards exists, measures for ice detection, forecasting, surveillance and reporting, including data collection, and any measures for ice avoidance or deflection,

(v)a detailed description of the measures to be implemented to reduce safety risks to a level that is as low as reasonably practicable in respect of

(A)the design of all installations, including their systems and equipment,

(B)the design, winterization and operation of any installation that is to be operated in a cold climate,

(C)the design, arrangement, installation and maintenance of barriers to provide fire and blast protection,

(D)the design of all control systems,

(E)the design, selection, location, installation, commissioning, protection, operation, inspection and maintenance of mechanical equipment,

(F)the design, construction, installation, commissioning, operation, inspection, monitoring, testing and maintenance of any subsea production system under all foreseeable physical and environmental conditions and operating conditions for all modes of operation,

(G)the management of temporary or portable equipment, and

(H)the arrangement and specification of watertight and weathertight appliances,

(vi)a detailed description of the measures to be implemented in respect of

(A)the design and location of any vent that is used to release gas into the atmosphere without combustion in order to minimize the risk of accidental ignition of the gas,

(B)the design, selection, operation, inspection, testing and maintenance of fire protection systems and equipment in order to minimize the risk of hazards to persons who use those systems and equipment,

(C)the design of boilers and pressure systems in order to minimize the risk of hazards to the installation and to persons present on it and to any other installations, vessel or persons in proximity to it, and

(D)the design and maintenance of any disconnectable mooring system on a floating platform to ensure that the risk that the system will fail to safely disconnect if exposed to situations that would exceed the platform’s structural limits or the system’s design limits is reduced to a level that is as low as reasonably practicable, without compromising the ability to achieve the target levels of safety set out in the safety plan and environmental protection plan, and

(vii)a summary of the measures to be implemented for communicating the identified hazards and for mitigating the safety risks associated with those hazards to all persons who are directly affected;

(c)a description of all installations or vessels that are to be used during the proposed work or activity, a description of their systems and equipment that are critical to safety and a brief description of the systems in place for the inspection, testing and maintenance of those systems and that equipment;

(d)a description of the organizational structure and chain of command for the proposed work or activity that

(i)explains the relationship between the organizational structure and chain of command, and

(ii)includes the name, position and contact information of the employee who is responsible for the management of the safety plan; and

(e)a description of the measures to be implemented to monitor compliance with the plan and to evaluate performance in relation to its objectives.

10Environmental protection plan#

(1)An operator must develop an environmental protection plan that sets out the procedures, practices, resources and monitoring measures that are necessary to protect the environment from the effects of a proposed work or activity, the target levels of safety in respect of the work or activity and measures for hazard management.

(2)The environmental protection plan must include the following documents and information:

(a)specific references to and detailed descriptions of the provisions of the management system that relate to the protection of the environment, sufficient to demonstrate how the obligations set out in these Regulations with regard to environmental protection will be fulfilled;

(b)a document that includes

(i)a summary of the studies that have been carried out, and a description of the processes that will be followed, for the purposes of

(B)assessing environmental risks associated with the identified hazards,

(ii)a description of the identified hazards referred to in clause (i)(A) and the results of the assessments referred to in clause (i)(B),

(iii)a summary of the measures to be implemented to anticipate environmental risks related to the identified hazards,

(iv)a summary and evaluation of the measures to be implemented to reduce the environmental risks associated with the identified hazards, and

(v)a detailed description of the measures to be implemented to reduce environmental risks to a level that is as low as reasonably practicable in respect of

(A)the design of all installations, including their systems and equipment,

(B)the design, winterization and operation of any installation that is to be operated in a cold climate,

(C)the design, arrangement, installation and maintenance of barriers to provide fire and blast protection,

(D)the design of all control systems,

(E)the design, selection, location, installation, commissioning, protection, operation, inspection and maintenance of mechanical equipment,

(G)the management of temporary or portable equipment, and

(vi)a detailed description of the measures to be implemented in respect of the design and location of any vent that is used to release gas into the atmosphere without combustion in order to minimize the risk of accidental ignition of the gas, and

(vii)a summary of the measures to be implemented for communicating the identified hazards and for mitigating the environmental risks associated with those hazards to all persons who are directly affected;

(c)a description of all installations or vessels that are to be used during the proposed work or activity, a description of their systems and equipment that are critical to the protection of the environment and a brief description of the systems in place for the inspection, testing and maintenance of those systems and that equipment;

(d)in the case of a drilling program or a production project, the procedures for the selection, evaluation and use of chemical substances, including process chemicals and drilling fluid ingredients;

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

(f)a description of all of the discharge streams and the limits of any discharge into the environment, including any discharge of waste material;

(g)a description of the system for monitoring compliance with the discharge limits referred to in paragraph (f), including the sampling and analytical programs for determining whether discharges are within the specified limits;

(h)a description of the organizational structure and chain of command for the proposed work or activity that

(i)explains the relationship between the organizational structure and chain of command, and

(ii)includes the name, position and contact information of the employee who is responsible for the management of the environmental protection plan;

(i)a description of the measures to be implemented to monitor compliance with the plan and to evaluate performance in relation to its objectives; and

(j)a description of the procedure to be followed if an archaeological site or a burial ground is discovered during the proposed work or activity.

11Contingency plan#

(1)An operator must develop a contingency plan that sets out the procedures, including emergency response procedures, and the practices, resources and monitoring measures that are necessary to effectively prepare for and mitigate the effects of any accidental event.

(2)The contingency plan must include the following documents and information:

(a)a description of the method to be used for classifying accidental events and a description of the emergency response procedures for each event;

(b)a description of the procedures for the internal and external reporting of accidental events;

(c)a description of the procedures for accessing safety-related and environmental information that is necessary to mitigate the effects of any accidental event;

(d)a description of the organizational structure, chain of command and resources for managing any accidental event, including

(i)a list of key emergency response positions and a description of the roles, responsibilities and authorities associated with each of those positions, including a description of related tasks and checklists of actions that must be taken in the context of the contingency plan,

(ii)a description of the available support craft and the contact information for its crew or a reference to the number or title of a document that provides that description and contact information,

(iii)a description, or a reference to the number or title of a document that provides the description, of available emergency response equipment, including life-saving appliances, and the equipment’s location, as well as the limits on its use and the mitigation measures to be taken in the event that it is not available,

(iv)a description, or a reference to a number or title of a document that provides the description, of all available medical equipment and the equipment’s location,

(v)a description of the communication system referred to in section 129 and the operating procedures for that system,

(vi)a description of all emergency response operations centres and their locations,

(vii)a description of any good or service that must be obtained on a contractual basis for each response measure, and

(viii)a description of the location and the contents of any temporary safe refuges or a reference to the number or title of a document that provides that description;

(e)details of all mutual aid agreements entered into with other operators;

(f)a description of the procedures for coordinating and liaising with all relevant emergency response organizations;

(g)a description of the communication protocols with all relevant federal, provincial, territorial and municipal agencies and Indigenous governing bodies;

(h)a copy of all personnel evacuation plans, including any evacuation plan for divers engaged in a dive; and

(i)an indication of the frequency with which emergency response drills and exercises are to be completed and their scope.

(3)In the case of a drilling program or a production project, the contingency plan must also include a description of the source control and containment measures to be taken to stop uncontrolled flow from a well and to minimize the duration and environmental effects of any resulting spill, as well as the following documents and information:

(a)a description of the source control and containment equipment to be used in the event of a loss of well control;

(b)details of the contractual arrangements for the source control and containment equipment, other than a relief well drilling installation, including

(i)the name and contact information of the owner or owners of the equipment,

(ii)the arrangements for transport of the equipment to the location of the uncontrolled well, and

(iii)the arrangements for the mode of deployment of the equipment at the location of the uncontrolled well;

(c)the schedule and plan for the mobilization, deployment and operation of the source control and containment equipment, including measures to minimize deployment time that take required regulatory approvals into account;

(d)details regarding the accessibility of the source control and containment equipment and the documents and information referred to in paragraphs (a) to (c);

(e)an explanation of the adequacy of each of the source control and containment measures; and

(f)a description of any support systems and equipment that are available, including vessels and remotely operated vehicles and any consumables that may be used, such as, in the case of a relief well, a spare wellhead, spare casing and spare bulk additives.

(4)If a spill-treating agent is being considered for use as a spill response measure, the contingency plan must include the following additional documents and information:

(a)the name of the chosen spill-treating agent and details of an assessment of its efficacy in treating the potential sources of pollutants, including the results of any tests conducted for the assessment and a description of those tests;

(b)the results of an analysis that demonstrates that a net environmental benefit is likely to be achieved through the use of the spill-treating agent under certain circumstances;

(c)a description of the circumstances under which the spill-treating agent will be used and the estimated period within which its use will be effective;

(d)a description of the methods and protocols, including the amount and application rate, for safe, effective and efficient use of the spill-treating agent;

(e)a list of the personnel roles, equipment and materials that an operator will have available for the purpose of using the spill-treating agent, including any to be provided through contractual arrangements, and a description of the requirements that must be met for those contracts to be activated; and

(f)a monitoring plan for the use of the spill-treating agent.

(5)The assessment of efficacy under paragraph (4)(a) must be carried out using oil obtained directly from the operations site where the spill-treating agent is being considered for use or, if oil is not available from that operations site, it must be carried out using an oil that most closely resembles the oil that is expected to be obtained from the operations site and must be repeated when oil becomes available from that operations site.

(6)The assessment, analysis, methods and protocols referred to in paragraphs (4)(a), (b) and (d) must be based, taking the local environment into account, on an international standard or an alternative recognized by the Board and the contingency plan must identify each of those standards or alternatives.

(7)The methods and protocols referred to in paragraph (4)(d) and the monitoring plan referred to in paragraph (4)(f) must conform to industry standards and best practices for spill-treating agent use, taking the local environment into account.

(8)In this section, source control and containment equipment means the capping stack, containment dome, any subsea and surface equipment, devices or vessels and any relief well drilling installations that are used to contain and control a spill source and to minimize the duration of a spill and its environmental effects until well control is regained.

12Spill-treating agent — section 138.21 of Act#

In determining for the purpose of section 138.21 of the Act whether the use of a spill-treating agent is likely to achieve a net environmental benefit, the Board must take into account

(a)the assessment of the spill-treating agent’s efficacy referred to in paragraph 11(4)(a);

(b)the results of the analysis referred to in paragraph 11(4)(b);

(c)the circumstances referred to in paragraph 11(4)(c);

(d)the methods and protocols referred to in paragraph 11(4)(d); and

(e)the monitoring plan referred to in paragraph 11(4)(f).

13Field data acquisition program#

In the case of a production project, an operator must develop a field data acquisition program that

(a)provides for the collection of sufficient pool pressure measurements, drill cutting and fluid samples, cores and well logs, and the carrying out of sufficient formation flow tests, analyses and surveys, to enable a comprehensive assessment of the field, of the performance of development wells, of the pool depletion scheme and of any injection scheme; and

(b)identifies the quantity of samples and cores, the evaluation data and any associated analyses, surveys and reports that are to be provided to the Board.

14Flow system, calculation and allocation#

(1)If the application for an authorization is in respect of a production project, the operator must 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 sections 74 to 78, as well as any alternate measurements referred to in subsection 74(2) that the operator proposes to conduct.

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

15Decommissioning and abandonment plan#

(1)An operator must, in the case of a drilling program or production project, develop a decommissioning and abandonment plan that includes the following information:

(a)a description of the safety and environmental protection measures to be implemented during the decommissioning and abandonment to comply with the requirements of these Regulations, the provisions of Part III of the Act and any federal or provincial legislation or international conventions or agreements relating to safety and the protection of the environment;

(b)a description of the potential effects of the decommissioning and abandonment on the environment and on any future uses of the site where the program or project is carried out;

(c)the methods for restoring the site after the decommissioning and abandonment; and

(d)the forecasted costs of the decommissioning and abandonment and the manner in which the operator will finance or pay for those costs.

(2)The operator must submit to the Board an update on the forecasted costs of decommissioning and abandonment and the manner in which the operator will finance or pay for those costs

(a)whenever there is a significant change to that information, and

(b)beginning no less than five years before the day on which the decommissioning and abandonment is forecasted to begin, at least once a year.

Requirements for Authorization

16Definitions — paragraph 138(4)(c) of Act#

The following definitions apply for the purposes of paragraph 138(4)(c) of the Act.

production facility means the systems and equipment referred to in paragraph (a) of the definition production installation, other than a diving system, as well as any associated aircraft landing areas, storage areas or tanks and accommodations areas. (installation de production)

production platform means a production installation. (plate-forme de production)

Well Approvals

17Well operation#

(1)Subject to subsection (2), an operator that intends to conduct a well operation must obtain a well approval.

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

(a)the operation does not alter the completion interval or is not expected to adversely affect the recovery of petroleum; and

(b)the equipment, operating procedures and qualifications of the persons carrying out the work are in compliance with the requirements of the authorization.

(3)The following definitions apply in subsection (2).

slick line means a single steel cable that is used to run tools in a well. (câble lisse)

wire line means a line that contains a conductor wire and that is used to run survey instruments or other tools in a well. (câble)

(4)The application for a well approval must include the estimated cost breakdown of the well operation and the following information:

(a)if the well approval is being sought to drill a well,

(i)a comprehensive description of the drilling program, a geoscientific description of the reservoir targets and a description of any geohazard,

(ii)the digital data necessary to allow for an independent geohazard assessment,

(iii)a description of the well data acquisition program referred to in section 18, and

(iv)a description of the well verification scheme referred to in section 19;

(b)if the well approval is being sought to perform a workover on, to re-enter, to complete or to recomplete a well or to suspend or abandon a well or a part of one, a description of the well or part, a description of the proposed work or activity and the rationale for carrying it out and barrier envelope diagrams that demonstrate that two barrier envelopes will be in place throughout the operation;

(c)if the well approval is being sought to complete a well, information that demonstrates that section 71 will be complied with;

(d)if the well approval is being sought to suspend a well or a part of one, an indication of the period within which the suspended well or part will be abandoned or completed; and

(e)if the well approval is being sought to suspend or abandon a well or a part of one, the methods for verifying the effectiveness of the isolation of pools and zones that is required under subparagraph 90(1)(b)(i).

(5)The Board must grant the well approval if the operator demonstrates that the well operation will be conducted safely, without waste or pollution and in compliance with these Regulations.

18Well data acquisition program#

In the case of a drilling program, an operator must develop a well data acquisition program that

(a)provides for the collection of sufficient pressure measurements, drill cutting and fluid samples, conventional cores, sidewall cores and well logs, and the carrying out of sufficient formation flow tests, analyses and surveys, to enable a comprehensive geophysical, geological and reservoir evaluation to be made; and

(b)identifies the quantity of samples and cores, the evaluation data and any associated analyses, surveys and reports that are to be provided to the Board.

19Well verification scheme#

(1)An operator must establish a well verification scheme based on criteria that the operator establishes to ensure that the design of any well is in accordance with industry standards and best practices so that the well’s integrity is maintained throughout its life cycle.

(2)For the purposes of subsection (1), the operator must rank a well according to its level of risk and ensure that the well ranking is confirmed by an independent person.

(3)The verification scheme must set out the verification requirements that are applicable to the design of a well according to the well’s ranking and to any changes made to the design during the well’s construction or operation that would affect any previously undertaken verification.

(4)The operator must ensure that the required verifications are carried out by an independent person that was not involved in the original design.

20Suspension of well approval#

(1)The Board may suspend a well approval if

(a)the operator conducts the well operation other than as described in the application for the well approval;

(b)the physical and environmental conditions encountered in the area of the work or activity for which the well approval was granted are more severe than those on the basis of which the manufacturer of any equipment used in the well operation established the equipment’s operating limits; or

(c)the operator uses a flow system, flow calculation procedure or flow allocation procedure that has not been approved under subsection 14(2), conducts a formation flow test that has not been approved under subsection 63(5) or engages in commingled production that has not been approved under subsection 80(2).

(2)In deciding whether to suspend a well approval, the Board must consider

(a)the effects or potential effects of the applicable situation referred to in subsection (1) on safety, the environment and the conservation of petroleum resources; and

(b)the operator’s history of non-compliance with the requirements of these Regulations, the provisions of Part III of the Act or any requirements that are established by the Board under that Part with respect to well operations.

21Revocation of well approval#

The Board must revoke a well approval if

(a)the operator fails to remedy the situation that caused the suspension of the well approval as soon as the circumstances permit within 60 days after the date of that suspension unless, on written request by the operator, the Board grants the operator an extension of time to remedy the situation; or

(b)the operator continues to operate the well despite the suspension of the well approval.

22Suspension or abandonment of well#

If a well approval is revoked, the operator must ensure that the well is suspended or abandoned in accordance with Part 8.

Development Plan

23Well approval — subsection 139(1) of Act#

For the purposes of subsection 139(1) of the Act, a well approval relating to a production project is prescribed.

24Concept safety analysis#

(1)The approvals referred to in subsection 139(4) of the Act are subject to the operator’s submission of a concept safety analysis to the Chief Safety Officer at the time the operator submits the application and proposed development plan to the Board under subsection 139(2) of the Act.

(2)The concept safety analysis must

(a)be based on the development concept chosen by the operator as a general approach and described in Part I of the development plan;

(b)take into account all works and activities associated with each phase in the life cycle of the development;

(c)determine target levels of safety that are to be achieved to ensure safety and the protection of the environment for all works and activities within each phase of the life cycle of an installation, including its systems and equipment, from the installation’s design up to and including its decommissioning and abandonment;

(d)identify all hazards having the potential to cause a major accidental event;

(e)include a systematic assessment of the unmitigated risks associated with each of the identified hazards, including the likelihood of a major accidental event occurring and the consequences that would result;

(f)identify the control measures that are to be implemented to reduce the risks associated with the identified hazards to a level that is as low as reasonably practicable;

(g)identify the effects of any additional risks that may result from the implementation of the identified control measures; and

(h)identify all assumptions on which any aspect of the concept safety analysis is based.

(3)The target levels of safety must be based on risk assessments that are

(a)quantitative, if it can be demonstrated that input data are available in the quantity and quality necessary to demonstrate the reliability of the results; or

(b)qualitative, if the criteria in paragraph (a) are not met or if a quantitative assessment would otherwise be inappropriate.

(4)The operator must include in the risk assessment a description of the circumstances that will necessitate an update of the risk assessment, including changes in

(a)the physical and environmental conditions;

(b)the operating conditions and the limits taken into account in the design assumptions; and

(c)the operating procedures.

(5)The operator must update the risk assessment as often as necessary and at least once every five years throughout the life cycle of the development to

(a)account for the circumstances described in subsection (4); and

(b)ensure the ongoing suitability of the control measures to maintain risks at a level as low as reasonably practicable.

25Resource management plan — paragraph 139(3)(b) of Act#

(1)For the purposes of paragraph 139(3)(b) of the Act, Part II of the development plan must contain a resource management plan.

(2)The resource management plan must include a description and analysis of the following:

(a)the geological setting and features of the field and of each pool or petroleum-bearing reservoir;

(b)the petrophysical data and analytical procedures for each pool;

(c)the reservoir engineering data for each pool;

(d)estimates of in-place resources and recoverable reserves for each pool, fault block and reservoir subdivision;

(e)the proposed reservoir exploitation scheme;

(f)potential developments and the reasons why they are not included in the proposed development of the field or pool;

(g)any past drilling in the area related to the proposed development of the field or pool as well as the proposed drilling program and typical completion designs for the development wells;

(h)the production and export systems related to the proposed development of the field or pool;

(i)the expected overall operating efficiency and reliability of the proposed development of the field or pool; and

(j)past expenditures and predicted capital and operating cost data, with sufficient detail to permit an economic analysis of the proposed development of the field or pool.

(3)The resource management plan must also contain a description of the operator’s organizational structure as it relates to the implementation of the plan.

Part 5 · Certificate of Fitness

Application

26Prescribed installations — section 139.2 of Act#

For the purpose of section 139.2 of the Act, a production installation, drilling installation, accommodations installation and diving installation are prescribed installations.

27Definition of installation#

In this Part, installation means an installation referred to in section 26.

Requirements for Certification

28Issuance of certificate — requirements and conditions#

(1)Before a certifying authority issues a certificate of fitness in respect of an installation,

(a)the person that applies for the certificate must

(i)provide the certifying authority with all the information that the certifying authority requires in relation to the application for certification, such as design specifications for the installation, including its systems and equipment,

(ii)conduct or assist the certifying authority in conducting any inspection, test or survey that the certifying authority requires,

(iii)except in the case of a diving installation, submit to the certifying authority for approval a maintenance program that meets the requirements set out in section 159 and a weight control program that meets the requirements set out in section 161, and

(iv)in the case of a diving installation, submit a maintenance program to the certifying authority for approval;

(b)the certifying authority must determine that, in relation to the production site, the drill site or the region in which the particular installation is to be operated,

(i)the installation, including its systems and equipment, is fit for the purposes for which it is to be used and can be operated without posing a threat to persons or the environment,

(ii)in the case of an installation other than a diving installation, the requirements set out in the following provisions have been met:

(A)the provisions of these Regulations listed in Part 1 of Schedule 1, and

(B)the provisions of the Canada–Newfoundland and Labrador Offshore Area Occupational Health and Safety Regulations listed in Part 2 of Schedule 1, other than paragraph 22(5)(b), subsection 28(3), paragraph 28(5)(a), subsection 171(3) and paragraphs 172(1)(a), (g), (j) to (m), (o) and (p), (2)(e) and (3)(c) and (f) of those Regulations,

(iii)in the case of a diving installation, the requirements set out in the following provisions have been met:

(A)section 174 and the provisions of Part 9, and

(B)the provisions of the Canada–Newfoundland and Labrador Offshore Area Occupational Health and Safety Regulations listed in Part 2 of Schedule 1, and

(iv)the installation, including its systems and equipment, will continue to meet the requirements set out in subparagraph (i) and the applicable requirements set out in subparagraph (ii) or (iii), as the case may be, for the time set out in the certificate of fitness if

(A)the installation — other than a diving installation — including its systems and equipment, is inspected, monitored, tested and maintained in accordance with the maintenance program and is maintained in accordance with the weight control program referred to in subparagraph (a)(iii), or

(B)the diving installation, including its systems and equipment, is maintained in accordance with the maintenance program referred to in subparagraph (a)(iv);

(c)the certifying authority must

(i)in the case of an installation other than a diving installation, determine that the maintenance program and the weight control program are adequate to ensure the continued integrity of the installation, including its systems and equipment, and approve them, and

(ii)in the case of a diving installation, determine that the maintenance program is adequate to ensure the continued integrity of the installation, including its systems and equipment, and approve it; and

(d)the certifying authority must carry out the scope of work in respect of which the certificate of fitness is issued.

(2)For the purposes of subparagraphs (1)(b)(ii) and (iii), the certifying authority may substitute, for any equipment, methods, measures, standards or other things required under any regulation referred to in those subparagraphs, any other equipment, methods, measures, standards or other things the use of which is authorized by the Chief Safety Officer or the Chief Conservation Officer, as the case may be, under section 151 of the Act or subsection 205.069(1) of the Act.

(3)The certifying authority must set out in any certificate of fitness that it issues the details of any limitation on the operation of the installation that is necessary to ensure that the installation, including its systems and equipment, meets the requirements set out in paragraph (1)(b).

29Conflict of interest — paragraph 139.2(4)(b) of Act#

(1)For the purposes of paragraph 139.2(4)(b) of the Act, the extent to which a certifying authority may participate in the design, construction or installation of an installation in respect of which a certificate of fitness is issued is as follows:

(a)the certifying authority or one of its subsidiaries or affiliates may be the certifying authority or classification society for the original design, construction or installation of the installation or any modification to it; and

(b)a subsidiary or affiliate of the certifying authority may participate in the design, construction or installation of the installation to any other extent as long as it does not participate in any of the certification or verification activities in respect of the installation.

(2)The certifying authority must monitor for any participation beyond that described in subsection (1) and must, without delay, inform the person that applied for the certificate and the Board of any such participation.

30Certification plan#

(1)A person that applies for a certificate of fitness must submit a certification plan to the Chief Safety Officer and to the certifying authority for the purposes of the approval of the scope of work under section 31.

(2)The certification plan must include the following documents and information:

(a)a description of the installation that is to be certified, including its systems and equipment;

(b)a list of the standards that will apply to the installation to be certified, including its systems and equipment, and a list of the standards on which the measures to reduce risks that are described in the safety plan and the environmental protection plan are based or, if there are no applicable standards, any studies and analyses that demonstrate that the measures to be implemented are adequate to reduce the risks to safety and the environment to a level that is as low as reasonably practicable or to minimize the risk of hazards, as the case may be; and

(c)other than in the case of a diving installation, a list of all safety-critical elements, as well as a description of how the associated performance standards are to be developed.

31Scope of work#

(1)A certifying authority must submit to the Chief Safety Officer for approval a scope of work that takes into account the certification plan.

(2)The scope of work must include

(a)a description of the following activities to be conducted by the certifying authority:

(i)activities to verify compliance with the requirements referred to in paragraph 28(1)(b),

(ii)activities to verify the validity of the certificate of fitness, and

(iii)any additional activities to be carried out before the renewal of the certificate; and

(b)a schedule of the activities referred to in paragraph (a).

(3)The Chief Safety Officer must approve the scope of work if the Chief Safety Officer determines that

(a)in the case of any installation, the scope of work

(i)is sufficiently detailed to permit the certifying authority to determine whether the requirements referred to in paragraph 28(1)(b) are met,

(ii)describes the type and extent of reporting in respect of continual monitoring of the certification process being undertaken by the certifying authority, and

(iii)demonstrates how the certifying authority has complied with section 29;

(b)in the case of an installation other than a diving installation, the scope of work

(i)provides the means for determining whether

(A)the environmental criteria for the region or site and the loads estimated for the installation are correct,

(B)the list of safety-critical elements included in the certification plan is complete and the elements are in place and functioning as intended,

(C)in respect of any installation referred to in a development plan, the concept safety analysis submitted under section 24 meets the requirements set out in that section,

(D)in respect of a new installation, the installation has been constructed in accordance with the quality assurance program referred to in section 100,

(E)the operations manual meets the requirements set out in section 157, and

(F)the installation’s construction and installation, including the materials used for those purposes, meet the design specifications,

(ii)includes the list of performance standards and methods that the certifying authority will use to verify compliance with those standards and to verify whether the installation, including its systems and equipment, continues to be fit for the purposes for which it is to be used, and

(iii)provides the means for determining whether the provisions listed in Schedule 2 have been complied with and whether the structures, systems and equipment referred to in those provisions are in place and functioning as intended; and

(c)in the case of a diving installation, the scope of work provides the means for determining whether the processes referred to in subparagraph 4(1)(m)(iii) and paragraph 4(1)(v) that are included in the operator’s management system have been implemented.

32Period of validity#

(1)A certificate of fitness is valid for five years from the day on which it is issued if the certifying authority determines that the requirements referred to in paragraph 28(1)(b) will be met for a period of at least five years from that day.

(2)If the certifying authority determines that the requirements referred to in paragraph 28(1)(b) can be met only for a period that is less than five years, the certificate of fitness is valid for the corresponding lesser period.

(3)The certifying authority must indicate on the certificate of fitness its expiry date.

(4)The certifying authority may, on request of the holder of a certificate of fitness, extend the period of validity of the certificate of fitness for a period of up to three months, subject to the approval of the Chief Safety Officer.

(5)The Chief Safety Officer must approve the extension of the period of validity of the certificate of fitness if the extension does not compromise safety or the protection of the environment.

33Applicable site or region#

(1)A certifying authority must indicate on a certificate of fitness the site or region where the installation is to be operated.

(2)A certificate of fitness is valid for the operation of the installation at the site or in the region that is indicated on the certificate of fitness.

34Revalidation — scope of work#

(1)The certifying authority must revalidate the scope of work against the criteria referred to in subsection 31(3) and make any modifications that are necessary

(a)before renewing a certificate of fitness; and

(b)if new circumstances such as the following arise that have or could have a significant impact on the scope of work:

(i)these Regulations or the Canada–Newfoundland and Labrador Offshore Area Occupational Health and Safety Regulations are amended,

(ii)new information regarding a major accidental event that occurred in any place is disclosed,

(iii)amendments are made to any of the standards on which the certification was based, or

(iv)the installation has transitioned from one life cycle phase to another.

(2)The revalidated scope of work must be submitted to the Chief Safety Officer for approval under subsection 31(3).

35Renewal of certificate#

The certifying authority must renew the certificate of fitness in relation to an installation before or on its expiry date if

(a)the certifying authority determines that the requirements referred to in paragraph 28(1)(b) have been met;

(b)the certifying authority has carried out the activities referred to in subparagraph 31(2)(a)(iii); and

(c)the certifying authority has revalidated the scope of work and it has been approved by the Chief Safety Officer.

36Invalidity#

(1)Subject to subsections (2) and (3), a certificate of fitness ceases to be valid if

(a)the certifying authority or the Chief Safety Officer determines that

(i)any of the information provided under subparagraph 28(1)(a)(i) on the basis of which the certificate of fitness was issued is incorrect,

(ii)any of the requirements referred to in paragraph 28(1)(b) are no longer being met, or

(iii)any limitation set out in the certificate of fitness under subsection 28(3) has not been respected; or

(b)the Chief Safety Officer determines that the certifying authority has failed to carry out the scope of work relating to the installation in respect of which the certificate of fitness was issued.

(2)At least 30 days before a determination referred to in subsection (1) is made, notice of the impending determination must be given in writing

(a)in the case of a determination to be made by the certifying authority, by the certifying authority to the Chief Safety Officer and to the holder of the certificate of fitness; and

(b)in the case of a determination to be made by the Chief Safety Officer, by the Chief Safety Officer to the certifying authority and to the holder of the certificate of fitness.

(3)Before making a determination referred to in subsection (1), the certifying authority or the Chief Safety Officer, as the case may be, must consider any information in relation to that determination that is submitted by any person notified under subsection (2).

37Change of certifying authority#

(1)If the person that applies for a certificate of fitness decides to change the certifying authority in relation to an installation before the initial certificate of fitness is issued, the new certifying authority must undertake its own independent verification activities for the purpose of issuing the certificate of fitness.

(2)If the holder of a certificate of fitness decides to change the certifying authority in relation to an installation, the holder must

(a)notify the Chief Safety Officer as soon as the circumstances permit;

(b)develop and submit to the Chief Safety Officer a transition plan outlining all of the activities to be carried out before transitioning from the outgoing to the incoming certifying authority and demonstrating that there will not be any gaps or delays in the carrying out of verification activities or any negative effects on the extent and quality of those activities as a result of the transition from one certifying authority to another; and

(c)ensure that the incoming certifying authority has submitted for approval to the Chief Safety Officer, in accordance with section 31, a new scope of work before commencing transition activities.

(3)The holder of a certificate of fitness must ensure that the transition plan referred to in paragraph (2)(b) is implemented.

(4)There must be no more than one certificate of fitness and certifying authority in relation to an installation at any given time.

Certifying Authority

38Organizational structure#

A certifying authority must, without delay, notify the Board, the Federal Minister and the Provincial Minister of any changes to its organizational structure, including amalgamations and legal name changes.

39Reports and information#

(1)A certifying authority must submit to the Board, the Federal Minister and the Provincial Minister, not later than March 31 of each year, an annual report that contains

(a)a summary of the certification activities the certifying authority carried out during the previous calendar year as a certifying authority under the Act; and

(b)proof of its technical capabilities and experience as a certifying authority.

(2)The certifying authority must submit a monthly report to the Board that describes the certification activities it carried out during the previous month as a certifying authority under the Act.

(3)On the Board’s request, the certifying authority must submit to the Board any information obtained or documents generated in the course of carrying out its certification and verification activities.

(4)The certifying authority must retain records, including technical drawings, for any activity carried out during its certification or verification activities in respect of an installation until the day that is seven years after the day on which the last certificate of fitness issued for that installation expires.

Part 6 · General Requirements for Authorized Works and Activities

General

40Installation manager#

For the purposes of section 193.2 of the Act, every installation is a prescribed installation.

41Safety and protection of environment#

An operator must take all measures necessary to ensure safety and the protection of the environment during any authorized work or activity, including measures to ensure that

(a)the safety of persons at an operations site or on a support craft has priority, at all times, over any work or activity at the operations site or on the support craft;

(b)safe work methods are adopted;

(c)differences in language or other barriers to effective communication do not jeopardize safety or the protection of the environment;

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

(e)any equipment that is necessary for safety and the protection of the environment is available and in a condition to perform as intended at all times;

(f)fires can be controlled and extinguished and any related hazard to safety or the environment is minimized;

(g)the administrative and logistical support that is provided for any work or activity includes accommodation and transportation and storage and repair facilities that are fit for the purposes for which they are to be used;

(h)every operations site is equipped with a communication system that meets the requirements set out in subsection 129(1);

(i)any operating procedure that creates a hazard to safety or the environment is corrected; and

(j)all affected persons are informed of any correction made under paragraph (i).

42Physical and environmental conditions#

An operator must ensure that

(a)physical and environmental conditions, including sea states and ice movements, are observed and forecasts of those conditions are obtained;

(b)the observations and forecasts are recorded each day, as well as each time there are substantial differences between the observations and the forecasts; and

(c)the records are maintained at the operations site.

43Location of infrastructure or equipment#

An operator must keep data or information that accurately describes the location of any infrastructure or equipment at an operations site that is on or attached to the seabed, including any abandoned installation or part of it.

44Accessibility, storage and handling of consumables#

An operator must ensure that explosives, fuel, spill-treating agents, spill containment products, drilling, completion and well stimulation fluids and cement, as well as chemicals and other consumables that are necessary for safe operations, are

(a)readily accessible and stored in quantities that are sufficient for normal conditions and any emergency situation; and

(b)stored and handled in a manner that does not create a hazard to safety or the environment, including any hazard that could result from their deterioration.

45Storage and handling of chemical substances#

An operator must ensure that all chemical substances present at an operations site, including process fluids, fuel, lubricants, waste material, drilling fluids and drill cuttings, are stored and handled in a manner that does not create a hazard to safety or the environment.

46Misuse of equipment#

It is prohibited for any person to tamper with, activate without cause or otherwise misuse equipment that is necessary for safety or the protection of the environment.

47Cessation of work or activity#

(1)An operator must ensure that any work or activity ceases without delay if it

(a)endangers or is likely to endanger the safety of any other work or activity;

(b)endangers or is likely to endanger the safety or integrity of any operations site or well; or

(c)causes or is likely to cause pollution.

(2)The operator must ensure that the work or activity does not resume until it can be done safely and without causing pollution.

Document Availability

48Copy of authorization and approvals#

(1)The operator must ensure that a copy of the authorization and all related approvals that are required under these Regulations or Part III of the Act is displayed in a conspicuous location at every operations site.

(2)An operator must keep an additional copy of the authorization and approvals, as well as all plans that are required under these Regulations or Part III of the Act, at every operations site and must ensure that they are readily accessible for consultation or examination.

49Emergency response procedures and other documentation#

An operator must ensure that a copy of the most current version of the emergency response procedures and any documentation that is necessary to carry out an authorized work or activity and to operate and maintain an installation or pipeline is

(a)readily accessible at all times at every operations site and emergency response operations centre; and

(b)usable under all foreseeable circumstances at each location referred to in paragraph (a).

Plans

50Implementation#

(1)An operator must ensure that the safety plan referred to in section 9, the environmental protection plan referred to in section 10 and the resource management plan referred to in section 25 are implemented at the commencement of any work or activity and that the contingency plan referred to in section 11 is implemented as soon as an accidental event occurs or appears imminent.

(2)The operator must ensure that the safety plan, environmental protection plan, resource management plan and contingency plan are periodically updated; however, the descriptions of installations, vessels, systems and equipment that are included in the safety plan and the environmental protection plan as required by paragraphs 9(2)(c) and 10(2)(c), respectively, must be updated as soon as the circumstances permit after the modification, replacement or addition of any major component.

Part 7 · Geoscientific Programs, Geotechnical Programs and Environmental Programs

Equipment, Materials and Property

51Measures#

An operator must ensure that

(a)all equipment and materials that are necessary to conduct a geoscientific program, geotechnical program or environmental program are handled, installed, inspected, tested, maintained and operated in a manner that takes into account the manufacturer’s instructions and industry standards and best practices; and

(b)if any of the equipment, its components or the materials are defective, they are, without delay, repaired or replaced in accordance with the manufacturer’s recommendations.

52Certification#

An operator must ensure that a competent third party has certified that all equipment that is installed temporarily on a vessel to conduct a geoscientific program, geotechnical program or environmental program is fit for the purposes for which it is to be used.

53Damage to property#

An operator must take all necessary measures to ensure that no property is damaged as a result of a geoscientific program, geotechnical program or environmental program.

Energy Sources

54General requirements#

(1)An operator must ensure that any energy source that is used in a geoscientific program, geotechnical program or environmental program is

(a)kept free from any substance that could create a hazard; and

(b)operated in a manner that prevents inadvertent activation of the energy source.

(2)The operator must ensure that any electrical or electromagnetic energy source is equipped with circuit breakers on the charging and discharging circuits and with wiring that is adequately insulated and grounded to prevent current leakage and electrical shock.

(3)The operator must ensure that the program is conducted in a manner that eliminates all safety risks to divers from any energy source used, including by determining the minimum distances that are required to be maintained between the divers and the energy source and ensuring compliance with those distances.

55Testing of energy sources#

(1)An operator must minimize energy source testing on the deck of an operations site while a geoscientific program, geotechnical program or environmental program is being conducted.

(2)Before an energy source is activated for testing purposes, the operator must ensure that measures are taken to protect persons at the operations site where the test will be conducted from exposure to any hazard associated with the energy source, including

(a)advising those persons that a test will be conducted;

(b)safely securing all equipment; and

(c)in the case of an electrical or electromagnetic energy source, fully immersing it in water.

Primary Vessel

56Classification#

An operator must ensure that the primary vessel used in a geoscientific program, geotechnical program or environmental program holds a valid certificate of class issued by a classification society.

Destruction, Discard or Removal from Canada

57Prohibited without approval#

(1)It is prohibited for any person to destroy, discard or, subject to subsection (2), remove from Canada the following materials and information that are obtained in the context of a geoscientific program, geotechnical program or environmental program unless the destruction, discard or removal is approved by the Board under subsection (3):

(a)all field data and final processed data that are in a digital format, together with a description of that data format;

(b)any samples; and

(c)all other data, observations, readings and supporting information obtained during the program.

(2)The materials and information may be removed from Canada without the approval of the Board for the purpose of being processed in a foreign country if they are returned to Canada as soon as the processing is complete.

(3)Within 60 days after the day on which the Board receives an application for approval to destroy, discard or remove from Canada materials or information, the Board must approve the application if the Board is satisfied that the materials or information are not of much use or value.

(4)The Board may, after receiving an application referred to in subsection (3), require that the materials or information, or a copy of the information, be provided to the Board within the period that it specifies.

Part 8 · Drilling and Production

General

58Allocation of areas#

The Board may make orders respecting the allocation of areas, including respecting the determination of the size of spacing units and the determination of well production rates, for the purpose of drilling for or producing petroleum.

59Name, classification or status of well#

The Board may give a name, classification or status to any well and may change that name, classification or status.

60Pool, zone or field#

The Board may

(a)designate a zone as such for the purposes of these Regulations;

(b)give a name to a pool, zone or field and change that name; and

(c)define the boundaries of a pool, zone or field.

Evaluation of Wells, Pools and Fields

61Data acquisition programs#

(1)An operator must ensure that the field data acquisition program referred to in section 13 and the well data acquisition program referred to in section 18 are implemented in accordance with good oilfield practices.

(2)If part of the field or well data acquisition program cannot be implemented, the operator must ensure that

(a)a conservation officer is notified as soon as the circumstances permit;

(b)measures to otherwise achieve the goals of the program are submitted to the Board for approval; and

(c)the measures approved by the Board are implemented.

(3)The Board must approve the measures submitted under paragraph (2)(b) if the operator demonstrates that the measures can achieve the goals of the field data acquisition program or the well data acquisition program, as the case may be, or are the only ones that can be taken in the circumstances.

(4)The operator must ensure that the field data acquisition program is periodically updated.

62Formation evaluation, testing and sampling#

If the Board determines that data or samples from a formation in a well would contribute substantially to the geological and reservoir evaluation, the operator must ensure that the formation is evaluated, tested and sampled as necessary to obtain the data or samples.

63Formation flow test#

(1)An operator must ensure that no development well is put into production unless a formation flow test that has been approved by the Board under subsection (5) is conducted.

(2)If a development well is subjected to a well operation that might change its deliverability, productivity or injectivity, the operator must, for the purpose of determining the effects of the operation on the well’s deliverability, productivity or injectivity, ensure that a formation flow test that has been approved by the Board under subsection (5) is conducted as soon as the circumstances permit after the well operation has ended and the flow or injection conditions have stabilized.

(3)Before conducting a formation flow test on a well drilled on a geological feature, the operator must

(a)submit a formation flow test program to the Board; and

(b)obtain the Board’s approval under subsection (5) to conduct the formation flow test.

(4)The Board may require that the operator conduct a formation flow test on a well drilled on a geological feature, other than the first well, if the Board determines that the test would contribute to the geological and reservoir evaluation.

(5)The Board must approve a formation flow test if the operator demonstrates that the test will be conducted in a manner that ensures safety and the protection of the environment and in accordance with good oilfield practices and that the test will enable the operator to

(a)obtain data on the deliverability of the reservoir and the productivity of the well;

(b)establish the characteristics of the reservoir; and

(c)obtain representative samples of the formation fluids.

64Samples and cores#

(1)An operator must ensure that all drill cutting and fluid samples and cores collected as part of the field data acquisition program referred to in section 13 and the well data acquisition program referred to in section 18 are

(a)stored in durable containers that are correctly labelled for identification;

(b)transported and stored in a manner that prevents any loss or deterioration; and

(c)delivered to the Board within 60 days after the day on which the well is abandoned, suspended or completed, unless the analyses are ongoing, in which case the samples or cores, or any remaining parts, are to be delivered to the Board on completion of the analyses.

(2)An operator must ensure that, after any samples necessary for analysis or for research or academic studies have been removed from a conventional core, the remaining core, or a longitudinal slab that is not less than one half of the cross-sectional area of that core, is delivered to the Board.

(3)The operator must ensure that, after any samples necessary for analysis or for research or academic studies have been removed from a sidewall core, the remaining core is delivered to the Board.

65Notice before disposal#

Before disposing of any drill cutting or fluid samples, cores or evaluation data, an operator must ensure that the Board is notified in writing and given an opportunity to request delivery of the samples, cores or data.

Location of Wells

66Depth measurements#

An operator must ensure that no record is made of any depth in a well unless the depth is measured from the rotary table of the drilling rig.

67Directional and deviation surveys#

An operator must ensure that

(a)directional and deviation surveys are taken at intervals that allow the position of the well-bore to be accurately known during drilling;

(b)the directional and deviation surveys are adequate to permit the management, in relation to the well-bore, of identified geohazards, the intersection of the geological targets for the well and the intersection of the well-bore in the event that a relief well is required; and

(c)except in the case of a relief well, every well is drilled in compliance with internationally recognized well-bore collision avoidance practices and procedures and in a manner that does not intersect an existing well.

Well Integrity

68Well control#

(1)An operator must ensure that adequate procedures, materials and equipment are in place and used throughout the life cycle of the well to prevent the loss of well control.

(2)The equipment referred to in subsection (1) must include reliable well control equipment to detect and control kicks, prevent blowouts and safely conduct all well operations.

(3)During well operations conducted without a riser, the operator must ensure that measures are implemented to reduce the risk of shallow hazards while drilling.

(4)The operator must ensure that the surface casing of the well is installed to a sufficient depth, and in a competent formation, to establish well control for the continuation of the drilling operations.

(5)After the surface casing has been installed and cemented, the operator must ensure that

(a)a blowout preventer is installed before the casing shoe is drilled out; and

(b)there are at least two independent barrier envelopes — each of which is to be verified by the operator — in place throughout the life cycle of the well.

(6)If there is a failure in a barrier envelope, the operator must ensure that no well operation, other than one that is intended to replace or restore the barrier envelope, takes place until the barrier envelope is replaced or restored.

(7)The operator must ensure that

(a)the barrier envelope is replaced or restored as soon as the circumstances permit;

(b)every effort is made for the replacement or restoration to conform to the original design specifications; and

(c)the barrier envelope is verified after its replacement or restoration.

(8)The operator must ensure that, during well operations, one of the two barrier envelopes is the drilling fluid column, except when drilling under-balanced or if, when a completion or test string is run, the other barrier envelope has already been installed downhole and tested.

(9)The operator must ensure that all pressure control equipment associated with well operations is pressure-tested on installation and as often as necessary to ensure its continued safe operation.

(10)If well control is lost or if safety, the protection of the environment or resource conservation is at risk, the operator must ensure that any necessary corrective measures are taken without delay.

69Casing and wellhead system#

(1)An operator must ensure that a casing and wellhead system is designed, taking into account the wellhead’s fatigue life, so that, throughout the life cycle of the well,

(a)the well can be drilled safely, targeted formations can be evaluated and developed and waste can be prevented;

(b)the maximum conditions, forces and stresses to which the casing and wellhead system may be subjected are withstood; and

(c)the integrity of gas hydrate and permafrost zones is protected.

(2)The operator must ensure that, during the design of the casing and wellhead system, if the annulus is to be used for fluid production or injection, a barrier analysis is conducted to confirm that two barrier envelopes can be maintained in place throughout the life cycle of the well.

(3)The operator must ensure that each casing is installed at a depth that provides for adequate kick tolerance and safe well control.

(4)The operator must ensure that well operations do not continue beyond the wellhead’s fatigue life.

(5)The operator must ensure that the cement slurry is designed and installed so that, throughout the life cycle of the well,

(a)the movement of formation fluids is prevented and, when required for safety, resource evaluation or waste prevention, the isolation of the petroleum and water zones is ensured;

(b)support for the casing is provided;

(c)corrosion of the casing over the cemented interval is minimized; and

(d)the integrity of gas hydrate and permafrost zones is protected.

(6)The operator must ensure that the cement integrity and placement are verified, subject to subsection (7), through pressure-testing and, if the cement is a common barrier element of the two barrier envelopes or if confirmation of zonal isolation is required, also through logging.

(7)The cement integrity and placement may be verified using other methods if the operator demonstrates that those methods provide a level of verification that is equivalent to those referred to in subsection (6).

(8)The operator must ensure that the cement design is subjected to comprehensive laboratory testing and pre-cementing quality control, under all foreseeable conditions that could have an impact on cementing, so that the cement provides the expected isolation and can be efficiently installed.

(9)The operator must ensure that, after cementing any casing or casing liner and before drilling out the casing shoe, the cement reaches the minimum compressive strength sufficient to support the casing and provide zonal isolation.

(10)The operator must ensure that, after any casing is installed and cemented and before the casing shoe is drilled out, the casing is pressure-tested to the value required to confirm its integrity for maximum anticipated operating pressure throughout the life cycle of the well.

70Formation leak-off or integrity test#

(1)An operator must ensure that a formation leak-off test or a formation integrity test is conducted

(a)before drilling more than 10 m of new formation below the shoe of any casing other than the conductor casing; and

(b)before drilling more than 10 m when sidetracking from the previous casing string.

(2)The formation leak-off test or formation integrity test must be conducted at a pressure that allows for safe drilling to the next casing depth and for the adequacy of the cement at the level of the shoe to be verified before drilling ahead.

71Completion, testing and operation of development wells#

(1)The operator of a development well must ensure that

(a)the well is completed, tested and operated in a safe manner that allows for maximum recovery of petroleum without waste or pollution throughout the life cycle of the well;

(b)except in the case of commingled production, each completion interval is isolated from any other porous or permeable interval penetrated by the well;

(c)if applicable, the production of sand, carbonate or other solids is controlled and does not create a safety hazard or cause waste;

(d)the setting depth of each packer is as deep as possible and is such that any leak through the production casing below the packer will be contained by the barrier envelope outside the casing;

(e)the formation and any annulus seal can withstand the pressures and temperatures expected throughout the life cycle of the well;

(f)if practicable, any mechanical well condition that may have an adverse effect on the production of petroleum from, or the injection of fluids into, the well is corrected;

(g)the injection or production profile of the well is improved or the completion interval of the well is changed if it is necessary to do so to prevent waste;

(h)if different pressure and inflow characteristics of two or more pools might adversely affect the recovery of petroleum from any of those pools, the well is operated as a single pool well or as a segregated multi-pool well;

(i)during completion operations and before the removal of pressure control equipment and handover for operations, all barrier elements are tested to the maximum pressure to which they are anticipated to be subjected and, if possible, pressure testing is in the direction of flow; and

(j)following any workover or intervention, any affected barrier elements are pressure-tested.

(2)If the development well is a segregated multi-pool well, the operator must also ensure that

(a)after the well is completed, segregation within and outside the well casing is verified; and

(b)if there is reason to doubt that segregation is being maintained, a segregation test is conducted as soon as the circumstances permit.

(3)In this section, multi-pool well means a well that is completed in more than one pool.

72Production tubing#

An operator must ensure that the production tubing used in a well is designed and maintained to be compatible with the fluids to which it will be exposed, to withstand the maximum conditions, forces and stresses to which it may be subjected and to maximize recovery of petroleum from the pool.

73Safe operations and production#

An operator must ensure that equipment and procedures are in place to recognize and control normal and abnormal operating conditions, for the purposes of allowing for safe and controlled well operations and production and of preventing pollution.

Measurements

74Flow and volume#

(1)Subject to subsection (2), an operator must ensure that the following are measured:

(a)the rate of flow and the volume of the fluid that is produced from each well;

(b)the rate of flow and the volume of the fluid or waste material that is injected into each well; and

(c)the volume of the fluid that is produced from each well that is used, flared, vented, burned or otherwise disposed of.

(2)Alternate measurements may be conducted if approved by the Board under section 14.

(3)The operator must ensure that all measurements are conducted using the flow system, flow calculation procedure and flow allocation procedure approved under subsection 14(2).

75Allocation of group production#

An operator must ensure that group production of oil, gas and water from wells and the volume of fluids injected into those wells are allocated on a pro rata basis using the flow system, flow calculation procedure and flow allocation procedure approved under subsection 14(2).

76Allocation over multiple pools or zones#

(1)If a well is completed over multiple pools or zones, the operator must ensure that the production of oil, gas and water from the well and the volume of fluids injected into the well are allocated on a pro rata basis to the pools or zones using the flow allocation procedure approved under subsection 14(2).

(2)The operator must ensure that sufficient proration tests are conducted to measure the rates at which fluids are produced from the well to ensure that the allocation of oil, gas and water production to the pools and zones as a result of the flow allocation procedure is accurate.

77Testing and maintenance#

(1)An operator must ensure that

(a)meters and other associated components of the flow system are calibrated and maintained to ensure their accuracy;

(b)the equipment used to calibrate the flow system is calibrated in accordance with good measurement practices; and

(c)any component of the flow system that may have an impact on the accuracy or integrity of the flow system and that is not functioning in accordance with the manufacturer’s specifications is repaired or replaced without delay or, if it is not possible to do so without delay, corrective measures are taken to minimize the impact on the accuracy and integrity of the flow system while the repair or replacement is in progress.

(2)The operator must ensure that a conservation officer is notified, as soon as the circumstances permit, of any modification to or malfunction or failure of any flow system component that may have an impact on the accuracy of the flow system and of the corrective measures taken.

78Calibration#

An operator must ensure that

(a)a conservation officer is notified of the calibration of any transfer meter prover or master meter used in conjunction with a transfer meter at least 30 days before the day on which it is calibrated or as agreed to in writing by the Chief Conservation Officer; and

(b)following completion of the calibration, a copy of the calibration certificate is submitted to the Chief Conservation Officer as soon as the circumstances permit.

Production Conservation

79Resource management#

An operator must, in respect of the recovery of petroleum, ensure that

(a)recovery from a pool or zone is maximized in accordance with good oilfield practices;

(b)wells are located and operated to provide for maximum recovery from a pool or zone; and

(c)if there is reason to believe that infill drilling or the implementation of an enhanced recovery plan might result in increased recovery from a pool or field, studies on those methods are conducted and submitted to the Board.

80Commingled production#

(1)It is prohibited for an operator to engage in commingled production unless approved by the Board.

(2)The Board must approve commingled production if the operator demonstrates that it will maximize the recovery of petroleum.

(3)If the operator engages in commingled production, it must ensure that the total volume and the rate of production of each fluid produced is measured and the volume from each pool or zone is allocated in accordance with the requirements set out in sections 74 to 78.

81Pilot scheme#

(1)An operator may develop and implement a pilot scheme that applies technology in relation to the commercial production of petroleum from a pool, field or zone that is accessible from a production installation and in relation to which there is an approved development plan for the purpose of obtaining information on reservoir, production or technology performance in order to optimize production performance under the development plan or to determine whether the development plan requires an amendment for production performance to be optimized.

(2)The Board must establish

(a)the duration of the pilot scheme, based on the time required to achieve the stated objectives; and

(b)the intervals at which interim evaluations of the pilot scheme are to be conducted and reported to the Board.

(3)On completion of the pilot scheme, the operator must ensure that any production activities undertaken for the purpose of the scheme are discontinued.

82Prohibition against flaring or venting#

It is prohibited for an operator to flare or vent gas unless

(a)the Board authorizes flaring or venting as part of the authorization;

(b)the flaring or venting occurs during a formation flow test approved by the Board under subsection 63(5); or

(c)it is necessary in order to remediate an emergency situation that may cause serious risk to human health or safety and the Board is notified, as soon as the circumstances permit, of the flaring or venting and of the volume flared or vented.

83 #

[Repealed, SOR/2026-97, s. 1] (repealed)

84Gas emissions#

(1)The operator must ensure that the emissions of gas from the seals of a centrifugal compressor or reciprocating compressor at an installation are

(a)captured and routed to gas conservation equipment or gas destruction equipment; or

(b)routed to vents that release those emissions into the atmosphere.

(2)The operator must ensure that the flow rate of emissions of gas released from vents referred to in paragraph (1)(b) is measured by means of a continuous monitoring device that is

(a)calibrated in accordance with the manufacturer’s recommendations such that its measurements have a maximum margin of error of ±10%;

(b)operated continuously, other than during periods when it is undergoing normal servicing or timely repairs; and

(c)equipped with an alarm that is triggered when the applicable flow rate limit referred to in subsections (3) and (4) for the vents of the compressor is reached.

(3)The operator must ensure that the flow rate limit of emissions from the vents of a centrifugal compressor on an installation is

(a)in the case of a compressor that is installed before January 1, 2023,

(i)0.68 standard m³/min if the compressor has a rated brake power of greater than or equal to 5 MW, and

(ii)0.34 standard m³/min if the compressor has a rated brake power of less than 5 MW; and

(b)in the case of a compressor that is installed on or after January 1, 2023, 0.14 standard m³/min.

(4)The operator must ensure that the flow rate limit of emissions that are from the rod packings and distance pieces of a reciprocating compressor on an installation is

(a)if the compressor is installed before January 1, 2023, the product of 0.023 standard m³/min and the number of pressurized cylinders that the compressor has; or

(b)if the compressor is installed on or after January 1, 2023, the product of 0.001 standard m³/min and the number of pressurized cylinders that the compressor has.

(5)If the alarm referred to in paragraph (2)(c) is triggered, the operator must ensure that corrective measures are taken as soon as the circumstances permit to reduce the flow rate to below or equal to the applicable flow rate limit.

85Prohibition against oil burning#

It is prohibited for an operator to burn oil unless

(a)the Board authorizes burning as part of the authorization;

(b)the burning occurs during a formation flow test approved by the Board under subsection 63(5); or

Spill-treating Agent

86Determination of net environmental benefit#

In determining for the purpose of subsection 161.1(3) of the Act whether the use of a spill-treating agent is likely to achieve a net environmental benefit, the Chief Conservation Officer must take into account

(a)the assessment of the spill-treating agent’s efficacy referred to in paragraph 11(4)(a);

(b)the results of the analysis referred to in paragraph 11(4)(b);

(c)the circumstances referred to in paragraph 11(4)(c);

(d)the methods and protocols referred to in paragraph 11(4)(d);

(e)the monitoring plan referred to in paragraph 11(4)(f); and

(f)the results of any small-scale test conducted in respect of the agent.

87Small-scale test#

(1)An operator must, in respect of any small-scale test of a spill-treating agent referred to in section 161.1 of the Act, ensure that

(a)before the test is conducted, the Chief Conservation Officer approves the carrying out of the test;

(b)during the test, the quantity of spill-treating agent applied is measured and recorded, the efficacy of the spill-treating agent is monitored and the factors that affect that efficacy are evaluated; and

(c)after the test, the following information is submitted in writing, without delay, to the Chief Conservation Officer:

(i)the volume of oil released and the volume treated,

(ii)the quantity of spill-treating agent that was used to conduct the test,

(iii)the circumstances under which the test was conducted, and

(iv)the efficacy of the use of the spill-treating agent.

(2)The following conditions must be met before a small-scale test is approved:

(a)the operator must demonstrate that the quantity of spill-treating agent to be used in the test is the minimum required to evaluate the efficacy of its use; and

(b)in the case of a request to conduct an offshore subsurface test, the operator must demonstrate that, due to physical and environmental conditions, a surface test cannot be done or its efficacy cannot be readily determined.

(3)No small-scale test is to be approved if the Chief Conservation Officer has made a determination for the purpose of section 161.1 of the Act regarding the net environmental benefit of the use of the spill-treating agent whose efficacy the test is intended to evaluate.

(4)Approval of a small-scale test may be provided orally or in writing but, if approval is provided orally, the Chief Conservation Officer must, as soon as the circumstances permit, provide to the operator written confirmation of the approval.

88Variation of approval#

(1)The Chief Conservation Officer must vary the approval to use a spill-treating agent if new information indicates that a modification to the requirements set out in the approval is necessary to ensure that the approved use is likely to achieve a net environmental benefit.

(2)The Chief Conservation Officer must revoke the approval if new information indicates that, despite any modification, use of the agent will not likely achieve a net environmental benefit.

89Use of spill-treating agent#

(1)An operator must ensure that any spill-treating agent is used in accordance with industry standards and best practices for spill-treating agent use, taking into account the local environment.

(2)The operator must ensure that all equipment and materials that are listed in the contingency plan as required by paragraph 11(4)(e) are available and maintained in accordance with the manufacturers’ specifications and ready for use at all times.

(3)The operator must implement the monitoring plan that is included in the contingency plan as required by paragraph 11(4)(f) at the commencement of the use of a spill-treating agent in the case of a spill.

(4)The operator must inform the Chief Conservation Officer of the spill-treating agent’s efficacy, the effects of its use on the environment and any changes that may require a modification to its use.

Well Abandonment, Suspension or Completion

90Conditions for suspension or abandonment#

(1)An operator that suspends or abandons a well must ensure that the well

(a)can be readily located; and

(b)is left in a condition such that

(i)all petroleum-bearing pools and zones and discrete pressure zones are isolated, and

(ii)any formation fluid is prevented from flowing through or escaping from the well-bore.

(2)Before suspending or abandoning the well, the operator must verify the effectiveness of the isolations referred to in subparagraph (1)(b)(i) in accordance with the methods set out in its well approval application under paragraph 17(4)(e).

91Additional condition for suspension#

An operator that suspends a well must ensure that it is inspected and monitored to maintain its integrity and prevent pollution.

92Additional condition for abandonment#

The operator of a well must ensure that, on the abandonment of the well, the seabed is cleared of any material or equipment that might have an adverse effect on the marine environment or interfere with fishing activities or other uses of the sea.

93Conditions for drilling installation removal#

It is prohibited for the operator of a drilling installation to remove the drilling installation from a well or cause it to be removed unless

(a)the well has been abandoned, suspended or completed in accordance with these Regulations; or

(b)the removal of the drilling installation is for emergency purposes.

Part 9 · Diving Projects

94Vessel used in diving project#

An operator that conducts a diving project must, in respect of a vessel used in the diving project, ensure that

(a)the vessel is capable of providing the necessary dive support functions and operating safely;

(b)the vessel is designed to withstand or avoid, without loss of its overall structural integrity or failure of its main safety functions, all foreseeable site-specific physical and environmental conditions or any foreseeable combination of those conditions;

(c)the vessel is a Safety Convention vessel, as defined in section 2 of the Canada Shipping Act, 2001, and holds a valid certificate of class issued by a classification society;

(d)if a permanent diving system is installed on the vessel, the certificate of class referred to in paragraph (c) includes a valid class notation for diving issued by the classification society referred to in that paragraph; and

(e)a competent third party has assessed and certified the sea fastening of any equipment that is temporarily installed on the vessel for the diving project.

95Dynamic positioning system#

(1)An operator must ensure that the dynamic positioning system on a vessel that is used in a diving project

(a)includes safety-critical systems and components with sufficient segregation and redundancy to maintain the vessel’s position in the event that credible scenarios of equipment failure, fire or flooding are realized;

(b)includes systems to monitor the parameters of critical system operability and the integrity of the dynamic positioning system and to provide alerts for critical system faults;

(c)has sufficient redundancy to protect divers while diving;

(d)is designed based on numerical analysis and model testing to ensure that the vessel’s position reference and directional control can be maintained within specified tolerances that satisfy design operational requirements in relation to all functional loads and environmental loads to which the system may be subjected; and

(e)is designed to ensure that, if the diving project involves saturation diving, the dynamic positioning system can withstand the loss from fire or flooding of all of its components situated in any one watertight compartment or fire subdivision of the vessel.

(2)After the design of the dynamic positioning system is completed, the operator must ensure that a failure modes and effects analysis is conducted to verify that the dynamic positioning system meets the requirements set out in subsection (1).

(3)The operator must ensure that the dynamic positioning system is maintained so that it continues to perform in accordance with its design specifications.

96Light dive craft#

(1)The operator must ensure that any light dive craft that is used for a diving project is

(a)fit for the purposes for which it is to be used; and

(b)designed to withstand or avoid, without loss of its overall structural integrity or failure of its main safety functions, all foreseeable site-specific physical and environmental conditions or any foreseeable combination of those conditions.

(2)The operator must ensure, during all dives from a light dive craft, the availability of a dive support vessel that

(a)is fitted with emergency equipment, including a fast rescue boat, that can provide assistance to the light dive craft in any foreseeable emergency situation; and

(b)has a launch and recovery system for the light dive craft that has been verified and certified by the certifying authority as being fit for the purposes for which it is to be used.

(3)In this section, light dive craft means a small vessel or secondary craft that is equipped to deploy divers from a primary vessel.

Part 10 · Installations, Wells and Pipelines

Definitions

97Definitions#

The following definitions apply in this Part.

air gap means the clearance between the highest water or ice surface that occurs during extreme environmental conditions and the lowest exposed part of an installation not designed to withstand wave or ice impingement. (tirant d’air)

control station means a work area that is not continuously staffed that provides an alternative location to a control centre and the minimum necessary control equipment to enable essential management of the installation or of specific key systems. (poste de contrôle)

damaged condition means, with respect to a floating platform, the condition of the platform after it has suffered damage up to the extent determined in accordance with the applicable provisions of the MODU Code or, in the case of a platform that is not a mobile offshore drilling unit, the applicable rules of a classification society. (état d’avarie)

design service life means the anticipated period during which any installation, including its systems or equipment, is to be used for its intended purpose, with anticipated maintenance but without substantial repair. (vie utile)

hazardous area means an area on an installation where flammable, explosive or combustible mixtures are or are likely to be present in sufficient quantities and for sufficient periods of time to require special precautions to be taken in the selection, installation or use of machinery and electrical equipment to prevent a fire or explosion. (aire dangereuse)

IS Code means the annex to International Maritime Organization Resolution MSC.267(85), International Code on Intact Stability, 2008. (recueil IS)

MODU Code means the annex to International Maritime Organization Resolution A.1023(26), Code for the Construction and Equipment of Mobile Offshore Drilling Units, 2009. (Code MODU)

process vessel means a heater, dehydrator, separator, treater or any other pressurized vessel used in the processing or treatment of produced petroleum. (cuve de traitement)

unattended installation means an installation on which persons are not normally present and in respect of which, when persons are present, it is for the purpose of performing operational duties, maintenance or inspections that will not require an overnight stay. (installation non fréquentée)

Installations

General

98Safety and environmental protection#

An operator must ensure that an installation, including its systems and equipment, is designed, constructed, installed, arranged and commissioned so that it is fit for the purposes for which it is to be used and can be operated safely without posing a threat to persons or the environment.

99Design of installation#

For the purpose of meeting the requirement under section 98 in respect of design, an operator must ensure that an installation, including its systems and equipment, is designed in accordance with the measures referred to in clauses 9(2)(b)(v)(A) and 10(2)(b)(v)(A) that are described in the operator’s safety plan and environmental protection plan, respectively.

Quality Assurance

100Quality assurance program#

(1)An operator must, for the purpose of ensuring that an installation, including its systems and equipment, is fit for the purposes for which it is to be used, develop a quality assurance program that meets the following requirements:

(a)it must be set out in writing;

(b)it must be comprehensive;

(c)it must include a process to achieve quality objectives and to comply with the requirements of these Regulations;

(d)it must include the policies on which it is based and a process to communicate the policies to personnel and all other affected persons;

(e)it must set out the roles, responsibilities and authorities of all persons exercising functions under it, as well as the processes for making those persons aware of their roles, responsibilities and authorities and ensuring that they comply with them;

(f)it must include processes for establishing and maintaining measurable goals and performance indicators that are applicable to it;

(g)it must include processes for its periodic internal audit and review to identify areas for improvement and the corrective measures to be implemented if deficiencies are identified;

(h)it must include processes for ensuring that its integrity is preserved when changes to it are planned or implemented;

(i)it must include processes for internal and external reporting on its performance; and

(j)it must identify the resources that are necessary to ensure that the requirements under this section are being met.

(2)The operator must ensure that each phase of the life cycle of the installation, from its design up to and including its decommissioning and abandonment, is carried out in accordance with the program and that any activity relating to the installation that is carried out under the control of a third party is also carried out in accordance with a quality assurance program.

(3)The operator must ensure that the processes and policies that are included in the program referred to in subsection (1) are readily accessible for consultation and examination.

(4)The operator must ensure that the documentation relating to the program referred to in subsection (1) is organized and set out in a logical fashion to allow for ease of understanding and efficient implementation.

(5)In this section, a reference to a process includes any procedures that are necessary to implement the process.

Work Permits

101Requirements#

(1)An operator must ensure that a work permit that is required under this Part is issued in either paper or electronic form, is approved by a person other than the one who issued it and sets out the following information:

(a)the name of the person who issued it and the person who approved it;

(b)the name of each person to whom it is issued;

(c)the periods during which it is valid;

(d)the work or activity to which it relates, the location at which the work or activity is to be carried out and any conditions to which the carrying out of the work or activity is subject; and

(e)any circumstances under which the work or activity is to be carried out that may have an effect on the safety and environmental risks associated with it, including

(i)physical and environmental conditions,

(ii)any impediments to the proper use of any system or equipment, and

(iii)any other activities being carried out in the area, with reference to the permit or certificate associated with those activities, if applicable.

(2)The work permit must bear the signatures of the person who issued it, the person who approved it and every person involved in the work or activity to which it relates, certifying that they have read and understood its contents.

102Operator obligations#

(1)An operator must ensure that

(a)any work or activity that requires a work permit is done in accordance with the permit; and

(b)any work permit that is issued is made readily accessible for the duration of the work or activity to which it relates.

(2)The operator must retain a copy of each work permit for at least three years after the day on which the work or activity to which it relates is completed.

Requirements

103Innovations#

(1)An operator must ensure that any technology, including any technology that is used in relation to materials, design methods, joining techniques or construction techniques, that has not been previously used in comparable situations is not used in relation to an installation unless

(a)engineering studies, prototypes or model tests demonstrate that the technology is safe and fit for the purposes for which it is to be used; and

(b)the technology is verified by a competent third party, in accordance with industry standards and best practices for technology qualification.

(2)The operator must develop a technology qualification program that sets out the performance monitoring and inspection measures that are necessary to determine the effectiveness of any technology referred to in subsection (1) that it intends to use.

(3)The operator must ensure that the program is implemented and periodically updated.

104Physical and environmental conditions#

(1)An operator must ensure that an installation is designed to withstand or avoid all foreseeable site-specific physical and environmental conditions, or any foreseeable combination of those conditions, without compromising its structural integrity or that of any of its systems or equipment that are critical to safety or to the protection of the environment.

(2)The operator must ensure that the design of an installation is based on criteria that are determined using evidence-based regional and site-specific data, statistical analysis and modelling of physical and environmental conditions, including

(a)oceanographic conditions, including any completely or partially submerged potential navigational hazards;

(b)meteorological conditions, including the number of daylight hours;

(c)geotechnical conditions and geohazards;

(d)ice conditions and any other conditions associated with cold regions; and

(e)any other physical and environmental conditions or naturally occurring phenomena that may adversely affect the installation.

(3)The operator must ensure that an installation that is to be operated where ice conditions may exist is designed and operated to

(a)minimize or avoid environmental loads associated with ice or ice and snow accumulation on the installation, including on its structural components;

(b)ensure that the ice conditions will not adversely affect the functionality of any systems or equipment that are critical to safety or to the protection of the environment;

(c)protect risers, offloading systems and other subsea systems from the ice conditions; and

(d)in the case of a mobile offshore platform or vessel,

(i)prevent damage to propulsion or positioning systems from the ice conditions, and

(ii)ensure safe transit through ice-infested waters.

(4)The operator must ensure that there is redundancy included in any measures implemented for the purpose of paragraph (3)(a) in relation to ice and snow accumulation and removal.

(5)The operator must ensure that an installation that is to be operated in a cold climate is designed, winterized and operated in accordance with the measures referred to in clauses 9(2)(b)(v)(B) and 10(2)(b)(v)(B) that are described in the operator’s safety plan and environmental protection plan, respectively.

(6)An installation that is to be operated in a cold climate must be designed to

(a)ensure the functionality in that climate of the installation and all of its systems and equipment that are critical to safety or to the protection of the environment, including in the case of property changes in fluids; and

(b)prevent any impact or damage to electrical cabling in open or unheated spaces and ensure that the cabling maintains its properties under cold-climate conditions.

105Design for intended use and location#

(1)An operator must ensure that the structural components of an installation and any of its ancillary structures, including skids and modules, are designed for their intended use and location, taking into account

(a)the nature of the works and activities to be undertaken on and around the installation and the hazards associated with those works and activities;

(b)material properties and dimensions of the installation that may vary over time;

(c)failure modes; and

(d)applicable safety factors.

(2)The design of the structural components of an installation and any of its ancillary structures, including skids and modules, must be based on any analyses, model tests, numerical modelling and site investigations that are necessary to determine the behaviour of the installation and of the soils that support it or its mooring systems under all foreseeable operating, construction, transportation and installation conditions — including those involving geohazards — and under all foreseeable loads during the design service life of the installation.

(3)The structural components of an installation and any of its ancillary structures, including skids and modules, must be designed to

(a)withstand extreme loads that may occur during their construction and anticipated use;

(b)perform as intended during their operation under all anticipated normal loads;

(c)not fail under repeated loads;

(d)prevent damage that is disproportionate to the cause;

(e)prevent localized damage from leading to progressive or complete loss of integrity of the structure;

(f)maintain structural integrity for the time necessary to safely evacuate all persons from the installation in the event of major damage caused by foreseeable hazards;

(g)in the case of a floating platform,

(i)have sufficient stability and buoyancy reserve in the case of damage to ensure that credible scenarios of unintended flooding, if realized, do not result in the loss of the structure, and

(ii)incorporate sufficient redundancy in station-keeping systems to ensure that the structure can withstand the loss of a station-keeping component; and

(h)in the case of a self-elevating mobile offshore platform, withstand all loads to which the platform may be subjected in each mode of operation, including in the elevated position and during its removal.

(4)For the purposes of paragraphs (3)(d) to (f) and (h), the design must take into account all credible accidental load scenarios, including collisions between the installation and a vessel or aircraft.

106Conditions for safe operation and survival#

Based on the results of any analyses, tests, modelling or investigations undertaken under subsection 105(2), the operator must ensure that

(a)all physical and environmental conditions that could pose a hazard to the installation are documented and communicated to all affected personnel;

(b)the environmental limits for the safe operation of the installation are defined, included in operating procedures and communicated to all affected personnel; and

(c)measures to detect, avoid, prevent, manage and reduce the effects of the hazards posed by the physical and environmental conditions are developed and implemented in operations and incorporated into the design of the installation where required.

107Risk assessment — fire, explosion and hazardous gas#

(1)An operator must ensure that an assessment of fire and explosion risks and of risks associated with hazardous gas and its containment is conducted in respect of an installation and that the assessment identifies

(a)the types of fires, explosions and hazardous gas releases that could occur, their potential sources and unmitigated consequences, the likelihood of their occurrence and, if applicable, their potential fire or blast loads;

(b)measures to be incorporated into the design of the installation, if practicable, to eliminate the hazards identified under paragraph (a); and

(c)if it is not practicable to eliminate those hazards through design measures, all necessary control measures to reduce the risks associated with the hazards to a level that is as low as reasonably practicable.

(2)For the purposes of paragraphs (1)(b) and (c), the assessment must take into account the following elements:

(a)the general layout of the installation;

(b)the production and process activities to be carried out, including well operations;

(c)operating limits of the installation;

(d)the types of fires, explosions and hazardous gas releases identified under paragraph (1)(a) and their duration;

(e)the need for a means of detecting, from the potential sources identified under paragraph (1)(a),

(i)hazardous gas releases, and

(ii)outbreaks of fire;

(f)the need for a means of isolating and safely storing hazardous substances, including fuel, explosives and chemicals;

(g)the need for a safe means of escape, evacuation and rescue in the event of a fire, explosion or hazardous gas release; and

(h)the need for a means to ensure levels of emergency shutdown of the installation, systems and equipment in the event of the detection of a hazardous gas release or an outbreak of fire.

108Reliability and availability#

(1)An operator must demonstrate, through a risk and reliability analysis conducted using internationally recognized techniques, the reliability and availability of any system in an installation whose failure could cause or contribute to a major accidental event or whose purpose is to prevent or mitigate the effects of a major accidental event.

(2)The risk and reliability analysis must determine the redundancies and measures that are required to protect a system referred to in subsection (1) from failure, including any redundancies and measures required under this Part for that system.

(3)The operator must ensure that the results of the risk and reliability analysis are reflected in the design of the installation, its systems and equipment and in any associated operating and maintenance manuals, including the operations manual referred to in section 157.

109Monitoring program for physical and environmental conditions#

(1)An operator must develop a monitoring program that involves the collection of data on physical and environmental conditions in sufficient quantities and at sufficient frequencies, and the retention of that data for sufficient periods, to

(a)support, during all works and activities, the identification of hazards and the assessment of the safety and environmental risks related to those hazards; and

(b)allow for the timely implementation of control measures to address the identified risks and, if necessary, of the contingency plan referred to in section 11.

(2)For the purposes of subsection (1), the operator must ensure that the installation is equipped to observe, measure and forecast physical and environmental conditions, to record data on those conditions and to obtain from external sources any additional data on those conditions.

(3)The operator must ensure that the monitoring program is implemented and periodically updated.

(4)The operator must ensure that the data referred to in subsection (1) that may have an impact on safety and the protection of the environment is documented and provided to all persons that request it.

110Inspection, monitoring, testing and maintenance#

An operator must, for the purpose of facilitating the inspection, monitoring, testing and maintenance of an installation, ensure that

(a)relevant areas are clearly marked and identified;

(b)there is safe access to those areas;

(c)in the case of an installation that is not intended to be periodically drydocked, there are means for carrying out an on-location inspection of the hull and underwater components;

(d)there is safe access to subsea equipment; and

(e)the installation is otherwise designed and equipped to permit those activities to be carried out.

111Materials for installations#

(1)An operator must ensure that the materials used in an installation are

(a)fit for the purposes for which they are to be used and suitable for the conditions to which they may be subjected, including any foreseeable emergency situation;

(b)non-combustible, unless essential properties are available only in materials that are combustible or the use of combustible material will not increase the risk to safety; and

(c)selected to ensure that, in the case of fire or explosion, their use will not increase the risk to safety in the area of the fire or explosion or in adjacent areas, including by exposing persons to toxic fumes or smoke.

(2)In this section, non-combustible means, in respect of material, material that does not burn or give off flammable gases or vapours in sufficient quantity for self-ignition when heated to 750°C.

112Passive fire and blast protection#

(1)An operator must ensure that an installation is designed and constructed with passive fire and blast protection.

(2)The design of the passive fire protection must

(a)not take into account the cooling effect from active firefighting equipment; and

(b)take into account the need to inspect and maintain the passive fire protection components and the structures, divisions and equipment they are intended to protect.

(3)The operator must ensure that the installation is divided such that spacing and barriers protect against accidental events and loads identified in the risk assessment conducted under subsection 107(1) or mitigate their effects.

(4)The operator must ensure that barriers are designed, arranged, installed and maintained in accordance with the measures referred to in clauses 9(2)(b)(v)(C) and 10(2)(b)(v)(C) that are described in the operator’s safety plan and environmental protection plan, respectively.

(5)Barriers must be designed, arranged, installed and maintained to

(a)contain fire, smoke, explosions and hazardous gas and prevent their effects from spreading into adjacent areas;

(b)protect persons from fire, smoke and explosions for the time necessary to enable them to escape to a temporary safe refuge;

(c)maintain for the necessary time, as determined on the basis of the safety studies referred to in section 116, the integrity of temporary safe refuges and of associated facilities that allow for communication, command, monitoring, control and evacuation against the effects of fire or explosion;

(d)protect safety-critical elements and equipment that are to remain operational in the event of an emergency from failure or malfunction caused by the effects of fire or explosion; and

(e)maintain the installation’s structural integrity against the effects of fire or explosion for the time necessary to safely evacuate all persons.

(6)The level of fire and blast protection that each barrier must provide is to be based on the results of the risk assessment conducted under subsection 107(1).

(7)A barrier must not have any penetrations or openings unless

(a)the penetration or opening is necessary for the functionality of the installation;

(b)the barrier is equipped to maintain its overall fire and blast integrity despite the penetration or opening; and

(c)if there is a means of closing the penetration or opening, that means can be activated automatically or from outside the space being protected.

(8)The operator must ensure that barrier components are certified by a competent third party.

(9)Unless the other combined features of a production installation can be demonstrated to provide at least the same level of protection, the operator must ensure that the following bulkheads are capable of preventing the passage of smoke and flame and of limiting the temperature rise on the unexposed face of the bulkhead to an average increase of 139°C and a maximum increase of 180°C above the initial temperature following 120 minutes of exposure to a hydrocarbon fire:

(a)those external bulkheads of the temporary safe refuges, main control centre, control stations, accommodations areas, embarkation stations and evacuation points, other than aircraft landing areas, that face production areas or wellheads; and

(b)the bulkheads that segregate the wellhead and processing areas from other areas of the installation.

(10)The operator must ensure that the passive fire and blast protection for an installation that does not hold a valid certificate of class issued by a classification society is at least equivalent to the protection required under the rules of a classification society for a mobile offshore drilling unit.

113Hazardous and non-hazardous areas#

(1)An operator must ensure that the boundaries between all hazardous areas and non-hazardous areas on an installation are delineated.

(2)The operator must ensure that, following the conduct of the risk assessment under subsection 107(1), each hazardous area is classified according to an internationally recognized, comprehensive and documented classification system.

(3)The operator must ensure that hazardous areas of different classifications are separated from one another and from non-hazardous areas.

(4)The operator must ensure, if practicable, that there is no direct access or other opening between hazardous areas and non-hazardous areas and between hazardous areas of different classifications or, if that is not practicable, that any direct access or opening between those areas is minimized and is designed to prevent uncontrolled air flow between them.

(5)The operator must ensure that piping systems are designed to ensure that there is no direct conduit between hazardous and non-hazardous areas and between hazardous areas of different classifications.

114Ventilation of enclosed hazardous areas#

(1)An operator must ensure that any enclosed hazardous area on an installation is ventilated such that

(a)air is replaced at a rate sufficient to prevent hazardous gas accumulations in the enclosed hazardous area;

(b)all air entering the enclosed hazardous area is from a non-hazardous area;

(c)the air exhausted from the enclosed hazardous area does not increase the hazard level in another enclosed hazardous area or create a hazard in an enclosed non-hazardous area; and

(d)the ventilation system for the enclosed hazardous area is separate from the ventilation system for any non-hazardous area.

(2)If a mechanical ventilation system is used for the purposes of subsection (1), the operator must ensure that the air in the enclosed hazardous area is maintained at a pressure that is lower than the pressure of any adjacent non-hazardous area or any adjacent hazardous area that is classified as less hazardous.

(3)The operator must ensure that all air exhausted from an enclosed hazardous area is vented to an outdoor area that, were it not for the vented air, would be a non-hazardous area or a hazardous area that would be classified as no more hazardous than the enclosed hazardous area.

(4)The operator must ensure that measuring devices are installed that will monitor any loss of ventilation pressure differential and any loss of functionality of each ventilation system for a hazardous area and that will, no more than 30 seconds after such a loss occurs, activate audible and visual alarms at the control points from which the system is monitored.

(5)The operator must, in respect of the main control centre and all accommodations areas on an installation, ensure that

(a)they are maintained at a positive overpressure relative to atmospheric pressure;

(b)all of their external doors that provide a primary means of access to them are equipped with airlocks; and

(c)all of their other external doors are equipped with airlocks or other means of maintaining and monitoring positive overpressure relative to atmospheric pressure.

(6)The operator must ensure that the power source for a mechanical ventilation system that serves a hazardous area, a work area in a non-hazardous area or an accommodations area is capable of being shut off from the control station and from a position that is outside the area being ventilated and that will remain accessible during any fire that may occur within that area.

(7)The operator must ensure that the main inlets and outlets of all ventilation systems are capable of being closed from a position that is outside the area being ventilated and that will remain accessible during any fire that may occur within that area.

(8)The operator must ensure that any ventilation system that serves a non-hazardous area is equipped with emergency devices in the event of a mechanical ventilation failure or the detection of hazardous gas, including

(a)measuring devices to monitor any loss of ventilation pressure differential;

(b)audible and visual alarms;

(c)an automated isolation device to prevent hazardous gas from entering the non-hazardous area; and

(d)a device to remotely seal the non-hazardous area — including inlets and outlets of all ventilation systems — from the control station and from a position outside the non-hazardous ventilated area that will remain accessible during any fire that may occur within the area.

115Ignition prevention#

(1)In order to prevent the ignition of flammable, combustible or explosive substances on an installation, an operator must ensure that measures are implemented to prevent the uncontrolled release or accumulation of those substances, including by ensuring that materials and equipment are properly arranged.

(2)The operator must ensure that any system or equipment that is to be used in a hazardous area is designed to control ignition sources and to prevent fire and explosions in that area, taking into account the area’s classification under subsection 113(2).

(3)For the purposes of meeting the requirements under subsections (1) and (2), the operator must ensure that any control measures identified in the risk assessment conducted under subsection 107(1) are implemented.

(4)The operator must ensure that any equipment located in a hazardous area is rated for use in that area and is installed, ventilated and maintained to ensure safe operation.

(5)The operator must ensure that any equipment that is operated in a non-hazardous area is operated at a safe distance from any flammable, combustible or explosive substances and is, unless it is rated for use in a hazardous area, equipped with an automatic and manual means of deactivation in the event of fire or hazardous gas detection.

(6)The operator must ensure that any equipment that is located in a non-hazardous area and that is to remain in service in the event of an emergency associated with a gas release is rated for use in a hazardous area and is installed, ventilated and maintained to ensure safe operation.

(7)The operator must ensure that

(a)the gas mixture inside a cargo tank is maintained outside the explosive limits; and

(b)the systems associated with the cargo tank are designed to

(i)prevent fire, gas or explosion hazards during all operating modes through the use of sufficient control measures, including alarms, and through redundancies in those measures, and

(ii)ensure that affected persons are made aware when the systems become impaired.

(8)A work permit is required for all hot work carried out on an installation.

(9)The work permit for hot work must set out safe distances to be maintained between the hot work and any well or any flammable, combustible or explosive substance.

116Means of escape, evacuation and rescue#

An operator must ensure that an installation is equipped with a safe means of escape, evacuation and rescue, taking into account the results of the risk assessment conducted under subsection 107(1) and comprehensive and documented safety studies.

117Temporary safe refuge#

(1)The operator must ensure that the installation is equipped with a temporary safe refuge that will, in the case of an emergency, including an accidental event,

(a)provide sufficient space to accommodate all persons who may need to use the refuge until they have been evacuated, the accidental event has been brought under control or the emergency otherwise ends;

(b)protect the persons referred to in paragraph (a) from fire, gas release and explosion hazards for as long as they are in the refuge;

(c)provide the means for communication and command and, if applicable, for the monitoring and control of the accidental event for as long as persons are in the refuge; and

(d)provide signage and lighting to enable safe evacuation from the refuge.

(2)The operator must ensure that the accommodations area, main control centre and any other area of an installation that is required to remain safe for persons to occupy during an emergency, including the temporary safe refuge, are

(a)designed to prevent ingress of hazardous substances; and

(b)designed and located to enable occupation for the time required to implement emergency and evacuation procedures.

(3)The operator must verify on a periodic basis that the temporary safe refuge meets the requirements set out in subsections (1) and (2) and must record the findings resulting from the verification.

118Exits, access and escape routes#

(1)An operator must ensure that

(a)in any area where persons are normally present on an installation, there are at least two exits, each connected to an escape route that provides safe, direct and unobstructed access to temporary safe refuges, muster areas, embarkation stations and evacuation points; and

(b)there are means for persons to descend to the water.

(2)Despite paragraph (1)(a), if an area referred to in that paragraph has an area less than 20 m² or is a passage less than 5 m in length, the operator must ensure that there is at least one exit as described in that paragraph in that area.

(3)The operator must ensure that the exits referred to in paragraph (1)(a) are separated as far apart from each other as possible to increase the likelihood that at least one exit and its connected escape route will be passable during an accidental event.

(4)The operator must ensure that the installation has escape routes on two of its sides.

(5)The operator must ensure that all escape routes from an accommodations area or a temporary safe refuge to a muster area, embarkation station or evacuation point are clearly marked and illuminated and provided with fire protection to allow for the safe evacuation of persons in a time frame determined in the safety studies referred to in section 116.

(6)The operator must ensure that each escape route is of sufficient size to enable the efficient movement of the maximum number of persons who may need to use it, as well as unrestricted manoeuvring of firefighting equipment and stretchers, taking into account the maximum number of persons who can be accommodated on the installation.

119Life-saving appliances for installation#

(1)An operator must ensure that an installation is equipped with life-saving appliances that

(a)are sufficient in number and have the necessary redundancy to ensure their availability in any emergency situation; and

(b)meet the requirements of the LSA Code and the annex to International Maritime Organization Resolution MSC.81(70), Revised Recommendation on Testing of Life-Saving Appliances, as if the installation were a vessel to which the Code and the Resolution apply.

(2)The operator must ensure that life-saving appliances can withstand all loads to which they may be subjected when they are in use.

(3)The operator must ensure that, in determining the number of persons any lifeboat, life raft or marine evacuation system can accommodate, the persons’ space requirements and weight while wearing immersion suits are taken into account.

(4)The operator must ensure that the arrangement and selection of life-saving appliances are based on

(a)the safety studies referred to in section 116, in particular any escape and evacuation analysis that takes into account any major accidental events; and

(b)the results of the risk assessment conducted under subsection 107(1).

(5)The operator must ensure that copies of a plan showing the position of all life-saving appliances are posted at the installation, including in the main control centre and in every accommodations area and work area.

(6)For the purpose of subsections (1) and (2), the operator must ensure, with respect to the lifeboats on an installation, that

(a)they are kept in at least two separate locations, one of which is adjacent to a temporary safe refuge;

(b)they have a combined capacity to accommodate the total number of persons on board the installation — and those kept in each location have a combined capacity to accommodate the total number of persons assigned to that location — even in the event that any one lifeboat is lost or rendered unusable; and

(c)if the installation is a floating platform, those lifeboats that are able to be launched under any credible scenario of angle of heel have a combined capacity to accommodate the total number of persons on board the installation.

(7)The operator must ensure that the lifeboats are totally enclosed and are fire-protected.

(8)The operator must ensure that each lifeboat is capable of being in continuous communication with each other lifeboat and with other vessels in the area.

(9)The operator must ensure that each lifeboat is equipped with towing devices.

(10)For the purpose of subsections (1) and (2), the operator must ensure that the life rafts on an installation have a combined capacity to accommodate the total number of persons on board the installation.

(11)The operator must verify on a continual basis that the lifeboats, life rafts and other life-saving appliances are available and in a condition to perform as intended and must record the findings resulting from each verification.

120Installation designed for removal#

(1)An operator must ensure that an installation is designed to facilitate its removal from the offshore area at the end of its design service life and to reduce any risks to safety, adverse effects on the marine environment and interference with navigation and other uses of the sea that may occur during and after its removal.

(2)Subsection (1) does not apply if the Board has approved, in the development plan, the abandonment or an alternative use of the installation.

121Transportation and positioning#

(1)An operator must ensure that an installation, or any part of it, is transported and positioned

(a)in a manner that does not compromise safety or the protection of the environment;

(b)in a manner that minimizes interference with and hazards to other activities in proximity to that installation;

(c)under the supervision of a competent third party;

(d)in the case of a self-elevating mobile offshore platform, with the legs of the platform secured in accordance with the rules of the classification society that issued the certificate of class required under section 140; and

(e)with the support of vessels that are classified in accordance with section 177.

(2)Before an installation, or any part of it, is transported and positioned, the operator must ensure that the following requirements are met:

(a)a risk assessment must be conducted that takes into account

(i)personnel requirements,

(ii)the towing vessels that will be used, the towing plan, including towing arrangements, and the operating limits of the towing equipment’s components,

(iii)the processes and control measures to be implemented to ensure safety and the protection of the environment,

(iv)physical and environmental conditions and the ability to reliably forecast those conditions, and

(v)any contingency measures to be taken in the event of adverse physical and environmental conditions or the occurrence of any other foreseeable adverse event during transportation and positioning; and

(b)a transportation and positioning plan must be prepared that takes into account any requirements of the competent third party referred to in paragraph (1)(c) and, if the installation is a floating platform, the plan must be prepared in accordance with the rules of the classification society that issued the certificate of class required under section 140.

Systems and Equipment: Design, Installation, Commission and Other Requirements

122Electrical system#

(1)An operator must ensure that any electrical system on an installation is designed to avoid any abnormal conditions and faults that may endanger the installation or, if it is not possible to avoid them, to provide alerts of those conditions and faults and mitigate their effects.

(2)The operator must ensure that all electric motors, lighting fixtures, electrical wiring and other electrical equipment on an installation are safe and reliable under all foreseeable operating conditions.

(3)If a primary or secondary distribution system for electrical power, heating or lighting with no connection to earth is used on an installation, the operator must ensure that the system is equipped with a device that continuously monitors the insulation level to earth and produces an audible or visual alarm to indicate abnormally low insulation values.

(4)The operator must ensure that the main electrical power supply on, or to, an installation

(a)ensures continuous availability of power generation and distribution;

(b)includes at least two power plants or other power supply sources, not including emergency power plants;

(c)is capable of supporting all normal operations without recourse to the emergency electrical power supply required under subsection 126(1); and

(d)is capable of supporting all operations, other than drilling and production, if one of the power plants is out of operation.

(5)The operator must ensure that the primary circuits from a power plant serving an installation are capable of being shut down from at least two separate locations, one of which must be the site of the power plant.

123Control system#

(1)An operator must ensure that a control system is designed in accordance with the measures referred to in clauses 9(2)(b)(v)(D) and 10(2)(b)(v)(D) that are described in the operator’s safety plan and environmental protection plan, respectively.

(2)The operator must ensure that the control system is designed to meet the following requirements, taking into account human factors:

(a)controlled equipment must not be capable of being inadvertently activated;

(b)controlled equipment must not create a safety or environmental hazard in the event of system failure or shutdown;

(c)the system must have basic diagnostic capability; and

(d)the system must be capable of being operated simultaneously from multiple control stations without compromising safety.

(3)The operator must ensure that control system hardware is protected from circumstances, including excessive vibration, high electromagnetic field levels, electrical power disturbances and extreme temperatures or humidity levels or other physical and environmental conditions, that could cause mechanical damage to or degradation of the hardware or that could otherwise adversely affect the performance of the system.

(4)The operator must ensure that any wireless remote control system includes

(a)a means for error checking to prevent the controlled equipment from responding to corrupt data; and

(b)a means for identification coding to prevent a transmitter other than the designated transmitter from operating the equipment.

(5)The operator must ensure that all control system functions that are required to ensure safety and are dependent on wireless communication links have an alternative means of control that can be activated without delay and without modification to the control system.

(6)Equipment that is to be operated by a new, repaired or modified control system must not be put into operation until the operator ensures that the control system has been inspected and tested to confirm that it functions as intended.

(7)The operator must ensure that documentation containing an up-to-date description of the design, installation, operation and maintenance of the control systems is readily accessible for consultation and examination.

124Integrated software-dependent control system#

(1)An operator must ensure that an integrated software-dependent control system whose failure or malfunction would cause a hazard to safety or the environment is maintained to ensure its reliability, availability and security.

(2)The operator must ensure that control measures are implemented to protect the integrated software-dependent system from any threat, including unauthorized access.

125Safety-critical software#

(1)The operator must ensure that any software that is a safety-critical element is

(a)secure, reliable and capable of being updated;

(b)designed, commissioned and updated by competent persons; and

(c)demonstrated to be fit for the purposes for which it is to be used through a testing and validation process that takes into account

(i)all foreseeable operating conditions and emergency situations, and

(ii)system complexity, dependencies and interactions between systems, software failure modes and the level of risk associated with system failure or malfunction.

(2)The operator must ensure that no modification to the features of the software is implemented unless

(a)the modified software has undergone the testing and validation process referred to in paragraph (1)(c); and

(b)the necessary internal approvals for the modification have been obtained, including the approval of the installation manager.

126Emergency electrical power supply#

(1)An operator must ensure that an installation has an emergency electrical power supply that is independent of the main electrical power supply such that the following systems and equipment continue to function in the event of a failure of the main electrical power supply:

(a)lights at

(i)all embarkation and debarkation stations and evacuation points,

(ii)all escape routes, temporary safe refuges, service corridors, accommodations area corridors, stairways, exits and personnel lift cars,

(iii)all control centres, control stations and areas from which the communication system referred to in section 129 is controlled,

(iv)spaces from which drilling or production equipment, including any equipment that is critical to that equipment’s operation, is controlled,

(v)spaces where equipment that is related to the emergency shutdown system referred to in section 133 and to the power plants referred to in paragraph 122(4)(b) is located,

(vi)areas where emergency response equipment is stored, and

(vii)aircraft landing areas and the location of any obstacle to take-off and landing;

(b)hazard detection systems, including the central monitoring system referred to in section 169 and the fire and gas detection system referred to in section 132;

(c)emergency response and life-saving systems, including life-saving appliances that require electrical power;

(d)the communication system referred to in section 129;

(e)the emergency shutdown system referred to in section 133;

(f)the lights and sound-signalling appliances referred to in section 127;

(g)in the case of a floating platform, the pumps and powered watertight doors and hatches that are necessary to stabilize the installation, having regard to the failure modes and effects analysis referred to in subsection 144(5);

(h)in the case of a column-stabilized mobile offshore platform, the ballast systems referred to in section 144;

(i)the systems and equipment that are necessary to safely suspend at any time drilling or production that is in progress, including

(i)blowout prevention systems, including the blowout preventer referred to in subsection 68(5),

(ii)any disconnectable mooring system referred to in section 148,

(iii)any disconnect system referred to in section 150, and

(iv)pumping systems; and

(j)any other system or equipment that requires electrical power and that is referred to in the operator’s safety plan referred to in section 9 or its contingency plan referred to in section 11.

(2)If the emergency electrical power supply is a mechanically driven generator, the operator must ensure that

(a)the installation is equipped with a transitional source of electrical power, unless the generator will automatically start and supply the necessary power in less than 45 seconds from the time the main electrical power supply fails;

(b)the installation is equipped with a self-contained battery system that is designed, on failure or shutdown of both the main electrical power supply and the emergency electrical power supply, to automatically supply sufficient power to operate

(i)for a period of at least one hour, the lights that are located in any emergency exit route, any escape route, any space where equipment incorporating an internal combustion engine, gas turbine, electric motor, generator, pump or compressor is found, any control centre and any emergency assembly room and at every launching station of life-saving appliances,

(ii)for a period of at least one hour, the communication system referred to in section 129 and the general alarm system referred to in section 130, and

(iii)for a period of at least four days, the lights and sound-signalling appliances referred to in section 127; and

(c)the mechanically driven generator has redundancy in its starting capabilities and a dedicated fuel source.

(3)The operator must ensure that the emergency electrical power supply together with any transitional source of electrical power and self-contained battery system with which the installation may be equipped are designed and maintained such that

(a)they are able to provide the systems and equipment referred to in subsection (1) with an emergency power supply of sufficient capacity, taking into account starting currents and the transitory nature of electrical loads, and sufficient duration to ensure that the systems and equipment can function as intended and to allow for effective management of the installation during an emergency, including

(i)to allow for the complete shutdown and evacuation of the installation,

(ii)to facilitate emergency response and the safe escape, refuge and evacuation of persons or to maintain the integrity of the installation,

(iii)to ensure sufficient power so that systems that must operate simultaneously can do so,

(iv)in the case of a floating platform, to maintain the flotation and stability of the platform, and

(v)to bring a well to a safe state and to maintain it in that state;

(b)their capacity to provide power to essential systems is not compromised during their maintenance;

(c)they have sufficient redundancy to ensure their reliability and, as far as is practicable, to ensure their functional and physical independence from other essential systems or, if that is not practicable, they are arranged so as not to adversely affect or be adversely affected by the operation of those systems; and

(d)they are readily accessible.

(4)The operator must ensure that the emergency electrical power supply, transitional source of electrical power and self-contained battery system referred to in subsection (3) are arranged — or are otherwise protected from mechanical damage and damage caused by fire, explosion and physical and environmental conditions to which they may be exposed — so that they remain capable of fulfilling their intended functions under all foreseeable operating conditions, including, in the case of a floating platform, under the static and dynamic angles of inclination referred to in subsection 136(7).

(5)The operator must ensure that, in the event of a failure of the main electrical power supply, all control centres are alerted by means of an audible and visual signal that the installation is being powered by the emergency electrical power supply.

127Lights and sound-signalling appliances#

An operator must ensure that an installation is equipped with the lights and sound-signalling appliances that are required by the Collision Regulations as if that installation were a Canadian vessel to which those Regulations apply, unless compliance with the height and distance requirements of those Regulations is not possible, in which case the lights and appliances must be installed to maximize their audible and visual alerting capabilities for collision avoidance.

128Radar#

An operator must ensure that an installation other than an unattended installation is equipped with radar for identifying hazards in proximity to the installation and that the radar is continuously monitored.

129Communication system#

(1)An operator must ensure that an installation is equipped with a communication system that has built-in redundancy and is capable of communicating continuously, including in an emergency, with

(a)external emergency response teams;

(b)all persons, individually or collectively, at an operations site;

(c)all persons who are in transit to or from an operations site;

(d)all support craft;

(e)all onshore support centres;

(f)nearby vessels and aircraft; and

(g)nearby installations.

(2)An operator must ensure that an installation other than an unattended installation is equipped with a radiocommunication system in respect of which the following requirements are met:

(a)the system must comply with Part 2 of the Navigation Safety Regulations, 2020 as if the installation were a Canadian vessel to which those Regulations apply;

(b)a technical acceptance certificate must have been issued in respect of the system under the Radiocommunication Act; and

(c)a continuous listening watch and radio log must be maintained.

(3)An operator must ensure that any radiocommunication system on an unattended installation meets the requirements referred to in paragraphs (2)(a) and (b).

130General alarm system#

(1)An operator must ensure that an installation is equipped with a general alarm system that is capable of alerting persons on the installation of any hazards to safety or the environment other than fire or gas.

(2)The operator must ensure that the general alarm system is

(a)operational at all times other than when the system is being inspected, maintained or repaired;

(b)flagged as being subject to inspection, maintenance or repair, as required; and

(c)designed to prevent tampering.

(3)If a general alarm system is being inspected, maintained or repaired, the operator must ensure that there is an alternative means of alerting persons of the hazards referred to in subsection (1).

131Gas release system#

(1)An operator must ensure that an installation that includes process tanks, process vessels and piping is equipped with a gas release system that has a flaring system, a pressure relief system, a depressurizing system or a cold vent system.

(2)The operator must ensure that the design of the gas release system is based on the results of the risk assessment conducted under subsection 107(1).

(3)The operator must ensure that the gas release system is designed to

(a)release gas and combustible liquid from an installation in a controlled manner without creating a hazard to safety;

(b)reduce pressure in the entire process system as quickly as possible while ensuring a safe and controlled release of pressure;

(c)minimize the effect on the environment;

(d)be activated from the main control centre and from control stations that meet the requirements set out in subsection (5); and

(e)ensure that oxygen cannot enter the system during normal operations.

(4)The operator must ensure that the gas release system is designed and located taking into account factors, including physical and environmental conditions, that affect the safe and normal flaring or emergency release of combustible liquid, gases or vapours so that when the system is in operation it does not damage the installation — or any other installation, vessel or support craft in proximity to it — or injure any person.

(5)The operator must ensure that the control stations from which the gas release system is activated are located and spaced so that they remain protected and accessible for safe operation of the system.

(6)The operator must, in respect of any flaring system, ensure that

(a)if an unlit release of gas could produce toxic gas concentrations or gas concentrations of more than 50% of the lower explosive limit of the released gas,

(i)the system has an automatic igniter system that has redundancy in its ignition capabilities, and

(ii)in the case of an open flare system, the system and any associated equipment are designed to ensure a continuous flame; and

(b)the system and any associated equipment are designed to

(i)withstand the radiated heat at the maximum flaring rate,

(ii)prevent flashback, and

(iii)withstand all loads to which they may be subjected.

(7)The operator must ensure that any vent that is used to release gas into the atmosphere without combustion is designed and located in accordance with the measures referred to in clause 9(2)(b)(vi)(A) and subparagraph 10(2)(b)(vi) that are described in the operator’s safety plan and environmental protection plan, respectively.

(8)The operator must ensure that any liquid, other than water, that cannot be safely and reliably burned at the flare tip of a gas release system is removed from the gas before it enters the flare.

132Fire and gas detection system#

(1)An operator must ensure that an installation is equipped with a fire and gas detection system.

(2)The operator must ensure that the fire and gas detection system

(a)provides continuous, reliable and automatic monitoring functions to allow persons to be alerted to the presence and location of fire and hazardous gas, as well as the concentration and composition of that gas;

(b)as far as is practicable, is functionally and physically independent of other essential systems or, if that is not practicable, is arranged so as not to adversely affect or be adversely affected by the operation of those systems;

(c)includes an alarm system with audible and visual alarms that are distinct from other types of alarms, that can be heard or seen at the main control centre and in other areas where persons are normally present, that are, on detection of fire or gas hazards, automatically activated and that can also be manually activated; and

(d)allows control measures, including those that are designed to be initiated automatically, to be initiated manually to prevent abnormal conditions from escalating and causing major accidental events.

(3)The operator must ensure that the design of the fire and gas detection system is based on the results of the risk assessment conducted under subsection 107(1).

(4)The operator must ensure that the fire and gas detection system is designed

(a)to detect the types of fire and hazardous gas releases identified in the risk assessment conducted under subsection 107(1);

(b)to detect hazardous gas and smoke in the air intakes of any mechanically ventilated non-hazardous areas; and

(c)such that the means to manually initiate fire and gas alarms are available at or near the office of the installation manager, at the main control centre, at every control station and at any other locations identified in the risk assessment conducted under subsection 107(1).

(5)The operator must ensure that the fire and gas detection system meets the following requirements:

(a)its detection components must

(i)be capable of detecting the types of fire and hazardous gas releases identified in the risk assessment conducted under subsection 107(1) in the areas in which they are located,

(ii)ensure reliable and early detection, taking into account their response characteristics, redundancy and performance under foreseeable conditions in which detection may be required,

(iii)be rated and maintained for use in the areas in which they are located, as those areas are classified in accordance with the classification system referred to in subsection 113(2), and

(iv)include failure and malfunction indicators;

(b)the system and its components must be protected from mechanical damage and damage caused by fire, explosion and physical and environmental conditions to which they may be exposed so that they remain capable of fulfilling their intended functions under all foreseeable operating conditions;

(c)the system must allow for all necessary information to be continuously provided to the main control centre and other strategic locations to permit the management of emergency situations; and

(d)the system must be capable of being reset only if the cause of its activation has been resolved.

(6)The operator must ensure, in relation to the testing and maintenance of the fire and gas detection system, that the following requirements are met:

(a)the system must be capable of being overridden for the purposes of testing and maintenance activities;

(b)override commands and functions must be applied for the shortest amount of time possible and with as few as possible being applied simultaneously; and

(c)the testing and maintenance activities must not impair the system beyond what is necessary to undertake those activities and must not impede its functioning.

(7)A work permit is required for the testing and maintenance of the fire and gas detection system.

(8)The work permit must set out measures to be taken to manage the effects of overriding the fire and gas detection system.

(9)The operator must ensure that any leak of gas that is detected by the fire and gas detection system or by means of an auditory, olfactory or visual method — including the observation of the dripping of hydrocarbon liquids from an equipment component — is repaired

(a)immediately, if the repair is necessary for the purposes of safety or the conservation of petroleum resources; or

(b)as soon as the circumstances permit, in any other case.

133Emergency shutdown system#

(1)An operator must ensure that an installation has an emergency shutdown system that is capable of

(a)shutting down all potential ignition sources and potential sources of flammable liquids or gases, including by isolating those sources;

(b)depressurizing all potential sources of flammable liquids or gases other than reservoirs;

(c)preventing abnormal conditions from escalating and causing major accidental events; and

(d)limiting the extent and duration of any major accidental event.

(2)The operator must ensure that the design of the emergency shutdown system is based on studies, analyses and assessments that identify potential hazards and must assess the risks associated with those hazards, including the risk assessment conducted under subsection 107(1) and the risk and reliability analysis referred to in section 108.

(3)The operator must ensure that the emergency shutdown system is designed to

(a)allow for automated and manual activation to ensure effective shutdown;

(b)allow for the shutdown of any system or equipment to bring it to a safe state, unless the system or equipment has been rated to remain operational in the area in which it is located, as that area is classified in accordance with the classification system referred to in subsection 113(2);

(c)allow for the selective shutdown of ventilation systems, other than fans that are necessary for supplying combustion air to engines that are required to operate during emergency situations unless gas has been detected in the intake to those engines;

(d)allow for the isolation of petroleum and flammable fluid inventories, including reservoirs, wells, production systems and pipelines, from ignition sources;

(e)take into account the size and segregation of petroleum and flammable fluid inventories to limit the quantity of substances released on loss of containment;

(f)allow for the depressurization and the disposal of hydrocarbon inventories in a safe manner and to a safe location without cold venting;

(g)allow for the closure of the installation’s subsea and subsurface safety valves and of pipeline safety valves;

(h)take into account, in relation to all essential systems, the necessary timelines to support the safe escape, refuge and evacuation of persons and to maintain the integrity of the installation; and

(i)take into account the activation of the fixed fire suppression systems required under paragraph 134(4)(a).

(4)The operator must ensure that the logic for the emergency shutdown system includes a hierarchy of shutdown levels, action sequences and timelines that are appropriate for the degree of risk posed by the hazards identified in the studies, analyses and assessments referred to in subsection (2).

(5)The operator must ensure, in relation to the emergency shutdown system, that

(a)the system is reliable and, as far as is practicable, it is functionally and physically independent of other essential systems or, if that is not practicable, it is arranged so as not to adversely affect or be adversely affected by the operation of those systems;

(b)the system includes an alarm system, with audible and visual alarms that are distinct from other types of alarms, that will automatically activate in the main control centre and at other strategic locations so that all affected persons, having regard to the hierarchy of shutdown levels referred to in subsection (4), are alerted to the emergency shutdown;

(c)there is continuous monitoring from the main control centre of the system’s status, including, if the system or part of the system is overridden, the extent and duration of the override;

(d)the system and its components are protected from mechanical damage and damage caused by fire, explosion and physical and environmental conditions to which they may be exposed so that they remain capable of fulfilling their intended functions under all foreseeable operating conditions;

(e)the system allows for all information that is necessary to permit the management of emergency situations to be continuously provided to the main control centre and other strategic locations, including information regarding

(i)the shutdown level and the source of activation of the system,

(ii)any shutdown effects that failed to execute on activation of the system, and

(iii)the status, including failure, of the system’s components;

(f)the system is capable of being activated from multiple manual activation points that are

(i)clearly marked,

(ii)protected against unintentional activation, and

(iii)located at

(A)in the case of manual activation points for the highest level of shutdown, the main control centre and other strategic locations, including aircraft landing areas and other embarkation stations, and

(B)in the case of all other manual activation points, strategic positions, at least one of which must not be in a hazardous area;

(g)the activation of the system from a manual activation point triggers the general alarm system referred to in section 130;

(h)if any part of the system is operated using a hydraulic or pneumatic accumulator,

(i)the accumulator

(A)is located as close as is practicable to the part that it is intended to operate, except if that part is part of a subsea production system, and

(B)has the capacity for a sufficient number of activations to ensure that shutdown can be achieved, and

(ii)the shutdown valves revert to a fail-safe mode in the event of a failure of the accumulator;

(i)the system is capable of testing both its input and output signal devices and its internal functions to ensure its functioning;

(j)in the event of a failure of the main electrical power supply referred to in subsection 122(4), the system has the capacity to function continuously until the main electrical power supply is restored or all shutdown operations have been concluded;

(k)in the event that an impairment of the system or any of its components increases the risk to safety or the environment, any other systems that support the emergency shutdown system reverts to a fail-safe mode;

(l)if two or more installations are connected or if there is temporary equipment that has an emergency shutdown system on an installation,

(i)the emergency shutdown systems of the connected installations are linked so that emergency shutdown signals are transmitted between those systems,

(ii)the emergency shutdown systems of the temporary equipment are linked to the installation’s emergency shutdown system so that emergency shutdown signals are transmitted between those systems, and

(iii)the logic for the emergency shutdown system of each of the connected installations and of the temporary equipment is re-evaluated and modified, if necessary, to take into account the fact that the emergency shutdown systems are linked, with the logic of the installation’s emergency shutdown system being given priority over that of any temporary equipment;

(m)the system is capable of being overridden or reset only if the cause of its activation has been resolved and there has been local confirmation that the equipment that gave rise to the system shutdown can be safely used; and

(n)override commands and functions are not capable of being unintentionally activated.

(6)If the emergency shutdown system is capable of being overridden for the purposes of testing and maintenance activities, the operator must ensure that the following requirements are met:

(a)override commands and functions must be applied for the shortest amount of time possible and with as few as possible being applied simultaneously; and

(b)the testing and maintenance activities must not impair the system beyond what is necessary to undertake those activities and must not impede the system’s functioning.

(7)A work permit is required for the testing and maintenance of the emergency shutdown system.

(8)The work permit must set out the measures to be taken to manage the effects of overriding the emergency shutdown system.

(9)In the case of a production installation, the operator must ensure that, if the emergency shutdown system is activated, any subsurface safety valve closes not later than two minutes after the tree safety valve has closed unless a longer delay is justified by the mechanical or production characteristics of the well.

134Fire protection systems and equipment#

(1)An operator must ensure that an installation is equipped with fire protection systems and equipment to control and extinguish fires.

(2)The operator must ensure that the fire protection systems and equipment are designed, selected, operated, inspected, tested and maintained in accordance with the measures referred to in clause 9(2)(b)(vi)(B) that are described in the operator’s safety plan.

(3)The design and selection of fire protection systems and equipment, including suppression agents, must take into account their intended use and the results of the risk assessment conducted under subsection 107(1).

(4)The operator must ensure that the fire protection systems and equipment include

(a)automated fixed fire suppression systems that are capable of being manually activated from outside the space that is being protected;

(b)fixed monitors, deluge systems and foam systems;

(c)manual firefighting systems and equipment; and

(d)any redundancies that are necessary to ensure that the systems function in the case of a failure of one of their components.

(5)The operator must ensure that the fire protection systems and equipment are protected from mechanical damage and damage caused by fire, explosion and physical and environmental conditions to which they may be exposed so that they remain capable of fulfilling their intended functions under all foreseeable operating conditions.

(6)The operator must ensure that an automated fixed fire suppression system is installed in every accommodations area and hazardous area and in any other area that requires such a system based on the results of the risk assessment conducted under subsection 107(1).

(7)The operator must ensure that at least two dedicated, segregated and independently driven fire pumps supply a dedicated firewater ring main and that each of those fire pumps is

(a)equipped with at least two independent starting devices; and

(b)designed to allow for both local and remote control.

(8)The operator must ensure that the fire pumps are located as far as possible from equipment used for storing and processing petroleum, taking into account the results of the risk assessment conducted under subsection 107(1).

(9)The operator must ensure that the fire pumps and piping and their valves are capable of providing a sufficient supply of firewater to any area on the installation, including if a segment of the firewater ring main is damaged.

(10)The operator must ensure that the firewater system is capable of operating continuously for a minimum of 18 hours.

(11)The operator must ensure that the number and location of fire hydrants and fire hose reels are such that at least two jets of water, not emanating from the same location, can reach any part of the installation where a fire may occur.

(12)In areas where it is not practical to use fire hydrants and fire hose reels, the operator must ensure that portable fire-extinguishing equipment is readily available and accessible.

(13)The operator must ensure that audible and visual alarms will activate at the main control centre on the initiation of any of the automated fixed fire suppression systems or on the loss of any firewater pressure.

(14)If the automated fixed fire suppression system creates a hazard to persons, the operator must ensure that audible and visual alarms automatically activate inside and outside the space that is being protected.

(15)Paragraphs (4)(a) and (b) and subsections (6) to (11) do not apply in respect of unattended installations.

135Boilers and pressure systems#

(1)An operator must ensure that boilers and pressure systems are designed in accordance with the measures referred to in clause 9(2)(b)(vi)(C) that are described in the operator’s safety plan.

(2)The boilers and pressure systems must be designed to

(a)prevent the occurrence of an abnormal condition that could cause an undesirable event;

(b)prevent an undesirable event from causing a release of liquids, gases or vapours;

(c)prevent the ignition of any flammable liquids, gases or vapours that are released;

(d)safely disperse or dispose of any liquids, gases or vapours that are released;

(e)prevent the formation of explosive mixtures;

(f)limit persons’ exposure to fire hazards;

(g)monitor safe limits of pressure, temperature and fluid levels and reliably protect against exceeding those limits;

(h)permit the examination of components critical to the pressure system to ensure their continued integrity;

(i)allow for draining and venting at all stages of operation to

(i)permit cleaning, inspection and maintenance activities to be carried out safely, and

(ii)avoid harmful effects, including water hammer, vacuum collapse, corrosion and uncontrolled chemical reactions;

(j)prevent the escalation in relation to the boilers and pressure systems of accidental events occurring outside of them; and

(k)limit and mitigate the effects of any loss of containment of the contents of the boilers and pressure systems.

(3)The design of boilers and pressure systems must

(a)be based on standards that incorporate safety margins, that conform to good engineering practice and that involve the carrying out of analyses and numerical modelling as necessary to determine the behaviour and failure modes of the boilers and pressure systems under all foreseeable operating conditions, taking into account

(i)the internal and external pressures to which the boilers and pressure systems are subjected,

(ii)ambient and operating temperatures,

(iii)static pressure and the mass of the contents of the boilers and pressure systems when tested or operated,

(iv)foreseeable dynamic loads and reaction forces and moments resulting from, among other things, piping and its supports and other accessories,

(v)structural and mechanical integrity threats, and

(vi)reactions caused by changes in fluids and other substances contained in the boilers and pressure systems over time, including reactions caused by the products of the decomposition of unstable fluids or substances;

(b)if hazards cannot be eliminated, incorporate safety measures that take into account

(i)the need for closing and opening devices and devices to indicate their status and to prevent their opening or physical access to them while pressure differential exists,

(ii)the need to contain hazardous substances and to mitigate the effects of any hazard related to their release,

(iii)the surface temperature of the boilers and pressure systems, and

(iv)the decomposition of unstable fluids; and

(c)be approved by an authorized inspector.

(4)The operator must ensure that boilers and pressure systems can withstand all combinations of loads, pressures, temperatures, fluids and substances to which they may be subjected during their design service life.

(5)The operator must ensure that the materials used for the manufacture of boilers and pressure systems are compatible with their operating environment and are chemically resistant to the fluids they contain during their design service life.

(6)The operator must ensure that the following documents and records are obtained from the manufacturer of the boilers and pressure systems:

(a)documents demonstrating that manufacturing, testing and installation have been carried out in accordance with the design specifications provided for in a quality assurance program that is approved by an authorized inspector;

(b)records of the procedures that were followed in the welding, brazing and non-destructive examination of the boilers and pressure systems, including the results of the welder qualification tests specific to the welding and brazing procedures;

(c)documents evidencing the qualifications of persons involved in manufacturing, inspection and testing, including welders; and

(d)traceability records for the components of the boilers and pressure systems.

(7)The operator must ensure, before a boiler or pressure system is put into operation, that it has been

(a)constructed, installed and commissioned by persons with the necessary experience, training, qualifications and competence to do so safely and in a manner that protects the environment; and

(b)subjected to any inspections by an authorized inspector and tests by or under the direction of an authorized inspector, including non-destructive examination and proof tests, that are necessary to ensure its integrity and compliance with design specifications.

(8)The operator must ensure that a boiler or pressure system is inspected by an authorized inspector and tested by or under the direction of an authorized inspector

(a)before the boiler or pressure system is put into operation following its installation;

(b)before the boiler or pressure system is put into operation following any modification or repair to it, including welding; and

(c)at any other interval as required by the standards on which the design of the boiler or pressure system is based.

(9)The operator must ensure that operating procedures are developed for the boilers and pressure systems that inform users of operating hazards and indicate any special measures to be taken to reduce risks when the boilers and pressure systems are being used, maintained or repaired.

(10)The operator must ensure that any boiler or pressure system is used, maintained and repaired in accordance with the operating procedures referred to in subsection (9).

(11)It is prohibited for any person to alter, interfere with or render inoperative any boiler or pressure system fitting, except for the purpose of adjusting or testing the fitting.

(12)The operator must keep a register of all boilers and pressure systems that includes the following documents and information in respect of each:

(a)accurate design calculations, technical drawings and design specifications, including evidence of the design approval by an authorized inspector;

(b)a list of the standards on which the design of the boiler or pressure system is based;

(c)the boiler or pressure system’s operating limits, including its pressure and temperature ratings;

(d)all documents and records required from the manufacturer under subsection (6);

(e)in respect of each inspection and test referred to in subsection (7) or (8), a record created and signed by the authorized inspector who conducted the inspection that includes

(i)the date of the inspection or test,

(ii)information that identifies the boiler or pressure system that was inspected or tested, as well as its location,

(iii)the range of safe pressure and temperature at which the boiler or pressure system may be operated,

(iv)a declaration by the authorized inspector who conducted the inspection or who conducted or directed the test as to whether the boiler or pressure system meets the standards that were applied in its design and manufacture,

(v)a declaration by the authorized inspector who conducted the inspection or who conducted or directed the test stating that the boiler or pressure system is fit for the purposes for which it is to be used,

(vi)any recommendations regarding the need for modifications to the maintenance program established under section 159, and

(vii)any other observation relevant to safety; and

(f)a description of each repair or modification made to the boiler or pressure system.

(13)The operator must ensure that a boiler or pressure system is marked with any information that is necessary for its safe installation and operation, including an identifier that permits reference to the documents and records referred to in subsection (6) and the information referred to in paragraphs (12)(e) and (f).

(14)The operator must ensure that all operating procedures developed in accordance with subsection (9) and the register referred to in subsection (12) are periodically verified by the certifying authority.

(15)This section does not apply to any of the following:

(a)a heating boiler that has a heating surface of 3 m² or less;

(b)a pressure system that is installed for use at a pressure of one atmosphere of pressure or less;

(c)a pressure vessel that

(i)has a capacity of 40 L or less, or

(ii)has an internal diameter of

(A)152 mm or less, or

(B)more than 152 mm but not more than 610 mm if the pressure vessel is used for the storage of hot water or is connected to a water pumping system containing compressed air that serves as a cushion;

(d)a refrigeration plant that has a refrigeration capacity of 18 kW or less; or

(e)a domestic water and plumbing system.

136Mechanical equipment#

(1)An operator must ensure that any mechanical equipment on an installation

(a)is designed, selected, located, installed, commissioned, protected, operated, inspected and maintained in accordance with the measures referred to in clauses 9(2)(b)(v)(E) and 10(2)(b)(v)(E) that are described in the operator’s safety plan and environmental protection plan, respectively; and

(b)can operate safely and reliably under all foreseeable operating conditions, taking into account the manufacturer’s instructions.

(2)Mechanical equipment must be designed to eliminate hazards to safety or the environment in the following scenarios or, if that is not possible, to mitigate the risks posed by those hazards:

(a)loss of containment of hazardous substances;

(b)overspeeding and loss of restraint of machinery components with high kinetic energy;

(c)extreme surface temperatures of the mechanical equipment;

(d)movement of mobile components of the mechanical equipment;

(e)loss of control and integrity of the mechanical equipment;

(f)ignition of potentially explosive atmospheres in hazardous areas from sparks, flames or excessive heat; and

(g)escalation of accidental events.

(3)The operator must ensure that controls and manual shut-off devices for mechanical equipment are in a protected and readily accessible location that permits safe operation when an accidental event occurs that renders the equipment inaccessible.

(4)The operator must ensure that the basic operating instructions for an internal combustion engine provide details of stop, start and emergency procedures and are permanently attached to the engine.

(5)The operator must ensure that turbines and internal combustion engines are

(a)equipped to prevent unintended ignition;

(b)installed so that

(i)their supply of combustion air is from a non-hazardous area, and

(ii)their exhaust is discharged to a non-hazardous area; and

(c)equipped with safety devices — including manual fuel shut-off devices and, unless it would increase safety or environmental risks, automatic fuel shut-off devices — to prevent major damage from overspeeding, high exhaust temperature, high cooling water temperature, low lubricating oil pressure or other foreseeable hazards that could impair the safety of operations.

(6)Despite paragraph (5)(c), turbines and internal combustion engines that are critical to emergency response, including emergency generators and fire pumps, need only be equipped with safety devices to prevent major damage from overspeeding.

(7)The operator must ensure that mechanical equipment that is critical to the safety or propulsion of a floating platform will continue to operate safely and reliably at its full rated power under the static and dynamic angles of inclination that are specified in the rules of the classification society that issued the certificate of class required under section 140.

137Materials handling equipment#

(1)An operator must ensure that all materials handling equipment is

(a)to the extent feasible, designed and constructed to prevent the failure of any of its parts, taking into account the conditions under which it is to be operated;

(b)to the extent feasible, equipped with safety devices that will ensure that any failure of any of its parts does not result in a loss of control of the equipment or of its load or result in any other hazardous situation; and

(c)operated taking into account the manufacturer’s instructions and industry standards and best practices.

(2)The operator must ensure that all materials handling equipment is marked with its rated capacity and in a manner that identifies its manufacturer and model and that permits reference to any information that is necessary to its safe operation, including information regarding its design, construction, inspection, testing, maintenance and repair.

(3)The operator must ensure that materials handling equipment that is to be used on an installation is inspected and proof-tested by a competent third party in the following situations to determine the equipment’s rated capacity:

(a)the equipment is to be used on the installation for the first time;

(b)repairs or modifications have been made to the equipment’s load-bearing components;

(c)the equipment has been in contact with an electric arc or current; and

(d)there is any other reason to doubt that the rated capacity of the equipment that was most recently certified under subsection (5) or the limitations that were most recently indicated under that subsection continue to be accurate, including as a result of damage sustained by the equipment or modifications made to it.

(4)The operator must ensure that the inspection and proof-testing is done in accordance with criteria established by the manufacturer or applicable industry design and safety standards, including with respect to the frequency at which the equipment must be inspected and proof-tested to ensure its continued safe operation.

(5)Following the inspection and proof test, the competent third party must certify in writing the rated capacity of the materials handling equipment and must indicate in writing any limitations that must be imposed on its use having regard to physical and environmental conditions.

(6)The operator must ensure that a crane with slewing capability is capable of retaining its slewing and lowering capability in emergency situations.

(7)The operator must ensure that a pedestal crane meets the following requirements:

(a)it must be equipped with

(i)appropriate travel-limiting devices for its boom, hoist, blocks and slewing mechanism,

(ii)a load-measuring device that has been calibrated in accordance with the manufacturer’s specifications or any calibration standard that is at least as rigorous as those specifications,

(iii)a device to indicate its boom extension or load radius, if its rated capacity is affected by the extension or radius,

(iv)a device to indicate its boom angle, if its rated capacity is affected by that angle,

(v)a device for accessing anemometer readings, if the load that it is able to safely handle or support is susceptible to being reduced by wind,

(vi)a gross overload protection system, if it is used to move persons or things to or from a floating platform or vessel, and

(vii)a safe load indicator system that is programmed for different operating modes and includes load and moment measuring devices; and

(b)a load chart that specifies the boom angle and the safe working load for each block and for each operating mode, as well as any limitations indicated under subsection (5), must be posted inside its control cab.

(8)The operator must ensure that all crane hooks are equipped with spring-loaded latches or other equally effective means of preventing the load from falling off the hook under any operating conditions.

(9)When an aircraft is landing on or taking off from a landing area, it is prohibited to move a crane in the vicinity of the landing area and, if feasible, the person operating the crane must ensure that the crane’s boom is stowed.

(10)The operator must ensure that any materials handling equipment that lifts over 10 tonnes is certified by the certifying authority.

138Subsea production system#

(1)An operator must ensure that a subsea production system is designed, constructed, installed, commissioned, operated, inspected, monitored, tested and maintained in accordance with the measures referred to in clauses 9(2)(b)(v)(F) and 10(2)(b)(v)(F) that are described in the operator’s safety plan and environmental protection plan, respectively.

(2)A subsea production system must be designed so that

(a)the system can avoid foreseeable hazards or revert to a safe state when hazards are imminent;

(b)the system supports and seals connections to the well, pipelines, other subsea production systems or other installations;

(c)in the event of a loss of control or communication, the system will revert to a safe state;

(d)the failure of a single component of the system cannot cause or contribute to a major accidental event;

(e)barrier elements in each conduit that carries fluids are reliable, have the necessary redundancy and are arranged to

(i)prevent uncontrolled flow of well fluids,

(ii)minimize the quantity of fluids released from the conduit in the event of unintended release, and

(iii)permit testing of the integrity of the barrier elements without increasing safety or environmental risks;

(f)subsea equipment can withstand or is protected from any load to which it may be subjected that would result in mechanical damage;

(g)production risers can withstand or are protected from all hazards and environmental loads to which they may be subjected, other than icebergs; and

(h)the blowout preventer is supported by the system during drilling and the tree and any workover or intervention pressure control equipment are supported by the system after completion.

(3)The operator must ensure that a riser that is connected to a floating platform that has a disconnectable mooring system or dynamic positioning system is designed to be capable of safely detaching in any foreseeable physical and environmental conditions.

(4)The operator must ensure that, if risers are designed to disconnect in order to avoid foreseeable hazards, riser fluids may be safely displaced by water or isolated.

(5)The operator must ensure that, if a riser is disconnected, its integrity is demonstrated through testing once it is reconnected and before it is brought back into service.

(6)The operator must ensure that a subsea production system is controlled from only one location at any given time.

(7)The operator must ensure that any subsea production system is assessed through a failure modes and effects analysis.

139Temporary or portable equipment#

(1)An operator must ensure that any temporary or portable equipment used on an installation is fit for the purposes for which it is to be used.

(2)Before any temporary or portable equipment is installed or brought into service on an installation, the operator must ensure that the equipment and its integration with other equipment and systems are assessed to determine their impact on safety-critical elements and on the risk assessment referred to in subsection 24(3).

(3)The operator must ensure that temporary or portable equipment is managed in accordance with the measures referred to in clauses 9(2)(b)(v)(G) and 10(2)(b)(v)(G) that are described in the operator’s safety plan and environmental protection plan, respectively, and in a manner that does not compromise the target levels of safety set out in those plans.

(4)The operator must ensure that temporary or portable equipment that is a safety-critical element is, before being put into operation, verified by the certifying authority to confirm its suitability and safe placement and hook-up.

Additional Requirements for Platforms

140Classification#

An operator must ensure that a floating platform holds a valid certificate of class issued by a classification society that corresponds to the authorized work or activity to be carried out from the floating platform.

141Air gap#

An operator must ensure that a platform that is either founded on the seabed or column-stabilized has a sufficient air gap to operate safely under the maximum environmental load conditions to which it may be subjected.

142Stability#

(1)An operator must ensure that a floating platform, whether intact or in a damaged condition, is stable and can be operated safely, having regard to all motions and loads to which it may be subjected, including by

(a)determining the stability and motion response characteristics of the platform using analysis or model testing;

(b)determining the critical maximum loads and motions that the platform can withstand;

(c)ensuring that all equipment is fastened to prevent unintended movement; and

(d)monitoring and recording all loads that could affect the motions, stability or inclination of the platform.

(2)The operator must ensure that a floating platform has sufficient freeboard to operate safely under the maximum environmental load conditions to which it may be subjected.

(3)The operator must comply with the applicable provisions of the MODU Code and Part B of the IS Code concerning the stability and motion response of a floating platform, which are to be read as mandatory.

(4)If the weight of a floating platform or a self-elevating mobile offshore platform changes by more than 1% of the lightship weight, the operator must ensure that a deadweight survey is carried out at the earliest opportunity and an up-to-date value of the lightship centre of gravity is calculated.

143Self-elevating mobile offshore platform#

(1)An operator must, in relation to a self-elevating mobile offshore platform, ensure that a site-specific assessment is conducted of the condition of the seabed, including seabed restraint, to ensure that the platform is stable and can be operated safely.

(2)The operator must ensure that a self-elevating mobile offshore platform meets the following requirements:

(a)it must be equipped with systems to actively monitor

(i)hull inclination,

(ii)leg penetration into the seabed,

(iii)loads on each of the platform’s legs, and

(iv)rack phase differential, if applicable; and

(b)its jacking mechanisms must be designed so that the failure of a single component does not cause an uncontrolled descent of the platform.

(3)The operator must ensure that the works and activities on a self-elevating mobile offshore platform are suspended and that all wells associated with the platform are brought to a safe shut-in condition if

(a)hull inclination or the rack phase differential exceeds the allowable limits set out in the operations manual in accordance with paragraph 157(3)(b);

(b)unexplained changes occur in the loads on any of the platform’s legs;

(c)leg penetration into the seabed increases; or

(d)any other event threatens the stability of the platform.

(4)In the case of any of the situations referred to in subsection (3), the operator must ensure that the works and activities on the self-elevating mobile offshore platform remain suspended and that all wells associated with the platform remain in a safe shut-in condition until the cause of the situation has been investigated and corrective measures have been taken.

144Ballast and bilge systems#

(1)An operator must ensure that a floating platform is equipped with reliable ballast and bilge systems with the necessary redundancy in their components to

(a)maintain necessary draught, stability and hull strength under all foreseeable operating conditions;

(b)return the floating platform to a safe condition from an unintended draught, trim or heel;

(c)prevent unintended transfer of fluid within the system;

(d)empty and fill all tanks that are a part of the system; and

(e)completely and rapidly empty watertight spaces.

(2)The operator must comply with the applicable provisions of the MODU Code concerning ballast and bilge systems, which are to be read as mandatory.

(3)In the case of a column-stabilized mobile offshore platform, the operator must ensure that it is equipped with a secondary ballast control station that is equipped with

(a)an effective means of communication with other spaces that contain equipment relating to the operation of the ballast system;

(b)a ballast pump control and status system;

(c)a ballast valve control and status system;

(d)a tank level indicating system;

(e)a permanently mounted ballast schematic diagram;

(f)heel and trim indicators;

(g)a draught-indicating system;

(h)a system to indicate the available power from the main and emergency electrical power supplies; and

(i)a ballast system hydraulic or pneumatic pressure-indicating system.

(4)The operator must ensure that a secondary ballast control station is located above the waterline in the final condition of equilibrium after flooding if the floating platform is in a damaged condition.

(5)The operator must ensure that the ballast and bilge systems are assessed through a failure modes and effects analysis before any authorized work or activity is carried out from the floating platform.

145Watertight and weathertight integrity and freeboard#

(1)The operator must comply with the applicable provisions of the MODU Code and Part B of the IS Code concerning watertight and weathertight integrity and freeboard, which are to be read as mandatory.

(2)The operator must ensure that the floating platform is designed with sufficient watertight subdivision to ensure the preservation of reserve buoyancy and damage stability under all foreseeable conditions.

(3)The operator must ensure that a floating platform

(a)holds an International Load Line Certificate or an International Load Line Exemption Certificate issued by the government of the state whose flag the platform is entitled to fly, as required under Article 16 of the International Convention on Load Lines, 1966; and

(b)is marked in accordance with the certificate.

(4)The operator must ensure that the arrangement and specification of watertight and weathertight appliances complies with the measures referred to in clause 9(2)(b)(v)(H) that are described in the operator’s safety plan.

(5)The operator must ensure that a floating platform is designed with systems and equipment that provide for the operation, monitoring and indication — both locally and at the ballast control stations — of the opening and closing of watertight doors and hatches and for the detection and provision of alerts of any water ingress into watertight spaces that are not designed to accumulate liquid.

(6)The operator must ensure that the columns of a column-stabilized mobile offshore platform do not have port lights or similar openings.

146Station-keeping#

An operator must ensure that a floating platform is equipped with a mooring system or a dynamic positioning system to ensure station-keeping of the platform within its operating limits.

147Mooring system#

(1)An operator must ensure that a mooring system with which a floating platform is equipped is designed, on the basis of analysis and model testing, to ensure

(a)safety and the protection of the environment;

(b)the stability and serviceability of the floating platform;

(c)the integrity and serviceability of the mooring system components, including any related topside equipment;

(d)the integrity and serviceability of drilling risers, production risers, export risers or any other type of riser;

(e)the necessary redundancy of the mooring system components to enable the floating platform to maintain its position with the loss of a single component or, for a thruster-assisted mooring system, the loss of the most effective thruster or a single failure in the power or control system;

(f)for a thruster-assisted mooring system, the ability of the floating platform to withstand extreme meteorological conditions in the event of a power failure;

(g)the ability of the floating platform to move from its position to avoid accidental events that it is not designed to withstand; and

(h)safe access and safe clearances with respect to subsea and surface components of the installation, any nearby installations, support vessels and evacuation systems.

(2)The operator must ensure that the excursion limits of a floating platform that is equipped with a mooring system are established on the basis of the analysis and model testing referred to in subsection (1).

(3)The operator must ensure that the floating platform has systems and processes to continuously detect loss of station-keeping or the failure of any mooring system component.

(4)The operator must ensure that mooring line tensions or other indicators of the integrity of the mooring system are monitored and kept within the mooring system’s operating limits.

(5)The operator must ensure that measures to ensure that the mooring system continues to perform in accordance with its design specifications are implemented, including

(a)the assessment of the system’s condition, periodically and if it is damaged or if damage to it is suspected; and

(b)the making of arrangements for timely repair or replacement in the event of damage or deterioration.

148Disconnectable mooring system#

(1)If the mooring system with which a floating platform is equipped is disconnectable, the operator must ensure that the system is designed to ensure that disconnection can be accomplished in a controlled manner without creating a risk of drift-off.

(2)The operator must ensure that the disconnectable mooring system is designed and maintained in accordance with the measures referred to in clause 9(2)(b)(vi)(D) that are described in the operator’s safety plan.

(3)The operator must ensure that the disconnectable mooring system includes a primary system and a backup system for disconnection, both of which can be operated locally or from a remote location.

(4)The operator must ensure that a floating platform that is equipped with a disconnectable mooring system is capable of

(a)safely manoeuvering away under its own power; and

(b)maintaining a safe position and heading while disconnected.

(5)The operator must ensure that criteria and procedures for disconnection are developed for all credible disconnection scenarios, including procedures for monitoring environmental conditions and providing alerts for worsening conditions that may require disconnection.

(6)The operator must ensure that the disconnectable mooring system

(a)is capable of carrying out a planned disconnection after allowing time for the depressurization and flushing of subsea flowlines;

(b)is capable of carrying out an emergency disconnection after allowing time to safely shut in wells and subsea equipment;

(c)allows for the reconnection to the floating platform of the system and flowlines in an orderly sequence, in the physical and environmental conditions described in the operations manual under paragraph 157(2)(c); and

(d)allows for the resumption of production after the system and flowlines have been reconnected to the floating platform following a planned disconnection;

(7)The operator must periodically verify the disconnect capability of the disconnectable mooring system and must record the findings resulting from the verification.

(8)The operator must ensure that the emergency disconnection referred to in paragraph (6)(b) is initiated if the floating platform exceeds the excursion limits established under subsection 147(2).

149Dynamic positioning system#

(1)An operator must ensure that the design of a dynamic positioning system with which a floating platform is equipped

(a)is based on numerical analysis and model testing to ensure that the floating platform’s position reference and directional control can be maintained within specified tolerances that satisfy design operational requirements in relation to all functional and environmental loads to which the system may be subjected at the floating platform’s intended location;

(b)is based on a failure modes and effects analysis to ensure the segregation and redundancy of safety-critical systems and their components as necessary to maintain the platform’s position in the event that credible scenarios of equipment failure are realized;

(c)allows the dynamic positioning system to withstand the loss from fire or flooding of all of its components situated in any one watertight compartment or fire subdivision of the floating platform; and

(d)includes systems to monitor the parameters of operability and integrity of the critical systems of the dynamic positioning system and to provide alerts for critical system faults.

(2)The operator must ensure that the excursion limits of a floating platform that is equipped with a dynamic positioning system are established based on the numerical analysis and model testing referred to in paragraph (1)(a).

150Disconnect system#

(1)An operator must ensure that a floating platform that is equipped with a dynamic positioning system has a disconnect system that

(a)is capable of carrying out a planned disconnection of the floating platform from the seabed after allowing time to prepare the risers and subsea flowlines for the disconnection;

(b)is capable of carrying out an emergency disconnection after allowing time to safely shut in wells and subsea equipment; and

(c)allows for reconnection in an orderly sequence, in the physical and environmental conditions described in the operations manual under paragraph 157(2)(c).

(2)The operator must periodically demonstrate by means of a trial or performance test that the disconnect system meets the requirements under subsection (1).

(3)The operator must ensure that the emergency disconnection referred to in paragraph (1)(b) is initiated if the floating platform exceeds the excursion limits established under subsection 149(2).

151Decisions and exemptions#

For any floating platform that is registered outside Canada, the operator must

(a)establish a list of all flag State administration decisions and exemptions that apply to the floating platform in relation to any standards adopted by the International Maritime Organization;

(b)conduct a risk assessment to identify measures to reduce the safety and environmental risks in relation to those decisions and exemptions to a level that is as low as reasonably practicable; and

(c)establish an action plan to implement the measures referred to in paragraph (b).

152Gap analysis#

The operator must, every time the MODU Code is updated,

(a)undertake a gap analysis between the criteria in the updated version and the version that applies to the floating platform based on its date of construction;

(b)conduct a risk assessment in relation to any gaps identified; and

(c)ensure that mitigation measures are implemented, as necessary.

Asset Integrity

153Requirements#

An operator must ensure that all installations, including their systems and equipment, are inspected, monitored, tested, maintained and operated to

(a)ensure safety, the protection of the environment and the prevention of waste; and

(b)ensure that they continue to perform in accordance with their design specifications under the operating conditions and maximum loads to which they may be subjected.

154Non-destructive examination#

An operator must ensure that a non-destructive examination of the critical joints and structural parts of an installation is conducted at least once every five years or more often as required to ensure the continued safe operation of the installation.

155Corrosion management#

(1)An operator must ensure that if a safety or environmental hazard would result from the failure due to corrosion — including corrosion from exposure to a sour environment — of any equipment, including process vessels, or of any piping, valves, fittings and structural elements that are part of an installation, that corrosion is prevented and managed throughout the life cycle of the installation.

(2)The operator must develop a corrosion management program that sets out the measures that are necessary to prevent critical failures resulting from corrosion-related degradation and to ensure the continued integrity of safety-critical elements.

(3)The program must

(a)identify all safety-critical elements that are susceptible to degradation by corrosion;

(b)provide for the analysis that is necessary to determine corrosion degradation mechanisms and the limits and failure modes of the safety-critical elements referred to in paragraph (a), taking into account the physical and environmental conditions and chemicals to which it is foreseeable that the safety-critical elements may be exposed;

(c)include measures to prevent corrosion, as far as is practicable, and to mitigate or protect against the effects of corrosion;

(d)provide for the inspection and monitoring of corrosion and of any corrosion protection and prevention systems;

(e)provide for the collection and analysis of baseline and continuous data to monitor corrosion;

(f)provide for the continuous assessment, based on the data and analysis referred to in paragraph (e), of the maintenance activities and schedules referred to in paragraph 159(2)(f) to determine whether those activities and schedules are adequate to ensure corrosion management of safety-critical elements and provide for the modification of those activities and schedules, if necessary;

(g)provide for timely preventive maintenance of any corrosion protection and prevention systems; and

(h)provide for the timely inspection, monitoring and maintenance of safety-critical elements in accordance with the requirements of the maintenance program referred to in paragraphs 159(2)(e) and (f) and for any necessary repair before the limits established in paragraph (b) are reached.

(4)The operator must ensure that the program is implemented and periodically updated, taking into account the data and analysis referred to in paragraph (3)(e).

Operation and Maintenance

156Limits and requirements#

An operator must operate an installation, including its systems and equipment, in accordance with any limitations that are set out in the certificate of fitness under subsection 28(3), with any requirements under this Part and with the operations manual referred to in section 157.

157Operations manual#

(1)An operator must develop an operations manual in respect of each installation that sets out or incorporates by reference the following documents and information:

(a)a general description of the installation, including its particular characteristics;

(b)the chain of command and the roles, responsibilities and authorities of persons during normal operations of the installation and in emergency situations;

(c)a brief description of the systems and equipment on the installation, including flow sheets and instructions for the assembly, use and maintenance of the systems and equipment;

(d)the operating limits of the installation, including those of its systems and equipment;

(e)the physical and environmental conditions under which the installation and any pipeline can operate without compromising safety or the protection of the environment and the physical and environmental conditions that the installation and pipeline can withstand, taking into account the results of any analyses, tests, numerical modelling or investigations undertaken under subsection 105(2);

(f)the results of the risk and reliability analysis conducted for the purpose of subsection 108(1);

(g)a list of the procedures necessary to ensure the safe operation of the installation, including its systems and equipment, within the limits described in paragraph (d);

(h)a list of the accidental events that would require implementing the contingency plan referred to in section 11, any possible triggers for such events and the measures to be implemented to avoid their occurrence;

(i)a list of the procedures, practices, resources and monitoring measures set out in the contingency plan referred to in section 11;

(j)the criteria for each platform’s minimum penetration into the seabed or for the maximum scour of the platform’s foundation and an indication of the arrangement of the platform’s anchoring system;

(k)a description of the characteristics of each platform’s foundation and its penetration into the seabed or an indication of the arrangement of the platform’s anchoring system, as well as a description of the measures to be implemented to monitor the integrity of the foundation or that of the mooring and anchoring systems;

(l)the criteria to identify meteorological and oceanographic conditions and phenomena that require subsea components and pipelines to be inspected;

(m)plans that show the arrangement of watertight and weathertight subdivisions;

(n)details of openings in watertight and weathertight subdivisions, including the location of vents, air pipes and all other means of water penetration, and the means of closure of the compartments, as well as the location of downflooding points;

(o)a plan that contains information concerning permissible deck loads, variable loading limits and preloading;

(p)details of all audible and visual signals and alarms used in the communication system referred to in section 129, the general alarm system referred to in section 130, the fire and gas detection system referred to in section 132 and the emergency shutdown system referred to in section 133, as well as details of any colour-coding systems used for the safety of persons on the installation;

(q)information on any corrosion protection and prevention systems, including their type and location, and any requirements for the safety and maintenance of those systems;

(r)technical drawings that show

(i)the arrangement of any deck structure and of the equipment located on it, of all accommodations areas and temporary safe refuges and of any aircraft landing area, including its obstacle-free approach zone,

(ii)sufficient details to permit verification and management, if applicable, of the integrity of hulls, mooring components, primary and critical structures, foundation elements, jacking mechanisms, risers and conductors,

(iii)the arrangement of hazardous areas and of any equipment located in those areas, and

(iv)a fire control and evacuation plan, including

(A)the location of escape routes, fixed fire suppression systems and life-saving appliances, and

(B)the arrangement of barriers that provide passive fire and blast protection and associated equipment, along with a description of those barriers and equipment;

(s)the operating and maintenance requirements for all the life-saving appliances referred to in section 119;

(t)information identifying the aircraft that were used for the design of any aircraft landing area on the installation and the maximum weight, size and wheel centres of those aircraft;

(u)any special arrangements in place to facilitate the inspection and maintenance of the installation, including its systems and equipment, and the storage of any crude oil on the installation;

(v)special precautions to be taken or instructions to be followed when repairs or alterations to the installation, including its systems or equipment, are to be carried out;

(w)any special operational or emergency requirements and procedures with respect to any systems and equipment that are critical to safety, including the emergency shutdown system referred to in section 133;

(x)a description of the air gap or freeboard and of the means of ensuring that the requirements under section 141 and subsections 142(2) and 145(1) and (3), as the case may be, are met;

(y)the number of persons who can be accommodated on the installation during normal operations;

(z)a description of the main electrical power supply referred to in subsection 122(4) and the emergency electrical power supply referred to in section 126 and any limitations on their operation;

(z.1)the procedure for periodically documenting the results of all inspections, monitoring, testing and maintenance of the installation’s integrity, including the format and presentation of that documentation; and

(z.2)the procedure for notifying the Chief Safety Officer and the certifying authority under subsections 162(1) and 170(1) and (2).

(2)In the case of a floating platform, the operations manual must also contain

(a)a description of the platform’s station-keeping system and its capabilities, taking into account the platform’s operating limits;

(b)all procedures for addressing the failure of any component of the station-keeping system that is critical to safety;

(c)if the station-keeping system is a mooring system, descriptions of the environmental loads that the moorings can sustain to keep the platform moored in place, the estimated holding power and capacity of the anchors in relation to the soil at the drill site or production site and the physical and environmental conditions in which reconnection of the platform is permitted;

(d)the procedures for addressing an excursion outside of the limits established in the context of the analysis and model testing under subsections 147(2) and 149(2);

(e)a description and the limitations of any onboard computer or computer-based control systems used in operations such as ballasting and dynamic positioning and in the platform’s trim and stability calculations;

(f)instructions on how to assess the loading and ballast conditions of the platform to determine its stability and how to manage those conditions to maintain the platform’s stability in accordance with the provisions referred to in subsection 142(3);

(g)data on the location, type and weights of permanent ballast installed on the platform;

(h)hydrostatic curves or equivalent data;

(i)a plan that shows the capacities and the centres of gravity of tanks and bulk material stowage compartments;

(j)tank-sounding tables or curves that show the capacities and the centres of gravity in graduated intervals and the free surface data for each tank;

(k)stability data that take into account the maximum height of the centre of gravity above the keel in relation to the draught curve and other parameters relevant to the stability of the platform;

(l)the results of any inclining test, or of any lightweight survey together with the inclining test results, and the updated location of the platform centre of gravity following a deadweight survey;

(m)examples of loading conditions for each mode of operation, together with the means to evaluate any other loading conditions;

(n)technical drawings that

(i)show the arrangement and location of all openings that could affect the stability of the platform and their means of closure,

(ii)show the arrangement and operation of the ballast and bilge systems,

(iii)are accompanied by the operating instructions for the ballast and bilge systems, and

(iv)are sufficient in their scope and detail to ensure, in combination with the instructions referred to in subparagraph (iii), that

(A)the necessary draught, stability and hull strength can be maintained under all foreseeable operating conditions, and

(B)the floating platform can be returned to a safe condition from an unintended draught, trim or heel; and

(o)a towing arrangement plan, if necessary, and the operating limits of the towing equipment’s components.

(3)In the case of a self-elevating mobile offshore platform, the operations manual must also contain

(a)a description of any equipment for elevating and lowering the installation and details of any special types of joints and their purpose, including any operating or maintenance instructions for the equipment and joints; and

(b)the allowable limits for hull inclination and rack phase differential.

(4)The operator must ensure that the operations manual is kept up-to-date.

158Programs#

(1)An operator must develop the following programs to ensure the continued integrity of an installation, including its systems and equipment, from the time the installation is commissioned until it is abandoned or removed from the offshore area:

(a)the maintenance program referred to in section 159;

(b)the preservation program referred to in section 160; and

(c)the weight control program referred to in section 161.

(2)The operator must ensure that the programs are implemented and periodically updated.

159Maintenance program#

(1)The maintenance program must set out the inspection, monitoring, testing and maintenance policies and procedures for the installation, including its systems and equipment, that are necessary to ensure safety, protect the environment and prevent waste.

(2)The maintenance program must

(a)include the measures to ensure that the installation, including its systems and equipment, continues to perform in accordance with its design specifications;

(b)include the measures to ensure compliance with any inspection, monitoring, testing or maintenance requirements under this Part;

(c)include the performance standards developed by the operator for the installation, including for its systems and equipment;

(d)take into account the failure modes and mechanisms of safety-critical elements and the causes of their failure;

(e)include inspection and monitoring activities that occur at a frequency and in a manner to prevent, if practicable, the failures referred to in paragraph (d), or to mitigate the effects of those failures, and to ensure that safety-critical elements are repaired, replaced or modified without delay and in accordance with section 162; and

(f)include predictive and preventive maintenance activities and schedules for each safety-critical element that

(i)are based on the performance standards referred to in paragraph (c),

(ii)take into account the manufacturer’s recommendations and industry standards and best practices,

(iii)specify a minimum frequency for the comprehensive inspection of each safety-critical element, taking into account its condition and the conditions under which it is used,

(iv)for rotating equipment, provide for partial or complete dismantling and inspection at a frequency necessary to maintain the equipment in good condition and to ensure that the equipment’s functionality, availability, reliability and performance are in accordance with its design specifications,

(v)provide for a periodic maintenance regime for any low running-hour equipment, such as emergency generators, essential generators and fire pumps, and

(vi)provide for the management of spare parts so that critical spare parts are available on the installation to ensure the continued functionality, availability, reliability and performance of each safety-critical element in accordance with its design specifications.

160Preservation program#

(1)The preservation program must set out the measures that are necessary to ensure the integrity of equipment that is taken out of service and stored for future use.

(2)The program must provide for the periodic inspection of the stored equipment to verify its integrity and ensure that it is fit for the purposes for which it is to be used if it is brought into service.

161Weight control program#

The weight control program must set out the measures that are necessary to ensure that the weight and centre of gravity of each installation are kept safely within the installation’s operating limits.

162Safety-critical element — repair, replacement or modification#

(1)The holder of a certificate of fitness must ensure that the certifying authority and the Chief Safety Officer are notified before a safety-critical element is repaired, replaced or modified and before any equipment that would change the design, performance or integrity of a safety-critical element is brought on board the installation.

(2)The holder of a certificate of fitness must ensure that the approval of the certifying authority is obtained before a safety-critical element is repaired or modified.

(3)The holder of a certificate of fitness must ensure that a safety-critical element that has been repaired or modified is not put into operation until the certifying authority has verified it and

(a)confirmed that it is fit for the purposes for which it is to be used, can be operated safely without posing a threat to persons or the environment and meets the requirements of these Regulations; and

(b)imposed any limitation on the operation of the installation that is necessary to ensure that the installation meets the requirements referred to in paragraph 28(1)(b).

(4)In an emergency, subsections (2) and (3) do not apply if the installation manager considers that the delay required to comply with the requirements under those subsections endangers persons on the installation or the environment.

(5)A safety-critical element that is repaired or modified in an emergency must be verified by the certifying authority in accordance with subsection (3) as soon as the circumstances permit.

(6)This section does not apply in the case of an adjustment made to or the testing of a boiler or pressure system fitting.

Wells

163Drilling fluid systems#

An operator must ensure that

(a)the drilling fluid system and associated monitoring equipment provide an effective barrier against formation pressure, ensure safe well operations, prevent pollution and allow for well evaluation;

(b)the indicators and alarms associated with the monitoring equipment are strategically located on the drilling rig to alert persons on it; and

(c)dedicated personnel provide continuous monitoring, using independent monitoring systems, of parameters that are critical to safe well operations or to the detection of a gain or loss of drilling fluid while the installation is connected to the well and is taking fluid returns.

164Drilling riser#

(1)An operator must ensure that every drilling riser is, throughout the duration of a well operation, capable of

(a)providing access to the well;

(b)isolating the well-bore from the sea;

(c)withstanding the differential pressure of the drilling fluid relative to the sea;

(d)withstanding the maximum loads to which it may be subjected; and

(e)permitting the drilling fluid to be returned to the installation.

(2)The operator must ensure that every drilling riser is supported in a manner that effectively compensates for any loads caused by the motion of the installation, the drilling fluid or the water column.

(3)The operator must ensure that a drilling riser analysis and, in the case of a floating platform that uses a dynamic positioning system, a weak-point analysis of the drilling riser are conducted and that the certifying authority in relation to the installation approves those analyses.

165Fail-safe subsurface safety valves#

(1)An operator must ensure that a completed development well is equipped with a fail-safe subsurface safety valve that

(a)can be operated from the surface; and

(b)if the well is located where permafrost is present in unconsolidated sediments, is installed in the production tubing below the base of the permafrost.

(2)The operator must ensure that a completed development well on a fixed platform that has gas-lift, injection or production capabilities in the A-annulus is equipped with an additional fail-safe safety valve on the A-annulus.

(3)The operator must ensure that all fail-safe safety valves are designed, installed, tested, maintained and operated to prevent uncontrolled well flow when they are activated.

166Well tubulars, trees and wellheads#

(1)An operator must ensure that well tubulars, trees and wellheads are operated in accordance with good engineering practices.

(2)The operator must ensure that any well tubulars, trees or wellheads that may be exposed to a sour environment are capable of operating safely in that environment.

(3)The operator must ensure that the wellhead and tree equipment, including any valves, are designed and maintained to operate safely and efficiently throughout the life cycle of the well under all loads to which the well may be subjected.

167Formation flow test equipment#

(1)An operator must ensure that the equipment used in a formation flow test is designed to safely control well pressure, evaluate the formation and prevent pollution.

(2)The operator must ensure that the rated working pressure of formation flow test equipment at and upstream of the well testing manifold exceeds the maximum anticipated shut-in pressure.

(3)The operator must ensure that all equipment downstream of the well testing manifold is protected against overpressure.

(4)The operator must ensure, in the case of a development well, that the formation flow test equipment includes a downhole safety valve that permits closure of the test string above the packer.

(5)The operator must ensure, in the case of an exploratory well or a delineation well drilled on a geological feature, that a downhole safety valve is installed before a formation flow test is conducted unless

(a)it has been demonstrated as part of the formation flow test program referred to in paragraph 63(3)(a) that the level of risk of the proposed alternative arrangement in that program is equivalent to or lower than that of using a downhole safety valve; and

(b)the Board has approved the test under subsection 63(5).

(6)The operator must ensure that any formation flow test equipment used in testing a well that is drilled with a floating drilling unit has a subsea test tree that is equipped with

(a)a valve that can be operated from the surface and automatically closes when required to prevent uncontrolled well flow; and

(b)a release system that permits the test string to be hydraulically or mechanically disconnected within or below the blowout preventers.

Pipelines

168Pipeline integrity — standard#

(1)An operator must ensure that a pipeline is designed, constructed, installed, operated and maintained in accordance with CSA Group standard Z662, Oil and gas pipeline systems, as it relates to offshore pipelines.

(2)The operator must ensure that the pipeline system integrity management program required by that standard is implemented and periodically updated.

Monitoring of Installations, Wells and Pipelines

169Monitoring of systems#

(1)An operator must ensure that an installation is equipped with a central monitoring system in the main control centre to monitor all systems whose failure could cause or contribute to an accidental event or waste.

(2)The operator must ensure that the alarm, safety, monitoring, warning and control functions associated with the systems that are monitored under subsection (1) are managed to prevent reportable incidents and waste.

(3)When a function referred to in subsection (2) is suspended or found to be impaired, the operator must ensure that the use of any related system is also suspended until

(a)in the case of a function that is suspended, that function is returned to service; and

(b)in the case of a function that was found to be impaired, measures are implemented to offset the risk of a reportable incident or waste.

(4)The operator must ensure that all affected persons are informed when a function referred to in subsection (2) is suspended and when it is returned to service.

170Deterioration#

(1)An operator must, without delay, notify the Chief Safety Officer of any deterioration of an installation, including its systems or equipment, or of a pipeline, well, vessel or support craft if that deterioration could adversely affect safety or the environment.

(2)If an installation, system, equipment, pipeline or part of a well referred to in subsection (1) is within the scope of work referred to in section 31, the operator must also, without delay, notify the certifying authority of the deterioration.

(3)The operator must ensure that any impairment of an installation, including its systems or equipment, or of a pipeline, well, vessel or support craft is rectified without delay if the impairment could adversely affect safety or the environment.

(4)If it is not possible to rectify the impairment without delay, the operator must

(a)conduct a risk assessment to identify risk mitigation measures;

(b)implement those mitigation measures; and

(c)ensure that the impairment is rectified as soon as the circumstances permit.

(5)Subsections (3) and (4) do not apply in respect of safety-critical elements.

Part 11 · Support Operations

171Support craft#

(1)An operator must, in respect of an installation on which persons are normally present, ensure that

(a)a support craft that is at a distance from the installation not greater than that required for a return time of 20 minutes is available at all times for emergency response; and

(b)whenever an aircraft is landing or taking off, or personnel are working over the side or otherwise exposed to the risk of falling in the water, a support craft is available in the immediate vicinity of the installation and ready to undertake rescue and recovery operations.

(2)The support craft referred to in subsection (1) must be

(a)capable of safely providing necessary support functions in the foreseeable physical and environmental conditions prevailing in the area in which it operates;

(b)equipped to supply emergency services, including rescue and first aid treatment, for all personnel on the installation in the event of an emergency; and

(c)equipped with a self-righting fast rescue boat that

(i)meets the requirements under chapter V of the LSA Code,

(ii)is capable of being launched and retrieved when it is loaded with a full complement of persons and equipment, and

(iii)is ready for deployment in the event of an emergency.

(3)If the support craft is located at a distance that exceeds the distance referred to in paragraph (1)(a), both the installation manager and the person in charge of the support craft must log that fact and the reason why the distance or time was exceeded.

(4)During any activity or situation referred to in paragraph (1)(b), or any other activity or situation that presents an increased level of risk to the safety of the installation, the vessel master must, under the direction of the installation manager, keep the craft in close proximity to the installation, maintain open communication channels with the installation and be prepared to conduct rescue operations.

172Rescue boat — vessel#

An operator must, in respect of any vessel that is used in a geoscientific program, geotechnical program, environmental program, diving project or construction activity, ensure that a rescue boat is available and ready for use in the event of an emergency.

173Safety zone#

(1)A support craft must not enter the safety zone around an installation or around a vessel that is engaged in a geoscientific program, geotechnical program, environmental program or diving project without the consent of the installation manager or the person in charge of the operations site.

(2)The operator must ensure that persons who are in charge of an aircraft or vessel that is approaching the safety zone are notified of the safety zone boundaries and of any hazards within that zone that relate to the operator’s installation or vessel.

(3)The safety zone around an installation consists of the area within a line that encloses the installation and is drawn at a distance of 500 m from the outer edge of the installation or, if any component of the installation extends beyond that edge, from the outer limit of the component that extends furthest from that edge.

(4)The safety zone around a vessel referred to in subsection (1) consists of the area within a line that encloses the vessel and any of its attached equipment and is drawn at a distance that minimizes risks to safety, the environment and property located nearby, including fishing gear or fishing vessels.

174Landing area#

(1)An operator must ensure that the aircraft landing area on an installation or vessel and the equipment that is used in that area or that otherwise supports the take-off or landing of aircraft are designed to ensure safety and the protection of the environment and to prevent incidents or damage resulting from the use of aircraft.

(2)The operator must ensure that the landing area

(a)has an obstacle-free take-off and approach area and is oriented relative to prevailing winds;

(b)can withstand all functional loads imposed by aircraft;

(c)can accommodate aircraft of expected sizes;

(d)has emergency response and firefighting equipment;

(e)has conspicuous markings and signage;

(f)has adequate lighting, including in reduced visibility conditions;

(g)has monitoring and status light systems and communication and meteorological equipment;

(h)is readily and safely accessible, including from the accommodations areas and from any temporary safe refuge; and

(i)in the case of a landing area on an installation, is equipped with fuel storage tanks.

(3)The operator must ensure that any fuel storage tanks that are in proximity to a landing area are stored safely and protected from damage, impact and fire.

175Procedures#

The operator must ensure the establishment of procedures associated with the support of aircraft operations, including procedures for emergency response, and of a training program for personnel for those purposes.

176Aircraft service provider#

An operator must ensure that, before the start of any operations that require the use of an aircraft, the aircraft service provider has accepted in writing all conditions with respect to the use of the equipment in any landing area, the procedures associated with the support of aircraft operations, including the procedures for emergency response, and the training program for personnel in respect of those matters.

177Classification#

An operator must ensure that any support or construction vessel to be used in conjunction with an installation holds a valid certificate of class issued by a classification society according to the work or activity to be carried out by it.

Part 12 · Notice, Records, Reports and Other Information for Authorized Works and Activities

General

178Definition of shotpoint#

In this Part, shotpoint means the surface location of a seismic energy source.

179Reportable incidents#

(1)An operator must notify the Board of a reportable incident as soon as the circumstances permit, but not later than 24 hours after becoming aware of the incident.

(2)The operator must ensure that

(a)any reportable incident is investigated;

(b)the person who conducts the investigation includes in their investigation report the root causes of the reportable incident, the contributing factors, measures to be implemented to prevent its recurrence and any other relevant information; and

(c)the investigation report is submitted to the Board not later than 14 days after the day on which the reportable incident occurred.

180Accessibility of records#

An operator must ensure that any records that are necessary to support operational requirements and the requirements of these Regulations are readily accessible to the Board for examination.

181Critical information#

(1)An operator must ensure that records are kept of all information — including the following — that is critical to safety, the protection of the environment or the prevention of waste:

(a)information on the location and movement of support craft;

(b)information on reportable incidents;

(c)information on emergency drills and exercises;

(d)information on the quantities of consumable substances at any operations site;

(e)data resulting from any required observation of wildlife;

(f)information on verification, inspection, monitoring, testing, maintenance and operating activities;

(g)information on the status of all systems and equipment identified in the safety plan as being critical to safety or in the environmental protection plan as being critical to the protection of the environment, including any test result indicating that the systems or equipment are not functioning as intended and information on any equipment failure that has led to an impairment of any of those systems; and

(h)information on the physical and environmental conditions observed and forecasted under section 42.

(2)The operator must retain the records referred to in subsection (1) for the following periods:

(a)in the case of the records referred to in paragraphs (1)(a) and (e) to (g) and those referred to in paragraph (1)(h) regarding forecasted conditions, five years after the day on which the record is created;

(b)in the case of the records referred to in paragraphs (1)(b) and (c),

(i)five years after the day on which the drill or exercise is carried out, and

(ii)10 years after the day on which the reportable incident is reported;

(c)in the case of the records referred to in paragraph (1)(d), for as long as the consumable substance is at the operations site; and

(d)in the case of the records referred to in paragraph (1)(h) regarding conditions observed, for the duration of the authorized work or activity.

182Safety report#

(1)An operator must ensure that a safety report that relates to an authorized work or activity conducted in a given calendar year is submitted to the Board within 90 days after the day on which the work or activity is concluded or suspended or, in the case of a work or activity that will continue into the following calendar year, that a safety report that relates to the work or activity conducted in the preceding calendar year is submitted to the Board not later than March 31 of that following calendar year.

(2)The safety report must contain

(a)a description and analysis of the efforts undertaken to improve safety;

(b)a summary of the operator’s safety performance during the applicable calendar year, including with respect to the objective of reducing safety risks;

(c)a summary of the safety measures and actions taken to mitigate the effects of any reportable incident, as well as of their effectiveness and any adjustments made for their continued improvement; and

(d)a summary of any emergency response drills and exercises relating to safety that were completed.

183Annual reports#

An operator must ensure that the Board is made aware, at least once a year, of any report containing relevant information regarding applied research work or studies that the operator has participated in, funded or commissioned concerning the operator’s authorized works and activities in relation to safety, the protection of the environment or resource management and must ensure that a copy of the report is submitted to the Board on request.

Geoscientific, Geotechnical and Environmental Programs

184Notice — key dates#

When any geoscientific program, geotechnical program or environmental program is commenced, concluded, suspended or cancelled by an operator, the operator must, without delay, notify the Board in writing of the date of the commencement, conclusion, suspension or cancellation of the program.

185Weekly status reports#

(1)An operator must ensure that weekly reports are submitted to the Board on the status of field work carried out in relation to any geoscientific program, geotechnical program or environmental program from the commencement of the program until its conclusion, suspension or cancellation.

(2)The weekly status reports must contain the following documents and information:

(a)the program number assigned by the Board;

(b)information identifying, and indicating the current location and status of, all operations sites and support craft used in the program;

(c)key dates of the works and activities under the program, in particular their commencement, suspension and completion dates,

(d)a description of the works and activities carried out during the preceding week, including

(i)the quantity of data collected, broken down by data acquisition technique,

(ii)information identifying and indicating the location of data collection points, lines or areas,

(iii)a schedule indicating each type of work or activity carried out under the program, as well as any period in which data acquisition was delayed or interrupted, along with a summary of the causes of that delay or interruption, and

(iv)a description of any failure to comply with a condition of the authorization;

(e)maps illustrating, in relation to the proposed data acquisition plan referred to in subparagraph 8(i)(iii), the portion of the data acquisition that has been completed, the portion that was completed in the preceding week and the portion that remains to be carried out;

(f)an indication of the total number of persons involved in the program who, during the preceding week, were at, or transferred to or from, the operations sites and, if applicable, the means by which they were transferred;

(g)a summary of any communications or interactions that occurred during the preceding week concerning program activities between persons associated with the program and persons associated with fishing activities;

(h)a summary of emergency drills and exercises that were completed and reportable incidents that occurred during the preceding week;

(i)an indication of the quantities of consumable substances that are critical to safety that are currently at each operations site;

(j)all wildlife observation data from the preceding week that were required to be recorded under paragraph 181(1)(e);

(k)a summary of the verification, inspection, monitoring, testing, maintenance and operating activities that are critical to safety that were carried out during the preceding week; and

(l)a description of any measures taken during the preceding week to avoid disturbing wildlife or interfering with fishing activities or any other uses of the sea.

186Environmental report — programs#

An operator must ensure that an environmental report that contains the following documents and information is submitted to the Board within 90 days after the day on which a geoscientific program, geotechnical program or environmental program is concluded or suspended:

(a)a description of the general physical and environmental conditions under which the program was conducted and, if applicable, a description of ice management activities and non-productive time caused by meteorological or ice conditions;

(b)a summary of program performance in relation to the environment, including with respect to the objective of reducing environmental risks;

(c)a summary of environmental protection measures and actions that were taken to mitigate the effects of any reportable incident, as well as of their effectiveness and any adjustments made for their continued improvement;

(d)a summary of any emergency response drills and exercises for the protection of the environment that were completed; and

(e)all wildlife observation data that were required to be recorded under paragraph 181(1)(e).

187Final reports#

(1)An operator must ensure that a final operations report, final data processing report and final interpretation report are submitted to the Board with the acquired data referred to in subsection (5), as applicable, within 12 months after the day on which any geoscientific program, geotechnical program or environmental program is concluded, unless a longer period has been agreed to in writing by the Board.

(2)The final operations report must contain the following documents and information:

(a)the program number assigned by the Board;

(b)the title, author and date of the report;

(c)an executive summary and table of contents;

(d)the names of the operator, contractors and any interest owner, as defined in section 47 of the Act;

(e)a description of all operation sites and any support craft used for the program;

(f)a description of the program, including

(i)key dates, in particular its commencement, suspension and completion dates,

(ii)the equipment used,

(iii)the operational methods employed,

(iv)the number of persons who were involved in the program, and

(v)the quantity of data collected, broken down by data acquisition technique;

(g)location maps illustrating details of the data acquisition activities carried out under the program, including the identification and location of data collection points, lines or areas and the type of data acquired;

(h)location maps illustrating the boundaries of each area covered by the program and any portion of those areas that is subject to an interest, as defined in section 47 of the Act, as well as the identification number of each such interest;

(i)a schedule that specifies the type and duration of all program activities and includes any period in which data acquisition was delayed or interrupted;

(j)an indication as to the accuracy of the navigation system and of the positioning and survey systems, as well as the parameters and configuration of both the energy source and recording system; and

(k)shotpoint maps, track plots, flight lines with numbered fiducial points, gravity station maps, location maps for any samples or core holes, copies of any photographs and a list of any videos.

(3)The final data processing report must contain the following documents and information:

(a)the documents and information referred to in paragraphs (2)(a) to (d), (g) and (k);

(b)a description of the program, including the quantity of data collected, broken down by data acquisition technique; and

(c)a description of the geoscientific data acquired, including the data processing sequence and parameters.

(4)The final interpretation report must contain the following documents and information, as applicable:

(a)the documents and information referred to in paragraphs (2)(a) to (e);

(b)bathymetric or topographic maps compiled from the data collected;

(c)a description and interpretive maps of the acquired data, including

(i)time and depth structure and isopach maps, velocity and residual velocity maps and seismic attribute maps,

(ii)final Bouguer gravity maps and any residual or other processed gravity maps,

(iii)final total magnetic intensity contour maps and any residual, gradient or other processed magnetic maps,

(iv)final controlled-source electromagnetic resistivity maps,

(v)surficial maps generated from any seabed, geohazard or pipeline route survey, and

(vi)any geological maps;

(d)a description and analysis of the interpretation of the data with respect to

(i)geological and geophysical correlations,

(ii)correlations between gravity, magnetic, seismic and controlled-source electromagnetic data, including correlations to any data acquired during previous surveys,

(iii)in the case of seabed surveys, the geophysical correlation between shallow seismic data and data from cores and geotechnical boreholes,

(iv)corrections or adjustments that were applied to the data during processing or compilation,

(v)the velocity information that the operator used in a time-to-depth conversion,

(vi)cores and samples,

(vii)other geoscientific and geotechnical analyses, and

(viii)geohazards; and

(e)a description of

(i)synthetic seismograms,

(ii)seismic modelling studies that use synthetic seismograms,

(iii)vertical seismic profiles at wells that were used in the interpretation of the data,

(iv)amplitude versus offset studies,

(v)seismic inversion studies, if any, and

(vi)any other seismic studies related to the program.

(5)The following acquired data must accompany the final reports, as applicable:

(a)time-stamped track plot, shotpoint and sample location data;

(b)bathymetric data;

(c)all final processed seismic data for each 2-D seismic line in time and depth;

(d)all final processed 3-D volumes and each line generated from that volume in time and depth;

(e)any vertical seismic profiles, synthetic seismograms, amplitude versus offset data and seismic inversion data;

(f)in the case of any seabed, geohazard or pipeline route survey,

(i)processed high-resolution data for each line,

(ii)digital location maps for any samples,

(iii)any photographs and videos, and

(iv)sub-bottom profiler and side-scan sonar data;

(g)in the case of an environmental program, any photograph, video or other graphic information that is relevant and contributes to the interpretation of the final data and the drafting of the final report;

(h)in the case of a gravity or magnetic survey, a series of gravity and magnetic profiles across all gravity and magnetic surveys; and

(i)in the case of controlled-source electromagnetic data, final processed cross-sections on all receiver lines, curves from all receivers and all 2-D and 3-D final models generated.

(6)The operator must incorporate into any map referred to in paragraph (4)(b) that is included in a final interpretation report any data previously collected by the operator that are related to the area covered by the map and that are of a type similar to the data from which the map was produced.

188Exception — data made available to public#

(1)An operator that has conducted a geoscientific program, a geotechnical program or an environmental program need not submit a final interpretation report if the data acquired from the program are made available to the public for purchase or for use under licence.

(2)If the operator ceases to make data available for purchase or use under licence, the operator must ensure that, within 12 months after the day on which the operator ceased to make the data available, the final interpretation report is submitted to the Board.

189Data purchases#

(1)A purchaser of data referred to in subsection 188(1) that were acquired in an area that is subject to an interest, as defined in section 47 of the Act, must submit to the Board a final interpretation report that contains the documents and information referred to in subsection 187(4), as applicable, if the costs of the purchase of the data are to be credited against a deposit or other costs in relation to the interest.

(2)If the purchaser has reprocessed or reinterpreted the data, and if the costs of the reprocessing or reinterpretation are to be credited against a deposit or other costs of the interest, the purchaser must submit to the Board, with the acquired data referred to in subsection 187(5), as applicable, a final data processing report that contains the documents and information referred to in subsection 187(3) and a final interpretation report that contains the documents and information referred to in subsection 187(4), as applicable.

(3)The reports and data required under subsections (1) and (2) must be submitted by the purchaser to the Board before the costs referred to in those subsections are credited.

(4)A person who has submitted a report referred to in this section must, in respect of data that pertain to shotpoints or the location of stations, notify the Chief Conservation Officer, without delay, of any errors or omissions identified in or corrections made to the data after the report is submitted.

Drilling and Production

190Reference#

When submitting any information to the Board about a well, pool, zone or field under these Regulations, an operator must refer to each by the name given to it under section 59 or paragraph 60(b), as the case may be.

191Results, data, analyses and schematics#

(1)An operator must ensure that a copy of the final results, data, analyses and schematics obtained from any well operation, including those obtained as a result of the following activities, is submitted to the Board:

(a)the testing, sampling and pressure measurements that are conducted as part of the field data acquisition program referred to in section 13 and the well data acquisition program referred to in section 18, as well as any evaluation, testing and sampling of formations that is conducted under section 62; and

(b)any verification conducted under paragraph 71(2)(a) and any segregation test conducted under paragraph 71(2)(b).

(2)Unless otherwise agreed to in writing by the Board, the operator must ensure that the copy is submitted within 60 days after the day on which the activity that gave rise to the results, data, analyses or schematics is concluded.

192Survey#

(1)An operator must ensure that a survey, certified by a person licensed under the Canada Lands Surveyors Act, is conducted to confirm the location of any well and production installation.

(2)The operator must ensure that a copy of the survey plan is

(a)filed with the Canada Lands Survey Records; and

(b)submitted to the Board.

193Critical information#

(1)The records that must be kept under section 181 include, in the case of an operation involving drilling or production, records containing the following information and documents:

(a)in respect of any assessment of the efficacy of a spill-treating agent under paragraph 11(4)(a),

(i)a description of the assessment, including any oil samples used, and

(ii)a description of any tests conducted for the assessment and their results;

(b)information concerning the inspection of any installation and its equipment or a pipeline for corrosion and erosion and any resulting maintenance activities carried out;

(c)the pressure, temperature and flow rate data obtained from compressors and from systems and equipment used for treatment and processing;

(d)information concerning the calibration of meters and other instruments on an installation;

(e)information concerning the testing of subsea, surface and subsurface safety valves;

(f)information concerning the status of each well and the status of well operations;

(g)in the case of a floating platform, information concerning all loads that could affect the motions, stability or inclination of the platform, including

(i)data, observations, measurements and calculations related to its stability and station-keeping capability, including records of all of its movements,

(ii)the results of all tests and analyses conducted to assess its stability and station-keeping capability,

(iii)a description of every change in relation to its weight, its centre of gravity or the weight or distribution of temporary or portable equipment on it that may affect its stability, and

(iv)a description of the verification of the disconnect capability of any disconnectable mooring system;

(h)in respect of boilers and pressure systems, the documents and information referred to in paragraphs 135(12)(d) to (f);

(i)information concerning each formation leak-off test and formation integrity test conducted under section 70;

(j)the findings resulting from the verifications of temporary safe refuges required under subsection 117(3); and

(k)the findings resulting from the verifications of the availability and condition of life-saving appliances required under subsection 119(11).

(2)The operator must retain the records referred to in subsection (1) for the following periods:

(a)in the case of the records referred to in paragraph (1)(a), for as long as the spill-treating agent is approved for use;

(b)in the case of the records referred to in paragraphs (1)(b) to (f), subparagraph (1)(g)(iv) and paragraphs (1)(i) to (k), five years after the day on which the record is created;

(c)in the case of the records referred to in subparagraphs (1)(g)(i) to (iii), for the life of the floating platform; and

(d)in the case of the records referred to in paragraph (1)(h), five years after the day on which the boiler or pressure system is taken out of service.

194Daily production record#

(1)An operator must ensure that a daily production record is kept in respect of a field in which a pool or well is located until the field is abandoned and, at that time, must offer to submit the record to the Board before destroying it.

(2)The daily production record must contain, with respect to each day, the following information and documents:

(a)information concerning the calibration of meters and other instruments referred to in paragraph 193(1)(d);

(b)any measurements obtained under section 74;

(c)a description of the manner in which any fluids were disposed of, including through venting, burning or flaring, or transported for processing, whether through offloading or a pipeline; and

(d)any other information relating to the production of petroleum and other fluids from each pool or well.

195Formation flow test records and report#

An operator must ensure that

(a)in respect of exploratory wells and delineation wells, a record of formation flow test results is submitted to the Board on a daily basis; and

(b)in respect of all wells, a formation flow test report is submitted to the Board as soon as the circumstances permit after each formation flow test.

196Pilot scheme#

(1)An operator must ensure that interim evaluations of a pilot scheme referred to in section 81 are reported to the Board in writing at the intervals referred to in paragraph 81(2)(b).

(2)On completion of the pilot scheme, the operator must ensure that a report is submitted to the Board that contains

(a)the results of the scheme and supporting data and analyses; and

(b)the operator’s conclusions as to the potential of the scheme for application to full-scale production.

197Daily reports#

An operator must ensure that the following reports are submitted to the Board on a daily basis:

(a)a daily operations report that contains

(i)a description of the works and activities that were carried out on the installation on the previous day and the current status of those works and activities,

(ii)a description of the works and activities that are expected to be carried out on the installation on the day on which the report is submitted,

(iii)a summary of the verification, inspection, monitoring, testing, maintenance and operating activities critical to safety that were carried out on the previous day,

(iv)a summary of the physical and environmental conditions that were observed under section 42 on the previous day,

(v)a summary of the information referred to in paragraph 193(1)(g) that was obtained on the previous day, and

(vi)any other information that is necessary to indicate the status of operations on the installation;

(b)a daily drilling report that contains

(i)the daily and cumulative costs of operating the installation,

(ii)all well and casing data obtained on the previous day,

(iii)a description of the properties of the drilling fluid and all drilling fluid gas readings from the previous day,

(iv)a summary of any directional and deviation surveys carried out the previous day,

(v)a description of the formations encountered on the previous day,

(vi)the results of any blowout preventer test carried out on the previous day and the date of the most recent test, and

(vii)the results of any formation leak-off tests or formation integrity tests referred to in section 70 that were carried out the previous day;

(c)a daily geological report, consisting of well and field data acquired the previous day through the programs referred to in sections 13 and 18 , geological assessments made the previous day and any other information that is relevant to those assessments; and

(d)in the case of a production installation, a daily production report that contains a summary of the information referred to in paragraphs 193(1)(a) to (c) in relation to the previous day and a summary of the daily production record referred to in section 194.

198Monthly production report#

An operator must ensure that a report summarizing the production data collected during a given month is submitted to the Board not later than the 15th day of the subsequent month.

199Well records and reports#

(1)An operator must ensure that

(a)a well termination record is submitted to the Board in respect of a well within 21 days after

(i)the day on which the well is abandoned,

(ii)the day on which the well is suspended if the suspension is planned to be for a period that is longer than 21 days, or

(iii)the day on which the well is completed or recompleted;

(b)a well operation report is submitted to the Board in respect of a well that requires a workover or intervention within 30 days after the day on which the workover or intervention is completed;

(c)a well history report is submitted to the Board in respect of a development well within 45 days after the day referred to in subparagraph (a)(i), (ii) or (iii), as the case may be;

(d)a well history report is submitted to the Board in respect of an exploration or delineation well within 90 days after the day referred to in subparagraph (a)(i), (ii) or (iii), as the case may be; and

(e)the actual cost breakdown of all well operations is submitted to the Board within 90 days after the day on which a well is abandoned, suspended or completed.

(2)The record required under paragraph (1)(a) must describe the manner in which the well has been abandoned, suspended, completed or recompleted and must include a schematic of the well illustrating the nature and location of the plugs used to abandon or suspend the well or the equipment used to complete or recomplete the well.

(3)The reports required under paragraphs (1)(b) to (d) must contain a record of all operational, engineering, petrophysical, geophysical and geological information that is relevant to the well operation, including any problems encountered during the well operation and the results of any formation leak-off test or formation integrity test conducted under section 70.

(4)The report required under paragraph (1)(b) must describe any impact of the workover or intervention on the performance of the well, including any effect on productivity, injectivity and the recovery of petroleum.

200Environmental report — drilling#

An operator must ensure, in relation to a drilling program that involves an exploratory well or a delineation well, that an environmental report that contains the following documents and information is submitted to the Board within 90 days after the day referred to in subparagraph 199(1)(a)(i), (ii) or (iii), as the case may be:

(a)a summary of the physical and environmental conditions under which the drilling program was conducted and, if applicable, a description of ice management activities and non-productive time caused by meteorological or ice conditions;

(b)a summary of the environmental protection measures in place during the drilling program, the measures taken to mitigate the effects of any reportable incident, the effectiveness of those measures and any adjustments made for their continued improvement;

(c)a summary of the performance of the drilling program in relation to the environment, including in relation to the objective of reducing environmental risks;

(d)a summary of any emergency response drills and exercises for the protection of the environment that were completed; and

(e)all wildlife observation data that was required to be recorded under paragraph 181(1)(e).

201Annual environmental report — production and pipeline#

An operator must ensure, in relation to a production project or pipeline project, that an environmental report that contains the following documents and information with respect to a given calendar year is submitted to the Board not later than March 31 of the subsequent year:

(a)a summary of the general physical and environmental conditions to which each operations site was subjected;

(b)a description of any ice management activities carried out;

(c)a summary of the environmental protection measures in place, the measures taken to mitigate the effects of any reportable incident, the effectiveness of those measures and any adjustments made for their continued improvement;

(d)a summary of the performance of the project in relation to the environment, including in relation to the objective of reducing environmental risks;

(e)a summary of any emergency response drills and exercises for the protection of the environment that were completed; and

(f)all wildlife observation data that were required to be recorded under paragraph 181(1)(e).

202Annual production report#

An operator must ensure that, not later than March 31 of each year, an annual production report for a pool, field or zone is submitted to the Board that contains information on how the operator manages and intends to manage the resource being produced without waste, including

(a)for the preceding calendar year, details on performance, production forecasts, reserve revision, the reasons for deviations in well performance from forecasts in previous annual production reports, gas conservation resources, efforts to maximize the recovery of petroleum and operating and capital expenditures, including the cost of each well operation; and

(b)for the preceding calendar year, the current calendar year and the next two calendar years, capital costs and fixed operating costs for each well and field in a production project, variable costs, commodity prices and financial commitments in relation to the transportation of the resource, including by pipeline.

203Gas venting records#

An operator must ensure that a record is kept of the following information in respect of each gas venting referred to in paragraph 82(c):

(a)a description of the emergency situation that justified the venting;

(b)a description of the venting, the date it occurred and its duration; and

(c)the volume of gas vented.

204Compressor records#

An operator must ensure that a record containing the following documents and information is kept in respect of the compressors referred to in subsection 84(1):

(a)information demonstrating, with supporting documents, that the continuous monitoring device referred to in subsection 84(2) has been calibrated in accordance with the manufacturer’s recommendations such that its measurements have a maximum margin of error of ±10%; and

(b)for each compressor, if its maximum flow rate limit under subsection 84(3) or (4) has been exceeded,

(i)its serial number, make and model,

(ii)the date on which the maximum flow rate limit was exceeded,

(iii)the flow rate indicated by the continuous monitoring device when the maximum flow rate limit was exceeded, and

(iv)a description of the corrective measures that were taken and the dates on which they was taken.

205Fugitive emission records#

An operator must ensure that a record containing the following information is kept in respect of any fugitive emission from an installation that is detected:

(a)the date on which the emission was detected;

(b)the type of equipment from which the emission was released and its location within the installation or identifier;

(c)the means by which the emission was identified; and

(d)a description of the corrective measures that were taken and the dates on which they were taken.

206Record retention period#

An operator must ensure that a record referred to in any of sections 203 to 205 is retained for five years after the day on which the record is created.

Diving Projects or Construction Activities

207Weekly status reports#

(1)An operator must ensure that weekly reports are submitted to the Board on the status of any diving project or construction activities.

(2)The weekly status reports must contain the following documents and information:

(a)the project number assigned by the Board;

(b)information identifying, and indicating the current location and status of, all operations sites and support craft used in the diving project or construction activities;

(c)a description of the works and activities carried out during the preceding week;

(d)an indication of the total number of persons involved in the works and activities who, during the week, were at, or transferred to or from, the operations sites and, if applicable, the means by which they were transferred;

(e)a summary of emergency drills and exercises that were completed and reportable incidents that occurred during the week;

(f)an indication of the quantities of consumable substances that are critical to safety that are currently at each operations site; and

(g)a summary of the verification, inspection, monitoring, testing, maintenance and operating activities that are critical to safety that were carried out during the preceding week.

Part 13 · Repeals and Coming into Force

Repeals

208 #

The following Regulations are repealed:

(a)the Newfoundland Offshore Area Oil and Gas Operations Regulations;

(b)the Newfoundland Offshore Certificate of Fitness Regulations;

(c)the Newfoundland Offshore Petroleum Installations Regulations;

(d)the Newfoundland Offshore Area Petroleum Geophysical Operations Regulations; and

(e)the Newfoundland Offshore Petroleum Drilling and Production Regulations.

Coming into Force

*209Eight months after publication#

These Regulations come into force on the day that, in the eighth month after the month in which they are published in the Canada Gazette, Part II, has the same calendar number as the day on which they are published or, if that eighth month has no day with that number, the last day of that eighth month.

Schedule 1 · Certificate of Fitness (Clauses 28(1)(b)(ii)(A) and (B) and (iii)(B))

Provisions of these Regulations1 Section 242 Subsections 84(1) to (4)3 Section 984 Section 1005 Subsections 103(1) and (2)6 Sections 104 to 1087 Subsection 109(2)8 Sections 110 to 1149 Subsections 115(1) to (7)10 Section 11611 Subsections 117(1) and (2)12 Section 11813 Subsections 119(1) to (10)14 Section 12015 Subsection 121(2)16 Sections 122 and 12317 Subsection 124(2)18 Subsection 125(1)19 Paragraph 125(2)(a)20 Sections 126 to 13121 Subsections 132(1) to (6)22 Subsections 133(1) to (6) and (9)23 Section 13424 Subsections 135(1) to (7) and (11) to (13)25 Section 13626 Paragraph 137(1)(a)27 Subsections 137(2) to (8) and (10)28 Subsections 138(1) to (4), (6) and (7)29 Section 13930 Section 14131 Paragraphs 142(1)(a) to (c)32 Subsections 142(2) to (4)33 Subsections 143(1) and (2)34 Sections 144 to 14635 Subsections 147(1) to (3)36 Subsections 148(1) to (6). However, subsection (5) applies only with respect to the criteria for disconnection.37 Section 14938 Subsection 150(1)39 Sections 151 and 15240 Section 15441 Subsections 155(1) to (3)42 Section 174Provisions of the Canada–Newfoundland and Labrador Offshore Area Occupational Health and Safety Regulations1 Section 192 Paragraphs 21(b) and (c)3 Sections 22 to 254 Subsections 26(1) and (3)5 Sections 27 and 286 Paragraph 29(a)7 Subparagraph 30(2)(d)(ii)8 Subsection 30(3)9 Paragraphs 32(2)(a), (b) and (d)10 Subsection 32(3)11 Paragraphs 32(4)(a), (c) to (g) and (i). However, paragraph (e) applies only with respect to the requirement that a medical room have surfaces that are easily cleaned and disinfected.12 Paragraphs 46(a) and (b)13 Subparagraph 46(m)(i)14 Clauses 46(m)(ii)(A), (C) and (D)15 Paragraph 47(2)(b)16 Subsection 57(1). However, paragraph (e) applies only with respect to the requirement that the accommodations area be maintained in good repair.17 Subsections 58(1) and (2)18 Paragraphs 58(3)(a) to (e). However, paragraph (a) applies only with respect to the requirement under paragraph 60(2)(a) concerning handwashing facilities and paragraph (e) applies only with respect to the requirement that washrooms be maintained in good repair.19 Subsection 60(1)20 Paragraphs 60(2)(a) and (d). However, paragraph (d) applies only with respect to the requirement that handwashing facilities be maintained in good repair.21 Subsection 61(1)22 Paragraphs 61(2)(a) to (c) and (e). However, paragraph (e) applies only with respect to the requirement that showers be maintained in good repair.23 Section 6224 Subparagraphs 63(1)(a)(i) to (v)25 Paragraphs 63(1)(b) and (c)26 Section 64. However, paragraph (d) applies only with respect to the requirement that the dining area be maintained in good repair.27 Subsections 65(2), (4) and (5)28 Paragraphs 66(b) and (c). However, subparagraph (c)(iv) applies only with respect to the requirement that waste receptacles be maintained in good working order.29 Subsection 67(1)30 Paragraph 73(b)31 Subsection 74(1)32 Paragraph 77(1)(a)33 Subparagraph 77(1)(c)(i)34 Subsection 78(2)35 Section 7936 Sections 81 to 8537 Paragraphs 91(1)(a) to (e), (h), (j) and (n) to (p). However, paragraph (j) applies only with respect to the requirement that the equipment, machines and devices in question be rated by their manufacturer as appropriate for use.38 Subsection 93(1)39 Paragraph 93(2)(a)40 Sections 97 and 9841 Section 10042 Subsection 101(1)43 Paragraphs 107(a) to (d)44 Subsection 113(2)45 Paragraphs 113(3)(a) and (b)46 Section 12047 Paragraphs 121(1)(a) to (d), (g) to (v) and (z.2)48 Subsection 122(5)49 Paragraph 122(6)(a)50 Subparagraph 122(6)(b)(i)51 Section 12352 Subsections 124(2) and (3)53 Paragraphs 125(1)(a) and (b)54 Paragraphs 126(1)(f) and (g)55 Subsection 126(2)56 Paragraph 127(3)(a)57 Subsection 130(3)58 Paragraphs 144(1)(b), (l), (n), (o), (r) to (u), (w) and (x)59 Subsection 147(1)60 Paragraph 153(1)(e)61 Paragraphs 157(1)(b), (d), (g), (l) and (q). However, subparagraph (q)(iv) applies only with respect to the inspection of a piping system that contains a hazardous substance before it is placed in service.62 Subparagraphs 157(1)(c)(i) and (k)(i)63 Subsection 171(3)64 Paragraphs 172(1)(a), (g), (j) to (m), (o) and (p), (2)(e) and (3)(c) and (f)

Schedule 2 · Verification of Certificate of Fitness Requirements (Subparagraph 31(3)(b)(iii))

1 Subparagraph 4(1)(m)(iii)2 Paragraphs 4(1)(p) and (v)3 Paragraph 44(b)4 Section 455 Subsections 68(2) and (9)6 Section 737 Subsection 77(1)8 Subsection 103(3)9 Subsection 121(1)10 Subsection 124(1)11 Subsection 135(8)12 Subsection 138(5)13 Paragraph 142(1)(d)14 Subsections 143(3) and (4)15 Subsections 147(4) and (5)16 Subsection 148(7)17 Subsection 150(2)18 Section 15319 Subsection 155(4)20 Sections 163 to 16521 Subsections 166(2) and (3)22 Sections 167 and 16823 Subsections 169(1) to (3)

Federal laws of Canada reproduced under the Reproduction of Federal Law Order (SI/97-5); not the official version. Source: Justice Laws Website.