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Release of Information Production Allowables Reservoir Projects Well Testing Compliance and Enforcement You must log in to the OGC Web Application Logon and choose "Suspened Well Module" and then select "Suspended Well Lookup Using Location and/or Company". Click the "Add Company" button, select your company, and click the "Confirm Company Search and Return" button. Finally, click the "Find Data" button. How do I use the OGC Web Application Logon? Click the LOG IN button on the upper right side of the main page of the OGC website. Select "First Time User" at the bottom of the page and submit your information. Your logonID and password will be emailed to you shortly.
How do I notify the OGC about an incident, such as an explosion, fire, line break, spill or a leak? To report an incident, please call: 1-800-663-3456 (24 hrs a day). The incident operator will take your information and fax it to the OGC. They will also phone the OGC about the incident.
Regulations regarding spills are found in section 38 of the Pipeline Act. Who do I contact if I have any concerns regarding noise, smell or spill? Public complaints are a priority of the Compliance and Enforcement branch.
Please contact: Ph: (250) 261-5766 Fax: (250) 261-5765 How do I find out if a well has a Certificate of Restoration? The Certificate of Restoration (COR) status and other information can be found in the well index. The well index is available in the Data Downloads section, which is accessible through the OGC Web Application Logon.How does the Oil and Gas Commission ensure companies are in compliance with regulations? The exploration, development, production and transportation of petroleum and natural gas resources are regulated by the Petroleum and Natural Gas Act, Pipeline Act, Drilling and Production Regulations, Pipeline Regulations and
Canadian Standards Association Z662 Oil and Gas Pipeline Systems. Drilling and production activities must be conducted in a way that protects worker and public safety, while minimizing disturbances to the environment and land.
The Compliance and Enforcement Branch conducts compliance inspections and reports inspection infractions to the company for remedial action. The Commission has recruited additional staff to ensure the recent increase in industry activity is supported with an adequate level of operational compliance monitoring. What happens if there are inspection infractions? Inspection infractions are reported to the company inspection contact for remedial action. The company inspection contact must report back to the OGC inspector by using the OGC Web Application Logon when remedial action is completed.How are inspection infractions ranked? An inspection infraction with a ranking of minor, major or serious is defined as follows:
Minor unsatisfactory event/inspection - remedial action within 30 days A contravention of regulation(s)/requirements(s) that does not result in a direct threat to the public and/or the environment and does not adversely affect oil and gas operations. Examples of minor unsatisfactory inspection are:
Major unsatisfactory event/inspection - remedial action within two weeks A contravention of regulation(s)/requirements(s) that an operator has failed to address, and/or has the potential to cause an adverse impact on the public and/or the environment. Examples of major unsatisfactory inspections are:
Serious unsatisfactory event/inspection - remedial action within one day A total disregard for regulation(s)/requirement(s) that is causing or may cause a significant impact on the public and/or environment. Examples of a serious unsatisfactory inspection are:
What happens if the company does not correct a compliance infraction? OGC inspectors issue deficiency letters for inspection infractions. For minor infractions, the deficiency letter specifies 30 days for the company to conduct remedial action and report back to the OGC inspector. For major infractions, a company is required to conduct remedial action within 2 weeks. For more serious infractions, a company is required to conduct remedial action within one day.
If remedial action is not reported back to the OGC Inspector, enforcement action will take place. OGC inspectors have the authority to issue Stop Work Orders for wells, pipelines and facilities, as necessary, to ensure safe operations. Release of Information Well data are kept confidential according to the well classification or project type as per the following table:
Notes:
Production Allowables Yes, but an application for waiver of the off-target penalty may be required.
If both the wells’ spacing area and the spacing area in the off-target direction are held under the same lease, then the off-target waiver is automatic and no application is required. If the well spacing area in the off-target direction is held under a separate lease, then application for waiver must be made. Approved waivers are recorded against the title documents. If ownership of the off-target spacing is different, then letters of concurrence must be provided. Also, the discovery well of a new pool is exempt from any off-target penalty. How is a daily oil allowable calculated? The form Application for Daily Oil Allowable (DOA) must be completed by the operator and submitted to the Commission prior to a well being placed on production. The allowable is calculated based on the reserves within the spacing area. The minimum unadjusted DOA is 10.0m3. For zones below 2,000m, an additional 1 m3/100 m depth is applied.
Is there an initial production test period for oil wells? A new well completed outside of an approved project area is eligible for an initial 90-day test period, during which no daily production limit applies. Once the well reaches either 90 producing days or an oil volume, in m3, equals (DOA X 90) + 500, the test period is over. The producing days do not need to be consecutive.
Following the test period, the GOR adjustment period applies. The form Production Allowable Report—Crude Oil is used to monitor production and must be completed and submitted to the Commission monthly. Detailed instructions and details on the retirement of overproduction can be found within the Instructions for the Production Allowable Report—Crude Oil. When solution gas is tied-in (conserved), is the GOR penalty removed for an oil well? No. Only gas re-injected into an oil pool may be credited toward calculation of the GOR adjustment factor.When do I need to apply for a Daily Gas Allowable (DGA) for new gas well? For the majority of new wells, an Application for a Daily Gas Allowable (DGA) is not required and production is not restricted.
However, a DGA form must be submitted by the operator for a well outside of an approved project area where either: 1) the off-target factor applies; 2) the well is mapped as gascap; or 3) production is from a pool with active water drive, such as the Slave Point or Pine Point formations.
How is a DGA used to calculate the amount of gas a well can produce? Production is restricted to the daily production limit, defined as 125% of the DGA. The annual limit is the DGA times 365 days. The production year is from November 1 to October 31 of the following year. For a new well, the limit is the volume, in 103 m3, equal to the DGA multiplied by the number of days from the date of initial production to October 31. Overproduction is reported on the form Report of Annual Gas Overproduction.Reservoir Projects The equivalent to a Good Production Practice, as issued in Alberta, is the GEP, Good Engineering Practice, in BC. The requirements for application are detailed in the British Columbia Oil and Gas Handbook, under Reservoir Projects, as well as on this website under Checklist for Application for Approval of a Good Engineering Practice Area. Within a GEP area, well spacing and target restrictions may be waived and, if a production allowable is applicable, production may be taken from any one or combination of wells.How long does it take to receive final approval for a reservoir project (waterflood, disposal well, commingled production, etc.)? Applications must be complete and receive a positive review from Commission staff. Following the initial review, if there is a potential for equity issues with areas outside of the project area, the application may be advertised in The British Columbia Gazette. The notice is published in two consecutive weekly editions, followed by a two-week period for interventions to be filed with both the proponent and the Commission. An approval may be issued only once all issues have been addressed, including letters of concurrence from all tenure holders within the project area. A reply will typically take anywhere from five to six weeks. Where equity is not an issue, the approval may be sooner. See appropriate checklist in the Reservoir Engineering section of Forms and Guidelines.How do I subscribe to the BC Gazette to be aware of project applications? The BC Gazette (Part 1) is published on the Thursday of each week, in Victoria, and may be accessed in either hardcopy or electronic subscription form. The following links will guide you to the respective web sites where subscriptions may be ordered;
Hardcopy subscription mailed weekly (Crown Publications) - http://miva.crownpub.bc.ca/Merchant2/merchant.mv?Screen=PROD&Store;_Code=CTB∏_Code=005-G1 Electronic subscription available via email notification and internet (Queen's Printer) - http://www.qplegaleze.ca/BCLaw_Gazette.htm Well Testing An initial reservoir pressure (Pi) test is required prior to production from any zone. A valid DST on the zone is acceptable for a measurement of initial pressure. Otherwise, the company may run a static gradient following initial completion, once wellbore dynamics have stabilized.
All gas wells require an AOF test within six months of initial production, if not already done prior to pipeline tie-in. A single point test is often adequate, however a multi-point test is preferred. In-line testing is preferred, to reduce gas flaring, as long as line pressure does not restrict the well to a low flow-rate. A calculation of both sandface and wellhead AOF values is required. Are there annual well testing requirements? Reservoir pressure tests are required on an annual basis for all producing oil and gas pools. Current minimum testing requirements are outlined in an annual Information Letter. For some mature pools, less frequent than annual testing has been approved. Refer to Information Letter OGC 00-03—Year 2000 Well Testing and Summary Table.
After the initial test, no further AOF tests are required, except following any major reservoir stimulation treatment, eg. an acid job, frac job, etc., in which case another test is required. What is the acceptable method for measuring the reservoir pressure? The test method used is at the discretion of the operator. However, if the zone is not at a stable reservoir pressure (pressure still increasing) due to insufficient shut-in time, a single pressure point such as a static gradient will not be adequate. A build-up test, preferably with bottom hole recorders, must gather enough data to conduct a valid extrapolation to a static reservoir pressure.
Tests that are deemed invalid by the Commission will result in an order to re-test the well. Could we use suspended wells that are part of the pool to act as test wells, as this would reduce the amount of lost production? Suspended wells are ideal for use as observation wells and we recommend they be used.Our well is approved for commingled production from two pools. How does a PST on this well count towards the minimum testing requirement? Tests on commingled wells count towards the minimum testing requirement for both pools. However, wells that are not commingled are preferred for pressure data testing. |
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