The Offshore Oil and Gas Regulatory Regime for Newfoundland and Labrador

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8 Νοε 2013 (πριν από 3 χρόνια και 5 μήνες)

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Canada-Newfoundland and Labrador
Offshore Petroleum Board
The Offshore Oil and Gas
Regulatory Regime for
Newfoundland and Labrador
Max Ruelokke P.Eng
Chairman and CEO
Canada-Newfoundland and Labrador
Offshore Petroleum Board
April 2011

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Canada-Newfoundland and Labrador
Offshore Petroleum Board
Canada’s Offshore Industry At A Glance



3 Regulatory Bodies


C-NLOPB


C-NSOPB


NEB


NL Offshore Oil Industry


4 producing fields


1 project in development (Hebron)


51 significant discovery licenses.


Exploration work underway and
planned in several basins


Over 1 billion barrels of oil produced


NS Offshore Gas Industry


1 producing gas project


1 in development


Frontier (Arctic, Gulf of St.
Lawrence, West Coast)


No activity
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Canada-Newfoundland and Labrador
Offshore Petroleum Board


Established in 1986 under the
Atlantic Accord as a joint
federal/provincial regulatory
agency for the offshore oil and
gas industry.


7 person board


Budget ~ $15 M


Four pillars:


Safety


Environment


Resources (including Land)


Industrial Benefits
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Canada-Newfoundland and Labrador
Offshore Petroleum Board
Canada-Newfoundland and Labrador
Offshore Petroleum Board (C-NLOPB)
Government of Newfoundland and
Labrador

Minister of Natural Resources
Government of Canada
Minister of Natural Resources
Environmental

Affairs
Exploration &
Resource
Management
Ind. Benefits,
Policy & Reg.
Coordination
Legal and
Land
Operations
and Safety
Public
Relations
Support
Services
Chair and CEO – Max Ruelokke
Jointly Appointed by Government of NL and Government of Canada
6 Board Members:
3 Appointed by Government of Canada – Davis Wells, Conrad Sullivan and One Vacancy
3 Appointed by Government of NL – Reg Anstey, Ed Drover and One Vacancy
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Canada-Newfoundland and Labrador
Offshore Petroleum Board
Professional – Technical
Staff Profile


69 Employees


66 hold degrees
and/or diplomas


61 are graduates of NL
educational institutions


25 have professional designations in
engineering, geoscience, safety, finance,
public relations and other disciplines
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Canada-Newfoundland and Labrador
Offshore Petroleum Board
Legislation
Acts (Federal and Provincial Mirror Legislation)


Canada-Newfoundland Atlantic Accord Implementation Act, S.C. 1987, c.3.


Canada-Newfoundland and Labrador Atlantic Accord Implementation
Newfoundland and Labrador Act, R.S.N.L. 1990, c. C-2.
Regulations and Guidance



There are several regulations under the Acts pertaining to various aspects
of offshore oil and gas exploration, development and production.


The Board develops guidance for Operators which assists them in
interpreting the regulations. Although it is guidance, it can, at times, be
prescriptive.
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Canada-Newfoundland and Labrador
Offshore Petroleum Board
Legislative Requirements for Drilling Activity


Regulations


Drilling and Production Regulations


Certificate of Fitness


Oil and Gas Debris and Spills Liability


Petroleum Installations


Guidance


Drilling and Production Guidelines


Drilling Programs


Safety Plans


Incident Reporting and Investigation


Environmental Protection Plan


Physical Environmental Programs


Data Acquisition and Reporting


Financial Responsibility Requirements
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Canada-Newfoundland and Labrador
Offshore Petroleum Board
Land Tenure Process
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Canada-Newfoundland and Labrador
Offshore Petroleum Board
Exploration License
Basic Rights of an
Exploration License:
(a)

The right to explore for, and the
exclusive right to drill and test for,
petroleum;
(b)

the exclus
i
ve right to develop those
portions of the offshore area in order to
produce petroleum; and

(c)

the exclusive right, subject to
compliance with the other provisions of
this part, to obtain a production licence.



The term is up to 9 years from effective
date of issuance


Must drill a well with first 5 years, but
may purchase an additional year
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Canada-Newfoundland and Labrador
Offshore Petroleum Board
Authorizations and Approvals


Any work or activity to be conducted in the
NL offshore area, must be authorized by the
Board


A person (company) must submit an
application on a timely basis, in a manner
and using a form as prescribed by the
Board.


Staff analyze and evaluate applications from
operators for work activity offshore.


The Board may issue an authorization or an
approval.
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Canada-Newfoundland and Labrador
Offshore Petroleum Board
Operations Authorization (OA) Requirements


Safety Plan


Environmental Assessment


Environmental Protection Plan


Contingency Plans


Offshore and Onshore Emergency Response Plans


Oil Spill Response Plan


Ice Management


Relief Wells


Certificate of Fitness


Operator’s Declaration of Fitness


Letter of Compliance


Financial Responsibility


Benefits Plan
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Canada-Newfoundland and Labrador
Offshore Petroleum Board
Approval Requirements to Drill a Well


Formation Pressure and
Fracture Gradient Evaluation


Barrier analysis to confirm two
barriers at all times


Casing Program


Cementing Program


Drilling Fluids


Casing and Wellhead Pressure
Testing


Formation Leak-Off Tests


BOP Configuration


BOP Pressure and Function
Testing
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Canada-Newfoundland and Labrador
Offshore Petroleum Board
Safety Plans


Hazard Identification


Risk Management


Training and Competency of Personnel


Details of Systems and Equipment, including
Maintenance/Inspection/Testing


Operational Procedures and Processes


JOHSC


Incident Reporting and Investigation


Management Oversight/Monitoring
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Canada-Newfoundland and Labrador
Offshore Petroleum Board
Environmental Assessment


Strategic Environmental Assessment


Conducted by C-NLOPB prior to issuing exploration
licences


Reviewed by federal and NL agencies, including
fisheries, environment


Draft report published for public comment


Report available on C-NLOPB Web site


Includes overview of blowout risk and consequences
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Canada-Newfoundland and Labrador
Offshore Petroleum Board
Environmental Assessment


Project Specific Environmental
Assessment


Conducted in accordance
with
Canadian
Environmental Assessment
Act


Documents published on C-
NLOPB Web site in near-
real time


Assessment documents
reviewed by staff of C-
NLOPB, environment and
fisheries agencies of federal
and NL governments


Includes potential effects
due to accidental events,
including blowouts
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Trajectory Modeling
Canada-Newfoundland and Labrador
Offshore Petroleum Board
Prevention and Safety Culture


Because of the risks associated
with offshore drilling,
prevention of incidents is
critical


A strong safety culture is
important to the prevention of
incidents


Operators that cannot
demonstrate a strong safety
culture are unlikely to get an
approval from the Board to
work in the NL offshore
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Canada-Newfoundland and Labrador
Offshore Petroleum Board
Oversight of Drilling Operations


At Operations Application Level


At ADW Submission/Review


During Operations


Daily Drilling, Geologist and Log Reports


Reviewed by a number of C-NLOPB Staff


Copies provided to NL Dept of Natural Resources
for Exploration and Delineation Wells


Inspections


Audits
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Canada-Newfoundland and Labrador
Offshore Petroleum Board
Post-Macondo Oversight Measures
(Lona O-55)


Oversight Team established


Field reports on testing activity


Monitor DWH developments for
lessons learned


Audits and inspections every three to
four weeks.


Operations time-out


C-NLOPB observer at specific times
during the drilling program


Spill response ready for rapid
deployment before penetrating targets


Review well termination program
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Canada-Newfoundland and Labrador
Offshore Petroleum Board
BOP Integrity
& Operational
Issues
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Focus On Change
Canada-Newfoundland and Labrador
Offshore Petroleum Board
International Regulators Forum (IRF)
and Best Practices


CNLOPB is a member of the IRF


IRF committee activity


IRF conference and meeting in
Vancouver
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Canada-Newfoundland and Labrador
Offshore Petroleum Board


Operators Responsible for
Emergency Response


Lead government agency for
drilling, production installations
on site, e.g.:
-
Hibernia, Terra Nova, White Rose
production platforms, subsea
installations, loading systems
- Drilling units on site (e.g., Stena
Carron at Lona O-55)


Resource agency in all other
cases, e.g.:
-
Drilling unit off-site
- Supply vessels
- Shuttle tankers
C-NLOPB Spill Response Role
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Canada-Newfoundland and Labrador
Offshore Petroleum Board

Accord Act paragraph 46 (1):

The Board shall, to ensure effective coordination and avoid
duplication of work and activities, conclude with the
appropriate departments and agencies . . . Memoranda of
understanding in relation to (a) environmental regulation; (b)
emergency measures; . . . and (f) such other matters as are
appropriate.


Interaction with Other Agencies


MOUs concluded in late 1980s with environment,
fisheries, energy departments of Canada & NL


Environment MOU acknowledges and cites the role
of Regional Environmental Emergency Team (REET)
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Canada-Newfoundland and Labrador
Offshore Petroleum Board


Formed by federal Cabinet directive following 1970
Arrow
tanker
spill


REET provides consolidated environmental advice to lead
agency and/or incident command


Chaired by Environment Canada


Members from federal, provincial agencies with environmental
emergency related responsibilities


Separate REET in each region of Canada


Each REET meets annually in workshop mode


REET can be activated in an emergency, with active participants
drawn from membership
Regional Environmental Emergencies Team
(REET)
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Canada-Newfoundland and Labrador
Offshore Petroleum Board


All spills prohibited


Contingency plans required
- Also annual field countermeasures exercise


Operator must report spills to C-NLOPB


Operator must take “all reasonable measures” to respond to and
mitigate spill


Operator financially responsible for all “actual loss or damage” resulting
from spill
- Up to prescribed limit, without proof of fault or negligence
- Unlimited liability where fault or negligence proved


C-NLOPB Chief Conservation Officer has authority to intervene in
response
Spill Response Requirements
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Canada-Newfoundland and Labrador
Offshore Petroleum Board
Financial Responsibilities Requirements


Polluter Pays


Clean-up and Compensation


$30 M direct access


$70 M available


$250 M financial capability
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Canada-Newfoundland and Labrador
Offshore Petroleum Board


Tiered Response Structure


Tier 1: In-field / at-site resources


Tier 2: NL / regional resources (e.g., ECRC, CCG NL)


Tier 3: National/international resources (e.g., OSRL)


Command/Control Structure


Communications/Notification Procedures


Identification of Resource Personnel and Organizations


Provision for Personnel Training


Resource Sharing Arrangements with Other Operators
Spill Response – Typical Planning Elements
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Canada-Newfoundland and Labrador
Offshore Petroleum Board
Information Disclosure


Public Disclosure of Information


Oil Spill “Tombstone” Data


Per incident, for spills >1 liter*


Quarterly, for spills <= 1 liter


Environmental Effects Monitoring


Development drilling / Production*


Environmental assessment reports and documents


Contingency Plans


Legislation


Section 119
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Canada-Newfoundland and Labrador
Offshore Petroleum Board
www.cnlopb.nl.ca
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