Oil & Gas Regulations in BC

prettyingmelonManagement

Nov 9, 2013 (4 years and 1 day ago)

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Oil
&
Gas Regulations in BC





Lance Ollenberger

Deputy Commissioner Operations Engineering

BC Oil and Gas Commission

Presentation Outline

Regulatory context

Commission Experience

Evolving regulatory landscape

1

Regulatory Context

Regulatory context for the Commission is driven by two primary factors:


1 The nature & location of the oil & gas resources


2 The interface with other key regulatory bodies

Horn River Basin


Devonian



11,400 sq km



OGIP


448 TCF



202 wells



Daily production


493 MMcf/d



Cumulative production


440 BCF

Montney


Triassic



29,850 sq km



OGIP


450 TCF (new estimate coming)



1,335 wells



Daily production 1.7 BCF/d



Cumulative production


1.76 TCF

Liard Basin


Devonian



9,340 sq km



OGIP


no estimate (large)



3 wells



Daily
production


7.7
MMcf
/d



Cumulative production 7.7
BCF

Cordova Embayment


Devonian



2,690 sq km



OGIP


200 TCF (preliminary)



22 wells



Daily production


35.4
MMcf
/d



Cumulative production 13.5 BCF

This is British Columbia’s

Oil and Gas Landscape



1998

Commission was created under the Oil and Gas Commission Act.


Modernized

under the Oil and Gas Activities Act (OGAA).

2010

1

Regulatory Context

Temporary Occupation of Crown Land

Licence of Occupation

Right of Way

Short Term Use of Water

Changes in & About a Stream

Water Licensing

Master Licence to Cut

Road Use Permit

Heritage Conservation Act

Environmental Management Act

Land Act:

Water Act:

Forest Act:

Other
Enactments:

Commission is a single
-
window

agency

Oil and Gas
Activities Act:

Mission

Protecting
public
safety

Respecting
those affected by oil
& gas activities

Conserving
the
environment

Supporting
resource
development




Drilling and Production


Geophysical Exploration


Pipelines

OGAA

Technical
Regulations

Consultation and
Notification

Environmental
Protection and
Management

Administrative
Penalties

Other

1

Regulatory Context


Legal Context





General




Public reporting



Audits by Minister of Energy & Mines



Audits by Minister of Environment re: environmental protection &
management



Financial audits



FOI legislation applicable

Decision specific




Administrative reviews



Oil & Gas Appeals Tribunal



Judicial review



Civil proceedings

1

Regulatory Context


Accountabilities

Board of Directors

Office of the
Commissioner

Corporate Services

Engineering

Operations

Shareholder

Operations Engineering

Resource Development

Public Engagement

Dispute Resolution

Permitting

Authorization

2

Commission Experience


Corporate Structure


2

Commission Experience

Stages of Oil & Gas Development



Slide:
16

Permitting

Authorizations

Compliance

Resource Development

Support

Review

Permitting

Emergency Response

Consultation

Application Review

Consultation

Engagement

Compliance

Enforcement

Emergency Response

Technical Expertise

Guidelines

Restoration

The Commission
consults with First
Nations on behalf of
the Crown.


Seek to avoid,
minimize and
mitigate impacts to
Treaty and
Aboriginal rights.

2

Commission Experience


Aboriginal Consultation


Production

Increases

3

Evolving Regulatory Landscape

Future of oil
and gas
activities

Shift to
Liquified

Natural Gas Facilities
and Pipelines


Increased demand

Increased size

3

Evolving
Regulatory
Landscape

Montney



Tight gas/shale



15,281 sq km



77
-
176 Tcf marketable gas



577 Bcf cumulative production*



Addressing cumulative effects of water withdrawal

NEWT: Hydrology modelling & decision
-
support tool

3

Evolving Regulatory Landscape

Water Management

Reduction in total
water volume required

Oil
&
Gas Regulations in BC

the legal framework





Lance Ollenberger

Deputy Commissioner Operations Engineering

BC Oil and Gas Commission

www.bcogc.ca