September Regulatory Newsletter

September 2021

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AB: New Edition of Directive 040

On September 2, 2021, the AER released a new edition of Directive 040: Pressure and Deliverability Testing Oil and Gas Wells, consisting of the following changes:

- updated guidance for minifrac test (diagnostic fracture injection test),

- reduced initial pressure testing requirements,

- rescinded gas well absolute open flow (AOF) deliverability testing requirements,

- rescinded annual pressure testing requirements for oil and gas pools under primary production

Additional information can be found here: Bulletin 2021-34

AB: 2021/22 Orphan Fund Levy for Large Facilities

On August 10, 2021, the AER announced that $3.5 million levy will be allocated proportionately among licensees with facilities in the Large Facility Liability Management Program (LFP) based on the facility-specific liability assessments as of September 4, 2021.

LFP orphan fund levy invoices will be emailed by September 16, 2021. The licensee is responsible for ensuring that the invoice is directed to the appropriate person. If the licensee does not receive their invoice by September 23, 2021, they must contact OrphanLevy@aer.ca to request a copy.

All LFP orphan fund levy invoices must be paid in full by the licensee and received by the AER by October 15, 2021.

Failure to pay the full invoiced amount by October 15, 2021, will result in a penalty of 20 per cent of the original invoiced amount.

Additional information can be found here: Bulletin 2021-32

AB: Revised Continuous Emission Monitoring System (CEMS) Code

Alberta Environment and Parks (AEP) updated the Continuous Emission Monitoring System (CEMS) Code, which takes effect January 1, 2022, and will replace the 1998 code.

The CEMS Code establishes requirements for the installation, operation, maintenance and certification of continuous emission monitoring systems.

“Authorizations to deviate” granted under the 1998 CEMS code will not apply under the 2021 code. Licensees seeking authorization to deviate from requirements in the 2021 CEMS code should contact the appropriate AER Environmental Protection and Enhancement Act (EPEA) approval coordinator to request an authorization to deviate before the 2021 code takes effect. The only exceptions are existing authorizations to deviate under section 4 of the code, “Installation Specifications and Test Procedures.”

The revised 2021 CEMS code and supplementary information are provided on the AEP CEMS webpage: https://www.alberta.ca/continuous-emissions-monitoring.aspx.

Additional information can be found here: Bulletin 2021-33

REMINDER: Annual Pressure Testing Requirements

Annual Pressure Testing Requirements in AB must be completed by December 31, 2021 and submitted to the AER well test capture system within 90 days of completing the test to avoid administrative penalties. Applications for a variance or waiver to this year’s 2021 testing requirements that should be submitted to the AER as soon as possible.

On September 2, 2021 the new edition of Directive 040: Pressure and Deliverability Testing Oil and Gas Wells was released. Please note initial and annual pressure requirements update (Bulletin 2021-34). Annual Pressure Testing Schedule can be found here.

Annual Pressure Testing Requirements in BC must be completed by December 31, 2021 and submitted to the BCOGC well test capture system within 60 days of completing the test.

REMINDER: Annual Packer Isolation Tests

Annual Packer Isolation Tests in AB must be competed and submitted on the AER’s D087 Form by December 31, 2021 in accordance with Directive 087: Well Integrity Management Table 1. Class II injection and disposal wells (including Class II/IV wells) are under the triennial testing schedule.

Annual Packer Isolation Tests in BC must be competed and submitted to the BCOGC through the eSubmission system by December 31, 2021.

Annual Packer Isolation Tests in SK are required to be performed annually and does not require submission. However, records should be available if requested.

REMINDER: EPAP Submission

Submission for the AER’s Enhanced Production Audit Program (EPAP) are due every year through the AER’s EPAP system as per Directive 076: Operator Declaration Regarding Measurement and Reporting Requirements.

SK EPAP submissions are due annually as per SK EPAP Guide.

SK: New Oil and Gas Liability Management Regulations

The Ministry of Energy and Resources (ER) announced new regulations to strengthen the oil and gas liability program, called The Financial Security and Site Closure Regulations (FSSCR).

Also included are amendments to The Oil and Gas Conservation Regulations, 2012 (OGCR), which are summarized here The Oil and Gas Conservation Regulations, 2012_Side-by-Side 30Jun2021.

Please note that the FSSCR and the amendments to the OGCR will not come into force until a date fixed by Order-in-Council to be determined by ER. Until then, the existing LM program requirements in The Oil and Gas Conservation Regulations, 2012 (OGCR) and in Directive PNG025: Licensee Liability Rating (LLR) Program continue to be in effect.

Details of the FSSCR new provisions to the LM program can be found here: BT2021-010

Well Testing Services at Benoit

To support Benoit's regulatory application and compliance related submissions, Benoit utilizes an in-house well test analysis expert, Mr. Reza Ali, C.E.T.

Mr. Ali has over 30 years of experience specializing in domestic and international Flow and Build-Up, Production Data and DFIT Analyses.

If you would like a well test analyzed or if you would simply like more information on our well testing services, please feel free to contact Robyn (at 403.263.3690) or Jason (at 403.874.6769). You may also contact Reza Ali directly at 403.454.0430

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