Alberta Queen's Printer:

AR 76/88 OIL SANDS CONSERVATION REGULATION

(Consolidated up to 158/2009)

ALBERTA REGULATION 76/88

Oil Sands Conservation Act

OIL SANDS CONSERVATION REGULATION

Table of Contents

Part 1
Interpretation

1 Interpretation

1.1 Exemption ‑ agents

Part 2
General

2 Applications

3 Board approvals required

4 Licensing, drilling, etc. of wells

5 Operations governed by regulation

6 Pollution control and safety

7 Precautions re hydrogen sulphide gas

8 Emergency response plan

9 Prevention of losses, injuries, etc.

10 Burning of gas or waste

11 Waste

13 Report of spill, fire or damage

14 Other records and reports

15 Release of information

16 Prohibitions

17 Retention of records

18 Exemption for experimental scheme

19 Measurement to comply with Regulation

20 Measurement satisfactory to Board

21 Measuring crude bitumen, oil sands products or gas

22 Measurement requirements

Part 3
Mining Operation

24, 24.1 Storage or disposal

26 Mine site plan

27 Mining operation

28 Number of wells for surface facilities

28.1 Dedicated disposal area plan

29 Mining operation records

30 Annual mine plan

31 Report of mining operations

32 Geotechnical report

32.1 Other reports

Part 4
In Situ Operation

33 Construction or modification of a central processing facility

34 Liquid hydrocarbon storage

35 Disposal of sand

36 Conduct of operations

37 Casing failure

38 Measurement of fluid

39 Production operations

40 Common flow lines

41 Licensee

41.1 Records and reports

42 In situ operation records

43 Report of well status

44 Daily record and reporting

45 Reporting from a facility

47 In situ scheme reports

Part 5
Processing Plant

48 Storage or disposal

49 Operation of processing plant

51 Discharge of gas to atmosphere

54 Processing plant records

55 Daily record

56 Monthly statement

57 Content of monthly statement

58 Report of operations

Part 6
Fees

61 Fees

Part 7
Expiry

62 Expiry

Part 1
Interpretation

Interpretation

1(1) Repealed AR 226/2000 s2.

(2) In this Regulation,

(a) “Act” means the Oil Sands Conservation Act;

(b) “central processing facility” means a battery system or arrangement of tanks or other surface equipment receiving the effluent of 1 or more wells or a satellite prior to delivery to market or other disposition, and may include equipment or devices for separating the effluents into crude bitumen, gas or water, for the injection and distribution of air, steam, gas, hydrocarbon or other materials, for water treatment and recycling, and for measurement, but does not include a processing plant;

(d) “crude bitumen” means a naturally occurring viscous mixture, mainly of hydrocarbons heavier than pentane, that may contain sulphur compounds and that, in its naturally occurring viscous state, will not flow to a well and, for the purposes of this Regulation, includes declared oil sands;

(d.1) “Directive 074” means Directive 074, “Tailings Performance Criteria and Requirements for Oil Sands Mining Schemes”, published by the Board;

(e) - (h) repealed AR 226/2000 s2;

(i) “evaluation well” means a well that when being drilled is expected by the Board to penetrate an oil sands deposit and is drilled for the purpose of evaluating that deposit;

(j) repealed AR 226/2000 s2;

(k) “experimental well” means a well drilled or being drilled or operated pursuant to an experimental scheme approved by the Board;

(l) “in‑place volume” means the gross volume of crude bitumen;

(m), (n) repealed AR 226/2000 s2;

(o) “liquid spill” means any crude bitumen, oil sands product, condensate, salt water or contaminated water that

(i) is spilled off an oil sands site,

(ii) is released into a stream or river or a body of water other than an approved storage site or tailings pond, or

(iii) is in excess of 2 cubic metres if released on an oil sands site,

but does not include a discharge approved under any Act or regulation;

(p) “mine site” means an area within which mining operations are being conducted or that is the subject of an approval under the Act for a mining operation, and includes a stockpile area, a discard site and any area within which facilities or equipment used in connection with a mining operation are located;

(q) - (u) repealed AR 226/2000 s2;

(u.1) “oil sands strata” means the geological intervals defined in the Board’s Oil Sands Area Orders OSA 1, 2 and 3, as amended from time to time;

(v) “operator” means the holder of an approval under the Act;

(w) “primary production well” means a well drilled, being drilled or operated to produce crude bitumen that will flow to a well;

(x) “processing plant” means a facility

(i) for obtaining crude bitumen from oil sands that have been recovered, or

(ii) for obtaining oil sands products from oil sands, crude bitumen or derivatives of crude bitumen that have been recovered,

but, for the purposes of this Regulation, does not include a central processing facility;

(y) “processing plant site” means an area within which a processing plant is located or that is the subject of an approval under this Act for a processing plant and includes any area within which facilities or equipment used in connection with a processing plant are located;

(z) “satellite” means a facility located some distance from a central processing facility used to gather production effluent and distribute air, steam, gas hydrocarbon or other material from or to a cluster of wells or a well pad, through a manifold system that contains all the necessary valves, meters, headers and sample connections and includes well test facilities to isolate and measure the production rates of individual wells;

(z.1) “solution gas” means gas that is dissolved in crude oil or crude bitumen under reservoir conditions and evolves as a result of pressure and temperature changes.

(z.2) “tailings” means a by-product of the bitumen extraction process composed of water, sands, fines and residual bitumen.

(aa), (bb) repealed AR 226/2000 s2.

(3) A decision of the Board is final as to whether any substance or mixture comes within a definition in subsection (2) or as to whether a definition in subsection (2) is applicable in a particular case.

(4) Any reference in this Regulation to a form is a reference to that form as provided by the Board.

AR 76/88 s1;48/99;226/2000;93/2009

Exemption ‑ agents

1.1(1) In this section,

(a) “mutual recognition agreement” means a valid and subsisting agreement made between the Board and a regulatory body for the purpose of recognizing substantial regulatory equivalency and enabling reciprocity between Alberta and another jurisdiction;

(b) “regulatory body” means an entity having lawful authority respecting the regulation of oil sands mines and related facilities in a jurisdiction other than Alberta.

(2) An individual or a corporation or other organization is exempt from the requirement to appoint an agent under section 16(1) of the Act if, and for so long as, the individual, corporation or organization

(a) is resident of a jurisdiction and subject to the authority of a regulatory body that is a party to a mutual recognition agreement with the Board,

(b) is in compliance with all applicable legislation and regulations and all applicable directives, orders and directions of the Board and the regulatory body referred to in clause (a),

(d) does not, in Alberta or elsewhere, operate an oil sands mine or a related facility in a manner that, in the opinion of the Board, is unsafe or presents a serious threat to public safety or the environment,

(e) agrees to attorn to the jurisdiction of Alberta with respect to all matters, obligations and liabilities pertaining to its oil sands approvals in Alberta, and

(f) meets any other condition imposed by the Board for the purpose of exemption from the requirement to appoint an agent.

(3) For greater certainty, nothing in this section requires the Board to enter into a mutual recognition agreement if the other jurisdiction fails to prove to the satisfaction of the Board that substantial regulatory equivalency exists between Alberta and the other jurisdiction.

AR 83/2009 s2

Part 2
General

Applications

2 An application made under section 10, 11, 12 or 13 of the Act shall include where applicable those requirements set out in the guide published by the Board for those applications.

AR 76/88 s2;251/2001

Board approvals required

3(1) No operator shall commence, suspend or abandon an oil sands site, an experimental scheme, an in situ operation, a mining operation or a processing plant until the Board has granted approval to do so.

(2) No operator shall commence any substantial modification at an oil sands site, an experimental scheme, an in situ operation, a mining operation or a processing plant until the Board has granted approval to do so.

(3) No person shall produce gas from a well completed in the oil sands strata prior to obtaining an approval from the Board, unless the Board has exempted the well from the application of this subsection.

(4) An application to produce gas in accordance with subsection (3) must be made by the well licensee and include the documentation required by the Board.

(5) Where it appears to the Board that the ultimate recovery of crude bitumen in the oil sands strata may be affected by gas production, the Board may, on its own initiative or on application by an affected party, make any order or directive it considers necessary to effect the conservation of the crude bitumen in any particular case.

(6) Subsections (3), (4) and (5) do not apply to the production of solution gas.

AR 76/88 s3;48/99

Licensing, drilling, etc. of wells

4(1) Prior to drilling a well or undertaking any operations preparatory or incidental to the drilling of a well, except for the surveying of the proposed well site or continuing any drilling operations, an operator of an oil sands site shall apply for and obtain a licence for

(a) evaluation wells, subject to subsection (5),

(b) experimental wells,

(d) any water supply well of a depth of more than 150 metres, and

(e) primary production wells,

in accordance with the requirements of Parts 2 and 13 of the Oil and Gas Conservation Regulations (Alta. Reg. 151/71).

(2) Any operations incidental to the drilling of a well or continuing any drilling operations, servicing operations, producing operations or injection operations for a well referred to in subsection (1) shall be carried out in accordance with the requirements of Parts 3, 6, 8 and 11 of the Oil and Gas Conservation Regulations (Alta. Reg. 151/71).

(3) The licensee of a well shall apply for and obtain the approval of the Board before suspending normal drilling operations, abandoning the well, plugging back or abandoning a formation in the well, removing casing from the well or resuming drilling operations after a previous suspension or abandonment of the well in accordance with Part 3 of the Oil and Gas Conservation Regulations (Alta. Reg. 151/71).

(4) A member or authorized employee of the Board may first give orally an approval required under subsection (3).

(5) An operator drilling oil sands evaluation wells within an approved mine site is exempt from the requirements of subsection (1) and Parts 2, 3, 6, 8 and section 11.020 of the Oil and Gas Conservation Regulations (Alta. Reg. 151/71).

(6) Notwithstanding subsection (5), if there is any indication that gas may be encountered during drilling of any oil sands evaluation well within an approved mine site, the Board may require that conductor pipe and a diverter system be utilized.

(7) Notwithstanding subsection (5), when directed by the Board, an operator of an approved mine site shall submit all well data, analyses, tests, surveys and logs in accordance with Part 11 of the Oil and Gas Conservation Regulations (Alta. Reg. 151/71).

AR 76/88 s4;226/2000

Operations governed by regulation

5 Drilling, completion, servicing and production operations shall be in accordance with Parts 6, 7 and 8 of the Oil and Gas Conservation Regulations (Alta. Reg. 151/71).

AR 76/88 s5

Pollution control and safety

6 Unless the Board otherwise approves, the operator of an oil sands site producing gas with a hydrogen sulphide content of greater than 10 moles per kilomole, or any lower hydrogen sulphide content that the Board may by order stipulate, shall burn the gas using an incinerator approved by the Board or through a flare line that terminates with a vertical riser of at least 12 metres, or such greater height as the Board considers necessary and is provided with a suitable guard to prevent wind from extinguishing the flame, a suitable pilot and an ignition device to ensure continuous ignition, if

(a) a flare line is installed for routine flaring or burning of gas during normal operations,

(b) a pressure relief valve, rupture disk or burst plate is installed on a separator or other pressure vessel, or

AR 76/88 s6

Precautions re hydrogen sulphide gas

7(1) The operator of an oil sands site handling gas with a hydrogen sulphide content that exceeds 10 moles per kilomole, or any lower hydrogen sulphide content that the Board may by order stipulate,

(a) shall erect signs, as specified by the Board, at the entrance to the site warning of the presence of poisonous gas, and

(b) shall not discharge or permit to be discharged to the atmosphere stock tank vapours or any other gas produced from the well, other than steam vapours from an open tank, unless they are burned so that essentially all sulphur compounds are converted to sulphur dioxide, ensuring that the average concentration of hydrogen sulphide and sulphur dioxide in the ambient air does not exceed the maximum permissible concentrations as determined by the Department of Environment.

(2) Gas discharged pursuant to subsection (1)(b) shall be burned in accordance with section 6.

(3) The Board, on application, may exempt an operation from any provision of this section where, in the opinion of the Board, the nature of the production, remoteness of the area or other circumstances warrant the exemption.

AR 76/88 s7;226/2000

Emergency response plan

8 The operator of an oil sands site shall, when requested to do so by the Board, file with the Board an emergency response plan that will be followed

(a) when handling gas with a hydrogen sulphide content greater than 10 moles per kilomole, or any lower hydrogen sulphide content that the Board may by order stipulate, or

(b) in the event of an uncontrolled emission of contaminants to the air, water or land.

AR 76/88 s8

Prevention of losses, injuries, etc.

9 An operator shall prevent loss, injury, damage and fire at an oil sands site in accordance with the requirements of Part 8 of the Oil and Gas Conservation Regulations (Alta. Reg. 151/71).

AR 76/88 s9

Burning of gas or waste

10(1) No operator of an oil sands site shall cause or permit the burning of crude bitumen, gas, oily waste or discard or other material unless he has obtained written approval from the Board or its authorized representative.

(2) Notwithstanding subsection (1), effluent may be burned under emergency conditions, if the burning is immediately reported to the Board.

AR 76/88 s10

Waste

11 An operator of an oil sands site shall not vent, flare or waste any significant amount of gaseous or liquid hydrocarbon except in cases of emergency, unless otherwise authorized in writing by the Board.

AR 76/88 s11

12 Repealed AR 226/2000 s5.

Report of spill, fire or damage

13(1) An operator shall report to the Board by the quickest effective means

(a) any liquid spill,

(b) any break or leak in a vessel or gathering line or other equipment that occurs at an oil sands site where the loss exceeds 2 cubic metres of liquid hydrocarbon or 30 000 cubic metres of gas or gas equivalent or where significant damage to equipment occurs, and

(c) any fire that occurs at an oil sands site, including the sulphur storage block or handling facility, that requires major fire‑fighting equipment and resources,

and when so directed by the Board shall further report, by letter, within 2 weeks of the Board’s direction.

(2) Each report under subsection (1) shall specify the quantity of liquids, gas, gas equivalent or sulphur lost and the location of the equipment affected and shall include the following information:

(a) the time the event occurred;

(b) a description of circumstances leading to the event, including a contact person;

(d) an outline and schedule for spill‑site or fire‑site rehabilitation and repair of affected equipment;

(e) any further particulars the Board may require.

AR 76/88 s13

Other records and reports

14 An operator of an oil sands site shall keep any other records and file with the Board any other reports that the Board may, by order, require.

AR 76/88 s14

Release of information

15(1) Subject to subsection (2), the Board, at any time, shall make available to the public from records, reports or information submitted to or acquired by it,

(a) any application or submission of an applicant or intervener in any proceedings before the Board pursuant to the Act or this Regulation and to which the Board’s rules of practice apply, whether or not the proceeding goes to a hearing or is otherwise disposed of, and any record, report or information of an applicant or intervener filed by him in connection with the proceedings,

(b) monthly totals of crude bitumen, gas or water production from a well other than an experimental well,

(d) monthly totals of oil sands, crude bitumen, oil sands products, marketable gas and the condensate received at a processing plant, and the monthly totals of oil sands products derived, stored and delivered from a processing plant,

(e) monthly totals of sulphur produced, flared or wasted from a processing plant,

(f) monthly totals of external energy purchased or generated at a processing plant, or

(g) the emergency response plan at an oil sands site.

(2) Notwithstanding subsection (1), where operations reports, special studies, laboratory, experimental or cost information relating to an oil sands commercial or experimental scheme concerning the development or application of a new or existing technology or improved operations are submitted to and accepted by the Board as confidential, the Board shall,

(a) after 10 years or such lesser period of time as the Board directs from the completion of the experimental operation or specified phase thereof, make the laboratory or experimental information available to the public,

(b) after 10 years or such lesser period of time as the Board directs from the submission of a laboratory report or a report of a special study or cost information from an oil sands commercial scheme to the Board, make the report available to the public, and

(c) notwithstanding clauses (a) and (b), where the operator satisfies the Board that continued confidentiality is warranted, make the information available following a further period that the Board considers appropriate.

(3) Notwithstanding subsection (2), the Board may make the information referred to in that subsection available to the public

(a) if, in the opinion of the Board, failure to release the information would

(i) severely prejudice the position of the Board in making decisions in future proceedings, or

(ii) seriously affect conservation in Alberta,

after 1 year from commencement of a commercial operation in Alberta in which the information is applied,

(b) if, in the opinion of the Board, an interest in a tract in Alberta on which the research was conducted or to which the information would be applicable is no longer owned by

(i) the person who submitted the information, or

(ii) the person to whom he has sold or assigned the tract together with the exclusive right to the information or its application,

after 1 year from the date on which the person’s interest in all the tracts terminated, or

(4) Before making the information referred to in subsection (3)(a) and (b) available to the public, the Board shall provide the person who submitted it or the person to whom he has sold or assigned the tract together with the exclusive right to the information or its application with the opportunity to justify continued confidentiality.

(5) The Board shall make available to the public from records, reports or information submitted to or acquired by it for any well the surface and bottom hole locations, elevation, current depth, drilling status or casing and cementing data, any log, dipmeter survey, drill stem test data, wire line formation test data, pressure, temperature and flow test data, completion details, crude bitumen, gas or water analysis data or sample cuttings, but in the case of an experimental well the Board may make the data available in accordance with subsection (6), and, in the case of an oil sands evaluation well, in accordance with subsection (7).

(6) Notwithstanding any provision of this section regarding experimental wells, the Board, after 1 year from the finished drilling date or the start of substantially uninterrupted suspension of drilling operations at an experimental well, shall make available to the public, from records, reports or information submitted to or acquired by it, data other than completion details or data which, in its opinion, were secured for the purpose of evaluating the performance of an experimental scheme, in which case the data may be released in accordance with subsection (2).

(7) The Board, after 1 year from the finished drilling date or the start of substantially uninterrupted suspension of drilling operations at an oil sands evaluation well, shall make available to the public, from records, reports or information submitted to or acquired by it, any log, dipmeter survey, drill stem test data, wireline formation test data, pressure, temperature and flow test data, crude bitumen, declared oil sands, gas or water analysis data, sample cuttings or core analysis.

(8) Nothing in this section requires the Board

(a) to obtain for the purpose of making it available any information it otherwise does not have,

(b) to publish any information or make it available otherwise than on request, or

(c) to make any information available otherwise than by putting it on view at the facilities provided for that purpose by the Board in the ordinary routine observed in the Board offices and on payment of its usual fees for those services.

AR 76/88 s15;331/92

Prohibitions

16(1) No person shall alter, remove, deface or destroy any entry or marking of any kind made by the Board or a representative of the Board in or on any record or recording of measurements required to be kept by the Act or this Regulation.

(2) No person shall enter in any record or report required to be kept or made, as an amount determined by measurement or as an amount the measurement of which is required by the Act or this Regulation, an amount not so determined.

(3) No person shall wilfully alter, remove, deface or destroy any record or recording of measurements required to be kept until the expiration of the period during which the record or recording is required to be kept by the Act or this Regulation.

AR 76/88 s16

Retention of records

17 Each record required to be kept by this Regulation shall be retained at the place and by the person specified in this Regulation for a period of 18 months from the time the record is made or any other period the Board may specify.

AR 76/88 s17

Exemption for experimental scheme

18 Where the Board grants an approval of an experimental scheme, it may relieve the operator from any of the requirements of this Part.

AR 76/88 s18

Measurement to comply with Regulation

19 The units and the methods of measurement and standard conditions prescribed by this Part shall be used whenever the measurement of oil sands, crude bitumen, derivatives of crude bitumen or oil sands products is required by the provisions of

(a) an Act,

(b) a regulation established under an Act, or

whether the provisions deal with conservation, preservation, utilization, taxation, royalties or any other matter.

AR 76/88 s19;226/2000

Measurement satisfactory to Board

20 An operator of a scheme or operation shall measure oil sands, crude bitumen, derivatives of crude bitumen or oil sands products, and all significant process streams that have a bearing on the calculation of material balances of hydrocarbons or sulphur, in a manner satisfactory to the Board.

AR 76/88 s20

Measuring crude bitumen, oil sands products or gas

21(1) An operator required to measure crude bitumen or oil sands products shall compute its volume as the number of cubic metres it would occupy at a temperature of 15EC.

(2) When the temperature conditions differ from 15EC, conversion of the volume from the temperature under which the measurement is made to 15EC must be made in accordance with the API/ASTM Manual of Petroleum Measurement Standards, Chapter 11.1‑Volume Correction Factors, Volume VII, Table 54A.

(3) An operator required to measure gas shall compute its volume as the number of cubic metres it would occupy at standard conditions of 101.325 kilopascals absolute and 15EC.

AR 76/88 s21;226/2000

Measurement requirements

22 Unless otherwise approved by the Board, an operator of a scheme shall comply with the measurement requirements as set out in Part 14 of the Oil and Gas Conservation Regulations (Alta. Reg. 151/71) and any other requirements specified by the Board.

AR 76/88 s22

Part 3
Mining Operation

23 Repealed AR 226/2000 s8.

Storage or disposal

24 An operator shall apply for and obtain the approval of the Board for the storage or disposal of any oil sands or discard accumulated during mining or overburden removal.

AR 76/88 s24

Storage or disposal

24.1 An operator shall apply for and obtain the approval of the Board for the management of tailings and shall manage the tailings in accordance with Directive 074.

AR 93/2009 s3

25 Repealed AR 226/2000 s9.

Mine site plan

26 An operator shall obtain the approval of the Board for a mine site plan and for any changes to an approved annual mine plan that would reduce the amount of oil sands recovered.

AR 76/88 s26

Mining operation

27 Unless the Board otherwise approves, an operator shall carry out a mining operation in a manner

(a) that does not render more difficult the recovery of other oil sands,

(b) that will maximize the recovery of all oil sands within the mine site, and

AR 76/88 s27;226/2000

Number of wells for surface facilities

28(1) Unless the Board otherwise directs, an operator shall drill and core a minimum of 4, essentially uniformly spaced, evaluation wells per section over any area that would be affected by construction of surface facilities, such as sites for a processing plant or discard disposal.

(2) The wells referred to in subsection (1) shall be logged with acceptable deep induction, natural gamma ray radiation and porosity measuring devices throughout the entire Wabiskaw‑McMurray section unless the Board permits another type of log or parts thereof to be substituted.

AR 76/88 s28

Dedicated disposal area plan

28.1 Before constructing a dedicated disposal area, an operator shall submit a dedicated disposal area plan to the Board in accordance with Directive 074 and shall obtain the Board’s approval of the plan.

AR 93/2009 s4

Mining operation records

29(1) An operator shall keep the daily record of operations accessible at his field office or other place of business in Alberta.

(2) An operator shall supply to the Board on or before the 22nd day of the month, on Form S-23, the quality and quantity of oil sands mined and the crude bitumen recovered during the preceding calendar month and the disposition thereof.

AR 76/88 s29

Annual mine plan

30 An operator shall submit to the Board for its approval, by September 30 each year, details of its annual mine plan for the next calendar year of operation which shall include, where applicable,

(a) plan view drawings showing the most recent survey of the mining faces projected to December 31 of the current calendar year and to December 31 of the next calendar year which shall include surface elevations, and elevations for underground development, having a grid spacing to be representative of not greater than 100 metres or contours to be representative of not greater than 5 metres, of the mine site outlining the area for temporary and permanent disposal of muskeg, overburden, rejected oil sands, tailings, sulphur and coke, and underground development elevations prior to in‑pit or underground disposal, on a maximum scale of 1:5000,

(b) section view drawings, showing plant feed and reject zones on a scale and at intervals as specified by the Board, drawn normal to the longitudinal axis of the excavated mine projected to December 31 of the current calendar year and to December 31 of the next calendar year,

(d) a description of any geotechnical investigations conducted to support the assumptions made in the preparation of the annual mine plan,

(e) plan view drawings illustrating the proposed mining operation and discard site limits at the end of 5 years of operation, and

(f) a tailings management plan prepared in accordance with Directive 074.

AR 76/88 s30;93/2009

Report of mining operations

31 An operator shall submit to the Board, on or before February 28 in each year, a report on the mining operations, overburden removal and discard site for the previous calendar year, which shall include, where applicable,

(a) the in‑place volume and mined volume of oil sands and crude bitumen, including corresponding average crude bitumen saturation and details of the criteria used to determine those volumes,

(b) the average saturation and volume of stock‑piled oil sands,

(c) the volume of crude bitumen that was approved for recovery under section 30 but was not recovered, including a detailed explanation,

(d) the volume of discard material removed and stored,

(e) plan view drawings with surface elevations, and elevations for underground development where applicable, having a grid spacing to be representative of not greater than 100 metres or contours to be representative of not greater than 5 metres, of the mine site outlining the area for temporary and permanent disposal of muskeg, overburden, rejected oil sands, tailings, sulphur and coke, and underground development elevation prior to any in‑pit or underground disposal on a maximum scale of 1:5000, and

(f) section view drawings showing plant feed and reject zones on a scale and at intervals as specified by the Board, of the excavated mine during the reporting period.

AR 76/88 s31

Geotechnical report

32(1) When requested, an operator shall submit to the Board within 60 days of the end of each calendar year a summary report of the geotechnical investigation relating to the stability of mine pit walls, overburden discard sites, oil sands windrows, tailings dikes or other similar structures.

(2) An operator shall notify the Board forthwith of any collapse or instability within the mine site resulting in

(a) a change in the annual mine plan referred to in section 31,

(b) an interruption in the operator’s ability to continue mining operations, or

(3) If directed by the Board, the operator shall submit a geotechnical analysis of the collapse or instability and a description of any remedial action taken.

AR 76/88 s32;226/2000

Other reports

32.1(1) An operator shall submit to the Board, in accordance with Directive 074,

(a) an annual status report respecting fluid tailings ponds,

(b) an annual compliance report respecting dedicated disposal areas, and

(2) In addition to the report referred to in subsection (1)(c), an operator shall submit to the Board, in accordance with Directive 074, quarterly progress reports respecting fines capture.

AR 93/2009 s6

Part 4
In Situ Operation

Construction or modification of a central processing facility

33 No construction or significant modification of a central processing facility shall be commenced until the Board has granted approval for the construction or modification.

AR 76/88 s33

Liquid hydrocarbon storage

34 Unless the Board otherwise approves, an operator shall store in tanks or in any other manner approved by the Board, until sold or disposed of in a manner approved by the Board, all liquid hydrocarbons recovered from the operation and not consumed in the operations or in works or installations used in connection with the scheme.

AR 76/88 s34

Disposal of sand

35 An operator shall dispose of produced sand in a manner satisfactory to the Board.

AR 76/88 s35

Conduct of operations

36 Unless the Board otherwise approves, an operator shall conduct all operations in a manner that, under normal operating conditions, will

(a) maximize the recovery of the crude bitumen,

(b) maximize the gathering and utilization of oil sands products produced from the scheme,

(d) minimize the disposal of water,

(e) maximize the recycle of produced water, and

(f) maximize the recovery from all oil sands zones within the approval area.

AR 76/88 s36

Casing failure

37(1) Unless the Board otherwise directs, an operator of a thermal in situ operation shall take the steps and effect the measures that are necessary in the completion and operation of wells to detect and prevent production casing failures.

(2) Notwithstanding subsection (1), the operator of a thermal in situ operation shall, prior to commencing operations, submit to the Board for its approval a program designed to adequately provide for detection and prevention of production casing failures.

(3) When a casing break is detected, the licensee or operator shall, by the quickest effective means, report the situation to the appropriate Board area office.

(4) A report made pursuant to subsection (3) shall, within 30 days of the date of the report, be confirmed in a written report to the Board and be supplemented by any information the Board may require.

AR 76/88 s37

Measurement of fluid

38 Unless the Board otherwise approves, an operator shall measure experimental fluid production separately from commercial fluid production.

AR 76/88 s38

Production operations

39(1) The operator of a well

(a) that is capable of producing crude bitumen, gas or water, or

(b) into which steam, water, air or another substance can be injected or disposed

shall apply to and obtain approval of the Board for the method of determining the volumes of production from or injection into the well.

(2) Where the production of wells is to be commingled, the application referred to in subsection (1) shall include a proposed testing frequency and duration for each individual well or a description of another procedure for allocating production back to individual wells.

(3) Repealed AR 226/2000 s12.

(4) When applicable, production shall be measured in accordance with Part 14 of the Oil and Gas Conservation Regulations (Alta. Reg. 151/71).

AR 76/88 s39;226/2000

Common flow lines

40(1) Where production from more than 1 well or from more than 1 zone in a well is received at a central processing facility, the production from each shall be carried to the central processing facility in a separate flow line, unless a test measurement of the bitumen and water production from each zone or well can be made or specific exemption is granted by the Board.

(2) The Board may, on application, approve the use of common flow lines where

(a) the wells on the common flow line will not be produced concurrently,

(b) production from each zone in the well can be separately measured, or

AR 76/88 s40

Licensee

41 In sections 42 to 47, “operator” includes a licensee as defined in section 1 of the Oil and Gas Conservation Act.

AR 76/88 s41

Records and reports

41.1 The licensee of a well or the representative of the licensee of a well shall keep and file with the Board records and reports relating to the operations of the well in accordance with section 12.010 of the Oil and Gas Conservation Regulations (AR 151/71).

AR 226/2000 s13

In situ operation records

42(1) When a well is in the process of being drilled, completed, reconditioned or abandoned, the operator shall keep at the well or at his field office a daily record of the operations.

(2) The operator shall file the original or a legible copy of the daily records for each week with the Calgary office of the Board within the next ensuing week and shall retain duplicate copies of the records as a part of its or the well owner’s record.

(3) Any suspension of operations shall be noted on the current daily report.

(4) The daily report shall set out complete data on all operations carried on during the day and, without restricting the generality of the foregoing, shall include

(a) the depth at the beginning of the day or tour,

(b) the depth at the end of the day or tour,

(d) if casing is set, all data regarding the setting including size, type, grade and linear density of casing, whether new or used, and the depth at which it is set,

(e) particulars of cementing,

(f) particulars of crude bitumen, water or gas encountered,

(g) a report of each log, survey, formation test, deviation test or other test taken or made, and

(h) intervals cored and the recovery therefrom.

(5) The reports kept and filed with the Board under this section shall note and describe, in addition to drilling operations, all other operations carried on, including fishing, shooting, perforating, acidizing, fracturing, surveying and abandonment.

AR 76/88 s42

Report of well status

43(1) The licensee of a new crude bitumen well shall notify the Board on the approved formatted media of the date on which the well was first placed on production, within 14 days of that event occurring.

(2) The licensee of a new injection well or a new disposal well shall notify the Board on the approved formatted media of

(a) the date on which the injection well was first placed on injection, or

(b) the date on which the disposal well was first used for disposal purposes,

as the case may be, within 14 days of that event occurring.

(3) The licensee of a well at which production, injection or disposal operations are shut in may suspend the well by notifying the Board on the approved formatted media of the date of the suspension.

(4) The licensee of a well at which production, injection or disposal is resumed after a suspension shall notify the Board on the approved formatted media within 14 days of the resumption of production, injection or disposal operations.

(5) The licensee of a producing crude bitumen well at which commingling of 2 or more zones occurs shall notify the Board on the approved formatted media within 14 days of the commencement of commingled production.

(6) The licensee of a well at which a zone has been abandoned shall notify the Board on the approved formatted media within 14 days of the zone abandonment.

(7) The licensee of a well that has a change in status that is not otherwise referred to in this section shall notify the Board on the approved formatted media within 14 days of the change in status.

AR 76/88 s43;79/98

Daily record and reporting

44(1) If a well is producing or is capable of producing crude bitumen, gas or water the operator shall keep at its field office or other place of business in Alberta a daily record of the production operations of the well in a form satisfactory to the Board and the original recording of measurements used to determine the particulars for the record, which record shall show, unless the Board otherwise directs,

(a) the crude bitumen, gas, water or other substance produced or reproduced from the well,

(b) the total number of hours of production at each well during each month, and

(2) If steam, water, air or other substance is being injected into a well, the operator shall keep at its field office or other place of business in Alberta, a daily record of the injection operations of the well and the original recording of measurements used to determine the particulars for the record, which record shall show, unless the Board otherwise directs,

(a) the amounts of steam as water equivalent, water, air or other substances injected into the well,

(b) the source from which the water or other substances were obtained,

(c) particulars of any treatment to which the steam, water, air or other substance has been subjected including pressures at the steam generator and steam quality,

(d) the number of hours during which each substance was injected into the well, and

(e) the average wellhead injection pressure while each substance was injected into the well.

(3) The licensee of a well that, during the preceding month, produced crude bitumen, gas, water or other substance, or into which steam, water, air or other substance was injected or disposed of, shall file with the Board on the approved formatted media, not later than the 18th day of the month or the first business day following the 18th day of the month, a report for the preceding month setting out

(a) the amounts of crude bitumen, gas, water or other substance produced from the well,

(b) the amounts of steam as water equivalent, water, air or other substance injected or disposed of into the well, including a measurement or estimation of steam quality,

(d) the particulars of any receipts, inventories, dispositions or deliveries of crude bitumen, gas, water or other substance associated with the production, injection or disposal operations, and

(e) any further particulars the Board requires.

(4) The licensee of a well that, during the entire preceding month was shut in, shall file with the Board on the approved formatted media, not later than the 18th day of the month or the first business day following the 18th day of the month, a report for the preceding month setting out only the unique well identifier, and shall continue to do so in each subsequent month until such time as production, injection or disposal operations have been resumed or the well has been suspended or abandoned.

(5) The operator of a battery or an injection or disposal facility at which all wells were shut in, suspended or abandoned or where no wells were associated with the battery or the injection or disposal facility during the entire preceding month shall file with the Board on the approved formatted media, not later than the 18th day of the month or the first business day following the 18th day of the month, a report for the preceding month setting out the particulars of any receipts, inventories, dispositions or deliveries of crude oil, condensate, crude bitumen, gas, solvent, water, air or other substance associated with the production, injection or disposal operations, and shall continue to do so in each subsequent month until such time as there are no receipts, inventories, dispositions or deliveries.

(6) The operator of a well shall keep any other records and file with the Board any other reports that the Board may, by order, require.

AR 76/88 s44;79/98;226/2000

Reporting from a facility

45(1) Unless the Board otherwise approves, where the reporting of production from wells is on a central processing facility basis, whether or not the production is commingled before measurement,

(a) each report to the Board of production at the central processing facility shall report the production of each well connected to the central processing facility as approved, whether or not the well has produced during the period covered by the report,

(b) each report to the Board of production at the central processing facility shall report production only of the wells connected to the central processing facility as approved or in accordance with a pending application for amendment of the central processing facility approval, and

(c) the production of a well connected to the central processing facility as approved shall be reported to the Board only by means of a report of the production at the central processing facility.

(2) Where the production of wells producing at the central processing facility is commingled before measurement, the production shall be prorated among the individual wells in the central processing facility based on the proration factor as calculated in accordance with the Production Accounting Handbook published by the Board or such other allocation scheme as may be approved by the Board.

AR 76/88 s45

46 Repealed AR 226/2000 s15.

In situ scheme reports

47 An operator of an in situ scheme shall, unless otherwise stipulated by the Board, provide information on the progress, performance, efficacy, and operation of the scheme in accordance with Directive 054, “Performance Presentations, Auditing, and Surveillance of In Situ Oil Sands Schemes”, published by the Board, and any amendments made to the Directive.

AR 76/88 s47;191/2003;93/2009

Part 5
Processing Plant

Storage or disposal

48 For the purpose of energy resource conservation, an operator shall apply for and obtain the approval of the Board for the storage or disposal of any oil sands, coke, sulphur, precipitator ash or other hydrocarbon effluent or discard associated with the processing plant.

AR 76/88 s48

Operation of processing plant

49 Unless the Board otherwise approves, the operator shall carry out operations in a manner that, under normal operating conditions, will

(a) maximize the processing of all oil sands and crude bitumen,

(b) maximize the yield of oil sands products,

(d) maximize the gathering and utilization of gas produced,

(e) maximize the gathering of gaseous mixtures containing hydrogen sulphide for delivery to the sulphur recovery plant,

(f) maximize the recovery of sulphur contained in the hydrogen sulphide delivered to the sulphur recovery plant,

(g) minimize the use of fresh make‑up water and the disposal of waste water, and

(h) maximize the recycle of produced water.

AR 76/88 s49

50 Repealed AR 226/2000 s16.

Discharge of gas to atmosphere

51 Unless the Board otherwise approves, the operator of a processing plant shall not discharge or permit to be discharged any gas containing hydrogen sulphide, unless it is burned so that essentially all of the sulphur is converted to sulphur dioxide.

AR 76/88 s51

52, 53 Repealed AR 226/2000 s17.

Processing plant records

54 Unless the Board otherwise directs, an operator shall

(a) file with the Board, 6 months after commencement of operations or after any modification that required an amendment to an approval, the design and operating parameters including

(i) process flow diagrams with material balances, and

(ii) measurement procedures and specifications for measurement equipment necessary for the audit of the material balance or determination of emissions,

and

(b) provide to the Board or an authorized employee of the Board access at its plant site to piping and measurement drawings, operating procedures and equipment specifications.

AR 76/88 s54

Daily record

55 An operator shall keep at his plant site or other place of business in Alberta, a daily record of all oil sands, crude bitumen or oil sands products received into the processing plant, including for each product

(a) particulars of the source, quality and quantity, and

(b) particulars of the inventories and disposition.

AR 76/88 s55

Monthly statement

56 Unless otherwise directed by the Board, an operator shall file with the Board, on or before the 22nd day of each month, monthly statements on Form S-23 of the oil sands, crude bitumen, oil sands products, marketable gas and the condensate received at the plant, and the quantity and quality of oil sands products derived, stored and delivered for the preceding month.

AR 76/88 s56

Content of monthly statement

57(1) Unless the Board otherwise directs, an operator producing hydrogen sulphide or other sulphur compounds shall file with the Board, on or before the 22nd day of each month, statements of monthly and, if required by the Board, daily totals of plant input and output for the preceding calendar month in the form of a processing plant sulphur balance and a sulphur plant sulphur balance including, where applicable,

(a) volumes of raw gas and crude bitumen,

(b) hydrogen sulphide content of the raw gas determined at a frequency specified by the Board,

(d) sulphur content of oil sands products,

(e) quantity of sulphur produced,

(f) quantity of sulphur in discard,

(g) sulphur recovery efficiency of the sulphur plant, and

(h) volume of sweet gas added to any sour gas flares during flaring.

(2) Notwithstanding subsection (1), the Board may temporarily require the operator to submit the reports described in subsection (1), or any portion thereof, on a daily basis.

AR 76/88 s57

Report of operations

58 Unless the Board otherwise directs, an operator shall file with the Board, on or before the 28th day of February of each year, a report of operations conducted during the preceding calendar year including, where applicable,

(a) material balances for the extraction, upgrading and utility plants shown separately for hydrocarbons, water, steam, fuel and electrical energy,

(b) an energy balance for the overall scheme or operation, and

AR 76/88 s58

59 Repealed AR 226/2000 s18.

Part 6
Fees

60 Repealed AR 180/98 s3.

Fees

61 The fees payable to the Board for any map, report, document or other record of the Board or for any other service provided by the Board shall be as prescribed by the Board.

AR 213/90 s2

Part 7
Expiry

Expiry

62 For the purpose of ensuring that this Regulation is reviewed for ongoing relevancy and necessity, with the option that it may be repassed in its present or an amended form following a review, this Regulation expires on June 30, 2011.

AR 226/2000 s19;191/2003;158/2009

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