BC WEll Permit Application Manual

BC Oil & Gas Commission 1

WELL PERMIT

APPLICATION MANUAL September | 2015

Version 1.39

WELL PERMIT APPLICATION MANUAL, Version 1.39

BC Oil & Gas Commission i

CONTENTS

MANUAL REVISIONS .............................................................................................. 1

SUMMARY OF REVISIONS ............................................................................................... 1

1 PREFACE .............................................................................................................. 2

PURPOSE .................................................................................................................... 2 SCOPE ....................................................................................................................... 2 HOW TO USE THIS MANUAL .......................................................................................... 3 ADDITIONAL GUIDANCE ................................................................................................ 4

2 PRE-APPLICATION REQUIREMENTS ..................................................................... 5

NEW PERMIT HOLDER APPLICATION FORM ....................................................................... 5 MASTER LICENCE TO CUT .............................................................................................. 5 EPASS ....................................................................................................................... 6

3 PREPARING PERMIT APPLICATIONS .................................................................... 7

PREPARATION AND PLANNING ........................................................................................ 7 WELL CLASSIFICATION .................................................................................................. 9 AREA-BASED ANALYSIS PLANNING AND DESIGN ................................................................. 9 ADDITIONAL CONSIDERATIONS ..................................................................................... 10

4 APPLICATION PROCESS ...................................................................................... 17

APPLICATION REVIEW AND DETERMINATION ................................................................... 18 POST APPROVAL ........................................................................................................ 19

5 WELL PERMIT APPLICATION FORM .................................................................... 21

BLOCK A COMMISSION USE ONLY ................................................................................. 21 BLOCK B ADMINISTRATION .......................................................................................... 21 BLOCK C APPLICATION INFORMATION ............................................................................ 22 BLOCK D LAND STATUS ............................................................................................... 28 BLOCK E FIRST NATION CONSULTATION/ABORIGINAL COMMUNITY NOTICE PACKAGE ............ 31 BLOCK F PETROLEUM AND NATURAL GAS TENURE RIGHTS ................................................ 33 BLOCK G WELL SPECIFICATIONS .................................................................................... 34 BLOCK H PROPOSED CASING PROGRAM ......................................................................... 36 BLOCK I DRILLING INFORMATION .................................................................................. 36 BLOCK J SOUR WELL INFORMATION .............................................................................. 36 BLOCK K FLARING ...................................................................................................... 39 BLOCK L STREAM WATERBODY CROSSING INFORMATION .................................................. 40 BLOCK M ROAD DETAILS ............................................................................................. 43 BLOCK N ANCILLARY SITE DETAILS................................................................................. 46 BLOCK O ADDITIONAL INFORMATION REQUIREMENTS ...................................................... 46 BLOCK P REGULATORY EXEMPTION REQUESTS ................................................................. 54 BLOCK Q APPLICATION DELIVERABLES ............................................................................ 55 BLOCK R APPLICANT AUTHORIZATION ............................................................................ 59

6 PERMIT REVISION, AMENDMENT AND CANCELLATION ..................................... 60

APPLICATION REVISION ............................................................................................... 60 PERMIT AMENDMENT ................................................................................................. 60 SURFACE AMENDMENT ............................................................................................... 61 SUB-SURFACE AMENDMENT ........................................................................................ 62


BC Oil & Gas Commission ii

WELL PERMIT CANCELLATION AND EXPIRATION ............................................................... 64

7 PERMIT EXTENSION APPLICATION ..................................................................... 66

EXTENSION ............................................................................................................... 66 EXPIRATION .............................................................................................................. 67 CONSULTATION AND NOTIFICATION ............................................................................... 67

8 COMPLIANCE ..................................................................................................... 69

APPENDIX A – WELL SPACING AND TARGET AREAS .............................................. 70

APPENDIX B – CONSTRUCTION PLAN REQUIREMENTS ......................................... 76

APPENDIX C – EMERGENCY RESPONSE PLANS (ERP) ............................................ 79

APPENDIX D – WELL CLASSIFICATION ................................................................... 83

APPENDIX E – SAMPLE SUB-SURFACE TENURE AUTHORIZATION LETTER ............. 86

APPENDIX F – REVIEW CORRIDORS ...................................................................... 87

APPENDIX G – ENGAGEMENT LOG EXAMPLE ....................................................... 89



Manual Revisions

Summary of Revisions

The Well Permit Application Manual has been revised based

upon feedback to provide clarity in terms of requirements and

process. Structural changes by section are highlighted below.

Applications received on or after the effective date will be

required to meet the revised application standards.

Effective Date Section Description/Rationale

01-May-2015 Various Updated bookmarked links within document and references to Emergency Management manual and Permit Operations and Administration Manual (previously Corporate Land Management).

01-June-2015

Section 5

Removed the question “will produced water be stored on site?”(p35). The question has also been removed from the Well Permit Amendment Application Form and the Subsequent Well Application Form (Block G).

Section 6 Added description regarding converting wells to water source wells (p.62,63). This question has also been added to the Well Permit Amendment Application Form as Q. 15 (Block N).

01-August-2015

Section 3 Added Advisory Guidance section for when to contact the Regional Health Authority (p.10).

Appendix B

Added construction plans should identify and classify any waterbodies within 100 metres of a proposed oil and gas activity or Crown land application activity (i.e., campsite, storage site, borrow pit, etc.).

01-September-

2015

Section 3 &

Section 5

Added a section for Area-based Analysis (ABA) (p.10) and included an ABA description in Block O (p.50) in the manual for new/amendment applications. The corresponding Well Permit Application Form and the Well Permit Amendment Application Form were also updated to include a checkbox for ABA.

01-October-

2015 Section 5

Removed requirement to submit Fibre Utilization Plan with application. Updated content on categorization of borrow pits. The corresponding Well Permit Application Form and the Well Permit Amendment Application Form were also updated to reflect these changes. For more information regarding these changes refer to INDB 2015-26 and INDB 2015-27 on the Commission’s website.



1 Preface

Purpose

This manual has been created to guide users through Commission processes and procedures. It also serves to highlight changes in process, procedure, requirements and terminology resulting from the Oil and Gas Activities Act (OGAA).

For users already familiar with the Commission application process, this manual provides a quick reference highlighting the steps required to complete specific tasks. For users less familiar, this manual presents a complete overview of Commission requirements and provides links to more detailed material.

This manual is not intended to take the place of the applicable legislation. The user is encouraged to read the full text of legislation and each applicable regulation and seek direction from Commission staff, if and when necessary for clarification.

Scope

This manual focuses exclusively on requirements and processes associated with the Commission’s legislative authorities, and does not provide information on legal responsibilities that the Commission does not regulate. It is the responsibility of the applicant or permit holder to know and uphold its other legal responsibilities.



How to Use This Manual

This manual is divided into sections which are organized chronologically, and match the order of the steps which applicants and permit holders will follow when engaging in oil and gas activities.

Beginning with pre-application, the manual takes the user through the steps of the review process, application preparation, submission, revision and amendment. Each section begins with a brief overview describing the content which follows.

Section 2 Pre-Application outlines what companies new to British Columbia need to have in place before applying for oil and gas permits.

Section 3 Permit Application and Review Process illustrates and explains the Commission’s application and review process to provide the applicant with an understanding of Commission procedures, and what to expect during the permitting process.

Section 4 Preparing a Well Permit Application explains what is required to prepare all of the required components of the well permit application.

Section 5 Well Permit Application shows how to complete each information block on the application form, and identifies attachments required for submission.

Section 6 Permit Revisions and Amendments details the procedures required to make revisions or amendments to an application or permitted activity.

Section 7 Permit Extension details when a permit extension is required and how to apply.

Section 8 Compliance describes contravention of legislation and regulation and administrative penalties.



Additional Guidance

Guidance for land tenures is found in the Commission’s Permit

Operations and Administration Manual.

Drilling and completion guidance is located in the Well Drilling Guideline and the Well Completion, Maintenance, and Abandonment Manual.

The glossary page on the Commission website provides a comprehensive list of terms.

The appendices contain documents to be used as reference when compiling information required by the Commission.

Other navigational and illustrative elements used in the manual include:

Hyperlinks: Hyperlinked items appear as blue, underlined text. Clicking on a hyperlink takes the user directly to a document or location on a webpage.

Sidebars: Sidebars highlight important information such as a change from the old procedure, new information, or reminders and tips.

Figures: Figures illustrate a function or process to give the user a visual representation of a large or complex item.

Tables: Tables organize information into columns and rows for quick comparison.

Frequently Asked Questions A Frequently Asked Questions (FAQ) link is available on the Commission OGAA page. The information provided is categorized into topics which reflect the manuals for easy reference. Please consult the FAQ page before contacting the Commission to help keep response times short.

Feedback The Commission is committed to continuous improvement by collecting information on the effectiveness of guidelines and manuals. Clients and stakeholders wishing to comment on Commission guidelines and manuals may send constructive comments to [email protected].

http://www.bcogc.ca/document.aspx?documentID=942&type=.pdf






http://www.bcogc.ca/public-zone/fact-sheets

http://www.bcogc.ca/faqs#t10107n11657

mailto:[email protected]?subject=Well%20Application%20Manual



2 Pre-Application Requirements

Companies applying to engage in oil and gas activities in BC for the first time must ensure all pre-application requirements have been met. These include the New Permit Holder Application Form, and a Master Licence to Cut Application (MLTC), and ePASS submission.

In addition to these pre-application requirements, the Commission may require a company to provide a security to ensure the performance of an obligation under the Oil and Gas Activities Act (OGAA) prior to, during, or after the permit application process, in accordance with Section 30 of OGAA.

New Permit Holder Application Form

The new permit holder application form captures general administrative and corporate registry information.

Completed new permit holder application forms and required attachments are to be submitted to the Commission’s Corporate Land Management Unit. New permit holder application forms must be processed by the Commission prior to the submission of any oil and gas activity permits to the Commission.

For more information on the new permit holder application form, please refer to the Commission’s Permit Operations and Administration Manual.

Master Licence to Cut

A Master Licence to Cut (MLTC) on Crown land is required where the removal of timber is necessary to conduct an oil and gas activity. A separate agreement is required for each forest district.

An MLTC must be completed and submitted before an application for oil and gas activity is made, as the MLTC will govern the cutting permit that authorizes the removal of timber on Crown land.






ePASS

ePASS stands for electronic petroleum applications spatial submission. All companies new to the Commission must create an ePASS account.

Section 2 of the ePASS Submission Standards describes all

attribute data components that must be submitted using ePASS

for permit applications.

All ePASS submissions must conform to the shapefile spatial

data format. These spatial standards are outlined in the

Environmental Systems Research Institute White Paper, ESRI

Shapefile Technical Description.

Spatial data associated with post construction plans will appear on the Commission’s FTP site (outgoing data) for download by the public.

http://www.bcogc.ca/public-zone/gis-data



ftp://www.ogc.gov.bc.ca/outgoing/OGC_Data/



3 Preparing Permit Applications

To undertake well related activities, companies must first submit a completed Well Permit Application.

A permit application provides the Commission with the information necessary to conduct a review of the proposed project. Upon completion of the review, the Commission may issue a permit.

Prior to submitting the application, certain preparation and planning activities may be required. Following the directions provided in this section will help to ensure that the application is complete and correct, which may minimize Commission review timelines.

Construction plans, and if required, First Nations packages must be submitted in person or via mail to the BC Oil and Gas Commission in Fort St John.

BC Oil and Gas Commission Physical: 6543 Airport Road, Fort St. John, B.C. V1J 4M6 Mailing: Bag 2, Fort St. John, B.C. V1J 2B0

Preparation and Planning

When preparing a permit application, certain activities must be carried out to ensure that a complete and correct application is submitted.

The following sections show the steps applicants must take when planning and preparing for well activity.

Every applicant must:

1) Ensure petroleum and natural gas tenure rights are

obtained under OGAA S.24.

2) Plan well/equipment spacing and well/casing engineering

specifications to meet regulatory requirements.

3) Prepare Construction Plans in accordance with OGAA S.24

(1) (b).

4) Ensure that proposed well construction and operations

comply with all legislation, including the Drilling and

Appendix B provides detailed information about regulations for well spacing and target areas.

http://www.bcogc.ca/document.aspx?documentID=877&type=.doc

http://www.bclaws.ca/EPLibraries/bclaws_new/document/ID/freeside/536427494



Production Regulation and the Environmental Protection

and Management Regulation.

5) Enter surface agreement with land owner if activity is

located on private land. If an agreement cannot be

reached, an application may be made to the Surface Rights

Board. Under Section 34 of OGAA, the Commission does

not require this agreement as part of the well permit

application package.

6) Complete an archaeological assessment pursuant to the

Heritage Conservation Act and Commission Archaeology

Guidelines.

7) Estimate sour content of the proposed well and prepare

and map an Emergency Planning Zone (if necessary).

8) Identify any Additional Information Requirements based

upon activity or location.

9) Undertake the prescribed notifications and consultations

by:

i. Identifying the land owner(s) as defined by OGAA,

and affected persons as defined in the Consultation

and Notification Regulation.

ii. Providing the land owner(s) and affected persons with

the requirements of a notification package and/or

invitation to consult, as defined by the Consultation

and Notification Manual. Provide any required

responses to land owners or affected parties.

iii. Submitting a written report in accordance with the

Commission’s Consultation and Notification Manual.

10) Determine if additional authorizations are required under

the Land Act. Ancillary sites such as temporary camps and

access can be applied for with the well and will be issued

separate Land Act tenures in association with the well.

Applications for surface water usage must be applied for

separately. Please see Water Act Requirements in this

section.

11) If well activity requires stream crossings, the stream

crossing section of the Well Permit application

(Block L), must be completed. The Commission may then

authorize works in and about a stream under Section 9 of

the Water Act as part of the permit determination.












Well Classification

On a well permit application, applicants must indicate the classification of the well being applied for, as per the criteria in Section 2 of the Drilling and Production Regulation. The applicant must acknowledge that the Commission may release well reports and well data in accordance with the timelines set out in Section 17(1) of the Oil and Gas Activities Act.

To determine the classification of a well, applicants should use the High Resolution Map of Schedule 2 Unconventional Zones and Shape Files available on the Commission’s website.

The classification assigned to the well will be reflected on the well permit letter. It is the permit holder’s responsibility to review the classification assigned and follow-up with the Commission if there are any questions.

Please see Appendix D for more information on well classification, including definitions of the different classification types.

Area-based Analysis Planning and Design

Applicants are encouraged to utilize the Commission’s Area-

based Analysis (ABA) approach when planning for oil and

gas activity in order to minimize cumulative impacts on the

landscape, minimize footprint of activities, and reduces

restoration / reclamation timeframes on environmental

values.

The Commission gathers and analyzes existing information

and data on development activities in identified areas.

Specific resource values such as old forest and riparian

reserve zones are made available at the Area-based

Analysis information page on the Commission’s website.

Applicants should review the Area-based Analysis datasets

when planning the location of oil and gas activities including:

Spatial datasets showing the location of enhanced management and regulatory policy areas for use in development planning.

Current ABA conditions in the development planning area.

ABA FAQs.

Plan to minimize disturbance where possible. For example:

http://www.bcogc.ca/industry-zone/documentation/Reservoir-Engineering

ftp://ftp.bcogc.ca/outgoing/OGC_Data/Geology_and_Engineering/



Use existing disturbance, unless doing so would result in a greater disturbance, greater safety risk, significant operational difficulty and/or negative environmental impacts.

Consider low impact seismic techniques such as wireless technology and meandering lines.

Use common access and shared corridors.

Consider using winter access in old forest and riparian reserve zones.

Leverage use of directional drilling and multiwell pads to minimize disturbance.

Implement strategies that will expedite reclamation.

During the development planning process applicants should

review existing disturbance on the landscape and coordinate

where possible to minimize impact on the ABA values.

If an activity proposed in Northeast British Columbia will

impact an ABA enhanced management or policy area, an

ABA specific mitigation strategy must be attached to the

application. Guidance on completing mitigation requirements

is available in the Commission’s Supplementary Information

for Area-based Analysis document.

Additional Considerations

Engaging First Nations Prior to submitting an application to the Commission, companies are encouraged to initiate and build relationships with First Nations communities directly by discussing their intended development plans.

It is recommended that an Engagement Log be used to record this and all subsequent meetings and conversations that are held. A sample format for the Engagement Log is located in Appendix G.

An Engagement Log can greatly benefit the flow of the process where the First Nation has been advised that the applicant’s engagement activities will be shared with the Commission. The engagement log may be considered in the decision making process.

First Nations Consultation Boundaries maps are available for review at the Commission office. These maps along with advice from Commission First Nation Liaison Officers provide companies a starting point for their engagement responsibilities.

http://www.bcogc.ca/node/12693/download




Details regarding engagement and consultation requirements are located in Section 5 First Nations/Aboriginal Communities Consultation and Notice.

Forms Form used in conjunction with First Nation Consultation (including First Nation Cover Letters) are found on the Commission website.

Spatial Data Provincial spatial data is stored within the BC Geographic Warehouse, a central, consolidated repository of land and resource information from across the province. It includes many types of data including cadastral information (tenures, ownership, boundaries); resource information (vegetation, fisheries, wildlife), provincial atlas (rivers, roads, buildings, topography, surveys), and planning and analysis information (land and resource management plans, sustainable resource management plans, areas established by order under the Environmental Protection and Management Regulation).

Spatial data from the BC Geographic Warehouse is available to view through iMapBC, discover through the Discovery Service, and download from the Distribution Service.

All services can be accessed through the GeoBC Gateway.

For more information on identified spatial areas and areas

established by order, please refer to Spatial or Identified Areas.

Borrow Pits Applications for borrow pits needed for the construction of a well site or associated access can be included in a well permit application. If borrow pits are included as part of the application they must meet the categorization criteria for a worksite borrow pit described in the Crown Land Application Manual. Applications for excavations meeting the definition of an oil and gas aggregate operation must be submitted using the Aggregate Operations and Borrow Pit Application form.

Applications and Related Oil and Gas Activities Located Solely on Private Land The Well Permit Application must identify all related oil and gas activities associated with the application, including borrow pits, roads and sumps both on the form and on the submitted construction plan. Although the Commission does not approve ancillary sites on private land, the area for ancillary sites must

http://www.bcogc.ca/firstnations/forms.aspx

http://geobc.gov.bc.ca/



be shown on the construction plan for ALR disturbance calculations.

Advisory Guidance The Regional Health Authority must be contacted prior to construction of the camp sump and disposal of sump fluids before reclamation. Locations of the various Health authorities are: Dawson Creek: 1001-110th Avenue, Dawson Creek, BC, (250) 719-6500. Fort Nelson: 5217 Airport Drive Bag 1000, Fort Nelson, BC, (250) 263-6000. Fort St. John: 10115-110th Avenue, Fort St. John, BC (250) 263-6000.



Special Sour Wells Well programs involving special sour wells must submit a site specific Emergency Response Plan (ERP) and a drilling plan prior to issuance of a well permit. Refer to Appendix C for details on what is required in the ERP.

Drilling plan requirements can be found in Section 5 of this manual, under Additional Information.

Groundwater Usage Groundwater wells that are not classified as “water source wells” as defined in the Petroleum and Natural Gas Act (i.e., drilled to obtain groundwater for the purpose of injection into an underground formation in connection with the production of petroleum or natural gas), but that are drilled for other groundwater extraction purposes (e.g., camp wells), are “wells” under the Water Act, are subject to the BC Groundwater Protection Regulation, and do not require well permits under OGAA. Water wells used for community domestic water supply are also regulated under the Ministry of Health Protection’s Drilling Water Protection Act and Regulations.

Water Act Requirements (Surface Water) In order for an applicant to withdraw water from any stream or water body in British Columbia, a Short Term Use of Water Application (Section 8) must be submitted and approved under the authority of the Water Act.

A search of the Water Licences Web Query must be done prior to the submission of an application for the short term use of water. For more information on water authorizations, please refer to the Commission’s Water Act Application Manual.

Subsequent Drills Applicants can apply for subsequent drills after the primary well has been applied for or as part of a multi-well package.

Subsequent well applications must be submitted in continuous alphabetical order (e.g., c-56-D, c-A56-D, c-B56-D, c-C56-D, etc.); however, subsequent wells can be drilled in any order. For more on well naming, see Applicant Information.

Subsequent Drills with New Area When applying for subsequent drills, the applicant has two options:

1) Amend or revise the original well application file to include the new area(s) required for the subsequent drill

This application is independent from the Well Permit Application and can be used for more than one well project.

A primary well is the first well on a wellsite.

Subsequent wells are additional wells on a multi-well site.



http://www.elp.gov.bc.ca:8000/pls/wtrwhse/water_licences.input



and/or ancillary site, and then submit a Subsequent Well Application Form for the subsequent WA. Applicable amendment and new application fees must be submitted with these applications.

2) Apply for the required new area with the subsequent drill and/or ancillary sites on the Well Permit Application Form. To indicate that the application is for a subsequent drill, choose the “Subsequent Well Application with New Area” box in Block C.

If the Statutory Right of Way has been issued on the original well application file, option 2 must be followed.

Subsequent Drills without New Area Subsequent drills without new area must be applied for using the Subsequent Well Application Form. To indicate that the application is for a subsequent drill under the primary well, or a multi-well package, choose the applicable box in Block C.

Well applications for subsequent drills with no new area will not require the Archaeology requirements of the application process.

Well applications for subsequent drills with no new area do not require an ePASS submission.

Amendments to subsequent well permits to add new area and/or ancillary sites are only accepted if the subsequent well permit included a new land authorization. If no new land was authorized with the subsequent well permit, amendments to add new area and/or ancillary sites must be made with the original well on the well pad where the land act tenure is held.

Multi-Well Packages Applicants may choose to apply for all proposed wells on a multi-well pad on one application; however, the Commission will assign each wellsite its own file number. Application fees are required for each well and can be submitted on the same cheque.

Requirements for a Multi-Well Package include:

Two (2) Well Permit Application Form must be completed for the primary well

Two (2) Subsequent Well Application Form must be completed for all subsequent wells (refer to Section 5: Well Permit Application Form for instructions on how to complete the Subsequent Well Application Form)







A letter listing the primary well, plus the number of subsequent wells being applied for with the Multi-Well Package

One (1) construction plan, including all proposed wells, legal descriptions and wellsite coordinates:

a. Four (4) copies of the construction plan must be attached to the primary Well Permit Application Form.

b. One (1) construction plan must be attached to each Subsequent Well Application Form.

For construction plan requirements, refer to Appendix B.

First Nation Package, including:

a. One (1) copy of the Well Permit Application Form for the primary well.

b. One (1) copy of the Subsequent Well Application Form for each subsequent well.

c. Letter listing the primary well, plus the number of subsequent wells being applied for with the Multi-Well Package.

d. One (1) construction plan.

e. One (1) access map.

f. One (1) copy of all other attachments, as required in Block E of the Well Permit Application Form (e.g., Archaeological Assessment Information Form).

One (1) copy of all other attachments, as required in blocks P, Q and R of the Well Permit Application Form.

Note: Any subsequent well applied for after the Multi-Well Package is deemed a separate application and cannot be added to the Multi-Well Package. For information on how to apply for a subsequent well, refer to Subsequent Drills.

Flare Blackened Areas

For guidance on applying for a flare blackened area, refer to the process outlined in the Flare Blackened Area Table located under the Documentation Section of the Commission’s website.

http://bcogc.ca/node/10693/download



Exclusion Zones for Schools The Commission has implemented an Exclusion Zone Policy prohibiting drilling within a one-kilometre radius of a school, as described in Ministry of Natural Gas Development Press Release 2014MNGD0040-000856.



4 Application Process

The following process flowchart shows the major steps in the Commission’s application screening, review and determination processes.

Commission

receives

application and

conducts

completeness

review

Decision maker

makes

determination on

the permit

application based

upon all relevant

information

Reviews written

report and

addresses any

unresolved

stakeholder

concerns

Performs technical

reviews based

upon proposed

application’s

attributes

Conducts and

completes project

specific First

Nation

consultation, if

necessary

Is

application

complete?

Accepts

application and

enters applicable

information into

OGC database

YES

Applicant revises

declined permit

application and

resubmits

NO

Notifies applicant

(and landowner(s))

of determination

Figure 3.1. An overview of the Commission’s role in the permit application screening, review and determination processes.



Application Review and Determination

Application Screening Once an application has been received by the Commission it will be reviewed for completeness.

Declined Applications Applications missing requirements or containing incomplete information are declined and returned to the applicant. A rationale explaining why the application was declined is sent to the applicant by email.

Once any deficiencies have been addressed, the application can be resubmitted. Applications that have previously been declined are reviewed in order based on the resubmission date; not from the date of original submission.

Completed Applications When all requirements have been met, the application is classified as complete. It is then accepted and enters the processing and review phase

Application Review Phase Before making a determination on the application, the Commission will consult with First Nations (where applicable), review the applicant’s consultation and notification written report and perform technical reviews on areas such as archaeology and land and habitat.

Application Revisions Revised applications that undergo a change after entering the Commission’s review stage, may only be resubmitted once compliant with Section 5 of the Consultation and Notification Regulation. As is the case with declined applications, revised applications once resubmitted will be reviewed in order based on the resubmission date.

Once an application has been submitted the company is referred to as the applicant.

Once the application has been approved, the Commission refers to the Applicant as the permit holder.





Determination Phase

Application Determination Once all internal reviews have been completed, the Commission may issue a permit with conditions attached specifying what activities the permit holder may carry out, including related authorizations under the Forest Act and Water Act.

For permits issued on Crown land, the Commission will authorize the occupation of Crown land pursuant to the Land Act.

Permits issued over private land are subject to a land owner agreement. If an agreement cannot be reached, an application may be made to the Surface Rights Board pursuant to Part 17 of the Petroleum and Natural Gas Act.

Sections 70 and 72 of OGAA establish an applicant or permit holder’s right to a review and/or appeal of a determination. Guidance on the review process is found within the Commission’s Determination Review Guideline. Instructions regarding appeals may be obtained from the Oil and Gas Appeals Tribunal.

Post Approval

Land owner Notification Process Following a permit approval, the Commission provides notice to the land owner(s) that an oil and gas permit has been issued over their land. The notice cites specific details about the location of the approved activity, and the land owner(s) right to appeal if applicable.

Commencement of Activity Timelines:

The permit holder must wait 15 days from the day the permit is issued before commencing any oil and gas activity, unless the land owner has consented to the permit holder in writing that the oil and gas activity may commence.

Written consent from a land owner does not have to be provided to the Commission as part of the application; however the permit holder must retain it for their records and for auditing purposes.

Pursuant to Section 25 of OGAA.

A well permit issued under OGAA s. 25, will include a WA number granted as part of the permit.



Term of Permit The term of a permit is defined by regulation. To extend a permit term, the holder should consult the Commission’s Permit Expiry and Extension Guideline. For more information on permit extensions, see Section 7 of this manual.

Post-Construction Plan Submission

The submission of post-construction plans is required within 60

days of completed construction. Please refer to the

Commission’s Permit Operations Administration Manual for

detailed submission requirements and process.

Permit Transfers A permit holder may apply to the Commission to transfer a permit in accordance with Section 29 of OGAA.

For more information on the permit transfer process and transfer application requirements, please refer to the Permit Operations and Administration Manual.








5 Well Permit Application Form

The well permit application form is separated into lettered information blocks which contain information specific to particular Commission divisions.

For each information block on the application form, the material in this section provides guidance for completing the form or attachments and identifies where applicable, the procedures and standards that must be followed by the company as a condition of approval. Links and/or reference to specific documents have been included where further clarification is required.

Block A Commission Use Only

This block is for Commission use only. Please do not complete.

Block B Administration

Administrative information is used to collect key applicant and agent contact information.

Applicant Name

Enter the company name as registered with the BC Corporate Registry.

Address The business address of the applicant company.

Contact The first and last name of the principal contact for the applicant company.

Email and Phone

The primary phone and email information for the contact listed.

Referral Company

The referral company or land agent contracted by the applicant.

Agent Information

The name, primary and cell phone numbers, and email address of the land agent.

Internal File No.

The applicant or the land agent’s internal file number that is provided to affected parties during consultation and notification activities must also be referenced on the well permit application form. The Commission uses this internal file number to



Block C Application Information

Application information indicates what type of application is being submitted for review, and enables the Commission to link the information to other existing projects.

reconcile any written submissions received prior to the well permit application submission.

ePASS No. The ePASS number is issued after the digital data is successfully uploaded to the Commission through the ePASS portal. ePASS spatial data for amendments or revisions must include the entire spatial area.

If there is an increase in the project area, the original area plus the proposed area must be included.

If there is a decrease in the project area and/or a change in the project location, the proposed total project area must be included.

Surface Location

Enter the actual surface location, using National Topographic System (NTS) or Dominion Land Survey system (DLS) legal description, with information.

Well Name A well name must include the following elements, in the order presented:

Company Well Abbreviation Name: The Commission accepted abbreviation for the applicant company, which is granted as part of the new operator application process. For example, GASCO.

Working Interest Partner Abbreviation: The Commission accepted abbreviation for a working interest partner. If more than one working interest partner, enter “et al”.

Horizontal Drilling Indicator: Only required if the well will be horizontally drilled. This is to be indicated by the abbreviation “HZ”.

Regional field names must not be used in the naming of wells. To date, the Commission has created three regional fields: Deep Basin, Heritage, and Horn River.

The Commission has created a Well Naming Index Map to provide consistency in the application of geographic references in the naming of wells in the Horn River Basin and Liard area. The map can be downloaded off the Commission’s FTP site.

ftp://www.bcogc.ca/outgoing/OGC_Data/Geology_and_Engineering/



Oil or Gas Field: The oil or gas field for a wellsite is to be identified based on the surface coordinates of the lease. If the well is new and not within an existing oil or gas field, a company may suggest a field name. Area names usually reflect a geographic feature of the area, such as a lake, creek, or mountain.

In areas of field overlap, select the field name relevant to the well objective. All wells drilled from a common pad should utilize the same field name.

It is important to note that field boundaries change as new wells are drilled that extend the known boundary of the pool.

Location: Legal description of the surface site of the well. For wells within the Peace River Block, legal description is identified by Dominion Land Survey (DLS) location (legal subdivision, section, township and range). For wells outside the Peace River Block legal description is to be identified by National Topographic System (NTS) location (quarter unit, unit, block and NTS map sheet number).

For subsequent wells with a surface

location in a legal subdivision or quarter

unit of an existing well permit, a letter is

should be added to the legal description

starting at “A” for the first subsequent

well (second well on the pad), through to

“Z” for the 26th subsequent well (27th well

on the pad). For the 28th well on the pad

an additional letter should be added to

the legal description, i.e., “AA”. The 29th

well on the well pad continues from “AB”

to the 54th well on the well pad, “AZ”.

For NTS locations, the letter indicating

the subsequent well is to be placed

before the unit number. For DTS

locations, the letter indicating the

subsequent well is to be placed at the



beginning of the location string.

Examples:

Primary Drill:

1 2 3 4 5

Gasco et al HZ Tattoo (NTS) C-055-B/93-0-09

(DLS) 3-31-81-17

Subsequent Drill:

1 2 3 4 5

Gasco et al HZ Tattoo (NTS) C-A055-B/93-0-09

(DLS) A3-31-81-17

Applicants are required to use the Well Naming Index Map when naming of wells in the Horn River Basin and Liard area. The map is available digitally and in shapefile format.

Primary Well Application (new area)

Select if the well permit application is for a primary well, which is defined as the first well on a well site or select if the well permit application is for a subsequent well with new area that is being applied for separately from the primary well.

Subsequent Well Application (no new area)

Select if the well permit application is for a subsequent well, on a multi-well site.

A Subsequent Well Application Form is required for Multi-Well Package applications and subsequent wells with no new area.

Enter the associated primary well permit number and Commission file number.

Revision to Commission File No.

Provide the Commission file number of the application being revised. For additional information on revisions, refer to Section 6 of this manual.

Re-entry COR/WA No.

Enter the original WA number of the well being re-entered. Only wells that have received a certificate of restoration should be applied for as a new permit. Active and abandoned well permits





must apply to re-enter via the amendment process. Under either circumstance applicants must complete and attach the Engineering Data Sheet for Re-entry.

Water Source Well

A water source well is defined in the Petroleum and Natural Gas Act as a "hole in the ground drilled to obtain water for the purposes of injecting water into an underground formation in connection with the production of petroleum or natural gas". A water source well permit is required before drilling or operating a water source well. Petroleum and natural gas titles are required for water source wells if petroleum or natural gas is produced. A water well drilled for the purpose of supplying water for drilling, camps, hydrostatic testing of pipelines, etc., does not classify as a water source well and does not require a well permit, but is regulated under the Water Act. All water source wells require well permits, however, companies wishing to explore for groundwater sources through test well drilling to depths of up to 300 m on Crown land, may do so under an Investigative Use Permit (IUP) through a Crown Land Application. Consult the Supplementary Information for Water Source Wells document and the Crown Land Application Manual for additional information regarding drilling of test groundwater wells under an IUP and applications for IUPs. Following test well drilling under an IUP, well permits applications must be submitted for any test well the applicant would like to use as a water source well. Groundwater test wells drilled to depths greater than 300 m on Crown land, or to any depth on private land cannot be authorized under an IUP, and require direct application for a well permit. All relevant sections of the Well Permit Application Form must be completed including the following:









Block C: The water source well flag in Block C of the application form must be checked. Block C: The applicant must indicate, with cross reference to any other Commission File Numbers, if the water source well is, or is intended to be, part of a larger water sourcing or disposal facility or project. Block C: Estimated surface coordinates must be provided with the application. Once a water source well has been drilled, the client must provide a construction plan with accurate coordinates. Block G: The objective formation should be identified on the well permit application. The geological formation name shall be identified for bedrock wells, and Quaternary/Tertiary shall be indicated if the water source well is not entering bedrock. Block G: Proposed bottom hole location and objective true vertical depth must be indicated on the application. Block G: Blow Out Preventer (BOP) Class shall be indicated based on guidance provided in the Well Drilling Guideline, for cases where a drilling operation is not covered by the BOP Guidelines, the BOP Class shall be indicated as “N/A”. It is prudent to utilize diverters in areas where shallow gas has been encountered or in wildcat areas where little is known about the subsurface geology (refer to OGC IL 05-12. Block P: Well permit applications for new or previously drilled water wells must indicate any requested exemptions from the Drilling and Production Regulation related to well construction or operation, and any requested exemptions to the Environmental Protection and Management Regulation (EPMR), and provide required supporting documentation. Following drilling, water source well operation is



contingent on (a) the submission of a water source well report, that details hydrogeological or other required investigative work and a proposed monitoring program, as described in the Supplementary Information for Water Source Wells document and (b) compliance with well permit conditions including those related to water source well hydrogeological testing, monitoring requirements, or other pre-operation requirements. Water source wells or water source well projects designed and operated to extract groundwater at a rate greater than or equal to 75 L/s are classified as reviewable projects under the Environmental Assessment Act.

Disposal and Injection Wells

Both injection and disposal wells require a

permit to construct and complete a well. In

conjunction, the Resource Conservation

Department must issue an order to authorize

the use of a particular sub-surface formation for

the purpose of disposal or injection.

Section 75 Permit or Order

The applicant must identify whether the project is within an area designated as a special project using innovative technology under OGAA Section 75 (1) (b). If so, the approval number must be indicated. An area designated as a special project using innovative technology was previously Section 100 Experimental Scheme and transitioned to OGAA in accordance with Section 116 (6).

Areas are designated by the Commission’s Resource Conservation Department.





Block D Land Status

Information on land status and land use planning allows the Commission to determine how the proposed activity impacts or affects various facets of the land base.

Area of Activity

The Commission has divided the province into

regional zones. Select the appropriate zone for

the permit application. To locate the appropriate

area, view the Commission's Regional Zones.

MKMA Indicate if activity is located within the Muskwa-Kechika Management Area (MKMA). This triggers additional application information, as the MKMA is a special management area of a Land and Resource Management Plan. For more information, see Block P.

ALR Indicate if any portion of the activity is located

on the Agricultural Land Reserve. This triggers

additional application information, in the form of

a Schedule A site assessment or an ALC Act

application. For more information, see Block P.

SYD Indicate if the activity is located within or accessed through the Sierra-Yoyo-Desan Assessable Area, which comprises parts of NTS 094J, 094I, 094O, and all of 094P. Further details are found on the Ledcor website.

Construction Corridor (wellsite only)

Indicate if a construction corridor will be used. If

yes, it must also be indicated on the

construction plan. See Appendix B,

Construction Corridors for more details.

Forest District(s)

The forest district(s) in which the proposed well

application will be located.

Master Licence to Cut No.

Enter MLTC number, as described in Section 2.

The Integrated Land Resource Registry (ILRR) provides a single source of reliable information on 250 different legal interests on Crown Land.


http://www.ledcor.com/en/sydroad/publicinformation#=



Timber Reservation The Commission has no authority to issue a cutting permit for timber located on private or leased agricultural land.

When preparing to enter such areas, permit holders must

ensure that if a timber reservation has been registered against

the title, the land owner or lease holder has been granted a

Crown Land Check the box is any activity is located on Crown land.

Private Land Check the box is any activity is located on

private land.

Total Woodlot licence area

The total woodlot licence area affected by the proposed oil and gas activity.

Total area private land

The total of private or leased agricultural land

affected by the proposed oil and gas activity.

Total area Crown land

Indicate the total area on Crown land affected by the proposed oil and gas activity.

Total New Crown Land Disturbance

Enter the total proposed area of new cut disturbance on Crown land (including unconstructed road allowances; excluding woodlot areas), as indicated on the Construction Plan.

Total Application Area Proposed

Enter the total proposed area for the

application, including woodlot areas.

Area of Crown Land for Wellsite only

Enter the total proposed area of the wellsite that will occupy Crown land as indicated on the construction plan.

This does not include access and ancillary sites.

Area of Crown land for roads only

Indicate the total area of the road(s) located within Crown land, in hectares.

The Commission has no authority to issue a cutting permit for timber located on private or leased agricultural land.



cutting authority from the Ministry of Forests, Lands and Natural

Resource Operations prior to removing timber.

Woodlots Applicants must ensure that any woodlot tenures affected by the project are identified, and agreement is reached with the licensee(s).

Applicants must ensure that the woodlot area is clearly marked on the construction plan. The area within a woodlot must be included in the total area of Crown land for the land act tenure, but not included as area of new Crown disturbance, and it is excluded from the cutting authority.

The Commission cannot issue authorization to harvest within a woodlot tenure area; authority to harvest within a woodlot tenure area must be obtained through the woodlot holder. The woodlot holder must obtain cutting authority for oil and gas related harvesting from the Ministry of Forests, Lands and Natural Resource Operations.

For more information on woodlot tenures, refer to A Practical Guide to Effective Coordination of Resource Tenures, prepared by the Ministry of Agriculture and Lands.

Grazing Licences & Permits Grazing licences and grazing permits are issued under the

Range Act to allow the grazing of livestock on Crown land.

Agricultural leases Agricultural leases are issued a tenure under Section 38 of the Land Act and are classified as land owners as defined under the Oil and Gas Activities Act. As such, they are to be treated by the Commission and applicants as private land which falls under the jurisdiction of the Surface Rights Board (should the applicant not enter into a surface lease agreement).

The Applicant must ensure that agricultural leases affected by the proposed project have been identified and delineated on the survey plan. In addition the Commission will not be able to issue a Cutting Permit for the activity within the agricultural lease area.

First Nation consultation packages are not required.

http://www.al.gov.bc.ca/clad/tenure_programs/cabinet/guide_resource_tenures.pdf

http://www.al.gov.bc.ca/clad/tenure_programs/cabinet/guide_resource_tenures.pdf



Block E First Nation Consultation/Aboriginal Community Notice Package

The Province of British Columbia has the duty to consult and where required accommodate First Nations whenever it proposes a decision or activity that could have potential impact to treaty rights or aboriginal rights recognized and affirmed by Section 35(1) of the Constitution Act, 1982. As an agent of the Crown, the Commission fulfills any provincial obligation to consult with First Nations prior to the authorization of activities under the Oil and Gas Activities Act, and related specified enactments.

Consultation Consultation with Treaty 8 First Nations about any potential impact of their treaty rights by oil and gas activities are guided by agreements between the Commission and First Nations. First Nations agreements with the Commission can be found on the Commission First Nations Web Page.

For Treaty 8 First Nation Communities without agreements with the Commission or First Nation Communities who are not members of Treaty 8, the British Columbia Interim Consultation Process applies.

The Commission may consider engagement which has occurred between First Nations and the applicant as part of its decision making process

Consultation Timelines

The Commission consults with First Nations through the process and timelines established in the Consultation Agreements. The consultation process begins once the First Nation community receives the completed package. Commission internal reviews occur simultaneously with reviews conducted by First Nations.

If concerns are identified in First Nations responses, the Commission will, where appropriate, facilitate meetings with the Nation (involving the applicant as necessary) to discuss their concerns and proposed accommodation measures.

Administrative Boundaries

Administration boundaries established through the agreements

guide consultation for each First Nation. Where there is no

agreement in place, the boundaries are guided by the Provincial

Consultation Boundaries.

http://www.bcogc.ca/firstnations/consult.aspx





Aboriginal Community Notice

There are four Aboriginal communities that the Commission

provides information to regarding surrounding oil and gas

activities in the form of an Aboriginal Community Notice.

Aboriginal Community Notice Communities

Abbreviation Aboriginal Community Names

KLCN Kelly Lake Cree Nation

KLFN Kelly Lake First Nation

KLMSS Kelly Lake Métis Settlement Society

FLFN Fort Liard First Nation

Package Requirements

The information provided in this block constitutes a complete First Nations/Aboriginal Community package and the form shows at-a-glance what information is to be included with the permit application.

First Nation Liaison Officers are also available to answer question and provide guidance on related issues.

Attachments Attachment requirements for First Nation packages are separate from attachment requirements for the well application and must be completed in addition to the permit attachments.

Cover Letter Two copies of a Cover Letter with the appropriate application categorization, along with one copy of the application for each First Nation whose administrative consultation area overlaps the proposed project area.

Application Form

One copy of the completed application form.

Maps 1:20,000 BCGC sketch, 1:50,000 program map and 1:250,000 access map.

AAIF A copy of the Archaeological Assessment Information Form (AAIF), as described in Block R – Application Deliverables.

Archaeological Reports

If there are any archaeological reports available at this time (such as the archaeological impact assessment (AIA)), they can be submitted with

Notice packages are different from, and must not be confused with, Notification as defined within the consultation agreements with First Nations.






Block F Petroleum and Natural Gas Tenure Rights

The applicant must verify that petroleum and natural gas rights have been obtained by entering the permit, drilling licence or lease number(s) for bottom and heel to toe locations. Letter of Authorization If the applicant is not the registered petroleum and natural gas rights holder, an agreement between the applicant and the registered holder of the subsurface rights is required. A letter of authorization must accompany the application, and be indicated in the application deliverables block of the application form (Block Q). The authorization must be on the letterhead of the registered holder and must include the applicant’s name, the current date, and the authorization to licence, drill and operate. See Appendix A for a sample letter of authorization. Overlapping Tenures Overlapping tenures by different companies Where the surface area of a new wellsite application overlaps a portion of, or the entire surface area of an existing wellsite that is owned or operated by a different company, the entire area required to operate and service the new wellsite must be applied for. Separate surface tenure documents will be issued to each company over the entire area required for their well. Overlapping Tenures by the same Company Where the surface area of a new wellsite application overlaps the entire area of an existing wellsite and where no additional area is required, whether the legal survey plan is completed or not, no further tenure is required.

Where the surface area of a new wellsite application overlaps a portion of an existing wellsite and additional area is required, only the additional area required is to be applied for.

the package.

Other Documents

Any attachments, such as mitigation plans or justifications that were submitted as required by Block P – Additional Information Requirements of the application.

When in the Kaska Dena-Daylu area, three packages are required.



For information on legal survey requirements, refer to the Permit Operations and Administration Manual.

Block G Well Specifications

The applicant must provide specific characteristics of their proposed well program.

Directionally Drilled

If selected, the proposed bottom-hole location must be provided in NTS or DLS format.

Vertically Drilled If selected, the proposed bottom-hole location must be provided in NTS or DLS format.

Horizontally Drilled If selected, both the heel and the bottom-hole location must be provided on the application form and the construction plan.

Well Centre Coordinates (UTM Zone)

Provide the zone, and the Northing and Easting of the well center location based upon UTM (NAD 83 CSRS).

Surface Coordinates Well Classification

Surface coordinates must be provided in NTS or DLS mapping grid systems.

Please indicate the well classification, as per the well classification criteria in Section 2 of the Drilling and Production Regulation.

Applicants must also acknowledge that the Commission may release well reports and well data for the well from confidential status in accordance with Section 17(1) of the OGAA General Regulation.

To determine the well classification, applicants should use the High Resolution Map of Schedule 2 Unconventional Zones and shape files available on the Commission’s website.

Please see Appendix D for more information on well classification, including definitions of the different classification types.

Specific information on Well Spacing and Target Areas is located in Appendix B.

A well is categorized as directionally drilled if there is greater than a five degree inclination for a minimum of 150 metres of measured depth.

A well is categorized as horizontally drilled if there is greater than an 80 degree inclination for a minimum of 100 metres of measured depth.





Proposed Bottom Hole and/or Heel Location

Enter the appropriate coordinates (NTS or DLS) for the bottom-hole(s) and/or heel locations.

The bottom-hole is the final drilling depth and the heel is defined as the area of pay closest to the casing in a horizontal well.

Objective Formation(s)

Enter the name of the proposed target formation.

Objective Fluid Enter the targeted fluid (oil, gas, or water) for the proposed well.

Objective Depth Enter the expected depth at which the objective formation will be reached.

Core Indicate if core sample(s) will be taken.

Expected Total Depth

Total depth is the maximum depth reached in a well. Enter the proposed total depth of the well in metres.

For a directional well, enter both metres True Vertical Depth (TVD) and metres Measured Depth (MD).

Measured Depth is the total length of the well bore measured along its actual course through the earth.

True Vertical Depth is the vertical depth from the ground surface to the bottom-hole location of the well.

Formation at Total Depth

Enter the name of the formation expected to be encountered at the bottom of the well bore.

BOP Class Indicate the blow-out preventer class to be used.

If the classification is not consistent with the Commission’s well operational guidance found within the Well Drilling Guideline, justification must be provided as an additional information requirement in Block P of the Well Permit Application Form.





Block H Proposed Casing Program

This block requires specifications of the proposed casing

program for the well. The proposed casing program must

comply with the Drilling and Production Regulation. For each

proposed bit size, enter the applicable information.

Block I Drilling Information

Block J Sour Well Information

Applicants submitting a permit application for a well with an expected H2S release rate greater than 0.01 m3/s, must provide additional information by completing Block J of the well permit application form and attach two copies of the emergency planning zone maps.

The information provided will be used to determine the appropriate level of emergency response planning (ERP) required. Further information on Emergency Response Plan Requirements can be found in Appendix C of this manual and the Emergency Management Manual.

If any portion of the project falls within an identified area or deviates from industry standards additional information is

Drilling Fluid Type

Indicate the type(s) of drilling fluid that will be used. If the drilling fluid is not listed, specify the type to be used. Differentiate between hydrocarbon and other.

Underbalanced Drilling

Indicate if the drilling will be underbalanced, (that is, pressure in the well bore is lower than the fluid pressure in the formation).

Managed Pressure Drilling

Indicate if managed pressure drilling, will be used (that is, an adaptive drilling process used to precisely control the annular pressure profile throughout the well bore).

Sump If a remote sump is being applied for with the application, it must be shown on the construction plan.


http://www.bcogc.ca/documents/guidelines/BC_OGC_Emergency_Response_Plan_requirements.pdf

http://www.bcogc.ca/documents/guidelines/BC_OGC_Emergency_Response_Plan_requirements.pdf




required in Block O, Additional Information, Well Specific Details.

Expected Sour Zones

List all expected sour zones and the corresponding maximum H2S content. For example, Baldonnel – 5.0 per cent, Halfway – 0.05 per cent, Doig – 1.3 per cent.

If the estimated maximum H2S release rate exceeds 0.01 m3/s, an Emergency Planning Zone (EPZ) description and map must be included in the application deliverables.

Cumulative H2S Release Rate (m3/s)

For drilling and completions, the H2S release

rate must be entered. H2S release rates

must be estimated in accordance with the

CAPP H2S Release Rate Assessment

Guidelines.

Distance to nearest occupied dwelling (km)

In remote areas, it is acceptable to indicate

the distance to the nearest occupied dwelling

with a greater than symbol. For example,

distance to nearest occupied dwelling:

greater than 4.2 kilometres. The Commission

does not require applicants to search a large

radius to identify the nearest occupied

residence. It is sufficient to ground truth the

area out to the edge of the Emergency

Awareness Zone (EAZ).

Distance to nearest urban centre (km)

Provide the distance to the nearest urban centre.

An urban centre is defined as a city, town, village, summer village, hamlet with no less than 50 separate buildings, each of which must be an occupied dwelling. Also, any First Nation reserve, other incorporated centres and any similar development the Commission may designate as an urban centre.

Distance to nearest school (km)

Provide the distance to the nearest school in kilometres. Please Note: the Commission has implemented an Exclusion Zone Policy prohibiting drilling within a one-kilometre radius of a school, as described in Ministry of Natural Gas Development Press Release 2014MNGD0040-000856.

http://www.capp.ca/library/publications/healthSafety/pages/pubInfo.aspx?DocId=24985#VADFnynl0BPQ

http://www.capp.ca/library/publications/healthSafety/pages/pubInfo.aspx?DocId=24985#VADFnynl0BPQ



Additional information may be required as outlined in Block P.

Emergency Response Plans for Special Sour Well Emergency response plans for special sour wells must be included with the well permit application. Companies will be notified by the Commission on a site specific basis regarding this requirement.

Site specific Emergency Response Plans Site specific emergency response plans are required when one or more residences, public facilities or places of business are contained within the emergency planning zone. These plans must be submitted prior to spudding a well.

Supplemental ERPs are required when a well has a maximum

H2S release rate greater than or equal to 0.01 m3/s, but a site

specific ERP is not required.

Emergency Planning Zone Description and Map

Emergency Planning Zone Description Provide a description of any occupied dwellings, public facilities, numbered or named highways, parks, recreation areas, places of business and/or egress issues inside calculated emergency planning zone.

Emergency Planning Zone Map The Emergency Planning Zone (EPZ) map must show details about public facilities and residences (seasonal or otherwise) within the EPZ and the Emergency Awareness Zone, and

Distance to nearest Populated Area (km)

Provide the distance to the nearest populated area in kilometres. This is defined as an occupied dwelling, school, picnic ground or other place of public concourse. Distances must be accurately measured if proposed well is within 2km. If not within 2km, distance can be estimated.

Name of nearest Populated Area

Provide the name of the nearest populated area.

Emergency Planning Zone radius (km)

Provide the emergency planning zone radii for the drilling and completion activities.



should be ground truthed to the boundary of the emergency awareness zone. The map must show:

The EPZ (default to the greater of either drilling radius or completion radius).

The Emergency Awareness Zone (twice the EPZ radius).

Public facilities such as schools, churches, community halls, hospitals, campgrounds.

Residences and urban centers within the zones.

Location of trap lines.

Well site.

Trails, roads, numbered and named highways, railroads, airports, rivers and lakes.

All industrial activity sites.

Known egress issues.

Other information relevant to an emergency.

Map sheets scale should be 1:20,000 and should not be larger than 76 x 122 cm (30 x 48 inches). Inserts to show necessary detail should be used as needed.

Block K Flaring

Permission for flaring that is not authorized in Section 42 of the Drilling and Production Regulation must be granted in the well permit. The regulation authorizes flaring at wells for the following purposes:

Flaring that is required for drilling operations (includes underbalanced and managed pressure drilling).

Flaring that is required for emergency purposes.

Flaring that is required for well workovers or maintenance if the cumulative quantity of flared gas does not exceed 50,000 m3 in one year.

Permission for flaring required for well completions (including well cleanup and testing) must be granted in the well permit. For guidance on flaring, refer to the applicable directives and the Flaring and Venting Reduction Guideline.




Justification is not required for flared volume requests that do

not exceed the following thresholds:

400 103 m3 for development wells.

600 103 m3 for exploratory wells.

200 103 m3 for each additional zone that will be completed in a well.

Flaring in excess of the thresholds noted above will not be approved if the justification is not submitted, or is deemed in adequate. Flaring of gas with an H2S content of 5 per cent must be conducted in accordance with Section 6 (1) (d) of the Oil and Gas Waste Regulation.

Block L Stream Waterbody Crossing Information

The stream and waterbody crossing blocks indicate whether approval to construct crossings is required and what level of information is required by the Commission to process the application.

All crossings necessary to access and construct the well must be included in these sections.

Stream and waterbody crossings required Any stream and waterbody crossings required for the proposed oil and gas activity must have authorization from the Commission under Section 9 of the Water Act. This water act authorization is not issued separately and is included as part of

Objective Formation

For each objective formation where flaring may be required, indicate the expected maximum H2S content (per cent) and the requested flaring volume.

The amount of gas that the applicant would like to be approved to flare; represented in 103m3 (thousand cubic metres).

Flaring Description and Justification

Provide a description and justification in the space provided. If additional area is required, include a separate document as a Block P attachment.



the well permit. All stream crossings must be identified on the construction plan.

Stream crossings proposed on private land require land owner consent and the stream crossing information must be included in this section.

Stream crossing guidelines Stream crossing guidelines are detailed within the

Environmental Protection and Management Guidebook

(EMPG). Stream crossings consistent with the EMPG are

categorized as routine stream crossings and must be included

in Block L of the application form.

Crossings not constructed to the standards outlined in the EPMG are considered non-routine and require a mitigation strategy to be included as an attachment in Block P. Block M of the application form must also be completed.

Streams and water bodies identified by the Commission Mitigation plans may be required for specific streams and waterbodies identified by the Commission.

Refer to the Environmental Protection and Management Regulation Guidebook for guidelines outlining the Commission’s expectations in regard to mitigation strategies.

For more details regarding the information required in Blocks L and M, refer to the Water Act Application Manual (currently in development.

If no stream or waterbody crossings are required with the wellsite or access, the applicant must indicate N/A in the block header.

Crossing Number

This is a unique identifier, assigned by the applicant, for each crossing included in the application.

UTM Zone Select the appropriate geographical zone for the UTM coordinates for the permit application. To locate the appropriate area, refer to the BC Map UTM Projections website.

UTM Location Provide the UTM (NAD 83 CSRS) location of the proposed crossing. All stream crossing locations must be identified on the preliminary plan map.

Stream/ Stream or waterbody names must be provided




http://www.empr.gov.bc.ca/Mining/Geoscience/MapPlace/MainMaps/Pages/BCUTMZones.aspx

http://www.empr.gov.bc.ca/Mining/Geoscience/MapPlace/MainMaps/Pages/BCUTMZones.aspx



Waterbody Name

for each crossing. Where names do not exist, the waterbody can be referred to as “unnamed lake or stream.”

Riparian Classification (non-routine only)

Indicate the riparian classification of the waterbody to be crossed, in accordance with Part 4 of the Environmental Protection and Management Regulation.

Bank Full Stream Width (non-routine only)

This field is required only where an open cut, open bottom structure (OBS) or closed bottom structure (CBS), as defined in the EPMG, is proposed. If one of these methods is not proposed, complete this field with N/A.

Stream Gradient (%) (non-routine only)

This field is required only where a closed bottom structures is proposed. If proposing an alternative method, complete this field with N/A.

Provide the gradient of the stream at the proposed crossing.

FHA Attached (non-routine only)

If required, in accordance with the EPMG, attach a fisheries habitat assessment classifying fish habitat at the crossing location as marginal, important or critical. If not required, complete this field with N/A.

Refer to the EPMG for details regarding fish habitat management and protection at crossings.

Temporary or Permanent Crossing

Indicate the crossing type using the following codes:

P = Permanent Access

T = Temporary Access

Stream Crossing Methods

For all crossings to be constructed during frozen and non-frozen conditions respectively, indicate what type of stream crossing method will be used.

Standard stream crossing methods are listed in the EPMG.

Peak Flow Requirements

Indicate if the crossing has been designed to

pass the highest peak flow of the stream that

can be reasonably expected, as per Section 6

of the OGRR. If no, provide justification.






Block M Road Details

Wellsite Access Roads Roads required to access a wellsite may be included with a well permit application. If a well permit is issued, the Commission may authorize an OGAA road permit and other related authorizations for the construction and operation of the access road.

Roads not directly tied to a wellsite must be applied for using a Road Permit Application Form.

For more information on this road application process, refer to the Roads Application and Operations Manual.

Road Type Select the appropriate road type.

Long-Term All Weather Road

Roadbed surfaced with gravel.

Short-Term Low-Grade Road

Constructed during non-frozen ground conditions with a minimal grade and adequate drainage control. Low-grade access may be constructed during frozen ground conditions.

Snow Ice Road Construction and suspension activities carried out during frozen ground conditions with minimal soil disturbance.

Existing Traditional Winter Access

Construction and suspension activities carried out during frozen ground conditions with minimal soil disturbance.

Road Name If the application is a New Application, enter

the name of the proposed road. Road names

should be kept simple and less than 50

characters. The Commission suggests using

a geographic feature of the area, such as a

lake, creek, mountain or oil and gas field. For

safety reasons please do not use the same

name as an existing road in the area.

i.e. Toad Road 123.

The construction plan must identify each road segment and related details. Each segment can only include one land status type.




Legal Description

If available, provide the legal description of both the beginning and end of the proposed road.

NAD 83 UTM Coordinates

Provide the UTM (NAD 83 CSRS) coordinates of the beginning and end of the proposed road.

Maximum Right-of-Way Width

Enter the maximum right-of-way width in metres, as indicated on the construction plan. If there are variable widths, identify the minimum and maximum widths.

Variable Right-of-Way Width

Indicate if the right-of-way width is variable by selecting yes, or select no if it is one consistent width.

Road Width

Enter the proposed road width in metres to be constructed within the road right-of-way.

Rationale for road right-of-way location chosen

Indicate the rationale for choosing the location of the road right-of-way. A map identifying the area in which the applicant has chosen must be submitted with the application package.

Jurisdictional Right-of-Ways

If the proposed access road enters a

Ministry of Forests, Lands and Natural

Resource Operations Ministry of

Transportation right-of-way, the applicable

approval must be obtained prior to project

commencement from the applicable

jurisdiction.

If any new construction is proposed within the SYD road right-of-way or if a project is accessed through the SYD road, an agreement with Ledcor Group (holder of the SYD road) must be in place prior to submitting application; refer to SYD Road Use Information. A copy of the agreement is not required to be submitted with an application, but must be retained on file and provided to the Commission during an audit.

Road Length Enter the total length of the proposed road, to the nearest hundredth of a kilometre.

Construction Corridor

Select Yes if a construction corridor is being applied for with the application, and attach

http://www.ledcor.com/en/sydroad/publicinformation

http://www.ledcor.com/en/sydroad/publicinformation



additional information and deliverables. For more information about construction corridors and deliverables, please refer to Chapter 3 and Appendix D of the Road Permit Application and Operations Manual.

Borrow Pits Borrow pits used for the construction of wellsite access roads and well pads must be shown on the construction plan. The cumulative borrow pit area must be included as an entry in the ancillary site details section (Block N) of the form.

These borrow pits must meet the categorization criteria for a worksite borrow pit described in the Crown Land Application Manual.

Applications for excavations meeting the definition of an oil and gas aggregate operation must be submitted using the Aggregate Operations and Borrow Pit Application form, and must be excluded from cumulative borrow pit area in Block N of the well permit application form.

Road Elevation If any section of the proposed access road is above 1400 metres, restrictions under the Motor Vehicle Prohibition Regulation apply.

Forest Service Road

Select Yes if a Ministry of Forests, Lands and

Natural Resource Operations-designated

Forest Service Road is required for the

proposed road. Select Valid permit in place

or attach the completed Forest Service Road

Use Application Form and deliverables with

the road permit application package, as

applicable.

Maps Include two copies. For small projects

encompassing relatively small areas, a

1:20,000 scale map is acceptable. Larger

projects must be at an appropriate scale to

clearly show the location and extent of

planned activities.

All maps should clearly indicate:

Map date.

NTS and BCGS map sheet numbers




Block N Ancillary Site Details

When completing this section, applicants should categorize ancillary sites by type, land status and enter their cumulative disturbance (in hectares). The Commission will use this information in the Crown tenuring process. The totals provided within this block must match the values provided on the construction plan.

Examples of ancillary site categories include borrow pits, decking sites, sumps, and temporary workspaces.

Borrow pit sites that do not meet the categorization criteria for a worksite borrow pit described in the Crown Land Application Manual are not to be included as part of the well permit application.

Sumps can be either applied for with the Well Permit Application or separately through a Miscellaneous Crown Land Application. A Section 14 Land Act Tenure will be issued for all sumps on crown land.

Block O Additional Information Requirements

The additional information block requires the applicant to provide the Commission with additional information about the proposed project, and replaces the Commission’s application categorization process.

Additional information requirements, in the form of application attachments, are required when activities are located in areas of environmental sensitivity, or require exemptions from Commission guidance.

indicated on legend and on the maps.

North arrow.

Version number (For example,

Revision #1, Amendment #1).

Road/segment locations.

Individual segments and lengths do not need to be identified.

The information collected in Block O replaces the Commission’s previous application categorization process.

Prior to completing this portion of the permit application form, applicants are encouraged to review the procedures and practices established for each of the categories in this section, to determine whether proposed activities meet the established criteria.

Ancillary sites must be clearly identified on the construction plan.



If the proposed program does not fall within any of the identified areas, does not deviate from Commission guidance, or does not require an exemption, the N/A (not applicable) box must be checked.

A written justification must specify what standard is not being met, provide a rationale, and outline the steps that will be taken instead of the recommended practice.

Refer to the EPMG for guidelines outlining the Commission’s expectations in regard to mitigation strategies and when they may be deemed appropriate.

Spatial or Identified Areas

1. Special management or protected development zones, as per a BC Land or Coastal Marine Plan BC land or Coastal Marine Plans provide increased certainty and form the foundation for balanced solutions that meet economic, environmental, social and cultural needs throughout the province. They inform both government decision makers and those seeking natural resource development opportunities. Proposed oil and gas activities should be reviewed prior to application in the context of any applicable Land or Coastal Marine Plans. Projects should conform to the objectives set out for the plan management zone in which the project is proposed.

Where projects fall within special management zones or the equivalent, applicants are expected to provide a summary detailing:

Why the activity must occur within the special management zone or equivalent.

What planning and/or operational measures will be, or have been taken to mitigate or minimize impacts to the values identified for the zone.

How the zone objectives will be achieved or maintained.

Any issuance, approval, permit or authorization (by a Minister, Ministry or Agent of the Crown) of:

An oil and gas exploration or development plan

Allocation

Tenure

All land and marine planning documents are available at the Integrated Land Management Bureau website.


http://www.ilmb.gov.bc.ca/category/subject-area/land-marine-planning



Disposition

Licence

Any other instrument or document of oil and gas development or exploration allocation or management

must be consistent with any pre-tenure plan which includes the subject area of the instrument or document of allocation or management.

Agricultural Land Reserve The Agricultural Land Reserve (ALR) is the provincial land use

zone in which agriculture is recognized as the priority use. Oil

and gas activities are considered non-farm uses and require

approval in accordance with the Agricultural Land Commission

(ALC) Act.

Applicants submitting an application to the Commission for

activities planned within identified Agricultural Land Reserve

(ALR) lands are required to attach additional application

deliverables with the application package. In addition, an

application under the Agricultural Land Commission Act (ALC

Act) may also be required. The required ALR application

deliverables and their contents very based on characteristics of

the planned activity.

For further information and guidance on activities planned within

the ALR and application deliverables, refer to the ALC-OGC

Delegation Agreement and the Application Requirements for

Activities Planned in the Agricultural Land Reserve Manual.

2. Activity meets criteria of Article 4 of the ALC-OGC

Delegation Agreement

As summarized in Appendix I of the Delegation Agreement,

some applications are exempt from application under the ALC

Act. These applications must include a Schedule A report and

an Appendix II Rationale.



Any oil and gas activities located within the ALR, outside of these two regional districts, will require non-farm use approval directly from the Agricultural Land Commission.







As summarized in Appendix I (column 2) of the Delegation

Agreement, certain proposed oil and gas activities will require

ALC Act Applications to be submitted to the Commission.



In accordance with Article 10 of the Delegation Agreement,

certain oil and gas activities (including waste storage or disposal

wells) require non-farm use authorization directly from the

Agricultural Land Commission. Applicants awaiting review by

the ALC may submit their well application, accompanied by a

copy of the ALC application, to the Commission. However, the

issuance of a well permit is dependent on a completed

Schedule A, Appendix II Rationale, and an ALC resolution letter

authorizing for non-farm use.

5. Park, Protected Area or Ecological Reserve Oil and gas activity is not generally allowed within parks, protected areas or ecological reserves. However, there are extenuating circumstances where the Commission may consider applications for activities proposed within these areas.

Before submitting an application for activity within a park, protected area or ecological reserve, contact the Commission’s Operations Manager for the zone in which the activity is being contemplated to determine whether or not the Commission will consider the application.

In the event that the Commission will consider the application, it must be accompanied by a justification detailing why it is necessary to operate within the park, protected area or ecological reserve, and a mitigation strategy, outlining what measures will be taken to minimize or mitigate impacts to Crown values within the area, must accompany the application.

For a details of the Commission’s expectations with respect to mitigation strategies, refer to the EPMG.

6. Areas Established by Order under the Oil and Gas Activities Act The Environmental Protection and Management Regulation may establish areas of interest (in accordance with OGAA s.104), and may establish measures associated with these areas.

Applications to conduct activity in areas established by order under the Environmental Protection and Management Regulation generally must include a detailed mitigation strategy, illustrating how the proposed activity will be carried out to

Parks, protected areas and ecological reserves are viewable through the GeoBC gateway.

Areas established under order under the EPMR will be viewable through the GeoBC gateway.

http://www.bcogc.ca/documents/forms/wells/OGC%20ALC%20Application.doc

http://www.alc.gov.bc.ca/Commission/oil-gas_ALR.htm







ensure no material adverse affect on the identified area. Where acceptable operating practices have been identified by the Commission and/or the Minister responsible for the order, the application must indicate that the appropriate operating practices will be followed. For details of the Commission’s expectations with respect to areas established by order and mitigation strategies, refer to the EPMG.

7. Areas established by the Commission Applications in areas established by the Commission under the Oil and Gas Activities Act must be submitted with a mitigation strategy to illustrate how the application is consistent with the requirements of the area.

8. Crossing of streams or waterbodies identified by the Commission As introduced in Section L, the Commission has identified waterbodies that may require enhanced management for various reasons. Waterbodies and areas requiring enhanced management for the purposes of Water Act authorizations are available through the Land and Resource Data Warehouse.

All crossings proposed within these areas require a mitigation strategy. Refer to the EPMG for guidelines outlining the Commission’s expectations in regard to mitigation strategies.

9. Indian Reserve Land If the proposed activity is located on Indian reserve land, an Indian Oil and Gas Canada agreement must be in place and accompany the application.

10 Area-based Analysis Enhanced Management / Regulatory Policy Area If the proposed road is located within an Area-based Analysis (ABA) Enhanced Management / Regulatory Policy Area, an ABA specific mitigation plan must be attached to the application. For further guidance on ABA specific mitigation plans, see the Supplementary Information for Area-based Analysis.

Guidance Requirements

11. Deviation from the Environmental Protection and Management Guidebook Where operational or other constraints preclude the applicant from following the guidelines set out in the EPMG, then applicants must explain the rationale for their deviation from the Commission’s standards.

Currently, the Commission has not identified any streams or waterbodies that require enhanced management.







The deviation must be allowable under legislation, regulations or guidelines and is to accompany the application and must include an explanation of why the guidelines can or will not be followed, what measures will be taken to ensure impacts to the value identified will be mitigated or minimized, and if appropriate a mitigation strategy.

Refer to the Environmental Protection and Management

Guidebook for guidelines outlining the Commission’s

expectations in regard to conforming to the regulation and

detailed information regarding mitigation strategies.

12. Deviation from the Well Operational Guidelines The Drilling and Production Regulation establishes results based objectives for well operations. To assist applicants, the Commission has established operational guidance within the Well Drilling Guideline.

If an applicant deviates from the guidelines, a justification must be attached to the application. Justifications will be reviewed by a Commission drilling engineer.

13. Exemption from the Inline Testing Directive Inline testing is required for all new wells within 1.25 kilometres of a residence and 3.0 kilometres or less of a suitable pipeline. If an exemption is desired for a specific well, a justification for the exemption must be included with the permit application. Exemption considerations are outlined in Commission Directive 2010-03.

Well Specific Details

14. Special sour well A permit application for a well classified as special sour must include an attached site specific emergency response plan (ERP) and a drilling plan. See Appendix C for specific ERP requirements. A well is classified as special sour based on two primary criteria:

12) H2S release rate potential and

13) Proximity to populated centers

The following table establishes combinations of potential H2S release rates and distances that classify a well as special sour.

The Commission may classify any other well as a special sour well based upon the maximum potential H2S release rate, the population density, the environment, the sensitivity of the area








where the well would be located, and the expected complexities during the drilling phase.

Special Sour Well Details

Emergency Response Plans Refer to Appendix C for details on what is required in the

emergency response plan.

Drilling Plan For all special sour wells, a drilling plan must be submitted which provides planning information and details respecting drilling-related equipment and proposed activities, including but not limited to:

Geological information, including:

o the extent and quality of offset data, a summary of offset hole problems and adverse drilling occurrences, an assessment of the possibility of encountering similar problems and occurrences at the proposed well, and how the problems and occurrences will be dealt with.

A description of the equipment that will be used to drill the well including:

o The blowout preventor system, including a discussion as to whether blind shear rams will be used and if not, an assessment or evaluation of their possible use.

o Drill pipe.

o Mud-gas separators.

o Drilling fluid system and equipment (type, density, quantity, hole volume, surface volume, stockpile supplies and availability, H2S scavenger, mixing and pumping equipment).

o Wellhead (casing bowl, intermediate spool, valves) and casing (surface, intermediate, production).

Potential H2S Release Rate (m3/s)

Distance to the Boundary of an Urban Centre

0.01 ≤ H2S < 0.1 ≤ 500 metres

0.1 ≤ H2S < 0.3 ≤ 1500 metres

0.3 ≤ H2S < 2.0 ≤ 5000 metres

H2S ≥ 2.0 N/A



A description of the procedures that will be followed in drilling the well including:

o Inspection and testing procedures to ensure that all equipment is fully operational prior to the well reaching the critical depth and procedures to ensure that a state of readiness is maintained.

o Procedures to ensure that wellsite personnel are familiar with the drilling and emergency response plan, trained in the use of the drilling and safety equipment, and are proficient in blowout preventor and well control procedures.

o Procedures to ensure wellbore and casing integrity (directional survey, formation leak-off tests, casing pressure test, caliper logs).

A description of the monitoring of drilling and drilling fluid parameters that will be installed to ensure drilling occurrences (kicks, lost circulation) or warning signs (drilling rate, torque, pump pressure, gas-cut mud) are promptly detected.

Information to confirm, prior to licensing that sufficient well-site personnel will be available and they will be adequately trained and experienced for the drilling operation.

15. Fracturing at a depth less than 600 metres - Risk Assessment A fracturing operation must not be conducted at a depth less than 600 metres below ground level unless the operations are permitted by the well permit, in accordance with Section 21 of the Drilling and Production Regulation.

Risk Assessment To be permitted to fracture at depths shallower than 600 metres, a risk assessment, addressing all potential impacts to non-saline groundwater resulting from the fracturing operations must be included as part of the application.

As a minimum, the assessment must include:

The fracture program design including proposed pumping rates, volumes, pressures, and fluids.

Estimation of the maximum fracture propagation.

Identification and depth of all wells within 200 metres of the proposed shallow fracturing operations.

Non-saline groundwater is groundwater that contains less than 4000 mg/L total dissolved solids.



Verification of cement integrity through available public data of all wells under the Commission’s jurisdiction within a 200 metre radius of the well to be fractured.

Notification of water well owners within 200 metres of the proposed fracturing operations.

Pre-fracture and post-fracture sampling of water wells within 200 metres of the proposed fracturing operations where agreed to by water well owners.

The depth of bedrock.

Assessment of the suitability of the candidate well for the proposed fracturing operations including casing and cement integrity.

Schedule A Report and Appendix II Rationale Statement Details

Schedule A Report Indicate if all components of the Schedule A Report are included and attached to the application. If they are not, list components not included and indicate why they are not included.

Appendix II Rationale Indicate if Appendix II Rationale is attached to the application. If it is not, provide explanation why this document is not included.

Block P Regulatory Exemption Requests

Drilling and Production Regulation Exemption Request A permit holder applicant may request an exemption from one or more of the provisions of the regulation if compliance with the provision is not reasonably practicable, or the exemption is in the public interest, in accordance with Section 4 of the Drilling and Production Regulation.

The exemption request may accompany the application and must include an explanation of why the regulation cannot be followed, and what alternative measures will be implemented to meet the intent of the regulation.

Environmental Protection and Management Regulation Exemption The Commission may exempt a person from one or more of the requirements of Part 3 of the Environmental Protection and

If granted, an exemption will be under separate cover.





Management Regulation if complying with that requirement is not reasonably practicable, in accordance with Section 21 of the Environmental Protection and Management Regulation.

The exemption request may accompany the application and must include an explanation of why the regulation cannot be followed; what measures will be taken to ensure impacts to the value identified will be mitigated or minimized; and if appropriate a mitigation strategy.

Refer to the EPMG for guidelines outlining the Commission’s expectations in regard to conforming to the regulation and detailed information regarding mitigation strategies.

Oil and Gas Road Regulation Exemption

If it is not practicable to comply with a particular section of the Oil and Gas Road Regulation, an exemption request must be submitted with the application.

Block Q Application Deliverables

The application deliverables block provides a summary of the documents to be included with the application

Not all deliverables are required for each application. See the section below

Well Permit Application Form

Include two copies of the completed permit application form.

A list of what must be included on a construction plan is located in Appendix B.

Construction Plan

Include four copies of the construction plan. A list of construction plan requirements is located in Appendix B.

1:20,000 Map

Include two copies of the 1:20,000 BCGS sketch map.

1:50,000 Map

Include three copies of the 1:50,000 NTS map See the end of this section for mapping criteria.

1:250,000 Map Include three copies of the 1:250,000 map.

See the end of this section for mapping criteria.




Mapping Criteria

Every well application must be accompanied by the complete set of maps and plans illustrating in detail the location and extent of planned activities at an appropriate scale. All maps should clearly indicate:

Map date.

NTS and BCGS map sheet numbers indicated on legend and on the maps.

North arrow.

Version number (For example, Revision #1, Amendment #1)

Archaeological Assessment of Information Form

The Archaeological Assessment Information Form (AAIF) is completed by a permitted archaeologist and will indicate all recommendations for the project. For assistance on completing the AAIF, refer to the Commission’s Archaeology Guidelines.

Additional Information Requirements

As described in Block O, Section 5 of this manual, or N/A.

Archaeology Reports

Two copies of any archaeological reports available at this time (such as the Archaeological Impact Assessment (AIA)).

Consultation / Notification Report

Applicants must conduct a land status review to identify persons or bodies prescribed by the Consultation and Notification Regulation. The applicant should refer to the Commission’s FTP site and the BC Land Resource Data Warehouse when conducting status checks. Some additional information may be found on the Integrated Land and Resource Registry (ILRR). The consultation and notification report is a written report, summarizing consultation and notification activities associated with the application and must be submitted with the permit application. The written report consists of the written report cover sheet, line list, map and affected party responses and applicant


ftp://www.bcogc.ca/



replies. Specific information on the content and form of the written report is found in the Consultation and Notification Manual.

Appendix II Rationale Statement Form

Attach an Appendix II Rationale, if applicable. For more information on this form and its uses, refer to the Activities Planned in the Agricultural Land Reserve Manual.

ALC Act Application for Non-Farm Use Form

Attach the ALC Act Application for Non-Farm Use Form, if applicable. For more information on this form and its uses, refer to the Activities Planned in the Agricultural Land Reserve Manual.

Schedule A Report

Attach (1) copy of the Schedule A Report, if applicable. See the Application Requirements for Activities Planned in the Agricultural Land Reserve Manual for more information regarding Schedule A Reports.

Written Report Line List

A Written Report Line List to summarize interactions with recipients must be attached to the Consultation and Notification/Written Report and submitted with every application.For more information on rights holder engagement, including instructions on how to complete the Rights Holder Engagement Line List, refer to the Crown Land Application Manual.

Engineering Data Sheet for Re-entry

Attach a completed engineering data sheet if the application is for a re-entry.

http://bcogc.ca/industry-zone/documentation/Consultation-and-Notification#documentation_docs-page-0







Existing Winter Access Deliverables

When the road type is an existing winter access, the following deliverables are required. There is requirement for ePASS data or Crown Land Data Sheet.

EPZ Description and Map

Provide a description of any occupied dwellings, public facilities, numbered or named highways, parks, recreation areas, places of business and/or egress issues inside calculated emergency planning zone and attach 2 (two) copies of the emergency planning zone map as described in Block J.

Flaring Description and Justification

Description and justification as described in Block K.

Letter Of Authorization

Letter of authorization, as described in Block F, Section 5 and Appendix A.

Regulatory Exemption Requests

As described in Block P.

Amendment / Revision Explanation

If the application if an amendment or a

revision, attach an explanation for the

amendment or revision with the application

package.

First Nation(s) Package

One copy per affected community as

described in Block E.

Other List any other attachments that have been

included as required in the previous

information blocks and provide a description

of each.

Well Permit Application Form

Include two copies of the completed Well

Permit Application Form.

Archaeological Assessment of

Include one copy of the AAIF.



Block R Applicant Authorization

This information field may only be signed by an employee or agent of the applicant with signing authority. By signing in this block, the applicant or authorized signatory attests that all of the information provided on the application is true and correct.

Information Form First Nation(s) Package

One copy per affected community as

described in Block E.

Maps Include two copies. For small projects

encompassing relatively small areas, a

1:20,000 scale map is acceptable. Larger

projects must be at an appropriate scale to

clearly show the location and extent of

planned activities.

All maps should clearly indicate:

Map date.

NTS and BCGS map sheet numbers

indicated on legend and on the maps.

North arrow.

Version number (For example,

Revision #1, Amendment #1).

Road/segment locations.

Individual segments and lengths do not

need to be identified



6 Permit Revision, Amendment and

Cancellation

When changes to a permit application are required, they can be made through the revision process. Changes to an existing permit must be made through the amendment process.

Applicants submitting revisions, or permit holders submitting

amendments to the Commission must do so in accordance with

the requirements and processes established under OGAA and

the Consultation and Notification Regulation. Please refer to the

Commission’s Consultation and Notification Manual.

Both revisions and amendments require the submission of a new application form.

Application Revision

A revision requires the initial application to be negated when a new revised application is submitted. In order to revise an application, the applicant must request that the application be placed on pending by the Commission. Once the application is pending, the applicant can make the desired changes, following the same procedures as a new application.

Attach a letter of explanation as to what the revision is and why

it is being requested.

Permit Amendment

OGAA and the Consultation and Notification Regulation establish two process streams for amendments based on the type and scale of the proposal.

A Major Amendment under Section 1 of the Consultation and Notification Regulation, requires applicants to complete the Consultation and Notification process before submitting an application.

The Consultation and Notification Regulation and supporting Consultation and Notification Manual should be reviewed for process guidance before submitting of an application.

Environmental upgrades and field changes will no longer be accepted by the Commission. Under OGAA, any change to permit after issuance must come in the form of an amendment.




Amendments that do not meet the definition of a Major Amendment under Section 1 of the Consultation and Notification Regulation must be submitted in accordance with Section 31 of OGAA. Under Section 31, permit holders must first provide notice to the land owner, which must include a description of the proposed amendment and advise the land owner that he or she may make a submission to the Commission regarding the proposed amendment.

After providing notice of a non-major amendment to the land owner, a permit holder may submit the amendment application to the Commission.

Amendment applications are submitted using the Well Permit Amendment Form.

Surface Amendment

A well permit amendment application form must be submitted if:

The location of the well site requires a change from what was approved.

Additional area is required during the construction drilling or completion operations (sump, borrow pit, flare blackened area), and/or,

The access route requires revision or additional non-routine stream crossing installations are required.

An engineering data sheet must be submitted as an application deliverable with all surface amendments that result in re-entries.

The applicant must submit a new well permit application if the re-entry is for a CoR well. Re-entry on abandoned wells may be applied for through an amendment.

An amendment is not required to change the wellhead location if there are no changes to the wellsite location or description of the wellhead surface location (NTS or DLS Coordinates).

If the lease location is to be relocated outside the original quarter unit, a new application must be submitted.

Applicants may include only the amended area of the

amendment with the Area Table of the construction plans, as

the previously approved area will be indicated on the application

form. Permit holders must ensure that the spatial data includes

both the existing approved area and the proposed amended

area. Applicants within the ALR must show total disturbance.

If an amendment changes the effect of the permit on the land of the landowner, the Commission will provide notice to the landowner of the changes.





Sub-Surface Amendment

A well permit amendment application form must be submitted if the following changes are being proposed to the original well permit:

The objective geological formation has changed.

The H2S release rate has changed.

Conversion to water source well.

An engineering data sheet must be submitted as an application deliverable with all sub-surface amendments that result in re-entries. Amendment applications must include four construction plans with the application.

All sub-surface changes not listed above do not require a well permit amendment application.

Well Permit Amendment Form Only sections of the form that are affected by the proposed amendment must be completed. Blocks of the Well Permit Amendment Form that are not affected by the proposed amendment may be omitted by selecting the N/A checkbox.

The table on the following page establishes when each block of the amendment application form must be completed. Amendments for both surface and sub-surface changes may be submitted on the same application form.

In addition to the Well Permit Amendment Form, updated application deliverables must be submitted to document the changes that have resulted from the permit amendment application.

Note: ePASS spatial data for amendments must include the entire spatial area. If there is an increase in the project area, the original area plus the proposed area must be included. If there is a decrease in area and/or a change in the project location, the proposed total project area must be included.

First Nation packages (as outlined in Section 5), must be submitted for each First Nation affected by amendments that change the permit location on Crown land.



Table 6.1. Well Permit Amendment Form Requirements

Block Requirement

A – Administration Complete for each well permit amendment application.

B – Application Information Complete for each well permit amendment application.

C – Surface Amendment Complete for proposed surface amendment

D – First Nations Consultation Required for proposed surface amendments that result in a change to the permit location on Crown land.

E – Petroleum and Natural Gas Tenure Complete if the proposed sub-surface amendment affects the tenure rights included in the original permit.

F – Amended Well Specifications

Complete if the surface coordinates of the wellhead change to a different unit, or proposed sub-surface amendment (for example, objective formation) has changed.

G – Amended Casing Program Complete for proposed sub-surface amendments that result in changes to the casing program.

H – Amended Drilling Fluid Type Complete for proposed sub-surface amendments that change that drilling program.

I - Amended Sour Well Information Complete for proposed amendments that result in H2S release rate increase.

J – Amended Flaring Information Complete for proposed amendments that require a change to the permitted flaring volumes.

K – Amended Stream / Waterbody Crossing Information

Complete if there additional routine or non-routine stream/waterbody crossings result from the proposed amendment.

L – Amended Road Details

Complete if there is a change in access type or changes to the access road resulting from the proposed amendment.

Road details may only be amended using the Well Permit Amendment Form if the original road permit was approved as part of a well permit application.

M – Amended Ancillary Site Details Complete if there is a change to the ancillary sites associated with the permit.

N – Additional Information Requirements

Complete if the proposed amendment causes the permitted area to fall within an identified area or to deviate from industry standards. This section must also be completed if any well specific details outlined on the form are applicable to the amendment application.

O – Regulatory Exemption Requests Complete if a regulatory exemption has been requested as a result of the proposed amendment.

P – Application Deliverables Completed for each well permit amendment application.

Q – Applicant Authorization Completed for each well permit amendment application.



Well Permit Cancellation and Expiration

Withdrawing an Application To withdraw an application, submit a request to the appropriate operations manager. The request must be on official company letterhead.

After Permit Approval If a well permit holder decides not to drill a well and cancel after the well permit has been approved; the client must submit a letter requesting cancellation of the well permit and applicable surface tenure or surface tenure applications. The cancellation request letter must clearly identify:

The well permit number.

Well site location.

Commission file number.

Whether or not surface disturbance has occurred:

o If no surface disturbance has occurred, a confirmation letter will be sent to the permit holder upon cancellation of the well permit and corresponding surface tenure file.

o If any surface disturbance has occurred the well permit will be recorded as cancelled with surface disturbance.

Surface tenure on Crown land must be held, by virtue of occupation under the Land Act, until an approved Certificate of Restoration has been issued by the Commission.

Where surface disturbance requires reclamation, an application for a Certificate of Restoration (CoR) and associated forms must be submitted to the Commission.

Application for a Certificate of Restoration – Part 1

Application for a Certificate of Restoration – Part 2

Schedule 1 – Site Profile

The Schedule 1 is an MoE screening tool used to identify potentially contaminated sites. The Site Profile form is located on the MoE website.



http://www.env.gov.bc.ca/epd/remediation/site_profiles/index.htm



Well Permit Expiration If permitted drilling has not commenced by the end of the permit term, the permit will expire and the Commission will proceed with the cancellation process.

Applicants wishing to apply for a new well permit in the location of an expired well permit must submit a new application using the original legal description of the expired well.

Applicants should cross-reference the original well authorization number and original Commission file number.

Upon approval, the Commission will issue a new well authorization number with a new Commission file number.

Prior to expiration, applicants may request an extension as outlined in the next section.



7 Permit Extension Application

It is the permit holder’s responsibility to ensure that an oil and gas permit is still valid and has not expired prior to initiating an associated activity. The Commission will pursue compliance and enforcement actions for any oil and gas activity commencing after the associated oil and gas permit has expired.

The following information outlines the Commission’s expectations for expiring permits and provides permit holders guidance in completing an extension request.

For more information on the expiration and extension process associated with a specific permit, contact the applicable Commission Operations Manager.

Extension

To apply for a permit extension, an applicant must submit a completed Permit Extension Application Form including the required application deliverables prior to the scheduled expiration of the oil and gas permit.

To ensure adequate processing time, the Permit Extension Application Form and deliverables must be received by the Commission a minimum of 30 days prior to the scheduled expiration.

The Commission may extend a permit and associated authorizations (up to one year), and may impose additional conditions.

If construction has not commenced by the end of the extension period, the permit will be removed from active records unless the Commission is satisfied that there are special circumstances to justify a further extension, based on applicant request.

A decision to extend or not extend a permit is not a reviewable or appealable determination under OGAA.

The scheduled

expiry date is two

years from the date

the permit

(or approval,

authorization or

certificate) is

issued.




Expiration

Section 32 (1) of the Oil and Gas Activities Act states that a permit and any authorization issued to the permit holder for a related activity, expires on the day after the prescribed period has elapsed (if the permit holder has not begun the permitted oil and gas activity).

Section 8 of the OGAA General Regulation defines the prescribed period for the purposes of Section 32 (1) of the Act as two years.

If the Commission has not received the Permit Extension Application prior to the scheduled expiration date, the Commission will remove the expired permit from the active records.

If the permit expires with no Permit Extension Application submitted, the former permit holder must submit a new permit application to the Commission complete with the prescribed application fee, in order to resume construction

Consultation and Notification

Section 32 (3) states that the Commission may require the permit holder to carry out consultation or notification (as indicated in the Consultation and Notification Regulation) in relation to the permit extension.

Consultation and Notification Requirements for Permit Extension

1) Permit holders must complete notification requirements

with all land owners and/or stakeholders who were not

originally notified of the project, and inform them of their

intent to request an extension.

2) Permit holders must complete consultation requirements

with all land owners and/or stakeholders who were not

originally consulted with on the project, and inform them of

the intent to request an extension.

3) Permit holders must notify all stakeholders and/or land

owners who were originally notified/consulted of the project

and advise them of their intent to request an extension.

4) Permit holders must submit a current Written Report to the

Commission, summarizing public engagement activities

Written Report requirements are detailed in the Commission’s Consultation and Notification Manual.

http://www.bclaws.ca/EPLibraries/bclaws_new/document/ID/freeside/274_2010






under Section 32(4) of OGAA. Information and criteria on

the Written Report is available in the Commission’s

Consultation and Notification Guideline. This Written Report

must be received before an extension is granted by the

Commission.



8 Compliance

OGAA A person found by the Courts, to have contravened the Oil and Gas Activities Act may be subject to a fine not exceeding the amount specified in Section 86 of the act. A person found by the Commission, to have contravened OGAA may be liable to an administrative penalty not exceeding the amount specified in the Administrative Penalties Regulation.

Drilling and Production Regulation

A person who contravenes the Drilling and Production Regulation (as specified in the Administrative Penalties Regulation, Section 5) may be liable to an administrative penalty ranging from $2,000 to $500,000.



Appendix A – Well Spacing and Target Areas

This appendix provides detailed information about regulations for well spacing and target areas.

Other-Than- Normal Spacing Area Normal spacing requirements for oil and gas wells are defined within Part 3 of the Drilling and Production Regulation.

Other-than-normal spacing areas occur along the entire provincial boundary and along the boundary of the Peace River Block, (Township-Range survey system), where it adjoins the Petroleum and Natural Gas Grid system.

Other-than-normal spacing areas can also occur where active tenure was surrendered up to the boundary of a newly established park or protected area. They may also be established to manage resource production more equitably.

Horizontal wells with the productive interval open in two or more normal spacing areas, and not within an approved reservoir project (Good Engineering Practice, Pressure Maintenance or Unitized Operation), must have an approved enlarged “other than normal” spacing area prior to production.

Application can be made for an other than normal spacing area under Section 65 of OGAA. For information on these applications, see the Guideline for Other Than Normal Spacing for Wells. Also, see Information Letter EMD 00-09 Other-Than-Normal Spacing and Target Areas for Petroleum and Natural Gas Wells.

Down Spacing Down spacing in a field is generally not handled under an other than normal spacing order. Reservoir project approvals such as good engineering practice provide for higher density drilling.

http://www.bcogc.ca/arb/arb_print.asp_aoid=55.html

http://www.bcogc.ca/arb/arb_print.asp_aoid=55.html

http://www.empr.gov.bc.ca/Titles/OGTitles/InfoLetters/IssueDate/Pages/EMD00-09.aspx



Off-Target Penalty Exemption A well drilled outside of the target area may be subject to an off-target production penalty (defined within Part 3 of the Drilling and Production Regulation).

A request for an exemption of an off-target penalty must be submitted to the Commission’s Resource Development division. The request must include a map showing ownership of the petroleum and natural gas rights in the area, (ownership of permits, drilling licences or petroleum and natural gas leases).

The off-target penalty may be exempted in the following instances:

Discovery well An off-target penalty does not apply to the discovery well of an oil or gas pool.

Within the Same Petroleum and Natural Gas Lease A well may be drilled off-target without incurring a penalty where the off-target well is not affecting offsetting petroleum or natural gas rights.

The Drilling and Production Regulation, Section 6(3), allows for one oil well to be completed in each normal oil spacing area if each well is located at least 100 metres from the boundary of the land defined by the petroleum or natural gas rights.

Section 7(2) allows one gas well to be completed in each normal gas spacing area if each well is located at least 250 metres from the boundary of the land defined by the petroleum or natural gas rights.

The effect is that a well may be drilled in the “corridor” area between the oil or gas target areas as long as the 100 m (oil) or 250 m (gas) buffer is maintained around the perimeter of the land defined by the petroleum or natural gas rights. An application for an exemption of the off-target penalty is not required for this situation.

Common Ownership – Different Lease If the rights to an affected oil or gas spacing area in the off-target direction are held under a separate lease and the registered ownership in both leases is the same, an application for off-target exemption is required.



Conditional Exemption A conditional exemption will be granted based upon the lease ownership at that time. The exemption is recorded and tracked with the lease. If ownership of the affected lease changes or if the affected lease expires the off-target penalty will be applied.

Different Ownership – Different Lease If the rights to the affected oil or gas spacing area in the off-target direction are held under a separate lease and the registered ownership in both leases is different; an application for off-target exemption is required. A conditional exemption may be granted based upon the lease ownership at the time. The exemption is recorded and tracked with the lease. If the ownership of the affected lease changes, the off-target penalty may be applied. If the affected lease expires, the off-target penalty will be applied.

Request for Exemption The request for an exemption of the off-target penalty must include a letter from each of the owners of the petroleum and natural gas rights in the adjacent spacing area(s) affected by the off-target well. The letter must state that they have no objection to the well being produced even though it is off-target.

An example letter is provided on the following page.



Example Letter – Application for Exemption of Off-Target Production Penalty

[Company] [Address]

[Date]

Oil and Gas Commission Reservoir Conservation PO BOX 9329 STN PROV GOVT Victoria, B.C. V8W 9N3

Attention: Resource Conservation Branch

Re: Application for Exemption of Off-Target Production Penalty

[Insert Well Name and WA Number ]

[Insert Applicant Name], as licence holder and operator of the subject well, hereby applies for exemption of the off-target production penalty for [oil/gas] production from the [formation name] formation.

The subject well has been completed in an off target-location due to: [Describe reasons].

Attached is a map illustrating the title ownership and well location, the wellbore directional survey and letter(s) of no objection to exemption from the affected offsetting lease owners.

Should there be any questions, [contact name] may be reached at [phone number and e-mail address].

Sincerely,

[Applicant printed name, title and signature]



Gas Well Off-Target Penalty Calculation The off-target penalty factor for a gas well is eight (8) times the product of the shortest distances from the closest point of the well bore within the productive zone to the two nearest sides of the spacing area, divided by the area of the spacing area.

Off-target penalty factor = (8 (NS m) (EW m)) / A

NS m is the closest distance in metres to the north or south boundary of the spacing area.

EW m is the closest distance in metres to the east or west boundary of the spacing area.

A is the area of the gas spacing area in square metres: one section in the Dominion Land Survey system (Township and Range system, a section is 1609 m X 1609 m) or a four-unit area in the Petroleum and Natural Gas Grid system. (See Table of Unit Dimensions in NTS system).

Example: The productive zone in a gas well is 230 m from the north boundary of the section and 600 m from the east boundary. The gas target area is 250 m from the boundary of the spacing area (in this case, the section boundary); therefore, the well is off-target to the north by 20 m.

Off-target Penalty Factor = (8 (NS m) (EW m)/ A

Off-target Penalty Factor = (8 (230) (600)) / (1609 2)

Off-target Penalty Factor = 0.4264

That is, the well would be restricted to producing only 42.64% of the daily gas allowable.

http://www.bcogc.ca/documents/forms/reservoir/NTS%20Unit%20Dimensions.doc




Oil Well Off-Target Penalty Calculation The off-target penalty factor for an oil well is 12 times the product of the shortest distances from the closest point of the well bore within the productive zone to the two nearest sides of the spacing area, divided by the area of the spacing area.

Off-target Penalty Factor = (12 (NS m) (EW m)) / A

NS m is the closest distance in metres to the north or south boundary of the spacing area.

EW m is the closest distance in metres to the east or west boundary of the spacing area.

A is the area of the oil spacing area in square metres: a quarter section in the Dominion Land Survey system (Township and Range system, a quarter is 804.5 m X 804.5 m) or one unit in the Petroleum and Natural Gas Grid system. (See Table of Unit Dimensions in NTS system).

Example: The productive zone in an oil well is 80 m from the north boundary of the section and 300 m from the east boundary. The oil target area is 100 m from the boundary of the spacing area (in this case, the quarter section boundary); therefore, the well is off-target to the north by 20 m.

Off-target Penalty Factor = (12 (NS m) (EW m)) / A

Off-target Penalty Factor = (12 (80) (300)) / ((804.5) (804.5))

Off-target Penalty Factor = 0.4450

That is, the well would be restricted to producing only 44.5% of the daily oil allowable.





Appendix B – Construction Plan Requirements

The construction plan and map must include sufficient detail to illustrate (maps of appropriate scale) the exact location and extent of proposed developments on the land base.

Construction plans must reflect the total area required (including ancillary sites such as workspaces and decking sites) in a bold outline. Within the plan, each polygon is to be shown in a bold outline.

Construction Plan Requirements A construction plan must include the following information:

Title Block

Applicant company name

Applicant file no.

BCGS mapsheet

Legal description of project

Date plan prepared (YYYY/MM/DD)

Scale used

Revision number

Survey company name, address and phone number

Sheet number (for example, 1 of 2)

Survey company job number

Survey company drawing number

Table of crossings

Crossing number

Drawing number

Approved by name

Project manager name

Notes

Legend

Revision information

o Revision number



o Revision done by

o Revision date

o Checked by

Scale Bar A Scale Bar should be placed just above the title block where it can be placed without interference of the drafted areas.

Area Block Summarize the following in the legend:

The total area of private land (if applicable) equals the total area proposed on private land.

The total area of crown land (proposed) equals the area of new Crown land plus the area of existing crown land disturbed.

Area of Existing Crown Land Disturbed.

The total area of road allowances equals the new cut area plus existing road allowances disturbed.

Indicate wellsite coordinates in UTM NAD 83.

Labelling of Plan Indicate the following on the plan diagram:

Dimensions and area of ancillary sites (decking sites, temporary workspaces).

Dimensions and area of segments.

Location of Agricultural Land Reserve (ALR) if applicable.

The labelling of the plan should include the NTS coordinates (units, block, group), chainages, deflections, any crossing numbers (to correspond to the table of crossings), vegetation changes (brush/tree types) and a North arrow.

Surveyed Crown land (district lots, sections that are posted but not titled) and unsurveyed Crown land (mainly NTS) should be indicated on the plan.

Private land should indicate the owner name, parcel identifier number (PID no.), title number and the areas of disturbance broken down into wellsite area and temporary workspace area within each parcel.

All portions of the project must correctly identify what the specific area will be used for.



Cut blocks, range tenures, guide outfitter areas, Indian reserves,

coal tenures and all other areas of special interest should be

indicated.

Identify and classify any waterbodies within 100 metres of a

proposed oil and gas activity or Crown land application activity

(i.e., campsite, storage site, borrow pit, etc.).



Appendix C – Emergency Response Plans (ERP)

Emergency Response Plans must be submitted prior to commencing operations for all well programs as required in Section 39 (9) (b) of the Drilling and Production Regulation.

A completed and signed ERP checklist must be submitted with the ERP.

The type of ERP required depends on the ERP classification of the well. For detailed ERP requirements for drilling and completion operations see the Emergency Management Manual. The following table is a summary of ERP types associated with four main well types.






Table D.1 Well Type and Corresponding ERP Requirements

Well Type

ERP Requirement

Sweet Well Corporate ERP on site and filed with the Commission. H2S release rate less than 0.01m3/s.

Sour Wells

(Corporate with

supplemental)

A Corporate ERP on site and filed with the Commission which is comprised of a Corporate ERP with location specific supplemental information if:

H2S release rate >=0.01 m3/s.

No residences, public facilities or places of business within the EPZ.

No numbered or named highways within the EPZ. For example, Alaska Highway, Highway 97.

Required Location Specific Supplemental Information

The corporate ERP must be supplemented with the following information (where applicable):

A brief summary of the well operations including:

o Well name and location – directions to location.

o Name of drilling rig – if known.

o Potential H2 S release rate.

o EPZ/EAZ size.

o Company contacts number.

o Commission 24 hour contact number.

o Estimated start date.

The procedures for isolating the EPZ Procedures for notification of commencement of drilling and completion operations to tenure holder (trappers, guide outfitters, range tenure holders).

Procedures for contacting and evacuating trappers, guide outfitters, and transients within the EPZ.

Communication with applicable parties. For example, the Commission, PEP, RCMP, Ministry of Transportation, BC Rail.



Company emergency contact names and phone numbers for the well.

A map with road blocks into the EPZ indicated and possible detour routes to bypass the EPZ.

Sour Wells (Site

Specific) A site specific ERP is required on site and filed with the Commission if:

The number of residences, public facilities, places of business or similar activities within the EPZ is greater than or equal to one, or

There are residents who live on dead end roads, beyond the EPZ, who must egress through the EPZ.

A numbered or named highway runs through the EPZ (For example, Alaska Highway, Hwy. 97).

Sour Wells (Special

Sour) These wells will require a site specific plan and a detailed drilling plan to be submitted to the Commission prior to a well permit being issued. ERP must be on site during operations. Special sour wells have additional equipment and personnel requirements; refer to the Emergency Management Manual for additional details.

The classification of special sour wells is based on two primary criteria; H2S release rate potential and proximity to populated centers.

For the purpose of this guideline a special sour well is defined as follows:

Any well from which the maximum potential H2S release rate is 0.01 m3/s or greater and less than 0.1 m3/s and which is located within 500 metres of the corporate boundaries of an urban center; or

Any well from which the maximum potential H2S release rate is 0.1 m3/s or greater and less than 0.3 m3/s and which is located within 1.5 kilometres of the corporate boundaries of an urban center; or

Any well from which the maximum potential H2S release rate is 0.3 m3/s or greater and less than 2.0 m3/s and which is located within 5 kilometres of the corporate boundaries of an urban center; or

Any well from which the maximum potential H2S release rate is 2.0 m3/s or greater; or




Any other well which the Commission classifies as a special sour well having regard to the maximum potential H2S release rate, the population density, the environment, the sensitivity of the area where the well would be located, and the expected complexities during the drilling phase.



Appendix D – Well Classification

All wells will be classified in accordance with Section 2 of the Drilling and Production Regulation.

Table E.1 Well Classification

Well Classification Description

Development

A development classification is assigned when the proposed well is in a spacing area in, or contiguous to, a designated oil or gas pool in the same geological formation as the objective formation of the proposed well.

Exploratory Outpost An exploratory outpost classification is assigned when:

The proposed well is more than one spacing area (that is, one gas spacing area from a designated gas pool; one oil spacing area from a designated oil pool) and less than seven (7) kilometres from the boundary of a designated oil or gas pool; or

The proposed well is within a spacing area, or contiguous to a designated oil or gas pool, but the objective formation of the proposed well differs from that of the designated pool.

Exploratory Wildcat

An exploratory wildcat classification is assigned when the proposed well is greater than seven (7) kilometres from a designated oil or gas pool.

Reclassification - A well, or a portion of a well, may be reclassified to exploratory wildcat if, in the opinion of the Commission the drilling resulted in the discovery of a new pool.

Re-entry Well - If a well is re-entered and a new pool is not identified, well information obtained during the re-entry will be released in accordance with the classification assigned to the re-entry event.

Discovery Wells Upon application, the Commission may designate a well a discovery well, provided it satisfies the following definition taken from the Drilling and Production Regulation:

“A well from which, in the opinion of an authorized Commission employee, sufficient information has been obtained to determine that the well has encountered a previously undiscovered pool.”

The discovery well designation grants the following



privileges:

An off-target penalty does not apply to production from a discovery well in the discovery pool.

Well information from subsequent wells drilled into the new pool may be held confidential for at least as long as the discovery well.

For example, if the discovery well is reclassified to exploratory wildcat, that well has a confidentiality period of one year from the rig release date.

Upon approval of a letter of application from the well operator, information from subsequent wells in the pool will be held confidential for the period prescribed for a discovery well, or the confidentiality period of the individual well as determined by the well classification ( whichever results in the later date):

o Development - 2 months

o Exploratory outpost - 6 months

o Exploratory wildcat - 1 year

Royalty relief applies to discovery oil wells, at the discretion of the royalty administrator, as described in the Petroleum and Natural Gas Royalty and Freehold Production Tax Regulation.

The discovery well designation should not be confused with well reclassification. A discovery well designation grants specific production privileges to a well, whereas well reclassification deals with the period of confidentiality and the taxation treatment of a well.

Application for discovery well designation may be made at any time, and is often made when a well is completed for production. On the other hand, it is important to make a prompt application for well reclassification and submit all required well reports without delay to ensure that confidentiality of well data is preserved.

As the supporting information required for a classification and for a discovery well and reclassification is similar, a single application can cover both.

The application must include geological, geophysical and engineering data, as well as an interpretive analysis, which clearly demonstrate that a new pool has been discovered. The Commission will hold this information confidential. The



application should include:

Log, core, mud gas detector, drill stem test, completion, production, pressure and fluid information and analyses, demonstrating the presence of a permeable reservoir and hydrocarbons in the discovery zone in the well under application.

A geophysical or geological base map indicating seismic or well control, reservoir distribution, and oil, gas, water and tight reservoir limits.

Information on drill stem test, completion or production hydrocarbon shows, or their absence, in all offsetting wells in the zone of interest.

A representative cross-section or seismic record section, demonstrating the stratigraphic or structural basis for pool separation.

A brief interpretation of the above information.

A pool, as defined in the Petroleum and Natural Gas Act, is an underground reservoir containing an accumulation of petroleum or natural gas, or both, separated or apparently separated from another reservoir or accumulation.

Special Projects

Information from wells that form part of a special project, pursuant to Section 75 of OGAA, is held confidential for three years.

Note: A well permit is required for a water source well used to obtain water for injection or fracture stimulation into an underground formation in connection with the production of petroleum or natural gas. A water source well may be classified development, exploratory outpost or exploratory wildcat. The spacing area size used for classification determination is based the offsetting designated pool (example, a gas spacing area if a gas pool).



Appendix E – Sample Sub-Surface Tenure Authorization Letter

BC Oil and Gas Commission Physical: 6543 Airport Road, Fort St. John, B.C. V1J 4M6 Mailing: Bag 2, Fort St. John, B.C. V1J 2B0

Attention: Permitting and Authorizations Division

Re: < INSERT WELL NAME AND LOCATION >

Pursuant to Section 24 of the British Columbia Oil and Gas Activities Act, please be advised that

< INSERT NAME OF TENURE HOLDER >

as tenure holder(s) of

< INSERT TITLE, for example P&NG Lease 45321 >

hereby authorize

< INSERT NAME OF COMPANY THAT WILL OPERATE THE WELL >

to drill and operate the subject well and produce petroleum and/or natural gas from the subject well.

Notwithstanding this arrangement, the obligation to the Province of British Columbia concerning liabilities will remain with the tenure holder(s).

Sincerely,

[Name, title and signature]



Appendix F – Review Corridors

Review corridors are mapped areas around their proposed activity, and if identified within an application, it allows the applicant greater flexibility in revising a submitted application or amending an issued permit.

Within the review corridor an applicant must satisfy all pre-application requirements. This includes but is not limited to addressing potential impacts to archaeology, rights holders and environmental values.

The review corridor provides the applicant or permit holder the flexibility to relocate the proposed activities and/or include additional area through an expedited amendment process (provided all activities remain within the review corridor).

Mapping Review Corridors Review Corridors are to be mapped using a dashed line indicating “review corridor” on the construction plan (see the sample map below).

The application must clearly identify proposed activities, proposed location(s), and the total proposed area of each activity within a defined review corridor.

For example: decking sites - 0.48 hectares.

A review corridor shown on a construction plan should include the proposed location of future activities where applicable.

For example: the location of a future pipeline within the wellsite review corridor area.



Sample Wellsite Review Corridor Map

Figure H.1. Sample Wellsite Review Corridor Map

15



Appendix G – Engagement Log Example

First Nation Engagement Log The Commission recommends keeping a log of all engagement and attempts to engage. An engagement log can greatly benefit the process flow when the First Nation has been advised that the applicant’s engagement activities will be shared with the Commission. The engagement log may be considered in the decision making process.

Below is a description of the recommended information fields in an Engagement Log, and an example format that may be used.

Communities List which communities require engagement.

Engagement Attempts

Provide a description of what efforts to engage were made and whether or not engagement occurred.

Meeting Successfully Held

Indicate if meetings resulted from attempts to engage.

Date of Meeting List the corresponding dates of attempted and actual engagement.

Location Indicate where the meeting took place; for example, at a specific location or via teleconference.

Attendees/ Parties to Meeting

List all of the people attended, or were involved in the meeting. List is to include all parties to the discussion.

Topic Discussed Provide a description of what topics of discussion arose during the meeting.

Analysis, comments, concerns, or recommendations from Nation

List any details provided by the First Nation in the analysis, comments, concerns or recommendations provided during discussions.

Commitments Made

List any initiatives, options, mitigation measures, or other commitments discussed and/or offered.



First Nation Engagement Log The following table provides an example template for a First

Nations Engagement Log. An electronic version of the

engagement log template is also available on the First Nations

page of the Commission website.

Company Name: Company File No.: Commission File No.:

# Communities Engagement AttemptsMeeting Successfully Held?

Y/N

Date of Meeting

DD/MM/YYLocation Attendees

Topics

Discussed

Analysis, comments, concerns, or

recommendations from Nation

Commitments to address the

Nation's analysis, comments,

concerns, or

recommendations

Other Related

Information

1

2

3

4

5

FIRST NATIONS ENGAGEMENT LOG

Table J.1 First Nation Engagement Log Example

http://bcogc.ca/firstnations/forms.aspx

http://bcogc.ca/firstnations/forms.aspx

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