Approvals may involve the approval of certain documents, plans or other matters as specified by regulatory requirements or the approval of specific activities conducted under an authorization. Approvals include:
- Development Plan Approval
- Approval of a Canada-Newfoundland and Labrador Benefits Plan
- Approval of a Safety Plan
- Approval of a Training Plan
- Approval of an Environmental Protection Plan
- Approval of a Field Data Acquisition Program
- Approval of a Field Coring Program
- Approval of Gas Flaring
- Approval of Co-mingled Production
- Voidage Imbalance Approval
- Produced Water Injection Approval
- Production Testing Program Approval
- Flow System and Flow Calculation and Allocation Procedures Approval
- Air Gun Testing Approval
- Approval to Pre-drill a Well (to the conductor or surface casing point)
- Approval to Drill a Well
- Approval for a Well Operation
- Approval to Terminate a Well
- Approval of a Formation Flow Testing Program
Several of these approvals such as the approval of development plans, benefits plans, gas flaring, co-mingled production, voidage imbalance, produced water injection, flow system, flow allocation and air gun testing are granted on a stand-alone basis. Most well approvals including Approval to Drill a Well, Approval of a Well Operation, Approval to Terminate a Well and Approval of a Formation Flow Testing Program are also issued as distinct approvals.
To the greatest extent possible, approvals directly related to an Operations Authorization such as safety plans, training plans, environmental protection plans, field data acquisition programs (which include coring programs and production testing programs) and other related approvals can be dealt with in the context of the Operations Authorization. In such cases, these approvals would be issued concurrently with the issuance of the Operations Authorization.
An Approval to Drill a Well (ADW) or an Approval for a Well Operation (AWO) is required for well operations involving drilling a well or performing a well intervention, respectively. A wellsite seabed survey must be completed prior to the issuance of the ADW. Information regarding the process for obtaining approval of wellsite surveys is provided under the Geophysical Program Authorization.
Approval to Drill a Well (ADW)
The ADW covers operations on the well up to, and including, the termination of the well, which itself could include suspension, abandonment or completion (see Approval to Terminate a Well). If the well is to be tested, Approval of a Formation Flow Test Program is required. Any intervention following the initial completion of a well is covered by an Approval for a Well Operation (AWO).
In the case of a new Operator or a new project, particularly for an exploration well, early consultation with Board staff is encouraged in the areas of well design, data acquisition and environmental protection to ensure that the Operator’s approach to these matters is consistent with regulatory requirements and expectations. In such cases, consultations may occur six months or more prior to the submission of the ADW. These consultations may be arranged by contacting the Board’s Policy and Regulatory Coordination Division.
The ADW Template prescribes the form of the application to the C-NLOPB for Approval to Drill a Well. This template was instituted by the C-NLOPB on a one-year trail basis commencing June 1, 2009. It will be evaluated for continued use by June 1, 2010. Any feedback regarding areas for improvement should be directed to information@cnlopb.nl.ca . All comments are welcome.
Issuance of the ADW
The ADW process is complete when the ADW is signed by the Chairman of the C-NLOPB and issued to the Operator. As specified by paragraph 69(a) of the Newfoundland Offshore Petroleum Drilling Regulations, an ADW is issued conditional upon the Operator commencing drilling within 120 days of the date that the ADW was issued. If this condition is not met, a new ADW is required.
The ADW form prescribes the generic format of the ADW issued by the C-NLOPB. This may vary somewhat in that the conditions to be placed on the ADW may vary from well to well.
In the event that it becomes necessary to deviate from the well data acquisition program described in and approved as part of the ADW, the Operator should submit an Operational Waiver/Deviation from an Approved Well Data Acquisition Program form for the approval of the Chief Conservation Officer.
Approval for a Well Operation (AWO)
The approval of a well operation is prescribed by section 18 of the Newfoundland Offshore Area Petroleum Production and Conservation Regulations. Well operations could include a re-completion, stimulation, workover, wireline, slickline, coiled tubing or other type of well intervention operation on a completed well.
The approval of most well operations will be issued concurrently with the Operations Authorization, however an AWO must be obtained from the C-NLOPB for any well intervention on a completed well that:
- involves the suspension or abandonment of a zone or well;
- alters the completion interval, including re-completing the well to another production or injection zone or cement squeezing perforations; or
- has the potential to adversely affect recovery of petroleum.
The AWO Template prescribes the form of the application to the C-NLOPB for Approval for a Well Operation.
The use of a standardized “AWO Template” was instituted by the C-NLOPB on a one-year trail basis commencing June 1, 2009. It will be evaluated for continued use by June 1, 2010. Any feedback regarding areas for improvement should be directed to information@cnlopb.nl.ca. All comments are welcome.
Issuance of the AWO
The AWO process is complete when the AWO is signed by both the Chief Safety Officer (CSO) and the Chief Conservation Officer (CCO) of the C-NLOPB and issued to the Operator.
The AWO form prescribes the generic format of the AWO issued by the C-NLOPB. This may vary somewhat in that the conditions to be placed on the AWO may vary from well to well.
An approval to terminate a well is required from the Board prior to suspending, abandoning or completing any well drilled pursuant to an ADW. The process for obtaining this approval is currently under review by Board staff with a view to streamlining and standardizing the process in due course.
In the meantime, the Operator’s proposed well termination program should be submitted to the Board’s Manager of Operations and Safety for approval. The program should comply with the provisions of PART VII of the Newfoundland Offshore Petroleum Drilling Regulations and the relevant provisions of the Newfoundland Offshore Area Petroleum Production and Conservation Regulations.
Prior to issuing the approval to terminate, the Operator must satisfactorily complete the well evaluation program outlined in the ADW and must submit for review the appropriate logs needed by Board staff to issue the approval.
In the case of a producing project, the approval to terminate (complete) a development well is normally issued as part of the Operations Authorization, subject to the need to file specific information respecting the interval to be completed with the C-NLOPB at the appropriate time.
Approval of a Formation Flow Testing Program
Approval of a Formation Flow Testing Program is required in accordance with section 171 of the Newfoundland Offshore Petroleum Drilling Regulations. The approval process for this matter is under review by Board staff with a view to standardizing it in due course.
In the meantime, the Operator’s proposed well testing program should be submitted to the Board’s Manager of Operations and Safety for approval. The program should comply with the relevant provisions of the Newfoundland Offshore Petroleum Drilling Regulations. Particular scrutiny will need to be paid to safety and environmental protection matters. Operators should also refer to the Resource Management section for information respecting the data acquisition and reporting requirements pertaining to formation flow testing programs.