June 2019
Methane Reduction Coming Soon – Are you ready?
The AER held a Methane Reduction Seminar June 20, 2019 in Calgary and June 19, 2019 in Grande Prairie. The purpose of the seminar was to inform industry of the Methane Reduction requirements that will be implemented starting January 1, 2020 and to summarize the resources available to industry to meet the Methane Reduction requirements. The resources include AER directives and manuals, the AER website and the Alberta Environmental Protection and Enhancement Act (AEPEA) and its regulations. 

The Methane Reduction requirements affect ALL facilities, compressors, glycol dehydrators and sources of fugitive emissions. Since the Methane Reduction requirements will affect how the various components are operated and volumes are measured, on individual sites, the reporting and therefore production accounting are directly impacted.

The AER landing page for the Methane Reduction requirements and more is here .
Further to providing information, the landing page provides a timeline of important dates. Missing these dates may lead to non compliance with the Methane Reduction requirements.

In addition to the AER’s directives, manuals and website, Methane Reduction is a requirement in the AEPEA and the Methane Emission Reduction Regulation which comes into force on January 1, 2020. Contravention of the Methane Reduction Regulation may result in a fine of not more than $500,000 for a corporation or $50,000 for an individual.  See also the Administrative Penalty Regulation (AEPEA).

As you read through the various resources, additional AER directives will be mentioned, which means compliance with those directives may also be required to meet the Methane Reduction requirements.

You have approximately 6 months to prepare for the Methane Reduction changes coming January 1, 2020 , and the next important deadline is June 1, 2020 when you must submit an electronic copy of your Annual Methane Emissions Report for the 2019 calendar year.    ARE YOU READY?

The seminar presentation will not be posted on the AER website but the e-learnings (Youtube video) will be available later this summer 2019.

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

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

If you would like a well test analyzed or if you would simply like more information on our well testing services, please feel free to contact Robyn (at 403.263.3690) or Jason (at 403.874.6769). You may also contact R eza Ali directly at 403.454.4030.

Integrated Compliance Management Program (ICMP) at Benoit
Did you know that Benoit provides a service which covers our regulatory application, liability management ratio and evaluation services under one umbrella?
 Under this program, Benoit acts as a “regulatory arm” for your company by receiving and responding to all compliance related matters on your company’s behalf.
As your regulatory designate, in addition to our regulatory application service, Benoit conducts a number of additional services including, but not limited to:

  • Inactive Well Compliance Program Monitoring
  • Liability Management Rating Forecasting
  • DDS Entry for Well/Completion Details
  • Flaring Notifications
  • Well Test Data Submissions
  • Gas Conservation Economic Analyses
  • Monthly VRR calculations/updates for Enhanced Recovery Schemes

If you're interested in this service or would like to discuss this further, please contact us or visit our website for more information

CSA Z662-19 - Updates to Canadian Standards Association’s CSA Z662-19
In June 2019, the Canadian Standards Association (CSA) released a new edition of CSA Z662 Oil and Gas Pipeline Systems. The updated CSA Z662-19 includes the most recent amendments and is immediately incorporated into the Pipeline Rules (AB), the Pipeline Regulations (SK) and the Pipeline Regulation and the Drilling and Production Regulation (BC). As there are significant changes and additions to the standards, it is recommended that all companies review the latest version of CSA Z662-19 and take the necessary steps to ensure compliance.
Bulletin 2019-12 announces the release of AER Subsurface Order No. 6 , which establishes new monitoring, reporting, and setback requirements to manage the potential hazard of induced seismicity from hydraulic fracturing.
A copy of Bulletin 2019-12 can be found here .

AER Bulletin 2019-15: Invitation for Feedback on Draft Requirements for Public Involvement
The AER is seeking public feedback on a Draft Directive XXX: Public Involvement . When finalized, this directive will replace the existing participant involvement requirements identified in D056 and D23.The directive would be applicable to most activities regulated by the AER. The deadline for feedback is August 25, 2019.

A copy of Bulletin 2019-15 can be found here.

AER Bulletin 2019-13: New Alberta Environment and Parks Surface Water Allocation Directive
On March 6, 2019, Alberta Environment and Parks (AEP) released the Surface Water Allocation Directive . This directive provides guidance when allocating water from rivers, lakes, and wetlands at locations where a water management plan, framework, or other prescriptive guidance does not exist. It applies to new water licence applications and temporary diversion licences.

A copy of Bulletin 2019-13 can be found here.
The user guide for submitting an application for a reclamation certificate has been moved to OneStop. The guide, which includes how to submit environmental site assessments, is on the OneStop help page
This year’s Alberta Energy Outlook report is now available online and allows readers to easily select, customize, and create figures. It reviews data from 2017-18, with projections up to 2028.

The copy of this report can be found here .

AER: Pipeline Performance Industry Information Session
On June 24, 2019 the AER held an industry information session to discuss the 2019 Pipeline Performance Report. The session also addressed the current status of pipeline compliance and confusion regarding mandatory pipeline documents: the Safety Loss Management System (SLMS), the Integrated Management Plan (IMP) and the Pipeline Operating and Maintenance Manual (POMM) and informed operators of the regulatory guidelines including the updated CSA: Z662:19.    

The pipeline performance report has been posted on the AER website along with highlights provided by David Helmer, the Director of Industry Performance and Analytics.

Alberta Energy Information Bulletin 2019-01: Crown Mineral Authorization for Disposal
On June 24, 2019, Alberta Energy announced that the disposal activities in a soon to be or recently expired/cancelled PNG agreement will need Crown authorization to continue disposal activities. This includes all active AER disposal schemes. It is recommended that disposal scheme operators monitor the status of PNG rights and apply for a Crown authorization as necessary. 

The copy of Bulletin 2019-01 can be found here .

BCOGC News Release 2019-02: Timelines for the restoration of oil and gas wells
On May 31, 2019, the BC Oil and Gas Commission introduced a new regulation, making B.C. the first province in western Canada to impose, in law, timelines for the restoration of oil and gas wells. The Dormancy and Shutdown Regulation is included in the Commission’s new Comprehensive Liability Management Plan (CLMP) . The regulation gives each dormant well site a prescribed cleanup timeline and imposes requirements for decommissioning, site assessment, remediation, reclamation/restoration, notification and reporting. Keep in mind, in some instances, August 31, 2019 is an important deadline for submitting an annual work plan or notifying (the Commission) of specified work to be done.

A copy of NR 2019-02 can be found here.  

BCOGC Industry Bulletin 2019-11: Suspensions on Water Withdrawals
On June 6, 2019 the BCOGC announced that suspensions on water withdrawals may be necessary if warm and dry conditions continue. Due to drought conditions in the summer of 2010, 2012, 2014, 2017, and 2018, the BCOGC suspended short-term water use approvals issued through Section 10 of the Water Sustainability Act .

A copy of Industry Bulletin 2019-11 can be found here.  

SK: Notice of Proposed Directive PNG016: Acknowledgement of Reclamation Requirements - Amendment 
The Ministry of Energy and Resources is launching industry consultations on the amended Directive PNG016 from June 24, 2019 to August 23, 2019. The amended Directive is expected to come into effect in the summer of 2019.

A copy of the Notice can be found here.

SK: Bulletin 2019-003: Directive PNG025 - Licensee Liability Rating (LLR) Program
On June 21, 2019, a revised version of Directive PNG025: Licensee Liability Rating (LLR) Program came into effect. The revised Directive PNG025 features changes to support the phasing out of the Present Value Salvage (PVS) factor in the Energy and Resources’ (ER’s) LLR Program.
A copy of Bulletin 2019-003 can be found here.

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phone: 403.263.0896 | email: questions@benoitregulatory.com