S-34.1, r. 3 - Regulation respecting petroleum exploration, production and storage licences, and the pipeline construction or use authorization

Section 88 Disposition versions

2018-09-20

88. A person who wishes to obtain a storage licence must submit to the Régie de l’énergie the following documents and information so that the Board may rule on the storage project:

(1)  a general presentation of the storage project including, in particular,

(a)  the history of the activities already performed, which includes, in particular, in the case of an underground reservoir resulting from the drying-up of a pool, a history of the development carried out and the production;

(b)  the partners, their respective interests and their technical and financial capabilities to carry out the project;

(c)  a map showing the vertical projection, on the surface, of the reservoir and the equipment and installations required to carry out the storage project;

(d)  a topographic map at a scale sufficient to show

i.  the perimeter of the territory that will be subject to the licence;

ii.  the municipalities in the territory that will be subject to the licence;

iii.  the urbanization perimeters established in a land use and development plan made under the Act respecting land use planning and development (chapter A-19.1) in the territory that will be covered by the licence and the delimitation of a 1,000-m strip around them;

iv.  the roads included in the territory that will be subject to the licence;

v.  the public and private lands; and

vi.  the land and bodies of water;

(e)  the schedule of the anticipated work;

(f)  a general description of the progress of the installations over time;

(g)  the list of the technical documents and data used in the preparation of the storage project;

(h)  if the project is submitted after an auction process, a summary of how any financial liabilities attributable to the anticipated activities will be resolved by specifying the means that will be taken to obtain the necessary funds and the time at which the funds will be raised;

(i)  the list of permits, licences and authorizations required to carry out the project; and

(j)  if applicable, a description of the amendments made to the project following conditions imposed by other departments or bodies

(2)  a report containing, in particular,

(a)  an overview of the regional geology;

(b)  the structural geology and the geology of the reservoir;

(c)  a petrological analysis of the reservoir and the country rocks;

(d)  a geophysical analysis on the geophysical data available, in particular, seismic surveys and well logs, and whose objective is to characterize the geometry of the reservoir and the country rocks and their physical properties;

(e)  a geological modeling of the reservoir;

(f)  a reservoir petrophysical analysis allowing, in particular, to establish a volumetric model that takes into account the porosity, permeability and water saturation as well as the methodology selected and the raw data used for the analysis;

(g)  the results of the drill stem tests;

(h)  the properties of the fluids in the reservoir;

(i)  the pressures, volumes and temperatures in the reservoir;

(j)  a reservoir integrity study;

(k)  an estimate of the commercial volumetric capacity of the reservoir including the methodology justifying that calculation;

(l)  a fluid behaviour modeling;

(m)  the approach allowing to maintain pressure and production capacities; and

(n)  the daily maximum injection and withdrawal rates;

(3)  in the case of an underground reservoir resulting from the drying-up of a pool, a history of the production of indigenous petroleum along with an evaluation of the resource in place prior to the storage project, established in accordance with the Canadian Oil and Gas Evaluation Handbook (COGEH) by an independent qualified reserves evaluator;

(4)  a petroleum storage plan including, in particular

(a)  the storage management strategy;

(b)  the detailed chronology of the activities planned during the development of the storage reservoir and the installations and equipment required;

(c)  a description of the injection and withdrawal, and transportation installations;

(d)  the list of factors that may affect the storage project, in particular, the physical constraints and geotechnical aspects;

(e)  the presentation of the technical management approach concerning contractors, suppliers and subcontracting;

(f)  a description of the targeted market along with a storage simulation model showing the monthly volumes injected and withdrawn based on the targeted market and the anticipated income over the life of the project; and

(g)  the strategy for closing wells, dismantling equipment and installations and restoration of work sites;

(5)  an emergency preparedness plan compliant with CSA-Z731 Standard, Emergency Preparedness and Response, published by the Canadian Standards Association;

(6)  an operation and maintenance plan including the reservoir management objectives and the usual operational considerations, in particular, the tests, analyses, performance control and monitoring of the reservoir;

(7)  an economic evaluation of the project including, in particular,

(a)  the expenses incurred prior to the preparation of the project for installations that will be used during the project;

(b)  the preparation costs of the storage project;

(c)  an estimate of the costs in principal of the development project, in particular, the costs for drilling, completing and fracturing wells, the cost of the installations for injection and withdrawal, purification, fractionation, liquefaction, compression, measurement and transportation to the place of delivery, the closure, dismantling and site restoration costs, and indirect costs;

(d)  an estimate of the operating and maintenance costs, in particular, administrative and technical support and for injection and withdrawal, purification, fractionation, liquefaction, compression, measurement and transportation to the place of delivery and indirect costs;

(e)  a presentation of injection, storage and withdrawal scenarios and revenue projections;

(f)  a scenario of the duties to be paid on substances withdrawn; and

(g)  an economic sensitivity analysis;

(8)  a local and regional benefit plan presenting in particular the projections of the expenses made in the environment and related employment as well as the negative financial impact;

(9)  a summary of the public consultations carried out prior to the submission of the project; and

(10)  a description of the mitigation measures anticipated to harmonize the use of the territory and minimize disruptions for the local communities and on the environment.

The document required under subparagraph 2 of the first paragraph must be signed and sealed by a geologist or an engineer and the documents required under subparagraphs 4 to 6 must be signed and sealed by an engineer.

O.C. 1253-2018, s. 88.

Not in force

In force: 2018-09-20

88. A person who wishes to obtain a storage licence must submit to the Régie de l’énergie the following documents and information so that the Board may rule on the storage project:

(1)  a general presentation of the storage project including, in particular,

(a)  the history of the activities already performed, which includes, in particular, in the case of an underground reservoir resulting from the drying-up of a pool, a history of the development carried out and the production;

(b)  the partners, their respective interests and their technical and financial capabilities to carry out the project;

(c)  a map showing the vertical projection, on the surface, of the reservoir and the equipment and installations required to carry out the storage project;

(d)  a topographic map at a scale sufficient to show

i.  the perimeter of the territory that will be subject to the licence;

ii.  the municipalities in the territory that will be subject to the licence;

iii.  the urbanization perimeters established in a land use and development plan made under the Act respecting land use planning and development (chapter A-19.1) in the territory that will be covered by the licence and the delimitation of a 1,000-m strip around them;

iv.  the roads included in the territory that will be subject to the licence;

v.  the public and private lands; and

vi.  the land and bodies of water;

(e)  the schedule of the anticipated work;

(f)  a general description of the progress of the installations over time;

(g)  the list of the technical documents and data used in the preparation of the storage project;

(h)  if the project is submitted after an auction process, a summary of how any financial liabilities attributable to the anticipated activities will be resolved by specifying the means that will be taken to obtain the necessary funds and the time at which the funds will be raised;

(i)  the list of permits, licences and authorizations required to carry out the project; and

(j)  if applicable, a description of the amendments made to the project following conditions imposed by other departments or bodies

(2)  a report containing, in particular,

(a)  an overview of the regional geology;

(b)  the structural geology and the geology of the reservoir;

(c)  a petrological analysis of the reservoir and the country rocks;

(d)  a geophysical analysis on the geophysical data available, in particular, seismic surveys and well logs, and whose objective is to characterize the geometry of the reservoir and the country rocks and their physical properties;

(e)  a geological modeling of the reservoir;

(f)  a reservoir petrophysical analysis allowing, in particular, to establish a volumetric model that takes into account the porosity, permeability and water saturation as well as the methodology selected and the raw data used for the analysis;

(g)  the results of the drill stem tests;

(h)  the properties of the fluids in the reservoir;

(i)  the pressures, volumes and temperatures in the reservoir;

(j)  a reservoir integrity study;

(k)  an estimate of the commercial volumetric capacity of the reservoir including the methodology justifying that calculation;

(l)  a fluid behaviour modeling;

(m)  the approach allowing to maintain pressure and production capacities; and

(n)  the daily maximum injection and withdrawal rates;

(3)  in the case of an underground reservoir resulting from the drying-up of a pool, a history of the production of indigenous petroleum along with an evaluation of the resource in place prior to the storage project, established in accordance with the Canadian Oil and Gas Evaluation Handbook (COGEH) by an independent qualified reserves evaluator;

(4)  a petroleum storage plan including, in particular

(a)  the storage management strategy;

(b)  the detailed chronology of the activities planned during the development of the storage reservoir and the installations and equipment required;

(c)  a description of the injection and withdrawal, and transportation installations;

(d)  the list of factors that may affect the storage project, in particular, the physical constraints and geotechnical aspects;

(e)  the presentation of the technical management approach concerning contractors, suppliers and subcontracting;

(f)  a description of the targeted market along with a storage simulation model showing the monthly volumes injected and withdrawn based on the targeted market and the anticipated income over the life of the project; and

(g)  the strategy for closing wells, dismantling equipment and installations and restoration of work sites;

(5)  an emergency preparedness plan compliant with CSA-Z731 Standard, Emergency Preparedness and Response, published by the Canadian Standards Association;

(6)  an operation and maintenance plan including the reservoir management objectives and the usual operational considerations, in particular, the tests, analyses, performance control and monitoring of the reservoir;

(7)  an economic evaluation of the project including, in particular,

(a)  the expenses incurred prior to the preparation of the project for installations that will be used during the project;

(b)  the preparation costs of the storage project;

(c)  an estimate of the costs in principal of the development project, in particular, the costs for drilling, completing and fracturing wells, the cost of the installations for injection and withdrawal, purification, fractionation, liquefaction, compression, measurement and transportation to the place of delivery, the closure, dismantling and site restoration costs, and indirect costs;

(d)  an estimate of the operating and maintenance costs, in particular, administrative and technical support and for injection and withdrawal, purification, fractionation, liquefaction, compression, measurement and transportation to the place of delivery and indirect costs;

(e)  a presentation of injection, storage and withdrawal scenarios and revenue projections;

(f)  a scenario of the duties to be paid on substances withdrawn; and

(g)  an economic sensitivity analysis;

(8)  a local and regional benefit plan presenting in particular the projections of the expenses made in the environment and related employment as well as the negative financial impact;

(9)  a summary of the public consultations carried out prior to the submission of the project; and

(10)  a description of the mitigation measures anticipated to harmonize the use of the territory and minimize disruptions for the local communities and on the environment.

The document required under subparagraph 2 of the first paragraph must be signed and sealed by a geologist or an engineer and the documents required under subparagraphs 4 to 6 must be signed and sealed by an engineer.

O.C. 1253-2018, s. 88.