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

Section 62 Disposition versions

2018-09-20

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

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

(a)  the history of the activities already performed;

(b)  the date of registration of the notice of commercial discovery in the public register of real and immovable petroleum rights;

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

(d)  a map showing the vertical projection, on the surface, of the pool and the equipment and installations required to carry out the production project;

(e)  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;

(f)  the schedule of the anticipated work;

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

(h)  the list of the technical documents and data used in the preparation of the production project;

(i)  if the project is submitted after an auction process, the 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;

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

(k)  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 pool and the country rocks and their physical properties;

(e)  a geological modeling of the pool;

(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; and

(j)  a demonstration that the spacing of the wells allows an adequate delineation of the pool;

(3)  an evaluation of the contingent resources and, where applicable, the petroleum reserves established in accordance with the Canadian Oil and Gas Evaluation Handbook (COGEH) by an independent qualified reserves evaluator;

(4)  a petroleum production plan including

(a)  the detailed chronology of the activities planned during the development of the pool;

(b)  the situation of the wells in order to encompass the production of the pool in its entirety;

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

(d)  a description of the production and transportation installations;

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

(f)  the pool dry-off method including, if applicable, an assisted recovery plan;

(g)  the pool management and petroleum marketing strategy;

(h)  a production simulation model; and

(i)  the strategy for the closure of wells, dismantling of equipment and installations and restoration of the 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 establishing the pool management objectives and the usual operational considerations, in particular, the tests, analyses, performance control and monitoring of the pool;

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

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

(b)  the preparation costs of the production 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 extraction, purification, fracturing, 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 the costs for operation, extraction, purification, fracturing, liquefaction, compression, measurement and transportation to the place of delivery and indirect costs;

(e)  a presentation of production scenarios and revenue projections;

(f)  an evaluation of the recovery in the pool;

(g)  the contingency factors affecting the potential recovery of discovered, non-recoverable petroleum;

(h)  a scenario for the royalties to be paid;

(i)  an economic sensitivity analysis; and

(j)  in the case of petroleum reserves, the risked net present value of future net revenue, in accordance with Parts 1 to 3 of Form 51-101F1 of Regulation 51-101 respecting Standards of Disclosure for Oil and Gas Activities (chapter V-1.1, r. 23), with the necessary modifications, determined by an independent qualified reserves evaluator;

(8)  a local and regional benefit plan presenting, in particular, the projections of the expenses made in the environment, the tax implications and the 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. 62.

Not in force

In force: 2018-09-20

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

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

(a)  the history of the activities already performed;

(b)  the date of registration of the notice of commercial discovery in the public register of real and immovable petroleum rights;

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

(d)  a map showing the vertical projection, on the surface, of the pool and the equipment and installations required to carry out the production project;

(e)  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;

(f)  the schedule of the anticipated work;

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

(h)  the list of the technical documents and data used in the preparation of the production project;

(i)  if the project is submitted after an auction process, the 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;

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

(k)  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 pool and the country rocks and their physical properties;

(e)  a geological modeling of the pool;

(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; and

(j)  a demonstration that the spacing of the wells allows an adequate delineation of the pool;

(3)  an evaluation of the contingent resources and, where applicable, the petroleum reserves established in accordance with the Canadian Oil and Gas Evaluation Handbook (COGEH) by an independent qualified reserves evaluator;

(4)  a petroleum production plan including

(a)  the detailed chronology of the activities planned during the development of the pool;

(b)  the situation of the wells in order to encompass the production of the pool in its entirety;

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

(d)  a description of the production and transportation installations;

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

(f)  the pool dry-off method including, if applicable, an assisted recovery plan;

(g)  the pool management and petroleum marketing strategy;

(h)  a production simulation model; and

(i)  the strategy for the closure of wells, dismantling of equipment and installations and restoration of the 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 establishing the pool management objectives and the usual operational considerations, in particular, the tests, analyses, performance control and monitoring of the pool;

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

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

(b)  the preparation costs of the production 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 extraction, purification, fracturing, 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 the costs for operation, extraction, purification, fracturing, liquefaction, compression, measurement and transportation to the place of delivery and indirect costs;

(e)  a presentation of production scenarios and revenue projections;

(f)  an evaluation of the recovery in the pool;

(g)  the contingency factors affecting the potential recovery of discovered, non-recoverable petroleum;

(h)  a scenario for the royalties to be paid;

(i)  an economic sensitivity analysis; and

(j)  in the case of petroleum reserves, the risked net present value of future net revenue, in accordance with Parts 1 to 3 of Form 51-101F1 of Regulation 51-101 respecting Standards of Disclosure for Oil and Gas Activities (chapter V-1.1, r. 23), with the necessary modifications, determined by an independent qualified reserves evaluator;

(8)  a local and regional benefit plan presenting, in particular, the projections of the expenses made in the environment, the tax implications and the 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. 62.