Version No. 011 Petroleum Regulations 1992 · Version No. 011 Petroleum Regulations 1992 ... Surface connections 72 820. Production from more than one reservoir from one well

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Version No. 011 Petroleum Regulations 1992

S.R. No. 120/1992

Version incorporating amendments as at 27 April 1998

TABLE OF PROVISIONS

Regulation Page

PART 1—PRELIMINARY 1

101. Title 1 102. Commencement 1 103. Objectives 1 104. Authorising provisions 1 105. Revocation 1 106. Definitions 2

PART 2—GENERAL 9

201. Information to be provided about an operator 9 202. Certificate of competence 9 203. Personnel qualifications and performance 9 204. Tests 10 205. General duties and responsibilities of title holders, operators and

contractors 10 206. Responsibility for contractors 10 207. Availability of information 10 208. Protection of the environment 11 209. Powers of inspectors 14 210. Procedures manual 15 211. Emergency response procedures 15 212. Updating of the procedures manual and emergency response

procedures 16 213. Person-in-charge 16 214. Communications 16

PART 3—TITLES AND FEES 17

301. Application for permit 17 302. Bond 17 303. Transfer of interest 17 304. Prescribed fee for transfer of interest 17

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305. Extension of permit 17 306. Form of permit 18 307. Application for lease 18 308. Publishing of notice 18 309. Objection to grant of lease 18 310. Inquiry into objection 19 311. Adjournment of inquiry 19 312. Hearing of parties 19 313. Record of absence of parties 20 314. Copy may be made of evidence 20 315. Finding of inquiry 20 316. Further inquiry 20 317. Form of lease 20 318. Fees 20 319. Prescribed time 21

PART 4—REPORTS, RETURNS AND DATA SUBMISSION REQUIREMENTS 22

Division 1—General 22

401. Annual reports 22 402. Reporting of death and serious injury 22 403. Written records of death and injury 23 404. Reporting serious damage 23 405. Reporting potentially hazardous event 24 406. Reporting damage less than $50 000 25 407. Reporting escape or ignition of petroleum and other material 25 408. Reporting of emergencies 26 409. Reporting radiation monitoring 26

Division 2—Geophysical and Geochemical Activities 27

410. Weekly reports 27 411. Data preservation 27 412. Basic data submission 27 413. Final reports on geophysical or geochemical surveys 30

Division 3—Drilling and Workover 31

414. Discovery of petroleum and estimate of petroleum in-place 31 415. Daily report of drilling or workover operations 32 416. Report on modification, abandonment or suspension of well 32 417. Final report on wells 32 418. Special studies 34

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Division 5—Petroleum Production 35

419. Program of work 35 420. Estimate of recoverable and in-place petroleum 35 421. Monthly production return 36 422. Measurement relating to commingled production 37 423. Underground storage return 37 424. Royalty return 38 425. Production facility maintenance reports 38 426. Records of periodic inspections 39 427. Reports on wireline surveys and sub-surface safety valves 39 428. Reports on an Approved Scheme 40 429. Reservoir Data 40

PART 5—ELECTRICAL 41

501. Application 41 502. Wiring Rules 41 503. Protection of circuits 41 504. Electricians and inspection of electrical equipment 41 505. Earthing and lightning protection 42 506. Control of static electricity 43 507. Welding 43 508. Electrical shock 43

PART 6—GEOPHYSICAL AND GEOCHEMICAL SURVEYS 44

601. Method of application 44 602. Authorisation 44 603. Modification of survey 45 604. Consent of land owner 45 605. Energy source 45 606. Prevention of damage to property 45 607. Pipeline Crossed by a Seismic Line 46 608. Marking Seismic Lines 46

PART 7—DRILLING AND WORKOVER 47

701. Approval to drill 47 702. Equipment standards 48 703. Location surveys 48 704. Prohibited drilling areas 49 705. Casing 49 706. Cementing of casing 50 707. Blow-out prevention control 51 708. Pressure testing blow-out prevention equipment 52 709. Mud monitoring system 52

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710. Penetration rate recorder 52 711. Accumulators 53 712. Blow-out prevention drill 53 713. Formation integrity testing 53 714. Drilling fluid 53 715. Deviation surveys 54 716. Directional drilling 54 717. Conversion of a well into a water well 54 718. Oil or gas lost or used during repair operations 54 719. Evaluation of an occurrence of petroleum 55 720. Cores, cuttings and fluid samples 55 721. Reports on analysis of cores and cuttings 55 722. Age dating of samples 55 723. Fluid samples 56 724. Well evaluation logs 56 725. Formation and water shut-off test 57 726. Protection of aquifers 57 727. Production or drill stem tests on exploration or production wells 57 728. Flammable vapours 58 729. Approval to abandon or suspend a well 58 730. Well completion 60 731. Disposal of produced oil and gas 60 732. Disposal of waste fluids 60 733. Replacement of well site fencing 61 734. Restoration of site 61 735. Special services 61

PART 8—PETROLEUM PRODUCTION 62

801. Consent for recovery of petroleum 62 802. Other operations 62 803. Equipment to comply with good oilfield practice 62 804. Construction approval 63 805. Siting of production equipment 63 806. Progress report of construction and installation 63 807. Initial production tests 63 808. Reservoir Management Plan 65 809. Evaluation of potential for retrograde condensation 66 810. Rate of recovery of petroleum 67 811. Monitors and control mechanisms 67 812. Production tests on producing wells 67 813. Gas reservoir and well performance monitoring 68 814. Oil reservoir pressure build-up surveys 69 815. Production measurement 70 816. Measurement of production to determine royalties 71 817. Concurrent production 71 818. Pressure below bubble point 72

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819. Surface connections 72 820. Production from more than one reservoir from one well 72 821. Production from more than one reservoir from more than one

well 72 822. Segregation of zones 73 823. Prevention of cross flow 74 824. Evaluation of the potential of an oil reservoir to respond to

enhanced recovery 74 825. Waste or contamination 75 826. Waste liquid 76 827. Disposition of gas 76 828. Approval to vent or flare 76 829. Control of quality of discharge water 76 830. Subsurface safety devices 77 831. Workover of wells 77 832. Wireline operations in wells 78 833. Sampling petroleum streams 78 834. Meter proving 78 835. Protection of completed wells 79 836. Plugging of wells 79 837. Application for consent for gathering lines 79 838. Underground storage of petroleum 80 839. Removal of facilities 80 840. Restoration of lands 81

PART 9—TRANSITIONAL PROVISIONS 82

901. Continuity of title 82 902. Continuity of title conditions 82 903. Continuity of application 82 904. Continuity of consent or approval 82

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SCHEDULES 83

SCHEDULE 1—Regulations Revoked 83

SCHEDULE 2—Forms 85

Form 1—Application for Petroleum Exploration Permit 85

Form 2—Bond in respect of Petroleum Exploration Permit/Petroleum Lease 87

Form 3—Transfer of Petroleum Exploration Permit/Petroleum Lease 88

Form 4—Petroleum Exploration Permit 89

Form 5—Application for Petroleum Lease 90

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Form 6—Notice of Application for Petroleum Lease 91

Form 7—Petroleum Lease 92 ═══════════════

NOTES 94

1. General Information 94

2. Table of Amendments 95

3. Explanatory Details 96

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Version No. 011

Petroleum Regulations 1992 S.R. No. 120/1992

Version incorporating amendments as at 27 April 1998

PART 1—PRELIMINARY

101. Title

These Regulations may be cited as the Petroleum Regulations 1992.

102. Commencement

These Regulations come into operation on 1 July 1992.

103. Objectives

The objectives of these Regulations are to—

(a) ensure the development of effectively managed petroleum operations with a minimum adverse impact on individuals, the environment and public amenity; and

(b) maximise petroleum exploration and production with minimum loss of the petroleum resource; and

(c) prescribe forms, fees and other matters necessary for the administration of the Act.

104. Authorising provisions

These Regulations are made under sections 28, 29, 30, 32, 33, 33A, 34, 41, 44, 45, 47, 48, 49, 51, 52, 56, 59, 64, 67, 70, 75, 76, 79 and 82 of the Petroleum Act 1958.

105. Revocation

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The Regulations listed in Schedule 1 are revoked.

106. Definitions

In these Regulations—

"Act" means the Petroleum Act 1958;

"approved" means approved by the Minister under any relevant provision of the Act;

"basic data" means all data acquired in the field or laboratory including physical and chemical measurements conducted as part of the analysis of fluid or core and cutting samples;

"circulation" means the passing of fluid down the drill pipe, casing or tubing in a well and back up to the surface, or the passing of fluid in the reverse direction;

"completion" means a flowpath in a well that allows—

(a) the production of fluids from a discrete formation interval through the well; or

(b) the injection of fluids into a discrete formation interval through the well—

and includes the equipment necessary for that production or injection independent of other flowpaths in the well;

"conductor casing string" means a pipe installed to cover unconsolidated surface formations, and which may provide a means for return of drilling fluid from the well before surface casing is installed;

"contractor" means a person engaged to perform work for an operator or titleholder under contract (not being a contract of employment);

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"datum" in relation to reservoir pressure means the depth to which all pressure measurements are converted for comparison with each other;

"development well" means a well drilled within the expected limits or boundary of a petroleum accumulation that is already proved and that is drilled principally to produce, or to facilitate the production of, the petroleum reserves from that accumulation;

"directional drilling" in relation to drilling a well, means drilling that involves intentional changes in the direction of drilling;

"document" for the purposes of regulation 318 means an assignment, assumption or transfer and insofar as they affect the transfer of title a joint venture operating agreement, hydrocarbons sale agreement, override royalty agreement, registration of mortgage and letter of intent;

"drilling rig" includes a workover or well-service rig, but does not include a shot hole drilling rig;

"enhanced recovery" means increasing the recovery of petroleum from a reservoir so that it produces a quantity greater than the quantity that would have been achieved by the action of natural reservoir energy on the naturally occurring reservoir fluids, but does not include fracture stimulation, localised wash treatments, or artificial lift;

"exploration well" means a well drilled to search for natural accumulations of oil or gas;

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"flowing well" means a well from which oil, gas or water is produced without the use of artificial lifting equipment;

"fluid interface" means the surface of the meeting of any two fluids;

"gathering line" means a pipeline as described in section 30(10) of the Act;

"geochemical survey" means a method for the detection of abnormal concentrations of hydrocarbons in soil;

"geophysical survey" means an operation used in the study of the subsurface by seismic, gravimetric, magnetic, electrical or radioactive methods;

"good oilfield practice" means all those things that are generally accepted as good and safe in the carrying on of explorations for petroleum, or in operations for the recovery of petroleum as the case may be;

"inspector" means a person authorised by the Minister under sections 41, 49, 51 or 70 of the Act to enter upon land which is the subject of any title under the Act to obtain information and undertake examinations and inspections for the purposes of determining whether the requirements of the Act, these Regulations and the title are being observed;

"multiple completion well" means a well that has more than one completion;

"operation" or "petroleum operation" means any activity relating to exploration for, or the production, processing or transportation of, petroleum under the Act;

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"operator" means the person appointed by the titleholder to be responsible for the overall management and control of operations for the purposes of these Regulations;

"person-in-charge" means a person appointed by an operator or titleholder to provide on-site management and control of any specified operation in the title area;

"plant" means—

(a) any building, structure, works, machinery (whether fixed or mobile), equipment, vehicle, implement, tool or article used in, or in connection with, an operation; or

(b) any tank, vessel, pit or dump used in, or in connection with, an operation; or

(c) any pipeline or gathering line;

"procedures manual" means a manual adopted by the titleholder and operator which contains approved work practices and procedures to ensure a proper working environment;

"process vessel" means a vessel used to process fluids or solids by mechanical, fluid mechanical, chemical, thermal or other means;

"production facility" means a system (other than a short-term or temporary system) made up of plant (other than pipelines) that is used in a production, processing or transportation operation, or in an operation to treat or dispose of waste materials that result from petroleum production;

"production potential" means the capacity of a well to produce oil, gas or water, calculated

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or measured in accordance with approved procedures;

"reservoir" means any hydraulically continuous porous and permeable rock that is capable of storing fluids and yielding them to a well;

"reservoir management plan" means a plan prepared using scientific principles during the development of oil and gas reservoirs to obtain the maximum economic recovery of petroleum;

"reservoir measurements" means measurements of reservoir pressure and temperature, and measurements of the movement of fluids and fluid interfaces within a reservoir;

"reservoir pressure" means the static or stabilized pressure that exists, or that is presumed to exist, in a reservoir at a given datum;

"retrograde condensation" means the condensation of petroleum fractions in a well which occurs as a result of a pressure reduction at constant temperature;

"seismic source" means an energy source used to create shock waves in the earth so that the reflections may be recorded when investigating subsurface strata;

"shot hole" means a hole drilled for the purpose of generating a sound pulse from an explosive charge or other energy source;

"special services" include well logging, perforating, testing, cementing or portable laboratory services, power-tong services, wireline services, coiled tubing operations, acidizing, fracturing artificial lift or similar services carried out at a well location;

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"spud" means to commence drilling an oil well;

"title" means a current lease or permit;

"title area" means the area that is the subject of a title granted under the Act;

"titleholder" means the person which holds a title issued under the Act or the persons which jointly hold a title issued under the Act;

"well" means a hole in the ground that is made for the purpose of—

(a) searching for, or producing, petroleum; or

(b) underground petroleum storage; or

(c) injecting fluid into an underground petroleum reservoir; or

(d) disposing of waste fluids that result from production operations—

and includes any casing or down hole equipment used in conjunction with the well and any wellhead that is installed in or on the hole from time to time, but does not include a water bore or a seismic shot hole;

"wellhead" means the casing head and includes any casing hanger or spool, or tubing hanger, and any flow control equipment up to and including the wing valves;

"well logging" means recording one or more physical properties, formation characteristics or reservoir measurements as a function of depth of a well;

"workover of a well" or "workover operation" means maintenance work carried out on a production or injection well in order to

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improve productivity or to remedy some defect;

"worksite" means any area covered by a title where work is being done.

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PART 2—GENERAL

201. Information to be provided about an operator

(1) The titleholder must prior to the commencement of any operations nominate an operator and provide to the Minister evidence of—

(a) the technical qualifications of the operator and the operator's advisers; and

(b) the operator's ability to comply with the conditions of the title and the provisions of the Act and Regulations.

(2) The titleholder must immediately advise the Minister of any change in operator and provide the information specified in sub-regulation (1) for the new operator.

(3) A titleholder which holds a title in full or part may be nominated as the operator.

(4) If a titleholder does not nominate an operator then the titleholder will be responsible for ensuring compliance with those provisions of these Regulations which refer to an operator.

202. Certificate of competence

The titleholder must ensure that where a person carries out an activity for which that person is required to have a certificate of competence, an authorization or a qualification by a law of the State such person must have such certificate, authorization or qualification.

203. Personnel qualifications and performance

For the purposes of ensuring that any operations undertaken in the title area are carried out in a good and workmanlike manner and by safe and satisfactory methods, an inspector may require a titleholder to give any information the inspector

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reasonably considers necessary to enable him or her to determine if a person is competent to be engaged on any activity or work carried out in performance of operations in the title area.

204. Tests

The titleholder must ensure that in addition to any other requirements specified in these Regulations any test required under these Regulations is carried out in accordance with good oilfield practice.

205. General duties and responsibilities of title holders, operators and contractors

(1) Where an operator or contractor has been engaged to perform work under the title, the operator or contractor must provide, install and maintain such plant as is necessary to ensure compliance with these Regulations.

(2) The titleholder must, so far as is reasonably practicable employ or engage persons who are suitably qualified in relation to the work being performed.

(3) Any contractor must, so far as is reasonably practicable employ or engage persons who are suitably qualified in relation to the work being performed.

206. Responsibility for contractors

The provisions of these Regulations regarding employees apply to the operator's contractors and the contractors employees working in the title area as if those contractors and their employees are employees of the operator.

207. Availability of information

(1) The titleholder must take all reasonable steps to ensure that a copy of the following is readily

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available at all times to every person working in the title area for which the titleholder is responsible—

(a) these Regulations; and

(b) a copy of the Code of Environmental Practice approved under these Regulations; and

(c) the procedures manual referred to in regulation 210; and

(d) the emergency response procedures referred to in regulation 211.

(2) The titleholder must ensure that, so far as is practicable, each employee is aware of and understands the requirements of the documents specified in sub-regulation (1) including any approved amendments to them, as applicable to the employees area of responsibility.

(3) The operator must take reasonable steps to ensure that every supervisor of a worksite or of a portion of a worksite must, on changing shift, inform the next supervisor, orally or in writing, of the state of the operation, plant and equipment in the part of the worksite for which that person is immediately responsible.

208. Protection of the environment

(1) The titleholder must take reasonable steps to ensure operations are carried out in a manner that minimises any adverse impact on the environment or property.

(2) A titleholder must take reasonable steps to ensure that all operations and the activities of employees and contractors comply with the approved Code of Environmental Practice required by sub-regulation (3).

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(3) The titleholder must submit for the approval of the Minister an Environmental Code of Practice and an Environmental Report at least 6 weeks before the commencement of—

(a) geophysical or geochemical operations; or

(b) drilling operations; or

(c) the construction of a production facility.

(4) Despite sub-regulation (3) in the event of unforeseen circumstances that justify the making of a late application, the Minister may, at the titleholder's request, permit an application to be submitted less than 6 weeks before the proposed commencement of activities.

(5) The Environmental Code of Practice must contain, where relevant, procedures that are proposed—

(a) to protect wildlife, livestock, flora and sites of natural significance; and

(b) to protect all Reserves, geological monuments and environmentally sensitive areas including but not limited to land that—

(i) has a declaration in force under the Aboriginal and Torres Strait Islander Heritage Protection Act 1984; or

(ii) is an archaeological area under the Archaeological and Aboriginal Relics Preservation Act 1972 or contains relics the occurrence of which is registered under section 10(a) of that Act.

(c) to minimize disturbance of the land surface; and

(d) to clean up and rehabilitate any areas disturbed by the operation.

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(6) An Environmental Report must contain where relevant the following information—

(a) name and type of activity; and

(b) crew size and equipment to be used; and

(c) description of natural environment with particular reference to the physical and biological environments and present land use; and

(d) a list of the areas and items referred to in sub-regulation (5)(b) within or immediately adjacent to the activity area; and

(e) the area of any Crown land or internal waters involved and the name of the Minister or other person or body responsible for the management of the land under any statute in respect of the area; and

(f) details of any discussion or liaison carried out with any bodies or groups with an interest in environmental issues; and

(g) a concise evaluation of the environmental effects, and the measures proposed to avoid or minimise environmental effects; and

(h) any procedures proposed to monitor the impact on the environment; and

(i) any reference material necessary to understand the above information.

(7) In the case of ongoing operations, the Code and Report must be—

(a) reviewed by the titleholder every 3 years; and

(b) resubmitted to the Minister for approval.

(8) Despite sub-regulation (7) in the event of unforeseen circumstances that justify an

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extension, the Minister may, on the request of the titleholder, grant an extension of time not exceeding one year in which to resubmit the Code and Report as required by sub-regulation (7).

209. Powers of inspectors

(1) Where an inspector is of the opinion—

(a) that work being carried out under a title—

(i) is contravening a provision of the Act, these Regulations, the approved procedures manual or an approved Code of Environmental Practice; or

(ii) is dangerous; or

(iii) is not in accordance with good oilfield practice—

the inspector may, by a notice in writing, refer the matter to the relevant titleholder.

(2) The notice must specify a day by which the titleholder must report to an inspector on the action taken in relation to the notice.

(3) The Minister may on the advice of an inspector—

(a) by notice direct that no further work may be carried out until the matter referred to in the notice is remedied; and

(b) by further notice give directions as to the measures to be taken to remedy the matter referred to in the notice, including—

(i) that plant be repaired or replaced; and

(ii) that any part of the environment be restored or rehabilitated.

(4) When the Minister is satisfied that the matters referred to in the notice issued under sub-regulation (3) have been remedied, the Minister

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may issue a notice permitting the resumption of work.

(5) A person must not prevent an inspector from entering any area in a title area.

210. Procedures manual

The titleholder must ensure that the work is in accordance with the procedures specified in an approved Procedures Manual.

211. Emergency response procedures

(1) A titleholder must ensure that operations are not carried out on a worksite for which the titleholder is responsible unless there are approved Emergency Response Procedures which set out the procedures to be followed and actions to be taken, and identifies the persons to be responsible for following these procedures and taking these actions, in the event of an emergency arising during the operations by reason of—

(a) the escape or ignition of petroleum; or

(b) serious injury to a person; or

(c) any other emergency associated with the operations.

(2) In the event of an emergency of a kind identified in sub-regulation (1) arising, the titleholder must take reasonable steps to ensure that operations are, where applicable, carried out in accordance with the emergency response procedures referred to in sub-regulation (1).

(3) This regulation does not prevent or restrict a person taking emergency action to protect any person or property, although if emergency action is taken, the titleholder must provide a report to the Minister as soon as practical after the event.

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212. Updating of the procedures manual and emergency response procedures

(1) The titleholder must update the procedures manual and emergency response procedures as required by changed circumstances or as required by the Minister to accord with good oilfield practice.

(2) The titleholder must submit any update of the procedures manual and emergency response procedures to the Minister for approval.

213. Person-in-charge

(1) The titleholder must ensure that the name of the person-in-charge of any operation is clearly displayed on the site of that operation.

(2) The person-in-charge must ensure to the best of his or her ability that all personnel in his or her charge know and comply with all relevant Regulations and safety procedures applicable to the operations under his or her control.

214. Communications

(1) The titleholder must ensure that radio or telephone communication facilities are established at each main operational location, main tank farm, main pumping station, main compressor station and at any location where there is well drilling or well servicing operations.

(2) The titleholder must ensure that all communication equipment is maintained in good working condition.

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PART 3—TITLES AND FEES

301. Application for permit

The prescribed form of application for a petroleum exploration permit is Form 1 in Schedule 2.

302. Bond

For the purposes of section 44 and 64(6) of the Act the prescribed form of bond is Form 2 in Schedule 2.

303. Transfer of interest

The form for approval of a transfer of a titleholder's interest in a title is Form 3 in Schedule 2.

304. Prescribed fee for transfer of interest

(1) An application for consent to transfer or for devolution of title lodged by the titleholder must be accompanied by the appropriate fee set out in regulation 318.

(2) At least 2 copies of all documents lodged for consent to transfer must be included in the application.

305. Extension of permit

(1) An application for the extension of a permit must state whether the applicant desires the extension for the whole or part of the land comprised in the permit.

(2) If extension in respect of part only is applied for, such area must be defined in accordance with section 64(4) of the Act.

(3) An application under sub-regulation (1) must be lodged 30 days before the permit expires.

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306. Form of permit

A petroleum exploration permit must be in the form of Form No. 4 in Schedule 2.

307. Application for lease

An application by a titleholder for a lease made on or after the commencement of these Regulations must be in the form of Form 5 in Schedule 2.

308. Publishing of notice

(1) The applicant must as soon as practicable publish a notice that the applicant has made an application to the Minister in the form of Form 6 in Schedule 2—

(a) in the Government Gazette;

(b) in a Wednesday edition of a daily newspaper circulating generally in Victoria; and

(c) in a local newspaper, if there is a local newspaper which circulates in the locality of the area of the lease application.

(2) The applicant must as soon as practicable provide written advice to the owners and occupiers of all land within the area of the application that the applicant has made an application to the Minister in the form of Form 6 in Schedule 2.

309. Objection to grant of lease

A person desiring to object to the grant of a lease must lodge with the Minister within 30 days of the publication of the notices referred to in regulation 308, written notification stating the particulars of his or her objection.

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310. Inquiry into objection

(1) If an objection to an application is lodged, the Minister may require an inquiry to be held or give a ruling without an inquiry.

(2) If an inquiry is to be held under sub-regulation (1) the Minister, or the person appointed by the Minister to conduct the inquiry, must—

(a) as soon as practicable give the applicant and the objector at least 5 clear days notice, and hold an inquiry; and

(b) request information from the applicant and objector as to any matter connected with the application he or she may think proper; and

(c) mark for identification all documentary evidence produced, and take possession of it, or of certified copies of it; and

(d) where the inquiry is conducted by a person other than the Minister, forward to the Minister the evidence (written and documentary) with his or her observations and opinion.

311. Adjournment of inquiry

An inquiry may be adjourned from time to time by the Minister or person conducting the inquiry.

312. Hearing of parties

(1) The applicant and the objector must be given an opportunity to be heard at the inquiry or any further inquiry.

(2) The applicant and the objector may be heard at the inquiry or any further inquiry personally or by counsel or solicitor or agent.

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313. Record of absence of parties

The Minister or person conducting the inquiry must cause to be noted in the record of evidence the absence of any party and any reason offered for the absence.

314. Copy may be made of evidence

The applicant or the objector may make a copy of any evidence given before an inquiry held under these Regulations.

315. Finding of inquiry

The Minister must give written notice of the decision of the inquiry to the applicant and objector.

316. Further inquiry

The Minister may, as often as he or she considers necessary hold any further inquiry, and the provisions of regulations 310 to 315 inclusive apply to any further inquiry.

317. Form of lease

A lease granted by the Governor in Council on or after the commencement of these Regulations must be in the form of Form 7 in Schedule 2.

318. Fees

The fees payable under the Act are— Permit processing fee $3150

Application for consent to transfer permit $525 per document

Application for consent to register an amendment to the holder of a permit or lease occurring by devolution of title whether transfer occurs by operation of law or otherwise

$63

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Reg. 318 amended by S.R. No. 176/1995 reg. 4(a)–(c).

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Lease processing fee $3150

Application for consent to transfer lease $525 per document

319. Prescribed time

For the purposes of section 59(2) of the Act the prescribed time is 14 days.

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PART 4—REPORTS, RETURNS AND DATA SUBMISSION REQUIREMENTS

Division 1—General

401. Annual reports

(1) An annual report must be made available to the Minister not later than 90 days after the expiration of the period to which it relates.

(2) The annual report must include—

(a) a general discussion of permit status and operations carried out (including office studies);

(b) technical conclusions derived from the year's operations; discussion on delineated possible prospects and leads and detailed discussion on the hydrocarbon prospectivity of the permit;

(c) a list of reports submitted during the year;

(d) an outline of work plans for the next year;

(e) current and appropriately scaled interpretation maps;

(f) survey statistics;

(g) a summary of annual expenditure;

(h) any other relevant information relating to the operation as the Minister directs.

402. Reporting of death and serious injury

(1) In this regulation and regulations 403 and 404 a "serious injury" means an injury which requires immediate attention by a medical practitioner.

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(2) The titleholder must ensure that where a person dies or suffers a serious injury—

(a) a report of the death or injury is immediately made to an inspector; and

(b) a report in writing giving full particulars of the death or injury and all related circumstances is transmitted to the Minister within 5 days after the occurrence of the death or injury.

403. Written records of death and injury

(1) The titleholder must ensure that a record is kept of each death and injury, whether or not a serious injury, suffered by a person including—

(a) particulars of the death or injury; and

(b) the circumstances leading to the occurrence of the death or injury; and

(c) the treatment (if any) given to the injured person and the name of each medical practitioner (if any) consulted in relation to the injury.

(2) The titleholder must ensure that a copy of the records, referred to in sub-regulation (1), are submitted to the Minister not later than the 21st day of each month covering injuries that occurred during the previous calendar month together with such statistical analyses and injury indices as the Minister determines.

404. Reporting serious damage

(1) In this regulation and regulations 405 and 406 "serious damage to property" means—

(a) the loss or destruction of property with a value exceeding $50 000; or

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(b) damage to property, the repair of which damage would cost an amount exceeding $50 000; or

(c) the loss or destruction of any property, or any damage to property, by reason of which any person dies or suffers serious injury.

(2) The titleholder must ensure that where serious damage to property occurs—

(a) a report of each occurrence is immediately made to an inspector; and

(b) a report in writing of each occurrence is submitted to the Minister within 5 days of the incident occurring, specifying—

(i) the date, time and place of the occurrence;

(ii) particulars of the damage;

(iii) the events so far as they are known or suspected that caused or contributed to the occurrence;

(iv) particulars of repairs carried out or proposed to be carried out to damaged property;

(v) measures taken, or to be taken, to prevent a possible recurrence.

405. Reporting potentially hazardous event

The titleholder must ensure that where an event occurs which is not in the normal or ordinary course of a particular operation and which is professionally considered to be likely to cause injury to a person or serious damage to property, but such event does not cause injury or serious damage—

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(a) a report of the event is immediately made to an inspector; and

(b) a report in writing of the event is submitted to the Minister not later than the 21st day of the month following the month in which the event occurred specifying measures taken or to be taken to prevent a possible recurrence.

406. Reporting damage less than $50 000

The titleholder must ensure that where damage to property occurs which is not serious damage to property but which results in a significant loss of structural integrity or load bearing capacity in the property damaged or results in some other significant unsafe condition—

(a) a report of the damage is immediately made to an inspector; and

(b) a report in writing of the event is submitted to the Minister within 5 days of the event specifying measures taken or to be taken to prevent a possible recurrence.

407. Reporting escape or ignition of petroleum and other material

(1) The titleholder must ensure that a report is immediately made to an inspector upon the occurrence of—

(a) a spillage of hydrocarbons which in areas of inland waters is in excess of 80 litres and in other areas in excess of 500 litres; or

(b) an escape of petroleum in a gaseous form in excess of 500m3; or

(c) any uncontrolled escape or ignition of petroleum or any other flammable or combustible material causing a potentially hazardous situation.

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(2) The titleholder must ensure that a report in writing of any occurrence referred to in sub-regulation (1) is submitted to the Minister within 5 days specifying—

(a) the date, time and place of the occurrence; and

(b) the quantity or approximate quantity of liquid that escaped or burned; and

(c) particulars of damage caused by the escape or ignition; and

(d) the events so far as they are known or suspected that caused or contributed to the escape or ignition; and

(e) particulars of methods used to control the escape or ignition; and

(f) particulars of methods used or proposed to be used to repair property damaged by the escape or ignition; and

(g) measures taken, or to be taken, to prevent a possible recurrence of the escape or ignition.

408. Reporting of emergencies

Any emergency must be reported immediately to an inspector and a written report must be sent to the Minister within 5 days.

409. Reporting radiation monitoring

Where by any legislation relevant to radiation control a report is prepared in respect of the monitoring of radiation in connection with petroleum operations, a copy of that report must be sent to the Minister within 5 days.

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Division 2—Geophysical and Geochemical Activities

410. Weekly reports

(1) The titleholder must ensure that a weekly report is sent to the Minister stating progress of a geophysical or geochemical survey.

(2) When a survey has been completed, a summary stating the start and completion dates and the number of kilometres or samples acquired (including geochemical samples) must also be sent.

411. Data preservation

For the purposes of section 70 of the Act the titleholder must ensure that where a geophysical or geochemical survey has been carried out, all basic data pertinent to the survey and all original records obtained in the field as a result of the survey are properly stored and maintained so as to prevent undue deterioration.

412. Basic data submission

(1) The titleholder must ensure that when a geophysical or geochemical survey has been carried out the relevant information set out in sub-regulations (2), (3) or (4) is made available as soon as practicable, but in any event within 90 days of completion of processing of data, or not less than 90 days prior to the last day of the current term of the title, whichever period is less.

(2) Where a gravity or magnetic survey has been carried out in accordance with sub-regulation (1), there must be made available where applicable—

(a) one copy of processed magnetic tapes of both located and gridded data accompanied by an explanation of their format that enables their processing;

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(b) one stable base transparent copy of Bouguer gravity, free air gravity, total magnetic intensity and, if prepared, vertical gradient and residual contour maps;

(c) one stable base transparent copy of computer generated profile data;

(d) one copy of analog monitor records, diurnal records and altimeter records;

(e) any relevant maps or profiles which if made available under this regulation must annotate line position, line number, registration marks and processing parameters.

(3) Where a seismic survey has been carried out there must be made available—

(a) one copy of field tapes accompanied by observer's logs with an explanation of the recording format to enable their processing; and

(b) one stable base transparent copy of both a single survey and composite shotpoint location map together with one copy of magnetic tapes or other digital media of shotpoint co-ordinates and elevations; and

(c) one stable base transparent copy of final processed sections having a vertical scale of 10 cm/sec, and, if prepared, migrated sections.

(4) Where a 3 dimensional seismic survey has been carried out there must be made available where applicable—

(i) data submissions as specified in sub-regulation (3); and

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(ii) one copy of final stacked migrated tapes, in a format suitable for loading onto interactive work stations for interpretation.

(5) All records lodged must be clearly labelled with all necessary information for identification.

(6) The titleholder must ensure that where seismic reprocessing, or an analysis, study (including a geological study) or operation not covered in sub-regulation (1) is undertaken to satisfy the work commitments of the title, a written report of the activity and interpretation of the results is forwarded to the Minister as soon as possible.

(7) The titleholder must ensure that all field and stacked seismic tapes are submitted to the Minister within a period of not more than 90 days from the time of relinquishment or expiry of the petroleum title.

(8) The titleholder must ensure that where a wireline survey has been carried out the following is made available as soon as practicable, but in any event within one month of completion of processing of data, and distributed as directed by the Minister—

(i) one copy of all available digital form log data on magnetic tapes or on disk if available in an edited format that permits their processing; and

(ii) one stable base transparent copy and one paper print of each log at each scale run in the survey; and

(iii) one stable base transparent copy and one paper print of computer processed interpretation logs.

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413. Final reports on geophysical or geochemical surveys

(1) The titleholder must ensure that where a geophysical survey or geochemical survey has been completed one copy of a written report, in accordance with this regulation is sent to the Minister within 4 months after the completion of the survey.

(2) Despite sub-regulation (1) in the event of unforeseen circumstances that justify an extension, the Minister may, on the request of the titleholder, grant an extension of time not exceeding 2 months in which to submit the report.

(3) A report under this regulation must include—

(a) name and location of the survey; and

(b) dates of start and finish of the survey; and

(c) names of the contractors used to carry out the survey; and

(d) data acquisition report detailing the operations carried out; and

(e) system and equipment used in surveying; and

(f) geological or geophysical techniques and equipment used; and

(g) data processing report; and

(h) summary of the costs of the study or survey; and

(i) list of magnetic tapes with index of contents and format; and

(j) interpretations, including maps made as a result of the survey.

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Division 3—Drilling and Workover

414. Discovery of petroleum and estimate of petroleum in-place

(1) The titleholder must ensure that in addition to fulfilling the requirements of the Act with respect to a discovery of petroleum, the results of the discovery including written estimates of petroleum in-place are sent to the Minister within 3 months of the date of discovery.

(2) Despite sub-regulation (1) in the event of unforeseen circumstances that justify an extension, the Minister may, on the request of the titleholder, grant an extension of time not exceeding one month in which to submit the written estimates.

(3) The titleholder must ensure that in the month of September or such other month as the Minister may nominate in each year 2 copies of a current estimate of the amount of in-place and if possible recoverable petroleum in a petroleum pool in a title area are sent to the Minister.

(4) The titleholder must ensure that an estimate referred to in sub-regulation (3) includes—

(a) the location of the petroleum pool; and

(b) the amount of in-place and if possible, recoverable petroleum in the pool; and

(c) the data upon which the estimate is based; and

(d) is accompanied by any specific reports produced during the period.

(5) The titleholder must ensure that when a field study resulting in a revised estimate of the amount of in-place and recoverable petroleum in the pool has

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been carried out, 2 copies of a report of the study and the revised estimate are sent to the Minister.

415. Daily report of drilling or workover operations

The titleholder must ensure that each day before midday a daily report containing particulars including any particulars which the Minister may direct of drilling or workover operations for the previous 24 hours is sent to the Minister.

416. Report on modification, abandonment or suspension of well

The titleholder must ensure that a report providing details of any repair, modification, recompletion, production test, abandonment or suspension of a well is sent as soon as practicable to the Minister.

417. Final report on wells

(1) The titleholder must ensure that where a well has been plugged and abandoned, suspended or completed as a producer, one copy of a written report, in accordance with this regulation is sent to the Minister as soon as practicable but within 6 months after such completion.

(2) A report in accordance with this regulation relating to the making of a well must include, but not necessarily be limited to—

(a) the name and location of the well;

(b) the elevation of the well location;

(c) the depth of the well measured by its along hole length and the vertical depth measured by the distance below the rotary kelly bushings;

(d) the depth of the various marker horizons;

(e) the depth of the perforations in the petroleum reservoir (if any);

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(f) the dates of the start and finish of the making of well;

(g) the drilling rig used to make the well;

(h) a statement whether the well has been—

(i) completed as a producing well;

(ii) suspended as a potential producing well; or

(iii) abandoned;

(i) particulars of the results of formation-fluid sample tests and production tests (if any) carried out on the well;

(j) particulars of equipment installed in or on the well;

(k) particulars of cementing operations carried out in or on the well;

(l) particulars of locations in the well at which samples were obtained;

(m) particulars of all surveys made in the well;

(n) particulars of the casing and equipment installed in or on the well complete with schematics showing major dimensions with features of such casing and equipment;

(o) in the case of a development well that has been deviated or drilled from a central location—

(i) the surveyed path of the well;

(ii) the position of the various marker horizons;

(iii) the position of the perforations in the petroleum reservoir;

(p) particulars of the geological interpretation of the observations made as a result of drilling

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the well, which, in the case of an exploration well, must be accompanied by geological maps and sections drawn on the basis of the interpretations made;

(q) where appropriate a discussion of the relevance of the findings of the well to the evaluation of the hydrocarbon potential of the area around the well and of the basin containing it;

(r) the depths and descriptions of geological samples such as cuttings, sidewall and conventional cores;

(s) all surveys and measurements made in the well, including any detailed interpretations if made;

(t) the geological interpretation of the observations made;

(u) where available interpretations of all wireline log data;

(v) where available all fluid sample analyses;

(w) reports on cores and cuttings required by this regulation; and

(x) a summary of costs of drilling of well, subsequent tests and sampling.

418. Special studies

Where for any reason they are not included in the final well report, the titleholder must ensure that reports of technical studies on samples and cores obtained from wells (including palaeontology, permeability, porosity, fluid saturations, relative permeability, capillary pressure and fluid analysis and geochemical analysis) are sent to the Minister as soon as they become available.

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Division 5—Petroleum Production

419. Program of work

A titleholder must before 30 September, or such other date as the Minister nominates, in each year submit to the Minister a program of work proposed to be carried out in the lease area by the titleholder during the period of the next 12 months commencing on 1 January or 3 months after that nominated date.

420. Estimate of recoverable and in-place petroleum

(1) In the month of September or such other month as the Minister nominates in each year a titleholder must send to the Minister 2 copies of a return in accordance with this regulation in respect of the amount of recoverable and in-place petroleum in a petroleum pool in the lease area.

(2) The titleholder must ensure that the return referred to in sub-regulation (1)—

(a) specifies the location of the petroleum pool;

(b) specifies the estimated amount of recoverable petroleum in a commercial pool or in-place petroleum in a currently non-commercial pool; and

(c) specifies the data upon which the estimates used in the return are based; and

(d) is accompanied by any specific returns made during the previous year in connection with reservoir performance and production optimisation.

(3) The titleholder must ensure that when a field study resulting in a revised estimate of the amount of recoverable or in-place petroleum in a pool has been carried out, 2 copies of a return of that study and the revised estimate are sent to the Minister.

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421. Monthly production return

The titleholder must ensure that not later than the 21st day of each month 2 copies of a monthly production return in respect of each field in a lease area relating to the previous calendar month and containing the following information is sent to the Minister—

(a) the total quantities of—

(i) liquid and gaseous petroleum; and water produced; and

(ii) liquid and gaseous petroleum used; and

(iii) gaseous petroleum flared or vented; and

(iv) liquid and gaseous petroleum and water re-injected into subsurface reservoirs; and

(v) liquid petroleum stored at the beginning and the end of the month; and

(vi) liquid and gaseous petroleum delivered from the area; and

(vii) the cumulative quantities of liquid and gaseous petroleum, and water, produced or injected as at the end of the month; and

(b) for each well—

(i) its identification name and number; and

(ii) a summary of all work performed on each well in the lease area during the previous month; and

(iii) the result of the production test required by regulation 812, including the choke size used and the tubing and separation pressures observed during the test; and

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(iv) its status at the end of the month; and

(v) the number of days of production; and

(vi) the total estimated quantities of liquid and gaseous petroleum, and water, produced or injected during the month and the cumulative quantities of liquid and gaseous petroleum, and water produced or injected as at the end of the month.

422. Measurement relating to commingled production

(1) Where oil, gas or water from 2 or more wells is commingled before it is measured, the titleholder may apply to the Minister for approval to keep records and provide returns of combined production, provided the production from each individual well is estimated in a manner that enables, so far as may be practicable, the actual production from each well to be determined.

(2) If the Minister grants approval under sub-regulation (1) these regulations apply as if the production estimated was the amount produced from each well.

423. Underground storage return

(1) The titleholder must ensure that not later than the 21st day of each month 2 copies of a monthly return in accordance with this regulation with respect to the amount of petroleum or prescribed petroleum product injected into or recovered from an underground storage reservoir in the lease area during the previous month are sent to the Minister.

(2) A return in accordance with the Act must include—

(a) the location of the underground storage; and

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(b) the amount and composition of petroleum or prescribed petroleum product injected into the underground storage during the previous month; and

(c) the amount and composition of petroleum or prescribed petroleum product recovered from the underground storage during the previous month; and

(d) the nett total amount and composition of petroleum or prescribed petroleum product remaining in the underground storage at the end of the previous month.

424. Royalty return

The titleholder must within 10 days following 30 June and 31 December send to the Minister a return in accordance with these Regulations with respect to the gross value of petroleum products from the leased land, the associated operating costs and nett value for the preceding 6 months.

425. Production facility maintenance reports

(1) The titleholder must ensure that reports on the following are sent to the Minister as soon as practicable after they occur—

(a) mechanical damage, erosion or corrosion that could affect the safety or integrity of a production facility; and

(b) any non-routine corrosion investigation including but not limited to instrumented pigging, acoustic emission testing and pipe examinations.

(2) A report under sub-regulation (1) must include, or be followed by, a report on the repairs carried out as a result of any matter identified under sub-regulation (1).

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(3) The titleholder must ensure that where a pressure test is carried out on a section of a production facility, a report on the results of the test, and any interpretation of those results, is sent to the Minister within one month after the completion of the test.

(4) In addition to the other requirements of this regulation, the titleholder must within 2 months after the end of each year send to the Minister a report—

(a) summarising the routine corrosion and other surveys carried out on a production facility during the year; and

(b) assessing the condition of the production facility as at the end of that year.

426. Records of periodic inspections

(1) The titleholder must ensure that accurate records are maintained of periodic inspections of facility equipment and piping.

(2) The titleholder must ensure that records include the particulars of the inspections, testing or proving of—

(a) meters; and

(b) control valves.

(3) The titleholder must ensure that records of inspections for corrosion are maintained for the production facility, equipment and piping.

427. Reports on wireline surveys and sub-surface safety valves

(1) The titleholder must ensure that where a survey using wireline techniques is conducted in a well during any month, one copy of a report of the survey, together with any records made for the purpose of the survey, are submitted to the

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Minister not later than the 21st day of the next month.

(2) The titleholder must ensure that where operations involving subsurface safety valves are carried out during any month, a report of these operations is submitted to the Minister not later than the 21st day of the next month.

428. Reports on an Approved Scheme

Where approval has been given to a titleholder—

(a) to carry out enhanced recovery; or

(b) to produce from a reservoir susceptible to retrograde condensation; or

(c) to produce from an oil reservoir below the bubble point; or

(d) to carry out concurrent production—

the titleholder must send to the Minister reports on the progress of the operation at intervals of not less than 6 months.

429. Reservoir Data

(1) The titleholder must ensure that whenever reservoir measurements are carried out, the results are sent to the Minister as soon as practicable.

(2) The titleholder must ensure that all available reservoir and field data reports, the results of all laboratory analyses, and the studies and interpretation of any such data, are sent to the Minister as soon as practicable after they become available.

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PART 5—ELECTRICAL

501. Application

Regulations 502, 503 and 504 only apply on sites where electricity is not supplied by the State Electricity Commission of Victoria.

502. Wiring Rules

(1) The titleholder must ensure that subject to the requirements of any Act, all electrical wiring, earthing and installations used in petroleum exploration or production operations comply with any regulations under the State Electricity Commission Act 1958 relating to wiring.

(2) The titleholder must ensure that makeshift wiring, components or installations are not used in, or in connection with, any portable electrical equipment or cable.

503. Protection of circuits

(1) The titleholder must ensure that an electrical circuit is protected against overload and short circuit.

(2) The titleholder must ensure that a circuit above extra-low voltage is protected against the leakage of current to earth by an approved earth leakage circuit breaker.

504. Electricians and inspection of electrical equipment

(1) Unless a person is an electrical mechanic licenced under the State Electricity Commission Act 1958 that person must not—

(a) install any electrical apparatus or circuit; or

(b) carry out maintenance work on any electrical apparatus or cables (including any automatic or other protective device).

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(2) Sub-regulation (1) does not apply to apparatus carrying voltages not exceeding extra low voltage, or apparatus in, and ancillary to, wireline logging units, mud logging units and electronically equipped production control and gauging installations.

(3) The titleholder must ensure that the following tests and examinations of electrical installations are carried out by an electrical mechanic—

(a) in the case of drilling rigs, prior to spudding in each well, and then at intervals not exceeding 2 months; or

(b) in the case of temporary installations at intervals not exceeding 2 months; or

(c) in the case of permanent installations at intervals not exceeding one year.

(4) The titleholder must ensure that the results of a test or examination are recorded by the person who carried out the test or examination on the tour report or in a log book, and are countersigned by the person supervising work on the particular site.

(5) The Minister may require that other, or additional, tests or examinations for soundness of electrical equipment be carried out.

505. Earthing and lightning protection

(1) The titleholder must ensure that the structure of a permanent facility for handling flammable liquids is protected against lightning by the installation of approved equipment.

(2) The structure of a drilling rig need not be so protected against lightning if it is earthed so that the maximum resistance to earth does not exceed 10 ohms.

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506. Control of static electricity

The titleholder must ensure that approved measures are taken to prevent the ignition of flammable materials by static electricity.

507. Welding

The titleholder must ensure that electrical welding return conductors are connected directly to the equipment being welded, as well as to the earthing system of the rig or other plant.

508. Electrical shock

The titleholder must ensure that instructions on the procedure and treatment to be followed in case of electric shock are kept prominently displayed on the rig floor or in the driller's doghouse and in any generator house and at any other worksite where electricity is used.

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PART 6—GEOPHYSICAL AND GEOCHEMICAL SURVEYS

601. Method of application

(1) An application for approval to carry out a geophysical or geochemical survey must be made not less than one month before the proposed commencement of the survey.

(2) Despite sub-regulation (1), in the event of unforeseen circumstances that justify the making of a late application, the Minister may, at the titleholder's request, permit an application to be submitted less than one month before the proposed commencement of the survey.

(3) An application must include—

(a) the proposed date of commencement, the contractor, the estimated duration and cost of the survey; and

(b) a plan to an appropriate scale showing the location of the proposed survey; and

(c) in the case of a seismic, gravity or magnetic survey, details of the equipment to be used, and a plan showing the proposed survey stations and traverses, a description of operations and procedures, particularly of positioning and acquisition systems, and indicating in the case of airborne surveys, the proposed flying altitude; and

(d) any proposal to carry out a seismic operation within 300m of a mine or quarry.

602. Authorisation

(1) The titleholder must not carry out a geophysical or geochemical survey without receiving the Minister's approval and must comply with any conditions stipulated in the approval.

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(2) The titleholder must ensure that a survey does not commence unless at least 48 hours notice of the date and time of commencement are advised to the Minister or an inspector nominated by the Minister.

603. Modification of survey

The titleholder must ensure that no modification which constitutes a significant change to the area or duration of a survey previously approved, is made without prior approval of the Minister.

604. Consent of land owner

(1) Prior to the commencement of a geophysical or geochemical survey, the titleholder must obtain the permission of the landowner or person occupying the land to enter the survey area on his or her property.

(2) The titleholder must ensure that where the survey is proposed to be carried out over any Crown Lands or internal waters the permission of the Minister or other person or body responsible for the management of the land under any statute in respect of the area is obtained prior to the commencement of the survey.

605. Energy source

(1) The titleholder must ensure that explosives are not used for a seismic survey without the approval of the Minister.

(2) The titleholder must ensure that all energy sources used in a seismic survey are operated in accordance with good oilfield practice.

606. Prevention of damage to property

(1) The titleholder must take reasonable steps to ensure that significant damage to any road or track

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is not caused in the performance of any geophysical operation.

(2) The titleholder must ensure that where a geophysical survey is to be carried out in the vicinity of a building or public utility, all reasonable steps are taken to ensure that the operation does not cause any damage, or inconvenience to any person.

(3) The titleholder must ensure that a geophysical survey using a vibratory or other surface seismic source does not take place within 20m of a well, production facility, pipeline, public utility or the items or areas specified in sub-regulation 208(5).

607. Pipeline Crossed by a Seismic Line

(1) The titleholder must ensure that reasonable notice of a proposed crossing is given to the owner of the pipeline.

(2) The titleholder must ensure that the pipeline owner is given a reasonable opportunity to inspect the site and to consider the implications of the proposed crossing.

(3) The titleholder must ensure that heavy vehicles do not cross any pipeline in such a manner as may damage the pipeline.

608. Marking Seismic Lines

The titleholder must ensure that a permanent marker is set in place as near as practicable to—

(a) the intersections of survey lines; and

(b) at the intersection of a survey line and a road that has been formed or graded; and

(c) at intervals on each survey line of not more than 5 kilometres.

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PART 7—DRILLING AND WORKOVER

701. Approval to drill

(1) An application for approval for drilling under section 33A or section 70(2) of the Act must include a drilling program.

(2) The titleholder must ensure that the drilling program of a new exploration or development well, or a workover program of an existing exploration, development or producing well is submitted—

(a) in duplicate; and

(b) if the operation concerns an environmentally sensitive area, not less than 3 months before the commencement of the proposed operation; and

(c) in any other case not less than one month before the commencement of the proposed operation.

(3) The drilling program must include the following details—

(a) proposed well name and number; and

(b) location, elevation and co-ordinates of the well site; and

(c) geological prognosis of the area which includes well objectives and for exploration wells, play definition(s) (source, seal, reservoir, trap configurations) accompanied by a time or depth map of near target horizon(s) and seismic sections where possible; and

(d) programmed depth; and

(e) estimated spud date; and

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(f) estimated drilling time; and

(g) name and address of drilling contractor; and

(h) type of rig and blow-out prevention equipment, including description of equipment and method of operations; and

(i) names and addresses of other contractors involved in the operations and the nature of the services they will perform; and

(j) particulars of coring, casing, casing cementation, drilling fluid, electric (wireline) logging and mud logging; and

(k) name of person responsible for communications with the Department; and

(l) proposed well paths (if the well is to be other than vertical); and

(m) drilling procedures manual; and

(n) pollution control measures; and

(o) a current map showing—

(i) the existing land tenure including reserves and private property; and

(ii) the location of any other wells and public utilities; and

(iii) any other structure within 150 metres of the proposed well location.

(4) An approval for drilling under section 33A of the Act may be requested orally or in writing.

702. Equipment standards

The titleholder must ensure that materials and equipment used in drilling and workover operations are in accordance with good oilfield practice.

703. Location surveys

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(1) As soon as practicable after the location of a well is established, but in any event not later than 2 months after the drilling rig is released and prior to site restoration the titleholder must determine the location and elevation of the well in accordance with good oilfield practice.

(2) Despite sub-regulation (1) in the event of unforeseen circumstances that justify an extension, the Minister may, on the request of the titleholder, grant an extension of time not exceeding one month in which to complete the location survey specied in sub-regulation (1).

704. Prohibited drilling areas

If a titleholder has drilled in an unapproved area the titleholder must plug or close the well within a time specified by the Minister unless the Minister approves further drilling under section 33A or 70(2) of the Act.

705. Casing

(1) The titleholder must ensure that a well is lined with casing in accordance with good oilfield practice.

(2) The titleholder must ensure that the design, placement and cementing of casing strings is in accordance with good oilfield practice.

(3) The titleholder must ensure that casing recovered from a well is not re-used in another well unless it has first been inspected in accordance with good oilfield practice.

(4) The titleholder must ensure that conductor pipe is installed in a well to protect the well and equipment against surface formation instability and to enable the circulation of drilling fluid from the well before surface casing is installed.

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(5) The titleholder must ensure that surface casing is designed and set in accordance with good oilfield practice.

(6) The titleholder must ensure that after cementing—

(a) all casing strings, except the conductor casing string, are pressure tested to an approved pressure before drilling out of the casing shoe; and

(b) the production casing string is pressure tested to an approved pressure before proceeding with operations to complete or test the well; and

(c) the pressure test specified in paragraphs (a) and (b) is held for as long as is necessary to ascertain that there is no continuous pressure drop; and

(d) the result of the pressure test is recorded in the driller's log.

(7) The titleholder must ensure that drilling operations or operations to complete or test the well do not commence until a satisfactory result in a pressure test under sub-regulation (6) has been obtained.

(8) The titleholder must ensure that a well (other than a plugged and abandoned well) is equipped so that the pressure in each annulus may be measured.

706. Cementing of casing

(1) The titleholder must ensure that casing strings are cemented in accordance with good oilfield practice.

(2) The titleholder must ensure that details of all cementing operations are recorded in the driller's log.

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(3) If there is any reason to suspect a faulty cementing operation, the titleholder must ensure that the Minister is notified as soon as practicable.

(4) The titleholder must ensure that after the cementing of casing strings, drilling is not commenced until a time lapse of—

(a) 24 hours; or

(b) 8 hours under pressure for the surface casing string and 10 hours under pressure for all other casing strings.

(5) For the purpose of sub-regulation (4)(b) the cement is considered to be under pressure if during the time lapse referred to in that sub-regulation the cement after placing is restrained from movement by the use of float valves or other equipment approved under section 33 of the Act.

(6) The titleholder must ensure that if the cementing requirements of this regulation have not been achieved by primary cementing operations, re-cementing or remedial cementing to achieve compliance with the regulation is undertaken.

707. Blow-out prevention control

(1) The titleholder must ensure that blow-out preventers and related well control equipment are installed, operated, maintained and tested in accordance with good oilfield practice.

(2) The results of all tests conducted on the above equipment must be recorded in the driller's log.

(3) The titleholder must ensure that during operations there is a control panel located on the drill floor for operating blow-out preventers, and another located at such a distance from the drill floor as to ensure safe and ready access in time of emergency.

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(4) The titleholder must ensure that each choke manifold has the following equipment clearly visible to the choke operator when standing in the normal operating position for either the remotely or hand adjustable chokes—

(a) a pressure gauge which indicates the drill pipe pressure at the drill floor; and

(b) a pressure gauge which indicates the casing string/drill string annulus pressure at a known point upstream of the choke.

708. Pressure testing blow-out prevention equipment

(1) The titleholder must ensure that the blow-out preventer equipment is tested in accordance with good oilfield practice.

(2) The titleholder must ensure that each blow-out preventer test is recorded in the driller's log.

709. Mud monitoring system

The titleholder must ensure that a mud monitoring system with drill floor indicators is installed and used in accordance with good oilfield practice during all drilling operations after setting and cementing the conductor casing string.

710. Penetration rate recorder

The titleholder must ensure that drilling operations are not commenced or continued unless the drilling rig is equipped with a penetration rate recorder that—

(a) will give a clear indication of a change in formation; and

(b) can be used as a guide to warn against approaching areas of abnormal pressure; and

(c) is maintained in good working order and in continuous operation while drilling.

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711. Accumulators

The titleholder must ensure that accumulators are located, assembled and operated in accordance with good oilfield practice.

712. Blow-out prevention drill

(1) The titleholder must ensure that blow-out prevention drills are conducted weekly for each drilling crew to ensure that all equipment is operating and that crews are properly trained to carry out emergency duties.

(2) The titleholder must ensure that all blow-out prevention drills and response times are recorded in the driller's log.

(3) The titleholder must ensure that a notice is displayed on the rig floor providing details of the well control procedures to be followed in the event that indications of a well kick are observed and all drilling crews are trained in those procedures.

(4) The titleholder must not permit any on-site personnel holding the position of driller, or a more senior position, to continue to work in drilling operations unless they have received a certificate of proficiency in well control from a well control school in the last 24 months.

713. Formation integrity testing

The titleholder must ensure that a formation integrity test is conducted in accordance with good oilfield practice.

714. Drilling fluid

(1) The titleholder must ensure that the characteristics and use of the drilling fluid provide adequate control of any sub-surface pressures likely to be encountered in the well.

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(2) The titleholder must ensure that the well is maintained full of the drilling fluid.

(3) The titleholder must ensure that sufficient reserves of drilling fluid and supplies of drilling fluid materials are available at the well site for immediate use to comply with sub-regulations (1) and (2).

(4) The titleholder must ensure that approved tests on the drilling fluid are performed on a regular basis while drilling and the results of the tests are recorded in the driller's log.

715. Deviation surveys

The titleholder must ensure that deviation surveys are taken at intervals of between 150m and 300m to ascertain the deviation of a well from vertical.

716. Directional drilling

The titleholder must ensure that a well is not directionally drilled without the approval of the Minister.

717. Conversion of a well into a water well

If it is decided to convert a well into a water well, the titleholder must provide details of the proposed conversion to the Minister for approval as soon as practicable after the decision is made.

718. Oil or gas lost or used during repair operations

The titleholder must ensure that the quantities of all oil or gas lost by burning, venting to the atmosphere, flaring or mixing other circulating fluids in the course of any well repair, recompletion or other similar operation are reported to the Minister as soon as practicable after the relevant event.

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719. Evaluation of an occurrence of petroleum

If the Minister considers that a titleholder is not carrying out sufficient coring, logging or testing to evaluate an occurrence, or potential occurrence of petroleum, the Minister may require the titleholder to carry out such coring, logging or testing operations as the Minister thinks necessary and reasonable in the circumstances.

720. Cores, cuttings and fluid samples

The titleholder must ensure that where cuttings, cores or fluid samples are recovered in connection with the drilling of a well, these are processed and stored in accordance with good oilfield practice and to prevent undue deterioration or loss.

721. Reports on analysis of cores and cuttings

(1) The titleholder must ensure that where an investigation, analysis or study is conducted on cuttings or cores, a copy of the report of the investigation, analysis or study is made available to the Minister as soon as practicable after the completion of the investigation, analysis or study.

(2) The titleholder must ensure that palynological, palaeontological and petrological slides prepared from cuttings or cores are preserved and are lodged with the Minister when requested or in any event prior to the surrender, expiry or cancellation of the title.

722. Age dating of samples

The titleholder must take all reasonable steps to ascertain, by palaeontological, radiometric or other suitable means, the ages of all rock strata penetrated by an exploration well.

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723. Fluid samples

(1) The titleholder must ensure that all formation fluid recovered from tests or non-routine production tests are sampled in accordance with good oilfield practice.

(2) The titleholder must ensure that the samples are labelled and analysed, and liquid samples preserved.

(3) The titleholder must ensure that results obtained from the analysis of samples are provided to the Minister as soon as practicable but within 30 days of the date on which they are obtained.

724. Well evaluation logs

(1) The titleholder must ensure that before a well is cased (other than with surface or intermediate casing, or in circumstances directed by the Minister), completed or abandoned, a suite of wireline logs and/or Measurement While Drilling (MWD) logs is run and recorded.

(2) The titleholder must ensure that the suite is sufficient to at least provide a proper determination of—

(a) formation porosity; and

(b) formation fluid saturation; and

(c) stratigraphic correlation with surrounding wells; and

(d) if inadequate control exists in the vicinity of the well, velocity control.

(3) The titleholder must ensure that the following is provided to the Minister—

(a) a copy of each log run (which must be forwarded as soon as it is recorded); and

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(b) stable base transparencies of each log (which must be provided as soon as practicable after they are made); and

(c) magnetic tape or other digital log data which must be provided as soon as practicable after they become available.

725. Formation and water shut-off test

(1) A titleholder must take all reasonable steps to notify the Minister of a water shut-off test.

(2) If a test results in the discovery of a new pool of petroleum, the titleholder must notify the Minister as soon as practicable after the discovery is made.

(3) In addition to the requirements of sub-regulations (1) and (2), a titleholder must provide the Minister with—

(a) a copy of the relevant operational report; and

(b) a legible copy of the pressure recorder chart for each drill stem or other test taken at the well; and

(c) an interpretation of those tests.

726. Protection of aquifers

The titleholder must ensure that all reasonable steps are taken during an operation on a well to prevent communication between, leakage from, or the pollution of, aquifers that serve, or could serve, any useful purpose.

727. Production or drill stem tests on exploration or production wells

(1) The titleholder must not, in a title area, conduct a production or drill stem test in an exploration well or development well not yet producing, except with and in accordance with the approval of the Minister.

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(2) An application by the titleholder to the Minister for approval to conduct a production test in an exploration well or production well not yet producing in a title area must be accompanied by particulars of—

(a) the equipment proposed to be used for the test; and

(b) the proposed testing program; and

(c) the intervals in the well proposed to be tested; and

(d) the proposed duration of the test; and

(e) the maximum quantity of petroleum or water proposed to be produced; and

(f) the proposed method of disposal of the petroleum or water produced.

(3) An approved test must not be conducted unless at least 24 hours notice of intention to conduct the test has been given to an inspector.

728. Flammable vapours

The titleholder must ensure that all vessels and equipment from which flammable vapours may issue are safely vented to the atmosphere, and any significant volume of gas that is vented is burnt through a flare system.

729. Approval to abandon or suspend a well

(1) The titleholder must ensure that a well is not abandoned under section 49 of the Act or suspended under section 35 of the Act without prior approval, except as provided for in sub-regulation (5).

(2) The titleholder must ensure that subject to sub-regulation (5), while drilling operations are being

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undertaken, a well is not left in an unsafe condition.

(3) Prior to the cessation of drilling operations, even temporarily, the well must be made safe in accordance with good oilfield practice.

(4) The titleholder must ensure that subject to sub-regulation (5), where casing is being installed, if a well encounters or has encountered—

(a) hydrocarbons; or

(b) abnormally pressured water; or

(c) unstable coals or shales; or

(d) lost returns—

drilling operations are continued to the next scheduled casing point at which point the hole must be logged, cased and secured at the surface.

(5) The titleholder must ensure that in the event of an emergency or adverse weather conditions requiring cessation of drilling operations, the well must be made safe in accordance with good oilfield practice.

(6) The titleholder must ensure that an application for consent to suspend a well under section 35 or approval to abandon a well under section 49 gives particulars of—

(a) the name of the well; and

(b) the reason for abandonment or suspension; and

(c) the proposed abandonment or suspension program including the method by which the well must be made safe.

(7) The titleholder must ensure that the abandonment or suspension program referred to in sub-

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regulation (6)(c) conforms with the relevant requirements of regulation 731.

730. Well completion

(1) The titleholder must ensure that the surface and subsurface equipment of a completed well is, where applicable, arranged to permit the measurement of the pressure and temperature at the wellhead and at the bottom of the hole (closed in or flowing), and to permit any other test to be carried out to ensure good oilfield practice.

(2) The titleholder must ensure that the surface equipment is fitted with sampling connections.

(3) The titleholder must, on completion and any recompletion of a well, keep and make readily available to an inspector an accurate record of all subsurface equipment and junk in the well.

(4) The titleholder must ensure that before opening a well to production, and after every major repair, recompletion or workover, the wellhead and flow line is pressure tested.

731. Disposal of produced oil and gas

The titleholder must ensure that any oil or gas that is circulated out of or produced from a well during a drilling, testing or repair operation, and that is not flowed through the well's flowline to a gathering facility, must be disposed of in accordance with good oilfield practice.

732. Disposal of waste fluids

The titleholder must ensure that all waste materials from work on a well or produced from a well as it cleans up (whether or not contaminated with oil) are disposed of in accordance with good oilfield practice.

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733. Replacement of well site fencing

The titleholder must ensure that if fencing protecting the wellhead from outside interference is removed during an operation, the fencing is replaced immediately after the operation is completed.

734. Restoration of site

The titleholder must ensure that the well area is restored to its former condition or in accordance with any requirements of the Minister.

735. Special services

The titleholder must ensure that all special services are provided in accordance with good oilfield practice.

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PART 8—PETROLEUM PRODUCTION

801. Consent for recovery of petroleum

The titleholder must ensure that the recovery of petroleum, other than recovery of petroleum during a production test of a well, is not carried out unless in accordance with good oilfield practice and the terms and conditions of the lease granted under the Act.

802. Other operations

The titleholder must ensure that operations for—

(a) the enhanced recovery or recycling of petroleum; or

(b) the processing, storage or disposal of petroleum; or

(c) the disposal of produced formation water; or

(d) the injection of petroleum or water into an underground formation—

are not carried out unless in accordance with good oilfield practice and the terms and conditions of the lease granted under the Act.

803. Equipment to comply with good oilfield practice

The titleholder must ensure that the following equipment is designed constructed and operated in accordance with good oilfield practice—

(a) wellhead equipment; and

(b) pressure piping; and

(c) valves used in production equipment; and

(d) pipe flanges and flanged fittings used in production equipment; and

(e) pressure vessels and pressure relief devices.

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804. Construction approval

(1) Before commencing the construction of a production facility, the titleholder must submit details of its location, design and proposed standards and method of construction of the production facility and the specification and plans for emergency shutdown equipment and a fixed fire fighting facility (if any) for the approval of the Minister.

(2) The titleholder must ensure that in addition to the requirements of sub-regulation (1), if it is proposed to make significant additions or modifications to a production facility during construction, the additions or modifications are not commenced until the proposal has been submitted for the approval of the Minister.

805. Siting of production equipment

The titleholder must ensure that all permanent production equipment and process vessels are sited and spaced in accordance with good oilfield practice.

806. Progress report of construction and installation

The titleholder must ensure that there is submitted to the Minister not later than the 21st day of each month a report on progress made during the previous calendar month in the construction of facilities.

807. Initial production tests

(1) For the purposes of this regulation a reference to a recompleted oil or gas completion is a reference to a change to the completion that requires the approval of the Minister.

(2) The titleholder must ensure that a newly completed or recompleted oil completion before being brought into production, or within one

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month of being brought into production, is subject to a production test to determine, as far as practicable—

(a) representative chemical analyses of fluids, as they existed in the reservoir; and

(b) the production capacity of the well.

(3) The titleholder must ensure that a newly completed or recompleted gas completion before being brought into production and, in any case within 3 months of its completion or recompletion, is subject to a multi-rate or other appropriate production test to determine, as far as practicable—

(a) representative chemical analyses of fluids, as they existed in the reservoir; and

(b) the production capacity of the well.

(4) The titleholder must ensure that unless reliable test data are in existence, where a completion is to be subjected to a major stimulation procedure (such as fracturing or acidizing), a test is carried out not more than 6 months before the stimulation and then, if warranted, a further test is carried out not more than 3 months after the completion of the stimulation.

(5) The titleholder must ensure that a test under sub-regulation (3) is appropriate to determine, as far as practicable—

(a) any changes in the fluid flowing from the completion as a result of the stimulation; and

(b) any changes in the producing capacity of the completion as a result of the stimulation; and

(c) any changes in formation characteristics as a result of the stimulation.

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(6) The titleholder must ensure that to such extent as the equipment installed in or on a well may permit, where a test is carried out under sub-regulation (2), (3) or (4), the shut-in and flowing bottom hole pressures are measured.

(7) The titleholder must notify the Minister of a proposal to carry out a production test on a newly discovered reservoir as soon as a decision is made as to when the test will be carried out.

(8) The titleholder must ensure that a detailed report on the results of a production test is provided to the Minister within 3 months after the completion of the test although the results of a test prior to a major stimulation may be combined with the results of the test after the stimulation.

(9) The titleholder must ensure that where an extended production test is approved a monthly report detailing pressure information, quantities of fluids produced and sales of gas or hydrocarbon liquids is submitted to the Minister prior to the 21st day of the next month.

808. Reservoir Management Plan

(1) The titleholder must ensure that subject to sub-regulation (2) a completion is not brought into production other than for initial production testing under regulation 807 until a reservoir management plan has been approved and the potential for enhanced recovery or retrograde condensation has been assessed in accordance with these Regulations.

(2) The titleholder must ensure that where, on the commencement of these Regulations, a reservoir is already in production, a reservoir management plan for that reservoir is prepared and submitted for approval within one year after the commencement of these Regulations.

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(3) The titleholder must ensure that if it is not practicable to comply with sub-regulations (1) and (2) a program of work to carry out such an evaluation during the course of production is submitted for approval.

(4) The Minister may—

(a) approve variations to a reservoir management plan; and

(b) require that a reservoir management plan be revised to ensure the plan is consistent with good oilfield practice.

(5) A titleholder must comply with an approved reservoir management plan.

809. Evaluation of potential for retrograde condensation

(1) Before production from a gas reservoir is commenced, the titleholder must, if practicable carry out sampling and evaluate the possibility of retrograde condensation occurring in the reservoir.

(2) The titleholder must ensure that if it is not practicable to comply with sub-regulation (1) before production is commenced a program of work to carry out such an evaluation during the course of production is submitted for approval before production is commenced.

(3) The titleholder must ensure that where, on the commencement of these Regulations, a reservoir is already in production, an evaluation of the potential for, or the documentation of the historical lack of evidence of, retrograde condensation is carried out and submitted to the Minister within one year after the commencement of these Regulations.

(4) The titleholder must ensure that where, as a result of an evaluation under this regulation, there appears to be the possibility of retrograde

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condensation occurring in a reservoir, a full pressure-volume-temperature study is carried out and the results of that study are submitted to the Minister as soon as practicable.

810. Rate of recovery of petroleum

(1) The titleholder must ensure that for a fully developed reservoir, the annual rate of recovery of petroleum from that reservoir is approved.

(2) The application made by the titleholder under sub-regulation (1) for approval of the rate of recovery of petroleum from a fully developed reservoir must include—

(a) the proposed rate of recovery; and

(b) past performance of wells and the reservoir;

(c) a prediction of future performance of the reservoir; and

(d) an estimate of ultimate recovery from the reservoir.

(3) The titleholder must ensure that for a reservoir under development, a review of the reservoir description, production policy and current reservoir performance is submitted at the request of the Minister to demonstrate that it is being developed in a manner consistent with sound reservoir management practices and compatible with optimum long-term recovery.

811. Monitors and control mechanisms

The titleholder must ensure that approved monitors and control mechanisms are used to control the rate of recovery of petroleum or water from a well.

812. Production tests on producing wells

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The titleholder must ensure that unless the rate of recovery of petroleum from the well is monitored continuously a production test to estimate the rate of recovery of petroleum from the well, is carried out on each producing well at a frequency in accordance with good oilfield practice.

813. Gas reservoir and well performance monitoring

(1) The titleholder must ensure that—

(a) bottom hole pressure build-up surveys are conducted on each gas completion at intervals of production not exceeding 10% of the currently estimated original recoverable reserves of the reservoir, in accordance with a program approved by the Minister; and

(b) each producing gas completion is tested, at intervals not exceeding 4 years, to determine changes in the flow characteristics of the well; and

(c) full well stream gas analysis is determined in conjunction with each test carried out under paragraph (b), and at such other times as the Minister may direct under section 47 of the Act; and

(d) each gas completion that is capable of production is tested to determine water production in an approved manner and in accordance with a time table supplied to the Minister, at intervals not exceeding 6 months.

(2) Despite sub-regulation (1) the Minister may, on application from the titleholder, approve the monitoring of gas reservoir and well performance using alternative methods to that required by sub-regulation (1) provided the Minister is satisfied

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that the alternative methods will not lead to undue waste of petroleum.

(3) Despite sub-regulation (1) in the event of unforeseen circumstances that justify an extension, the Minister may, on the request of the titleholder, grant an extension of time not exceeding 2 years in which to complete the test required by sub-regulation (1).

(4) The titleholder must ensure that a properly calibrated subsurface pressure gauge is used to test a gas completion under sub-regulation (1)(a) and (b).

(5) The titleholder must ensure that while a gas completion is being cleaned up or tested, the amount of gas flared is kept to a minimum in accordance with good oilfield practice.

(6) The titleholder must ensure that the results of a test carried out under sub-regulation (1)(d) are provided to the Minister within one month after the end of the month in which the test is carried out.

(7) The titleholder must ensure that if a test under sub-regulation (1)(d) indicates the production of formation water that had not been previously identified—

(a) a full separator test is carried out; and

(b) if the Minister so requires, a chemical analysis of the produced water is carried out; and

(c) further separator tests are then carried out at approved intervals.

814. Oil reservoir pressure build-up surveys

The titleholder must ensure that bottom hole pressure build-up surveys are conducted, where

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downhole equipment permits, on each well completed in a pool from which oil is being produced, at intervals not greater than—

(a) one year; or

(b) the time required to produce 10% of the currently estimated original recoverable reserves of the reservoir—

whichever is greater, in accordance with a program consistent with good oilfield practice.

815. Production measurement

(1) The titleholder must ensure that facilities are in place by the commencement of production to permit the measurement of the quantity of any oil, gas or water that flows from each completion.

(2) The titleholder must ensure that where commingling of production from separate completions occurs prior to measurement, the production of oil, gas and water from each completion is determined by testing at intervals in accordance with good oilfield practice.

(3) The titleholder must ensure that petroleum is not flared, vented, disposed of, or used in recovery operations unless equipment and procedures are used in accordance with good oilfield practice which enable both the quantity and composition of such petroleum to be determined.

(4) The titleholder must ensure that water is not recovered from a petroleum reservoir and disposed of unless equipment and procedures are used in accordance with good oilfield practice that enables both the quantity and composition of the water to be determined.

(5) The equipment and procedures used to determine the quantity and composition of petroleum and

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water as specified in sub-regulations (3) and (4) must be approved.

(6) The titleholder must ensure that any metering device used on or in an oil or gas well, gathering system, production facility or pumping station conforms with good oilfield practice.

(7) The titleholder must ensure that a meter or other device used to measure the production of oil, gas or water is proved and certified as to its accuracy in a manner and at a frequency consistent with good oilfield practice.

816. Measurement of production to determine royalties

(1) The Minister may, for the purposes of the royalty payable in relation to an operation, select and seal a valve or meter installed at a well or production facility, or on a pipeline, tank or other receptacle that is used for the storage or transportation of oil, gas or other fluids produced from a well.

(2) Except in an emergency, a seal fixed under sub-regulation (1) must not be tampered with or removed by a person without the written permission of the Minister.

817. Concurrent production

If the Minister gives written notice to the titleholder that in the Minister's opinion a reservoir is, or could be, commercially productive of oil the titleholder must ensure that a completion is not produced as a gas completion except in accordance with a scheme for the concurrent production of gas and oil from the reservoir which is not detrimental to the ultimate recovery of hydrocarbons from the reservoir.

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818. Pressure below bubble point

(1) The titleholder must ensure that an oil completion is not produced so that the bottom hole pressure is below the bubble point pressure.

(2) Despite sub-regulation (1) the Minister may, on application from the titleholder, approve production of an oil completion using an alternative method to that required by sub-regulation (1) provided the Minister is satisfied that the alternative method will not lead to undue waste of petroleum.

819. Surface connections

The titleholder must ensure that each well from which petroleum is recovered is provided with such surface connections and equipment as are necessary to prevent the injection of petroleum or water into the well from another well or from production equipment.

820. Production from more than one reservoir from one well

The titleholder must ensure that petroleum is not recovered simultaneously from more than one reservoir in a well unless provision is made to maintain separation of petroleum and water recovered from each reservoir until the petroleum and water pass a point where the quantity and composition of petroleum and water from each reservoir is determined in accordance with regulation 815.

821. Production from more than one reservoir from more than one well

The titleholder must ensure that petroleum recovered from different reservoirs and from more than one well is not commingled until the petroleum and water pass a point where the

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quantity and composition of petroleum and water from each well and from each reservoir in which these wells are completed are determined in accordance with regulation 815.

822. Segregation of zones

(1) A titleholder must, in relation to each multiple completion well, demonstrate to the Minister that segregation between the completions has been achieved and maintained—

(a) after the initial well completion; and

(b) after any change of subsurface equipment; and

(c) after any other operation that may disturb, or exert abnormal differential pressures on, subsurface equipment; and

(d) at least once in a year.

(2) A titleholder must, within one month after completing a test carried out to meet the requirements of sub-regulation (1), provide the Minister with a report of the test which includes all relevant data obtained from the test, and an analysis and interpretation of the results of the test to prove or confirm segregation.

(3) The titleholder must ensure that if a test carried out to meet the requirements of this Regulation or the production characteristics of a well indicate that segregation between the completions is ineffective, the Minister must be immediately informed.

(4) The titleholder must ensure that all reasonable steps are promptly taken to re-establish segregation and, if those steps are not successful, the Minister may order that one or more of the completions be sealed off.

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(5) If a titleholder fails to demonstrate to the Minister in accordance with this regulation that segregation between completions has been achieved, the Minister may require that the well be shut-in.

(6) A titleholder must give the Minister at least 3 days notice of an intention to carry out a test for the purpose of this regulation.

823. Prevention of cross flow

If a completion is shut-in for an extended period (other than in an emergency), the titleholder must ensure that the completion is left in a condition that will prevent deleterious cross flow between zones.

824. Evaluation of the potential of an oil reservoir to respond to enhanced recovery

(1) Before production from an oil reservoir is commenced, the titleholder must carry out an evaluation of the potential of the reservoir to respond to enhanced recovery processes, and of the desirability of such processes.

(2) The titleholder must ensure that if it is not practicable to comply with sub-regulation (1) before production is commenced, a program of work to carry out such an evaluation during the course of production is submitted for approval before production is commenced.

(3) The titleholder must ensure that where, on the commencement of these Regulations, a reservoir is already in production, an evaluation of the potential of the reservoir to respond to enhanced recovery processes is carried out and the results of the evaluation submitted to the Minister within one year after the commencement of these Regulations.

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(4) Despite sub-regulation (3) in the event of unforeseen circumstances that justify an extension, the Minister may, on the request of the titleholder, grant an extension of time not exceeding 4 months in which to submit the results required by sub-regulation (3).

(5) The titleholder must ensure that the result of each evaluation carried out under these Regulations is submitted to the Minister as soon as practicable.

825. Waste or contamination

(1) Where there is a reasonable possibility that—

(a) oil, gas or water is being wasted; or

(b) oil, gas or water is being contaminated—

the Minister may require the titleholder to carry out specified tests to determine if waste or contamination is occurring.

(2) A titleholder must carry out the tests required under sub-regulation (1) within the time directed by the Minister and if, as a result of those tests, it is established that waste or contamination is occurring, the titleholder must take such steps as may be necessary to remedy or prevent the waste or contamination.

(3) If steps must be taken under sub-regulation (2), the Minister may then require the titleholder to carry out further tests to determine the effectiveness of those steps in remedying or preventing the waste or contamination if the Minister considers that the tests required by sub-regulation (2) have been insufficient or ineffective.

(4) The titleholder must ensure that the results of any test carried out under this regulation are provided to the Minister as soon as practicable.

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826. Waste liquid

The titleholder must ensure that all formation water, and other waste fluids produced from a well, are disposed of in accordance with good oilfield practice, and in no case is the disposal of formation water, drilling fluid, waste petroleum or refuse from tanks or wells allowed to constitute a risk to public health or safety, or to contaminate water or land not specifically designated for waste disposal.

827. Disposition of gas

(1) The titleholder must ensure that subject to these Regulations, gas under the titleholder's control in the title area is not used or produced for any purpose other than—

(a) for the recovery of petroleum from naturally occurring reservoirs; or

(b) as a fuel, once details have been provided to the Minister, that the proposed use or consumption is not wasteful.

(2) In any case to which sub-regulation (1) applies, the Minister may, by written notice, require the titleholder to take specified measures to minimise the waste of gas.

(3) A person to whom a notice under sub-regulation (2) relates must comply with the notice.

828. Approval to vent or flare

The titleholder must ensure that except in an emergency the flaring or venting of petroleum is not carried out without approval.

829. Control of quality of discharge water

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(1) The titleholder must provide details to the Minister of the means by which the quality of water discharged will be controlled to ensure compliance with the Environment Protection Act 1970.

(2) The titleholder must ensure that a record is maintained of the quality of water discharged.

830. Subsurface safety devices

The Minister may require the titleholder to ensure that a well that is capable of producing petroleum by natural flow is equipped with an approved subsurface safety device, which—

(a) is designed so that it automatically closes off the flow of petroleum or water from the well if the wellhead or production equipment is damaged in such a way that would allow the escape of petroleum or water from the well; and

(b) is located in an approved position; and

(c) is operated and tested at intervals specified by the Minister being not less than once every 3 months and not more than 6 months; and

(d) where a test indicates that it may not operate correctly, is repaired or replaced immediately.

831. Workover of wells

(1) The titleholder, in order to operate the title area with due diligence, must ensure that a well is not worked over without prior approval.

(2) An application for approval to work over a well must include particulars of—

(a) the zone in the well proposed to be abandoned (if any); and

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(b) the zone in the well proposed to be developed (if any); and

(c) proposed modification and changes of the equipment in the well; and

(d) proposed changes (if any) in the wellhead and production equipment; and

(e) procedures proposed to be used.

(3) The titleholder must ensure that where a well is to be worked over for gas lift operations, an approved pressure test, that will prove the integrity of the well production casing, tubing and associated equipment is carried out within 12 months prior to the commencement of gas lift operations.

(4) Despite sub-regulation (3) in the event of unforeseen circumstances that justify doing so, the Minister may, on the request of the titleholder, permit the test required by sub-regulation (3) to be carried out not more than 15 months before the workover of the well.

832. Wireline operations in wells

The titleholder must ensure that except in an emergency, notice is given of an intention to conduct a non-routine wireline operation in a well or to move an item of subsurface equipment in a well.

833. Sampling petroleum streams

The titleholder must ensure that notice is given to the Minister of an intention to sample a petroleum stream for royalty purposes.

834. Meter proving

The titleholder must ensure that notice is given to the Minister of an intention to prove a petroleum meter for royalty purposes.

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835. Protection of completed wells

(1) The titleholder must ensure that reasonable steps are taken to protect a completed well and a notice warning persons of the danger that exists in relation to the well is kept on display in the vicinity of the well.

(2) The titleholder must cause to be inspected a well that has not been plugged and abandoned at intervals not exceeding 6 months.

(3) The titleholder must ensure that on an inspection under sub-regulation (2)—

(a) all annulus pressures are measured; and

(b) any evidence of communication is evaluated; and

(c) the extent of any necessary repairs or maintenance is determined.

(4) A titleholder must, within one month of an inspection of a well, provide the Minister with a report on the wells visited, and the work carried out on those wells.

836. Plugging of wells

Unless excused by the Minister under section 49(1) of the Act the titleholder must ensure that within one year of completion of production activities and prior to the surrender of a production lease, all wells are plugged and abandoned in accordance with these Regulations and the Act.

837. Application for consent for gathering lines

An application to the Minister for consent under section 30 of the Act must include—

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(a) design specifications and construction, testing, operating and maintenance procedures; and

(b) the anticipated dates for commencement and completion of construction; and

(c) a brief description of the route of the pipeline including a map of the pipeline route drawn to a scale of not less than 1:25 000.

838. Underground storage of petroleum

An application for a lease for the underground storage of petroleum or a prescribed petroleum product must include—

(a) the location of all wells previously drilled in the area covered by the application; and

(b) details of the depths of the wells and their casing and cementing programs and their plugging and abandonment programs; and

(c) subsurface formation contour maps and geological cross sections of the area; and

(d) proposals for the further structural exploration and testing of the area for ascertaining the location and suitability of any structures and formations for the underground storage of petroleum.

839. Removal of facilities

(1) The titleholder must ensure that within 2 years of completion of production activities or prior to the surrender of a production lease, every production facility is dismantled and removed or abandoned in accordance with good oilfield practice.

(2) Despite sub-regulation (1) in the event of unforeseen circumstances that justify an extension, the Minister may, on the request of the titleholder, grant an extension of time not

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exceeding 6 months in which to complete the work required by sub-regulation (1).

840. Restoration of lands

The titleholder must ensure that within 2 years of the completion of production activities or prior to the surrender of a production lease, the land surrounding or affected by production facilities and wells is restored as far as practicable to its original condition.

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PART 9—TRANSITIONAL PROVISIONS

901. Continuity of title

A title issued in accordance with the revoked Regulations continues in force as if it were a title issued in accordance with these Regulations.

902. Continuity of title conditions

If a provision of the Act applies to operations under a title issued before the commencement of these Regulations, any of these Regulations applying for the purposes of that provision apply to operations under the title carried out on or after the commencement of these Regulations.

903. Continuity of application

An application for a grant or extension or renewal of a title made—

(a) under the Act in accordance with the revoked Regulations; and

(b) before the commencement of these Regulations and not determined at that commencement—

has effect as if it were an application made in accordance with these Regulations.

904. Continuity of consent or approval

A consent or approval in respect of a matter given by the Minister in accordance with the revoked Regulations has effect as if it were a consent or approval in respect of the corresponding matter given in accordance with these Regulations.

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SCHEDULES

SCHEDULE 1

Title S.R. No. Petroleum Regulations 1979 130/79 Petroleum (Fees) Regulations 1981 299/81 Petroleum (Fees) Regulations 1983 218/83 Petroleum (Fees) Regulations 1985 117/85 Petroleum (Fees) Regulations 1986 247/86 Petroleum (Fees) Regulations 1987 403/87 Petroleum (Fees) Regulations 1988 511/88 Petroleum (Fees) Regulations 1989 321/89 Petroleum (Fees) Regulations 1990 374/90 Petroleum (Fees) Regulations 1991 319/91

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SCHEDULE 2

Form 1

Petroleum Act 1958

Form 1

PETROLEUM REGULATIONS 1992

Regulation 301

APPLICATION FOR PETROLEUM EXPLORATION PERMIT

To—The Minister administering the Petroleum Act 1958:

I/We apply for a permit in respect of certain land described below and shown on the attached plan.

Name (in full), address and occupation of each applicant.

Area (Maximum 12 500 sq km)

Full description and precise locality of the land. (Plan showing area applied for must accompany each application).

Brief particulars of applicant's previous experience in oil prospecting or oilfield development work.

Names and qualifications of technical experts or advisers.

Amount of capital—

(a) at present available

(b) which applicant can make available and the source

Details of the applicant's proposals for the exploration of the area for petroleum. Note: If insufficient space include details on separate sheet.

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Signature of each applicant

....................................................... ACN or ARBN .............................1.

....................................................... ACN or ARBN .............................1.

....................................................... ACN or ARBN .............................1. Date / /

NOTE: 1 Australian Companies Number (ACN) or Australian Registered Body Number (ARBN) must be quoted by all parties.

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Form 2

Petroleum Act 1958

Form 2 PETROLEUM REGULATIONS 1992

Regulation 302 BOND IN RESPECT OF PETROLEUM EXPLORATION

PERMIT/PETROLEUM LEASE

We .................................................................................................................... of.................................................................................................................. in consideration of the grant to us by the Minister administering the Petroleum Act 1958 of Petroleum Exploration Permit No. 1/Petroleum Lease No. 1.......... and of any extension thereof are bound to the Minister in the security to the sum of .............................. lodged with this bond on the condition that we comply with the conditions of the permit and the provisions of the Act and the Regulations and of any instrument given under the Act, provided that, after the termination of the permit, if the Minister is satisfied that all such requirements have been fulfilled, then this obligation is discharged.

(To be signed under seal by the permittee).

NOTE: 1Cross out where not applicable.

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Form 3

Petroleum Act 1958


Regulation 303 TRANSFER OF PETROLEUM EXPLORATION PERMIT1/PETROLEUM

LEASE1

In consideration of ...............................................................................I transfer to ............................................................................................... of............................................................................all my right, title and interest in and to Petroleum Exploration Permit1/Petroleum Lease1 No........................

Dated: ...............................

Signed ...............................

ACN or ARBN ................. 2 Witness .............................

I accept the transfer

Signed ...............................

ACN or ARBN ................. 2 Witness .............................

NOTES: 1Cross out where not applicable 2Australian Companies Number (ACN) or Australian Registered Body Number (ARBN) must be quoted by all parties to the transfer.

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Form 4

Petroleum Act 1958


Regulation 306 PETROLEUM EXPLORATION PERMIT

Pursuant to the provisions of the Petroleum Act 1958, I ................................ Minister administering the Petroleum Act 1958 for the State of Victoria, grant to..................................................................... of ................................................................................................................ a permit to explore for petroleum upon and under the area described below, subject to the Petroleum Act 1958, to the Regulations made and directions given under that Act and to the terms and conditions set out below, to have effect for a period of 4 years from ................................................................

DESCRIPTION OF AREA:

TERMS AND CONDITIONS:

Dated:...................................................

MINISTER

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Form 5

Petroleum Act 1958


Regulation 307 APPLICATION FOR PETROLEUM LEASE

To—The Minister administering the Petroleum Act 1958:

I/We apply for a lease in respect of certain land described below and shown on the attached plan.

Name (in full), address and occupation of each applicant.

Area (Maximum 250 sq km)

Full description and precise locality of the land. (Plan showing area applied for must accompany each application).

Brief particulars of applicant's previous experience in petroleum drilling and production work.

Details of the applicants proposal for the exploitation of petroleum from the area.

Names and qualifications of technical experts or advisers.

Amount of capital—

(a) at present available

(b) which applicant can make available and the source

Signature of each applicant

....................................................... ACN or ARBN .............................1.

....................................................... ACN or ARBN .............................1.

....................................................... ACN or ARBN .............................1. Date / /

NOTE: 1Australian Companies Number (ACN) or Australian Registered Body Number (ARBN) must be quoted by all parties.

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Form 6

Petroleum Act 1958


Regulation 308 NOTICE OF APPLICATION FOR PETROLEUM LEASE

I/We have applied to the Minister administering the Petroleum Act 1958 for a Petroleum Lease the particulars of which are set out below.

Name of each applicant Address of each applicant Area of proposed lease

Full description and precise locality of land

Plan of proposed lease area showing main roads, rivers, creeks, Crown lands and property boundaries

Nature of proposed lease— indicate whether for petroleum production, underground storage, etc.

Estimated term of lease

Name of applicant ..................1 ACN or ARBN ......................2

Date / /

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Form 7

Petroleum Act 1958


PETROLEUM LEASE

1. Parties to lease

This lease is made on (insert date) between:

(a) the Governor in Council for and on behalf of the State of Victoria ("the lessor")

and

(b) .................(insert name and address) in the State of Victoria ("the lessee")

2. Consideration for lease

In consideration of the rents and royalties payable by the lessee under the Petroleum Act 1958 ("the Act") and subject to the provisions of the Act, the Regulations and directions made under the Act and the terms and conditions contained in this lease, the lessor grants a lease of the land described on the plan in the Schedule to this lease to the lessee.

3. Terms and conditions of the lease

3.1 The lease is for ............. years from the date of signing.

3.2 Subject to the terms and conditions set out below, in the Act or in the Regulations and directions under the Act, the lessee has the exclusive right to—

(a) drill for, mine, extract, remove and dispose of all petroleum in or under the leased land; and

(b) inject and store petroleum or a prescribed petroleum product in a natural reservoir in or under the leased land and to remove the same from the reservoir; and

(c) construct, maintain and operate on the leased land all works, buildings, plant, waterways, roads, pipelines, reservoirs, tanks, pumping stations and other structures if they are, or are of a class approved in writing by the Minister and if they are necessary for the lessee to exercise its exclusive rights under the lease.

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3.3 This lease is subject to a reservation of power to authorise mining on the leased land under the Mineral Resources Development Act 1990.

3.4 The lessee agrees to comply with the following conditions and covenants—

(a) the conditions and covenants prescribed by Regulations made under the Act;

(b) to pay royalty upon petroleum produced or obtained from the land (other than petroleum, not being a prescribed petroleum product, in respect of which the Minister is satisfied that a royalty has already been paid upon the crude petroleum from which that product was derived) at the rate of and in accordance with the proper scale prescribed by the Act;

(c) to work the land in accordance with the Regulations made under the Act and to the satisfaction of the Minister, unless the lessee is exempted from performance of this covenant in accordance with the Regulations;

(d) to refine, in Victoria or in some other part of Australia, approved of for that purpose by the Minister, all crude petroleum produced or obtained from the land or injected into and stored in a natural reservoir on the land and recovered from it;

(e) if the lessee is authorised by this lease to inject petroleum or a prescribed petroleum product into and to store it in and recover it from a natural reservoir on the land-to do all acts and things as are prescribed by the Regulations made under the Act or by that Act or as the Minister may from time to time direct in writing to be done in relation to the injection, storage or recovery of the petroleum or prescribed petroleum product;

(f) not to ship or export any crude petroleum produced or obtained from the land or injected into and stored in a natural reservoir on the land and recovered from it to any place out of Australia without the consent of the Minister;

(g) to pay rent of the amount, in the manner and at the times provided for in the Act or the Regulations;

(h) to use the land continuously and bona fide exclusively for the purposes for which it is leased and in accordance with the Act and the Regulations;

(i) not to assign or let or part with the possession of the land or any part of it without the previous consent in writing of the Minister; and

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(j) to comply with the Act and the Regulations.

3.5 This lease is also subject to the following additional terms and conditions:

[Insert any additional terms and conditions]

4. Termination of lease

4.1 If the lessee breaches any covenant, term or condition of this lease, the lease is forfeit.

4.2 The lessee may surrender or terminate the lease in accordance with the Act with the consent in writing of the lessor.

NOTE: Sections 38 and 39 of the Act also apply to this lease. They contain extra conditions relating to the transfer and termination of it.

Schedule: Plan of leased land

Given under my hand and the seal of Victoria on

Governor

By His Excellency's Command

Clerk of the Executive Council

Minister

Signed sealed and delivered

by..........................(the lessee) in the presence of...................

═══════════════

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NOTES

1. General Information The Petroleum Regulations 1992, S.R. No. 120/1992, were made on 23 June 1992 by the Governor in Council under sections 28, 29, 30, 32, 33, 33A, 34, 41, 44, 45, 47, 48, 49, 51, 52, 56, 59, 64, 67, 70, 75, 76, 79 and 82 of the Petroleum Act 1958, No. 6334/1958 and came into operation on 1 July 1992: reg. 102.

The Petroleum Regulations 1992 will sunset 10 years after the day of making on 23 June 2002 (see section 5 of the Subordinate Legislation Act 1994).

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2. Table of Amendments This Version incorporates amendments made to the Petroleum Regulations 1992 by statutory rules, subordinate instruments and Acts.

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

Petroleum (Fees) Regulations 1995, S.R. No. 176/1995 Date of Making: 19.12.95 Date of Commencement: 1.1.96: reg. 3

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

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3. Explanatory Details No entries at date of publication.

Notes

Documents

Version No. 011 Petroleum Regulations 1992 · Version No. 011 Petroleum Regulations 1992 ... Surface connections 72 820. Production from more than one reservoir from one well