www.ir.gov.sk.ca

Saskatchewan Industry and Resources Regulatory Update

SPILL CO-OP

Petroleum Development Branch

September 19, 2007

www.ir.gov.sk.ca

Oil31%

H2O31%

Em ulsion34%

CH41%

Condensate0%

Chem icals2%

Others1%

• Total number of spills: 876– Reportable spills: 686– Non-reportable spills: 190

• Breakdown of number of spills by substances:– Crude oil: 272– Salt water: 269– Emulsions: 298– Natural Gas: 13– Condensate: 1– Refined Chemicals: 15– Others: 8

• Data as of December 31, 2006. This information is subject to update.

2006 Spill Statistics

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% Recovered

5565

99

11

0

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30

40

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70

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90

100

Oil Water Condensate Chemical

• Breakdown by volume of total spilled fluid:– Crude oil: 4,664 m3

– Salt water: 12,142 m3

– Condensate: 5.7 m3

– Refined Chemicals: 55 m3

• Recovered volume:– Crude oil: 2552 m3

– Salt water: 7872 m3

– Condensate: 5.6 m3

– Refined Chemicals: 6.1 m3

2006 Spill Statistics

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Facilities: 207• Equip Failure: 118

• Human Error: 36

• Corrosion: 31

• Lightening: 4

• Fire: 6

• Miscellaneous: 11

• Cattle: 1

Wells: 359• Equip Failure: 173• Human Error: 129• Corrosion: 30• Blowout: 5• Vandalism: 4• Fire: 2• Lightening: 1• Miscellaneous: 13• Cattle: 2

Pipelines/Flowlines: 222• Mech. Failure: 64• Human Error: 8• Corrosion: 120• Miscellaneous: 8

Transportation Vehicle Related Spills and Misc.: 88

Causes Of Spill 2006

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OPERATED WELLS VS SPILLS

0

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35000

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45000

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1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

YEAR

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TOTAL OPERATED WELLS

SPILL COUNT

Annual Spill Numbers Please note 2006 spill numbers are estimates

and has not been yet finalized.

www.ir.gov.sk.ca

23 24

39

99

0

10

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# of Spills

FACILITY LINE MISC WELL

Spill Source

Area 1 Spill Stat 2007

A total of 185 spills has been reported from Area 1 as of September 2007.

www.ir.gov.sk.ca

21

31

11

42

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35

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45

# of Spills

FACILITY LINE MISC WELL

Spill Source

Area 2 Spill Stat 2007

A total of 105 spills has been reported from Area 2 as of September 2007.

www.ir.gov.sk.ca

11

36

6

19

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35

40

# of Spills

FACILITY LINE MISC WELL

Spill Source

Area 3 Spill Stat 2007

A total of 72 spills has been reported from Area 3 as of September 2007.

www.ir.gov.sk.ca

0

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60

# of Spills

FACILITY LINE MISC WELL

Spill Source

Area 4 Spill Stat 2007

A total of 135 spills has been reported from Area 4 as of September 2007.

www.ir.gov.sk.ca

• The Oil and Gas Conservation Amendment Act, 2007 receives Royal Assent on March 21, 2007.

• The Oil and Gas Conservation Amendment Regulations, 2007 passed on June 19, 2007.

• The amendments supports changes to the spill management program.

Legislation and Regulations

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New Spill Management Regulations

• Reportable “spill materials” list is being expanded to include::– crude oil– salt water– condensate– natural gas liquids– refined chemicals spilled at a SIR licensed site– sour gas– any combination of the above materials

www.ir.gov.sk.ca

Immediate Reporting

• Report immediately when: – A fire; – A blow out;– Any volume of salt water, crude oil or condensate

released outside the lease boundary (includes release during transportation);

– Break, contact damage or leak from a pipeline or flowline, except where notification is made pursuant to The Pipelines Regulations, 2000;

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– On lease spills exceeding the following volumes (includes spills contained within a dyke):

• Salt water equal to or greater than (≥) 2.0 m3

• Crude oil spill ≥ 2.0 m3

• Condensate spill ≥ 2.0 m3

• Refined chemical spill ≥ 0.5 m3

• Sour gas ≥ 1000ppm (measured at the edge of the lease boundary)

Immediate Reporting (cont’d)

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Spill Report And Reclamation

• Operator must submit a written report within 90 days of the spill:– the exact location of the spill, including:– an estimate of the volume released and recovered;– the time the spill or release occurred;– a description of the circumstances leading to the

spill;

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• Operator must submit a written report within 90 days of the spill (cont’d):

– a discussion of the spill containment and recovery procedures;

– a discussion of steps to be taken to prevent similar future spills; and

– any other information that the minister may require.

Spill Report And Reclamation (cont’d)

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• An operator shall:– reclaim the area impacted by the spill to standards

specified by the minister; and

– submit a reclamation report to the department in a format specified by the minister.

Spill Report And Reclamation (cont’d)

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• Upon completion of abandonment of a well or facility the licensee shall:– conduct an environmental site assessment in a

manner specified by the minister;– decommission the site to standards specified by the

minister; and– reclaim the site to standards specified by the

minister.

Reclamation Requirements

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• Within six months of the completion of the activities noted, the licensee or the operator shall submit to the department a reclamation report and any other information required by the department in a format specified by the minister.

Reclamation Requirements (cont’d)

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• Upon meeting the above requirements to the satisfaction of the minister, the department shall issue an acknowledgement of reclamation, when licensee or the operator submits:– a written request for acknowledgement of

reclamation on a form specified by the minister;– a reclamation report specified in subsection (3), that

meets the satisfaction of the minister; and– any other information required by the minister.

Reclamation Requirements (cont’d)

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• No licensee or operator is absolved of its past, present or future environmental liability associated with the site even when an acknowledgement of reclamation is issued for the site.

• The minister may specify any conditions or terms in the acknowledgement of reclamation or cancel the acknowledgement of reclamation at anytime.

Reclamation Requirements (cont’d)

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Contact

Swift Current Field Office: 306-778-8252

Todd H. Han: than@ir.gov.sk.ca

Debby Westerman: dwesterman@ir.gov.sk.ca

SIR Home Webpage: www.ir.gov.sk.ca