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"Point in Time" Regulation Content

Oil and Gas Activities Act

Dormancy and Shutdown Regulation

B.C. Reg. 112/2019

NOTE: Links below go to regulation content as it was prior to the changes made on the effective date. (PIT covers changes made from September 19, 2009 to "current to" date of the regulation.)
SECTIONEFFECTIVE DATE
Section 1 December 18, 2020
Part 1 Division 2 December 18, 2020
Section 3.1 December 18, 2020
Section 4 December 18, 2020
Section 5 December 18, 2020
Section 6 December 18, 2020
Section 7 December 18, 2020
Section 8 December 18, 2020
Section 9 December 18, 2020
Part 2 December 18, 2020
Section 10 December 18, 2020
Section 11 December 18, 2020
Section 12 December 18, 2020
Section 13 December 18, 2020
Section 14 December 18, 2020
Section 15 December 18, 2020
Section 17 December 18, 2020
Section 19 December 18, 2020
Section 19.1 December 18, 2020
Section 20 December 18, 2020
Section 21 December 18, 2020
Section 22 December 18, 2020
Section 24 December 18, 2020
Part 3 December 18, 2020

 Section 1 definitions of "assess", "interested person" (part), "local Indigenous nation", "priority site", "specified work", "type A site", "type B site" and "type C site" BEFORE amended by BC Reg 288/2020, effective December 18, 2020.

"assess", in relation to a dormant site, has the meaning given to it in section 7 [assessment];

"interested person", in relation to a dormant site, means

"local Indigenous nation", in relation to a dormant site, means an Indigenous nation that is identified for the dormant site in a manner specified by the commission;

"priority site" means a dormant site identified under section 5 [identifying priority sites];

"specified work" means work to decommission, assess or restore a dormant site;

"type A site" means a dormant site classified as a type A site under section 4 (1);

"type B site" means a dormant site classified as a type B site under section 4 (2);

"type C site" means a dormant site classified as a type C site under section 4 (3);

 Section 1 definitions of "former site", "permit holder", "portfolio of current sites" and "portfolio of former sites" were added by BC Reg 288/2020, effective December 18, 2020.

 Section 1 definition of "reference year", paragraph (c) was added by BC Reg 288/2020, effective December 18, 2020.

 Part 1, Division 2 heading BEFORE re-enacted by BC Reg 288/2020, effective December 18, 2020.

Division 2 — Dormant Sites

 Section 3.1 was enacted by BC Reg 288/2020, effective December 18, 2020.

 Section 4 (1), (2) and (3) BEFORE amended by BC Reg 288/2020, effective December 18, 2020.

(1) A dormant site is a type A site if the site became a dormant site under section 3 (1) (a) and the last of the 5 calendar years referred to in that section is 2018.

(2) A dormant site is a type B site if

(a) the site became a dormant site under section 3 (1) (a) and the last of the 5 calendar years referred to in that section is after 2018 and before 2024, or

(b) the site became a dormant site under section 3 (1) (b) and the notice referred to in that section was received before 2024.

(3) A dormant site is a type C site if

(a) the site became a dormant site under section 3 (1) (a) and the last of the 5 calendar years referred to in that section is 2024 or a later calendar year, or

(b) the site became a dormant site under section 3 (1) (b) and the notice referred to in that section was received in 2024 or a later calendar year.

 Section 5 (g) BEFORE amended by BC Reg 288/2020, effective December 18, 2020.

(g) the capacity and portfolio of the permit holder.

 Section 5 (h) was added by BC Reg 288/2020, effective December 18, 2020.

 Section 6 (part) BEFORE amended by BC Reg 288/2020, effective December 18, 2020.

Decommissioning

6   A dormant site is decommissioned for the purposes of this regulation if the permit holder for the site

 Section 7 (part) BEFORE amended by BC Reg 288/2020, effective December 18, 2020.

Assessment

7   A dormant site is assessed for the purposes of this regulation if the permit holder for the site

 Section 8 (1) (part) and (3) BEFORE amended by BC Reg 288/2020, effective December 18, 2020.

(1) A dormant site is remediated for the purposes of this regulation if the commission gives written notice to the permit holder for the site that

(3) For the purposes of subsection (1) (b) (ii) and (c) (ii), the commission may, by written notice to a permit holder for a dormant site, identify for the site or any neighbouring lands to which contamination has migrated from the site actions to be taken to prevent or mitigate risks to public safety, including human health, or to the environment posed by contamination.

 Section 9 BEFORE renumbered and amended by BC Reg 288/2020, effective December 18, 2020.

Restoration

9   A dormant site is restored for the purposes of this regulation if

(a) the site is remediated, and

(b) the commission gives written notice to the permit holder for the site that the commission is satisfied that the permit holder,

(i) unless otherwise ordered by the commission, has performed each obligation imposed

(A) under the Act or a specified enactment in relation to the permit, a permission specified in the permit or an authorization held by the permit holder for a related activity of an oil and gas activity that is permitted by the permit, and

(B) under the permit or an authorization referred to in clause (A), and

(ii) if the dormant site is on Crown land, has complied with section 26 (1) (d) [plugging requirements for wells] of the Drilling and Production Regulation in relation to the site or is exempted under that regulation from that section.

 Part 2 heading BEFORE re-enacted by BC Reg 288/2020, effective December 18, 2020.

Part 2 — Dormant Sites

 Section 10 BEFORE re-enacted by BC Reg 288/2020, effective December 18, 2020.

Application of this Division

10   The requirements in this Division are prescribed for the purposes of section 43.2 [requirements to reduce liability] of the Act.

 Section 11 (1) BEFORE amended by BC Reg 288/2020, effective December 18, 2020.

(1) A permit holder whose portfolio includes a dormant site must, in accordance with subsection (2), develop, and submit to the commission a copy of, an annual work plan that

(a) identifies, by permit and type,

(i) the dormant sites to be decommissioned in that calendar year,

(ii) the dormant sites to be assessed in that calendar year, and

(iii) the dormant sites to be restored in that calendar year,

(b) sets out the anticipated timelines for the work referred to in paragraph (a),

(c) identifies any factors that might cause deviations from the plan, and

(d) includes the following contact information:

(i) if the permit holder is a corporation, the name, title, telephone number and, if any, email address of a director, officer or employee of the permit holder who may be contacted about the plan;

(ii) if the permit holder is an individual, the name, telephone number and, if any, email address of the permit holder.

 Section 11 (1.1) and (3) were added by BC Reg 288/2020, effective December 18, 2020.

 Section 12 BEFORE re-enacted by BC Reg 288/2020, effective December 18, 2020.

Annual report

12   Within 60 days after the end of each calendar year, a permit holder whose portfolio includes dormant sites must submit to the commission a report on the calendar year that

(a) demonstrates that the permit holder is on track to meet the applicable requirements in sections 15 to 18 [type A, B and C sites and priority sites],

(b) identifies, by permit and type,

(i) the dormant sites that were decommissioned in the calendar year,

(ii) the dormant sites that were assessed in the calendar year, and

(iii) the dormant sites that were restored in the calendar year,

(c) includes a copy of the annual work plan for the calendar year and an explanation of any deviations from that plan, and

(d) includes any other information required by the commission.

 Section 13 (1) BEFORE amended by BC Reg 288/2020, effective December 18, 2020.

(1) Before doing specified work in a calendar year at a dormant site, the permit holder for the site must give a written notice in accordance with this section to the interested persons, if any, for the site.

 Section 13 (2) (b) (ii) BEFORE amended by BC Reg 288/2020, effective December 18, 2020.

(ii) the date that is 60 days before the permit holder does specified work at a dormant site in the calendar year.

 Section 14 BEFORE amended by BC Reg 288/2020, effective December 18, 2020.

Notification of intention to begin work

14   At least 30 days before doing specified work at a dormant site, the permit holder for the site must notify in writing the interested persons, if any, for the site.

 Section 15 (4) (part) BEFORE amended by BC Reg 288/2020, effective December 18, 2020.

(4) For the purposes of this section, if the result of taking a percentage of dormant sites is not a whole number, the result is to be rounded

 Section 17 (3) BEFORE amended by BC Reg 288/2020, effective December 18, 2020.

(3) A permit holder for a type C site must restore the site by December 31 of the calendar year that 10 calendar years after the reference year for the site.

 Section 19 (1) (part) BEFORE amended by BC Reg 288/2020, effective December 18, 2020.

(1) For the purpose of section 43.4 (2) [liability reduction plan] of the Act, a permit holder may submit to the commission a liability reduction plan if

 Section 19.1 was enacted by BC Reg 288/2020, effective December 18, 2020.

 Section 20 (a) BEFORE amended by BC Reg 288/2020, effective December 18, 2020.

(a) the portfolio of the permit holder includes more than 100 type A sites, or

 Section 21 (1) BEFORE amended by BC Reg 288/2020, effective December 18, 2020.

(1) This section applies in relation to a permit holder who intends to submit under section 19 a liability reduction plan that covers a dormant site for which a local Indigenous nation is identified.

 Section 22 (1) (a) BEFORE amended by BC Reg 288/2020, effective December 18, 2020.

(a) the dormant sites that are covered by the plan, and

 Section 22 (1) (b) (i) BEFORE amended by BC Reg 288/2020, effective December 18, 2020.

(i) a site that becomes a dormant site after the plan is approved;

 Section 22 (2) (b) (i), (ii) and (iii) BEFORE amended by BC Reg 288/2020, effective December 18, 2020.

(i) the number of dormant sites covered by the plan to be decommissioned in the calendar year,

(ii) the number of dormant sites covered by the plan to be assessed in the calendar year, and

(iii) the number of dormant sites covered by the plan to be restored in the calendar year.

 Section 22 (3) (part) and (4) (part) BEFORE amended by BC Reg 288/2020, effective December 18, 2020.

(3) A liability reduction plan must be consistent with the assessment of the dormant sites covered by the plan within the following timelines:

(4) A liability reduction plan must be consistent with the restoration of the dormant sites covered by the plan within the following timelines:

 Section 22 (3) (c) BEFORE amended by BC Reg 288/2020, effective December 18, 2020.

(c) in the case of any other dormant site, by December 31 of the calendar year that is 2 calendar years after the calendar year in which the site is decommissioned.

 Section 24 BEFORE re-enacted by BC Reg 288/2020, effective December 18, 2020.

Annual report

24   A liability reduction plan must require the permit holder to submit to the commission, within 60 days after the end of each calendar year that is covered by the plan, a report on the calendar year that

(a) identifies, by permit and type,

(i) the dormant sites covered by the plan that were decommissioned in the calendar year,

(ii) the dormant sites covered by the plan that were assessed in the calendar year,

(iii) the dormant sites covered by the plan that were restored in the calendar year, and

(iv) the dormant sites covered by the plan for which the permit holder transferred the permit in the calendar year,

(b) identifies whether the permit holder is in compliance with the plan and, if not, the measures the permit holder proposes to take to correct the non-compliance and prevent further non-compliance with the plan, and

(c) includes the following:

(i) a copy of the annual work plan referred to in section 23 for the calendar year and an explanation of any deviations from that plan;

(ii) any other information required by the commission;

(iii) a statement, signed by the permit holder or a director or officer of the permit holder, that the annual report is accurate and complete.

 Part 3 BEFORE repealed by BC Reg 288/2020, effective December 18, 2020.

Part 3 — Final Shutdown

Application of this Part

27   The requirements in this Part are prescribed for the purposes of section 40 (e) [obligations when permit, permission or authorization expires or is cancelled or spent] of the Act.

Wells

28   (1) A well permit holder must do the following if the permit is cancelled, declared spent or expires as described in section 40 of the Act:

(a) decommission the operating area of the permit;

(b) assess the operating area of the permit;

(c) remediate the operating area of the permit.

(2) Subsection (1) does not apply in relation to a portion of the operating area of a well permit if any of the following is located on the portion:

(a) a facility not solely associated with the well permitted by the permit;

(b) a pipeline not solely associated with the well permitted by the permit;

(c) an oil and gas road not solely associated with the well permitted by the permit.