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PART X – PIPELINES.|
231. Compliance with Codes.
233. Construction and Operational Reporting.
234. Commissioning of Pipeline.
235. Discontinuation of Operations.
236. Escape of Substances from Pipelines.
237. Pipeline or Flowline Abandonment.
PART XI – REPORTING REQUIREMENTS.
238. Submission of Data.
239. Daily Report.
240. Well Completion Report.
241. Addresses to which Notices to be Sent.
PART XII – PENALTIES.
244. Defence of Impracticability.
245. Defence of having taken responsible steps to comply.
Oil and Gas Regulation 1999
MADE by the Head of State, acting with, and in accordance with, the advice of the National Executive Council under the Oil and Gas Act 1998.
Dated 200 .
PART I. – PRELIMINARY.
(1) In this Regulation, unless the contrary intention appears:
“API” means the American Petroleum Institute;
“approved” in relation to drilling equipment and materials, means approved by the American Petroleum Institute (hereinafter in this Regulation referred to as ‘API’), or other testing agency or authority recognized by the Director;
“AS” means Standards Association of Australia Standard;
“ASEG-GDF” means the Australian Society of Exploration Geophysicists-General Data Format;
“authorized person” means a person appointed by the Person-in-Charge to carry out a specific duty;
“barrel” means 34.9726 imperial gallons or 42 US gallons at a temperature of 60ºF and an absolute pressure of 14.73 pounds per square inch or 158.988 litres under similar conditions of temperature and pressure;
“blooey line” in relation to air or gas drilling, means a system of pipes arranged to carry the air or gas returning to the surface away from the drilling rig;
“cable” means an electrical conductor or system of conductors for the transmission of electrical power or communications;
“Chief Inspector” means the Chief Inspector appointed under Section 151(1) of the Act;
“circulation” means the passing of fluid down the drill pipe, casing or tubing in a well and up to the surface or in the reverse direction;
“classifying authority” means an approved authority qualified to classify ships, barges or mobile platforms;
“clean oil” means oil free from water and sediment;
“condensate” means a mixture mainly of pentanes and heavier hydrocarbons that exists in a gaseous phase in its virgin reservoir state, but is a liquid in the conditions in which its volume is measured or estimated;
“construction platform” means a ship, barge or other vessel or floating structure from which construction or installation operations for or in connection with the exploration for or recovery of petroleum are or are to be carried out;
“contractor” means a person or body corporate engaged or appointed by the licensee to perform a specific work or service at a certain price or rate;
“cubic foot” means the amount of gas or liquid in one cubic foot of space at a temperature of 60º F and an absolute pressure of 14.73 pounds per square inch;
“date of completion” means the date on which a well is first ready to produce reservoir fluids or if planned for some other purpose, the date on which it is left in a suitable condition to fulfill that purpose;
“Deputy Person-in-Charge” means a person appointed by the Person-in-Charge in accordance with Section 6;
“derrick” means a fixed framework over a well used in supporting, hoisting and lowering operations;
“directional drilling” means the intentional changing of the direction of the well when drilling;
“Director” means the person appointed as Director under Section 11 of the Act;
“drilling rig” means machinery and ancillary equipment used for drilling wells and/or for working over wells;
“dynamic positioning” means the positioning or repositioning of a vessel in or to a chosen location by automatic means and without recourse to any physical mooring arrangements;
“enhanced recovery” means the increased recovery from a pool achieved by artificial means or by the application of energy extrinsic to the pool, which increases the recovery of petroleum to more than that obtainable by the action of natural reservoir energy, gravity or secondary recovery methods as commonly defined within the petroleum industry;
“enhanced recovery scheme” means a scheme designed to increase the recovery of petroleum to more than that obtainable by the action of natural reservoir energy, gravity or secondary recovery methods as commonly defined within the petroleum industry;
(a) any substance or articles capable of producing an explosive, incendiary or pyrotechnic effect; or
(b) any substances prescribed under the Explosives Act (Adopted); or
(c) any containers that–
(i) have contained a substance or articles referred to in Paragraph (a) or (b); and
(ii) have not been certified in the manner prescribed under the Explosives Act (Adopted) to be free from explosives;
“extra-low voltage” means voltage not normally exceeding 32 volts alternating current or 115 volts direct current;
“field” means the general surface area underlain by and including one or more pools of oil or gas or both;
“firewall” means a wall of concrete, earth or other material surrounding a tank or tanks that confines the spillage of petroleum and prevents the spread of fire or the passage of flammable liquids or vapours;
“fixed platform” means a structure (including a floating structure) fixed or connected to the sea-bed otherwise than only by a part of the structure lowered to the sea-bed for the purpose of supporting the structure, from which petroleum exploration operations or operations for the recovery of petroleum are or are to be carried out and that is not or is not to be capable of being readily moved from one position to another as such a structure;
“flame-type equipment” means any equipment that through its design or use is able to cause ignition to flammable materials, liquids and/or gases;
“flowing well” means a well from which oil, gas or water is produced naturally without artificial lifting equipment;
“gas” means any natural gas, either hydrocarbon or other, or any mixture thereof;
“gas oil ratio” means the ratio of total gas (expressed in cubic feet) to clean oil (expressed in barrels) concurrently produced during any stated period;
“geophysical exploration” means geophysical investigation by any generally recognized method including seismic, gravimetric, magnetic, electrical, radioactive and geochemical methods in the study of the subsurface;
“ghost hole” means an uncased section of a well that once drilled, is unable to be reentered due to mechanical or formation conditions;
“good oilfield practice” means practice generally accepted as good and safe within the petroleum industry;
“hazardous area” means an area in which flammable gases or vapors are, or may be, present in the air in sufficient quantities to produce explosive or ignitable mixtures;
“helideck” means a deck or platform designed to accept a helicopter for landing or take-off;
“helipad” means a surface designed to take a helicopter for landing or take-off;
“inspector” or “inspection company” means a person or corporation with recognized qualifications accurately to inspect and evaluate equipment as meeting its intended specifications and its requirements of use;
“licensee” means the registered holder of a licence;
“licence area” means the area constituted by the blocks that are the subject of a licence;
“licensed electrical worker” means a person holding a certificate of competency issued by the Papua New Guinea Electricity Commission;
“magazine” means a place for the storage or keeping of any explosive;
“main operational site” means a location at which work occurs for extended periods of time or a location at which continuous operations are carried out;
“mast” means a portable or collapsible framework over a well used in supporting, hoisting and lowering operations;
“mobile platform” means a construction platform, floating service platform or mobile drilling unit that is capable of being moved readily from one position to another;
“mobile drilling unit” means a ship, barge or other vessel or floating structure including a structure any part of which may be lowered to the sea-bed for the purpose of supporting the structure that carries or includes equipment for drilling or carrying out other operations on a well from the vessel or structure;
“MSDS” sheet means the manufacturer’s safety data sheet for a product provided to the petroleum industry;
“mud” means a drilling fluid consisting of any suitable mixture of water, oil, clay or other material (or any admixture of all or any of such materials) commonly used in the petroleum industry which will remove the drill cuttings from the hole and which will also control rock and reservoir pressures, stabilize disturbed formation conditions and seal formations into which fluid from the hole is escaping;
“multiple completion well” means a well for the segregated production from, or injection to, more than one pool;
“NATA” means the National Association of Testing Authorities, Australia;
“permit to work” means a system of approving/monitoring of other than normal work operations in a restricted area by use of approval permits authorized by the person in charge;
“Person-in-Charge” means a person appointed by the Licensee in accordance with Section 5;
“Petroleum Inspector” means a person appointed to be an inspector pursuant to Section 115 of the Act;
“plant” includes drilling equipment, derricks and masts, power units, pumps, units, separators, storage tanks, pipelines, vehicles and all other equipment, materials and tools used in a field operation;
“platform” means a construction platform, fixed accommodation, process, production or shipping platform, service platform or mobile drilling unit;
“PNGS” means a National Technical Standard established under the National Institute of Standards and Industrial Technology Act 1993;
“pool” means a discrete underground accumulation of oil or gas or an admixture of such substances;
“process vessel” includes a heater, dehydrator, separator, treater or any vessel used in the processing or treatment of produced petroleum;
“production” means the volume of oil, gas or water produced;
“production facility” means a system or arrangement of surface equipment receiving the effluents of one or more wells prior to delivery to market or other disposition, and may include equipment or devices for separating the effluents into oil, gas condensate or water, and for measurement;
“production potential” means the capacity of a well to produce oil, gas or water, calculated or measured in accordance with generally accepted procedures;
“reservoir” means a porous and permeable rock capable of storing fluids and yielding them to a well;
“reservoir pressure” means the static or stabilized pressure existing or presumed to exist in a reservoir at a given datum;
“reservoir measurements” means measurements of reservoir pressure and temperature and of the movements of fluids and fluid interfaces within a reservoir;
“seismic source” means the energy source used to create shock waves in the earth, the reflections of which are recorded in investigating underground strata;
“separator” means an apparatus at the surface for separating fluids produced from a well;
“service platform” means a ship, barge or other vessel or floating or fixed structure that, in connection with petroleum exploration operations or operations for recovery of petroleum, provides a base from or on which service such as diving, fire fighting, accommodation, processing or storage are controlled, mounted or performed;
“service rig” means rig machinery and ancillary equipment specifically for the use of working over, completing, recompleting and/or servicing wells;
“shot hole” means a hole drilled for the purpose of firing an explosive charge as a seismic source;
“shot point” means the surface location and area immediately surrounding a shot hole or point of initiation of a seismic source;
“site person-in-charge” means a person appointed by the Person-in-Charge to manage an operation at a main operational site or area and is responsible to ensure approved, proper and safe procedures and programs are followed;
“spud date” means the date a new well has spudded or the date when commencement of drilling operations has begun for the sidetracking of a wellbore or the commencement of actual operations on a well for a workover, completion or abandonment;
“spudding in” means the commencement of drilling a well;
“standard handrail” means a permanent and substantial railing, smooth and free from protruding nails, bolts, or splinters, and consisting of a horizontal top rail not less than 900mm or more than 1,050mm above floor level, mounted on posts or uprights spaced not more than 2.5m apart centre to centre and with an intermediate rail spaced midway between the top rail and floor level or top of the toeboard if a toeboard is provided;
“storage tank” means a tank containing flammable fluids;
“suspend” means to discontinue operations temporarily;
“suspended well” means a well, previously used for production or injection, in which all operations have been suspended prior to recompletion or abandonment, for a considerable period of time, with, however, the intention of operations being resumed at a later date;
“swing well” means a well that is intermittently produced;
“toeboard” means a vertical guard, not less than 100mm in height and fastened to the outer edge of a platform in order to prevent tools and other objects from falling therefrom;
“velocity log” means a recording of the travel time of sound waves through the strata penetrated in the well;
“verifying body” means an approved body qualified to–
(a) verify the design, construction and installation of structures fixed or intended to be fixed to the sea-bed; and
(b) carry out such verification as the Director may require;
“waste” in addition to its ordinary meaning, means–
(a) the locating, spacing, drilling, equipping, completing, operating, or producing of a well in a manner that could be shown to result in reduction of the quantity of oil, gas or water ultimately recoverable from a pool under sound engineering and economic principles; or
(b) the locating, drilling, equipping, completing, operating or producing of a well in such a manner that excessive surface loss or destruction of oil, gas or water is caused; or
(c) any inefficient, excessive, or improper use or dissipation of reservoir energy; or
(d) the failure to use suitable and timely enhanced recovery methods in a pool where it is demonstrated on the basis of available information, that any of such methods would result in increasing the quantity of oil, gas or water ultimately recoverable from a pool under sound engineering and economic principles; or
(e) the escape or flaring of natural gas where the Director considers that by the application of sound engineering principles the natural gas could be gathered and, if necessary, processed so that the gas or its by-products could be marketed or stored for marketing or beneficially injected into an underground reservoir; and
(f) the inefficient and improper storing of oil, gas or water whether on the surface or underground; or
(g) the production of oil, gas or water in excess of proper storage facilities or transportation and marketing facilities or of marketing demand; or
(h) the use of natural gas for purposes other than gas lift re-pressuring, recycling, drilling, pressure maintenance, or for chemical manufacture, light and fuel, unless the Minister considers such use is efficient and beneficial in the public interest;
“well” means a hole in the ground made, being made or proposed to be made for the purposes of searching for or producing petroleum, for reservoir, for disposal of waste fluids resulting from production operations, or through which any petroleum is obtained or is obtainable, but does not include a water bore or seismic shot hole;
“well log” means a recording of one or more physical or stratigraphic measurements as a function of depth in a well;
“workover operation” means a maintenance operation carried out on a well in order to improve productivity or to remedy some defect.
“workover rig” means rig machinery and ancillary equipment specifically for the use of working over, completing, recompleting and/or servicing wells.
(2) In this Regulation, a reference to the relevant requirements or recommendations of any Act, PNGS, Standards Association of Australia Standard or Code, any API Standard, Bulletin or Recommended Practice is a reference to those current standards, requirements or recommendations.
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