Oil and Gas Activity Operations Manual

3. Permit Holder Responsibilities

This chapter provides an overview of permit holder obligations common amongst all oil and gas activity
types.

Permit holders must obtain approval (as defined in OGAA) before starting any oil and gas or associated
activity(s) and should maintain ongoing dialogue with the Commission and stakeholders throughout the life
cycle of the project. This includes operational and reporting requirements and continued engagement as
defined in the manuals and guidelines.

Permit holders must comply with the requirements imposed by the statutes and regulations of the province of
B.C. and the guides, policies, and information letters issued by the Commission. Once approved, permit
holders bear responsibility for all permit holder obligations (as defined in OGAA), including outcomes of
actions of contracted personnel in carrying out permitted oil and gas activities on behalf of the company.

When completing an application and/or submitting additional reports, companies must provide engineering
and technical information on activities carried out during the proposed term. Companies must provide true
and accurate information and not knowingly omit relevant information. All data, attachments and
requirements must be complete and accurate. If an agent or contractor submits information on behalf of the
company, the applicant remains accountable for the accuracy of submission.

Please Note:
This manual is written as a whole and provided to industry in sections to allow permit holders to access activity
chapters. It is prudent of the permit holder to review the manual in its entirety and be aware of the content in
other sections of the manual.

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Industry Standards
Permit holders should first and foremost adhere to the statutes and regulations of B.C. In addition, permit
holders should have working knowledge and implement industry and professional standards, industrial
practices, safety codes of practice, best management practices, and industry guiding principles. Some of
these guiding standards are the foundations for sections and related requirements, such as the Canadian
Standards Association and America Society of Mechanical Engineers. Others such as the Canadian
Association of Petroleum Producers, Canadian Energy Pipeline Association, the Canadian Fuels Association
and the International Organization for Standardization may be adopted by industry to ensure a strong focus
on workplace safety and preventing accidents.

3.1 Associated Oil and Gas Activity

Associated oil and gas activities are related activities. Section 1 of Oil and Gas Activities Act
defines oil and gas related activity as an activity:
• That, under a specified enactment, must not be carried out except as authorized
under the specified enactment or that must be carried out in accordance with the
specified enactment.
• The carrying out of which is required for or facilitates the carrying out of an oil and gas
activity.

Permit holders must have an approval under the Petroleum and Natural Gas Act or Land Act
for the use of Crown Land. The Commission does not issue authorizations for associated oil
and gas activities on private land. Consider any additional regulations and requirements when
operating borrow pits, mines, land farms and camps as follows:

• Work in and around a worksite borrow pit (defined as the excavation of clay, gravel,
rock, shale, sand or soil used for the construction of oil and gas infrastructure) are
subject to WorkSafeBc regulations.
• All oil and gas aggregate operations are considered a mining activity under the Mines
Act and are subject to the requirements of the Health, Safety and Reclamation Code
for Mines in British Columbia. WorkSafeBC regulations do not apply.

An oil and gas aggregate operation requires a Mines Act Permit in addition to a Licence of
Occupation to occupy and use Crown land.

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3.2 Environmental Stewardship

Companies must adhere to the Environmental Protection and Management Regulation (EPMR)
of the Oil and Gas Activities Act (OGAA) in order to conduct oil and gas activities.

The Environmental Protection and Management Regulation (EMPR) establishes the regulatory
requirements for stewardship of environmental values and features in the course of carrying
out oil and gas activities on Crown land. With the exception of certain provisions which apply to
all roads, the EPMR does not apply to oil and gas activities on private land. Please note that
most stream crossings in BC are located on Crown land where the EPMR does not apply.

The Commission’s Environmental Protection and Management Guideline (EPMG) provides

specific guidance for permit holders in meeting the requirements of the Environmental
Protection and Management Regulation.

Applicants and permit holders must plan and carry out oil and gas activities to avoid and/or
minimize impacts to environmental values, mitigate impact where no realistic opportunity exists
to avoid, and/or restore the impacted area to its pre-development state. General protection and
best management approaches must continue during the operational stages so adequate
management controls are in place and operations should be monitored to identify further
opportunities to reduce environmental impacts.

Area-based Analysis
The Commission’s Area-based Analysis (ABA) approach helps to minimize cumulative impacts
on the landscape, reduce the footprint of activities, and shorten restoration / reclamation
timeframes on specific resource values. Projects should minimize disturbance where possible.
Guidance is available in the Commission’s Supplementary Information for Area-based Analysis
document and on the Area-based Analysis section of the Commission’s website. Permit
holders should continue to refer to and follow the guidance in these resources and keep
apprised of updates by following the Commission’s website.

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Environmental Protection and Management Requirements

Part 3 of the EPMR prescribes operational requirements with respect to the items listed below:
• Water quality (for operating areas and adjacent areas).
• Aquifers.
• Crossings of streams, wetlands and lakes.
• Deleterious materials into streams, wetlands or lakes (oil and gas activities must not
result in any deleterious material deposited).
• Operations within wetlands.
• Natural range barriers.
• Invasive plants.
• Forest health.
• Soil conservation.
• Seismic lines.
• Restoration of operating areas.

Permit Conditions
Permits may contain additional requirements permit holders must comply with during all phases
of operation. It is prudent of permit holders to also have current knowledge and understanding
of both the legal requirements and best practices to ensure stewardship of environmental
values and features in the course of carrying out oil and gas activities.

Water Use
There are different ways permit holders may access water in British Columbia and seek
permission. Refer to the Commission’s Oil and Gas Activity Application Manual for water use
permission and reporting requirements and the Commission’s Water Licence Application
Manual for water licence application details.

The Commission may restrict water usage, especially during times of drought in the case of
water shortages or droughts. Water withdrawals from rivers and lakes can and will be
suspended if necessary. Permit holders are responsible for keeping apprised of Commission
updates by following the website for directives, bulletins, safety advisories and news releases.

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3.3 Emergency Planning and Response Programs

The prevention of oil or gas emergencies requires operators to prepare, understand and
minimize risks and adhere to legislative regulation, guidelines, industry standards, engineering
codes and standards. Many of the regulations and standards are designed specifically to
safeguard operations, but permit holders are required to check equipment, train employees and
report to the Commission at various stages.

A permit holder is required to prepare and maintain an emergency management program and a
emergency response plan for each of its oil and gas activities prior to carrying out those
activities, as prescribed in the Emergency Management Regulation (EMR) and the
Commission’s Emergency Management Manual.

Incident Prevention
The Commission’s Emergency Response and Safety web page provides guidelines, forms and
information on emergencies, incident reporting and notification and annual exercise
requirements. The Commission maintains a web page for Provincial emergency updates
focussed on natural disasters which may affect oil and gas operating areas in B.C. The site
includes direct links to up-to-date fire and other incident mapping, as well as training and
preparation resources. Permit holders are encouraged to keep staff informed of evolving
hazards and the procedures for reporting incidents by reviewing the documents on both pages.

3.4 Flaring and Venting

The Commission’s Flaring and Venting Reduction Guideline provides guidance for flaring,
incinerating and venting in British Columbia, as well as procedural information for flare approval
requests, dispersion modelling and the measuring and reporting of flared, incinerated and
vented gas.

Review the Flaring and Venting Reduction Guideline to understand flaring volume thresholds
and time limits, public notification, guidance for flare stacks and incinerators and
documentation. Specific sections of the wells and facility operations further discuss flaring and
venting.

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3.5 Archaeological Assessments

Permit holders must fulfill archaeological requirements pursuant to the Heritage Conservation
Act and the Commission’s archaeology guidelines as outlined in the Commission’s Oil and Gas
Activity Application Manual.

3.6 Roads Maintained by a Road Permit Holder

Section 21 of the Oil and Gas Road Regulation (OGRR) establishes requirements related to
use, notification and contribution to maintenance costs associated with using an oil and gas
road maintained by a road permit holder:
• Providing Notice of Use to the road permit holder at least 14 days before the intended
use will begin.

If the road permit holder will be requiring that the permit holder enters into a cost-sharing
maintenance agreement for road use, upon receiving a notice of intended road use, the road
permit holder must provide to the permit holder providing the notice, an estimate of costs along
with supporting data and records in relation to maintenance or any modifications necessary to
accommodate the intended use of the permit holder, or to repair any damage caused by the
user.

3.7 Noise Management

Section 40 of the Drilling & Production Regulation states:

• A permit holder must ensure operations at a well or facility for which the permit
holder is responsible does not cause excessive noise.

Review Section 40 of the DPR and the Commission’s British Columbia Noise Control Best
Practices Guideline for an understanding of noise levels, guidelines and suggested best
practice standards. In addition, work with area residents to minimize noise impacts when
undertaking construction, drilling, completions, and operations activities near populated areas.

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3.8 First Nations Engagement

Permit holders are encouraged to work with First Nations and consider any environmental,
heritage and/or community concerns impacted by oil and gas activity by initiating and building
relationships with First Nations communities during the project planning phase and continue
the relationship throughout the project life cycle.

Under the Oil and Gas Road Regulation, permit holders are required to provide notice to local
Indigenous nations pre-construction and before deactivation of an oil and gas road.

While not required prior to application, engagement with the public and First Nations within a
pre-determined Emergency Planning Zone for Emergency Response Contingency Plans is
encouraged since emergency plans must be in place for well, facility and pipeline permit
holders prior to operation.

3.9 Land Owner and Rights Holder Engagement

Once a permit is approved, the Commission provides notice to the land owner(s) stating an oil
and gas permit has been issued over the land.

Under the Oil and Gas Road Regulation, permit holders are required to provide notice to
affected listed parties pre-construction and before deactivation of an oil and gas road.

Permit holders are encouraged to work proactively and collaboratively with those affected by oil
and gas activity. The formalized public engagement process of consulting and engaging with
land owners and/or rights holders are discussed in the Oil and Gas Activity Application Manual.

3.10 Restoration and Reclamation

Planning, construction and the oil and gas activity should take into consideration the entire life
cycle of the project and the environmental and social impact of the proposed project. It is the
intent of the Commission that oil and gas sites are temporary; therefore, careful planning
beforehand is required to ensure a successful project end.

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Regulatory and legal requirements cover the restoration of oil and gas sites no longer
operating. Planning to reclaim a project starts early. For example, companies must minimize
the disturbance to nearby land before and during a drilling operation. This decreases the
amount of work necessary to return the area to its original state after the well is no longer
producing.

Construction corridors are used to avoid or prevent disturbance to sensitive ecosystems and
wherever practical, locate oil and gas and associated activity within the corridor.

During construction and ongoing operation of oil and gas activities, permit holders should take
into account the eventual requirements for restoration and reclamation of land disturbed to
facilitate the activity. When construction and/or operations are complete, restoration and
reclamation should return the site to a similar state existing prior to disturbance.

Restoration and reclamation requirements are identified in Section 19 of the Environmental

Protection and Management Regulation under OGAA. Guidance for planning and carrying out
restoration and reclamation activities are in the following documents:
• Environmental Protection and Management guideline.
• Certificate of Restoration Application manual.
• Restoration Verification Audit Program Procedure manual.

Reclamation on ALR Land

The preliminary reclamation plan for activity falling within the Agricultural Land Reserve
provides a brief description of how the site will be restored once it is no longer required for the
oil and gas activity. This plan forms part of an ALR Schedule A report submitted with an
application for the oil and gas activity (detailed in the Oil and Gas Activity Application Manual).
The preliminary reclamation plan must include:
• Post oil and gas activity land-use objective.
• Soil handling.
• Re-vegetation.

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In some cases, the submission of an ALR Schedule A report is not required until after the
Commission has granted an oil and gas activity permit. In these cases, the ALR Schedule A
report must be submitted via email to [email protected] for Commission review.
The permit holder must receive a letter verifying that the report is to the satisfaction of the
Commission prior to beginning construction activities.

Specific reclamation criteria for lands within the Agricultural Land Reserve are found in the site
reclamation requirements as part of the Schedule B section in the Delegation Agreement, as
well as on the Commission’s website.

Schedule B Reports for pipeline right of ways must be submitted to the Commission within 24
months of Leave to Open submission for the pipeline. Schedule B Reports for wells must be
submitted with the COR Part 2 application. For all other surface leases described in Schedule
B of the Delegation Agreement, Schedule B Reports must be submitted in a timely manner
after cessation of activity on the site, allowing for practicability of reclamation activities.

Schedule B Reports can be submitted in paper copy to the Commission’s Fort St. John office,
or via email to [email protected].

3.11 Compliance and Enforcement

Applicants have a legal obligation to meet all legislated requirements. The Commission expects
applicants and permit holders to use formal practices in day-to-day operations and comply with
the Oil and Gas Activities Act, the Commission’s specified enactments, and all related
regulations.

The Compliance and Enforcement Manual provides further information about the Commission’s
compliance processes. It is the permit holder’s responsibility to know and uphold any legal
responsibilities inside and outside of the Commission’s legislative authority. The Commission
audits and inspects permit holder activities and investigates incidents of alleged non-
compliance.

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3.12 Freedom of Information & Protection of Privacy

Throughout the course of application preparation and planning, the information collected from a
person or other entity may contain personal information as defined by the Personal Information
Protection Act (PIPA). Private sector organizations collecting personal information in British
Columbia are subject to the PIPA, which sets out the rules for how personal information may
be collected, used or disclosed.

Applicants and permit holders should comply with PIPA when collecting information from
persons or entities and can contact the Office of the Information and Privacy Commissioner for
British Columbia for more information.

As a public body, the Commission is subject to the Freedom of Information and Protection of
Privacy Act (FOIPPA). Any personal information contained in plans or applications submitted to
the Commission are subject to the protection and security requirements identified in FOIPPA.

Confidentiality of Well Information

The Commission may make all or any portion of information included in well reports and well
data publicly available on expiry of statutory confidentiality status of the well.

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