Canada Energy Partners

Disposal Well
Presentation to Hudson’s Hope

Richard Slocomb, P.Eng.

Vice President, Engineering
May 23, 2018
Agenda
• About the Commission
• Well History
• Suspension Order
• Timeline Since Suspension
• Consideration of Permit Cancellation
• Current Status
• Questions
About Us
Crown Corporation for 20 years, with offices across
B.C.

Independent Agency reporting to Board with

Government oversight.

Regulator self-funded by a combination of

application and annual fees and levies on oil and
gas production.

Apply policy and legislation in accordance with a

mix of statutory authority and delegations from other
Ministries. Can create regulations regarding safety
and environmental protection.

Not an advocate for the industry.

 2006 Well Drilled
Total Depth: 1,610m Well History
2008 Disposal
Operations Begin

2009 Commission
Initiates Study

2010 Commission
Completes Study

2010 Disposal
Operations Suspended

2014 Notification
Disposal May Resume
2016 Confirmation 2017 Order Issued to 2017 Decision To
2014 Ownership Disposal Can Continue Suspend Operations Allow Disposal
Transferred to CEP
2017 Disposal 2017 OGAT Appeal 2018 Current: Wait-on Permit
Operations Restart Holder To Meet Conditions
 2006 Well Drilled
Total Depth: 1,610m Well History
2008 Disposal
Operations Begin CEP Disposal
Well Location
2009 Commission

Approx. 3.3km
Initiates Study

2010 Commission
Completes Study Peace Canyon
Dam Location
2010 Disposal
Operations Suspended

2014 Notification
Disposal May Resume
2016 Confirmation 2017 Order Issued to 2017 Decision To
2014 Ownership Disposal Can Continue Suspend Operations Allow Disposal
Transferred to CEP
2017 Disposal 2017 OGAT Appeal 2018 Current: Wait-on Permit
Operations Restart Holder To Meet Conditions
 2006 Well Drilled
Total Depth: 1,610m Suspension Order
• On March 14, 2017 BC Hydro provided new information to
2008 Disposal
Operations Begin the Commission on the Peace Canyon Dam’s susceptibility to
ground motion from a seismic event.
2009 Commission • Based on this information the Commission further
Initiates Study considered the risk and potential consequences of an event
impacting the dam.
2010 Commission • On March 16, 2017 the Commission issued an order to
Completes Study
“suspend all disposal activities” pending a review of
additional technical information, stating “this action is
2010 Disposal
Operations Suspended necessary to mitigate a risk to public safety and to protect
the environment”.
2014 Notification
Disposal May Resume
2016 Confirmation 2017 Order Issued to 2017 Decision To
2014 Ownership Disposal Can Continue Suspend Operations Allow Disposal
Transferred to CEP
2017 Disposal 2017 OGAT Appeal 2018 Current: Wait-on Permit
Operations Restart Holder To Meet Conditions
 2006 Well Drilled
Total Depth: 1,610m Timeline Since Suspension
• The Commission undertook a technical review, commencing
2008 Disposal
Operations Begin April 2017, to gather additional information.
o Engaged CEP, Commission staff and BC Hydro.
2009 Commission o Sought external engineering advice.
Initiates Study • CEP immediately appealed the suspension order to the Oil
and Gas Appeals Tribunal (OGAT).
2010 Commission o In August 2017 the Tribunal dismissed the appeal and
Completes Study
upheld the Commission’s order.
• The Commission then initiated a consideration of whether
2010 Disposal
Operations Suspended CEP’s well permit should be cancelled pursuant to section 26
of OGAA.
2014 Notification
Disposal May Resume
2016 Confirmation 2017 Order Issued to 2017 Decision To
2014 Ownership Disposal Can Continue Suspend Operations Allow Disposal
Transferred to CEP
2017 Disposal 2017 OGAT Appeal 2018 Current: Wait-on Permit
Operations Restart Holder To Meet Conditions
 On Dec. 4, 2017
2006 Well Drilled
Total Depth: 1,610m Consideration of Permit Cancellation
2008 Disposal • In June 2017, after the conclusion of the technical
Operations Begin
review, the Commission initiated a consideration of
2009 Commission
whether CEP’s well permit should be permanently
Initiates Study cancelled pursuant to section 26 of OGAA.
• A decision was made by the Commission not to cancel
2010 Commission Canada Energy Partners’ (CEP) well permit.
Completes Study
• The Commission determined that the risks could be
2010 Disposal
mitigated through enhanced operating conditions.
Operations Suspended

2014 Notification
Disposal May Resume
2016 Confirmation 2017 Order Issued to 2017 Decision To
2014 Ownership Disposal Can Continue Suspend Operations Allow Disposal
Transferred to CEP
2017 Disposal 2017 OGAT Appeal 2018 Current: Wait-on Permit
Operations Restart Holder To Meet Conditions
Key Decision Rationale
• Good quality reservoir proven by pressure and injection history to date
• Lack of seismicity in this area to date
• Seismic monitoring capable of small event detection
Operating Conditions

Operating conditions:
• Limits to injection pressures and rates.
• Testing and reporting requirements
monthly, bi-annually and annually.
• Installation of detailed seismic
monitoring and ground motion
monitoring with reporting
requirements to record seismic events
within 5 kms of the well.
• Requirement to cease operations upon
notification from BC Hydro that the
safety level of the dam is decreased.
 2006 Well Drilled
Total Depth: 1,610m Current Status
2008 Disposal
Operations Begin • The section 49 suspension order continues until CEP
demonstrates that new requirements have been
2009 Commission met.
Initiates Study
• CEP must notify the Commission prior to
recommencing operations and will also be subject
2010 Commission
Completes Study to a site inspection
• The Reasons for Decision and the 17 conditions are
2010 Disposal posted on bcogc.ca/whats-new
Operations Suspended

2014 Notification
Disposal May Resume
2016 Confirmation 2017 Order Issued to 2017 Decision To
2014 Ownership Disposal Can Continue Suspend Operations Allow Disposal
Transferred to CEP
2017 Disposal 2017 OGAT Appeal 2018 Current: Wait-on Permit
Operations Restart Holder To Meet Conditions
Questions?

Contact us at:
OGC.Communications@bcogc.ca