Abstract This paper outlines the basic requirements for Environmental, Health and Safety (EH&S) Guidelines infield operations, and how they relate to the overall E,H&S management plan for an organization. The paper addresses the delivery of specific guidance to field personnel. The main segments of field procedures are briefly described, including: Policy and guiding principles General Principles and Administration Hazard Identification, Hazard Control and Operating Procedures Environmental Protection Emergency Response Training and Education Contractor Requirements In section 8, the paper also discusses new methods to deliver updated or new guidance to personnel in a cost effective and efficient manner. Section 9 contains a partial listing of relevant reference information. 1. Policy And Guiding Principles There must be agreement between the various stakeholders to save and protect the public, employees and company property with respect to environment health and safety. This requires development and implementation of an overall policy statement and a set of general guiding principles by the company and acknowledgement by all employees to accept and work within these ?rules" and to proactively promote them within the company and its operations. It is important to realise that at the present time the structure of organizations has changed dramatically and the lines between management and employees have become blurred, if indeed they have not disappeared. For certain operations, frontline employees or contractors may carry a high degree of responsibility and may be considered management if this is orally understood or outlined in employment or contractual agreements. Typically a company policy contains a commitment to: Safeguard human health and protect the environment in all of its operations; Assess the effects on worker safety as well as potential impairment of the environment and public health resulting from development activities; Comply with all laws and regulatory requirements in business activities. Reduce to an absolute minimum the final reclamation cost. Implement remedial measures in an efficient and effective manner in the event of mishap. The policy must be signed by the chief executive officer of the company and publicly displayed to be effective. Underlying the policy are guiding principles which address responsibility of all workers, priority of EH&S, recognition of excellent performance and emphasis on continuous improvement. It is important to recognise the limitations of guidelines, the possibility of human error and the need to be constantly on the alert for hidden or poorly understood risks. Finally, it is important to obtain the signed commitment of all employees and contractors to abide by these principles. 2. General Principles And Administration These are required to convert the policy into specific and workable guidelines with definition of expected performance and measurement of same. These may be broken down into the following topics. 2.1 Responsibility. There are three levels of responsibility that encompass all work situations - Management, Supervisors and Employees or Workers. Management is responsible for development and implementation of EH&S Policies which meet or exceed all applicable government laws and regulation, communication of the above through supervisors to the workforce, identifying and providing training programs for all personnel, reviewing and evaluating EH&S programs and revising as require

Abstract We adapt methods, that have been empirically validated in the analysis or short-term traded securities, to evaluate long-term natural gas direct-sale contracts, We examine a sample contract from the perspective of the producer, and analyse it as a series of commodity forward and option contracts. The assessment of contract value is based on the gas price forecast, the volatility in that forecast, and the valuation of risk caused by that volatility. The method we present allows the gas producer to quantify these elements, and to evaluate the variety or terms encountered in natural gas direct-sale agreements, including features such as load factors and penalty charges. The analysis uses as inputs a probabilistic price forecast and a determination of a price of risk for gas prices. Once the forecast volatility is derived from the probabilistic forecast, the forward contracts imbedded in the long-term gas contract can be valued with a risk discounting model, and optional aspects can be evaluated using the Black-Scholes option pricing method. Introduction Long-term gas sales agreements with "independent power producers" (IPPs) developing gas-fired power plants or cogeneration (steam and electricity) projects provide a good illustration of contract terms and evaluation problems encountered by natural gas producers IPPs will contract a 10 to 20 year gas supply using a price structure similar to that which the electrical utilities in turn offer the IPPs for power: an initial price with fixed annual escalation. In addition, volume "load factors" are incorporated in contracts to provide volume flexibility to the purchaser for shutdowns, outages, and seasonal gas demand peaks. The problem for the producer is to determine the uncertain structure for the prices ot gas delivered over the proposed contract period, and to judge whether a proposed pricing formula and other contract features, such as volume load factors, provide adequate compensation for the long-term commitment of gas. Intuitively, producers know that the volume terms of a contract will be invoked by the buyer to his advantage, for example reducing contract lakes to minimums when spot natural gas terms are favourable. Clearly, the more volume flexibility that is in a contract, the lower the value for the producer. Unfortunately, the elect that these features have on the contract value cannot be easily determined using conventional discounting methods. The solution to these problems lies in understanding that long-term fixed-price fixed volume sale agreements have the same essential features as a series of commodity forward contracts, and that the optional volume terms (load factors) have characteristics of commodity options. Assessment of a contract must be based on the forecast of gas prices, on the price forecast volatility, and on the valuation or the risk associated with that price forecast uncertainty. Simple discounting methods may not be useful in quantifying and valuing forward prices, and are certainly not useful in the valuations of the options, which are often imbedded in contracts. However, analytical methods, used and validated in the analysis of short-term traded stock options, may be applied to this problem

Abstract In 1989, Canadian Fracmaster Ltd. entered into a joint venture agreement in the Soviet Union to stimulate oil wells in Western Siberia. This agreement was the culmination of years of effort by both Canadian Fracmaster Ltd. and the Ministry of Oil in the Soviet Union. This paper will discuss an overview of the scope of the joint venture, as well as the details of the work being performed and plans for the future. The technical portion of the paper includes the major areas of concern in the introduction of hydraulic fracturing technology to the Soviet Union. Although principles of hydraulic fracturing were understood in the Soviet Union, technology had not properly been applied prior to the involvement of Canadian Fracmaster. This paper discusses formation geology and reservoir characteristics of the Western Siberia area, as well as design procedures of the treatments being completed. Finally, it will detail the results obtained to date and how they may benefit Western operators. Introduction On January 13, 1987, the Council of Ministers of the Union of Soviet Socialist Republics (USSR) announced Decision #48 and #49 concerning the establishment of joint ventures on Soviet territory. These history making decisions would set the framework for a proposed restructuring of the Soviet economy. On March 30, 1989 Canadian Fracmaster entered into a Joint Venture Agreement with a division of the Ministry of Oil of the Soviet Union. The agreement took place after more than one year of negotiations with the Soviet officials. A new enterprise was formed, named Uganskfracmaster, which is 51% owned by the Uganskneftegas Production Association (UPA) and 49% by Canadian Fracmaster (Offshore) Ltd. and Shell Internationale Petroleum Mij. B. V. This new corporation's task is to stimulate wells in the oil and gas fields of the Soviet Union. To date over 50 fracturing jobs have been performed by Uganskfracmaster in Soviet oilfields. Oil production has increased substantially in those wells selected for fracturing treatment Uganskfracmaster is an example of increased cooperation with the USSR and illustrates the opportunity available to companies who want to broaden overseas markets. Joint Venture Agreements Under the new laws of the USSR, many Soviet associations have been given the rights to negotiate directly with foreign corporations for the purpose of establishing joint ventures. Unlike the past, these foreign corporations may now be consortiums formed by several foreign companies. (1) A joint venture is generally structured similar to Western companies with a Board of Directors and a General Director (Similar to position of President) to control the affairs of the corporation. The Chairman of the Board as well as the General Director may be foreign citizens under the new laws. Each new joint enterprise will be subject to the scrutiny of the ministry which grants permission for its formation. (2) In order to establish a joint venture, a long involved process of negotiations is required to draft submissions of: Foundation Documents – stating the general operation guidelines of the enterprise, including: – the structure of managements – procedure of making decisions – establishment of accounting principles – principles of operations of the company

Abstract Version 1.0 of a computer model for thermal recovery wells was used to examine the effects of some common design parameters. This version, valid for the surface-to-reservoir portion of vertical wells, extends present design techniques by including casing and formation interaction instead of assuming that formations rigidly constrain the casing in the vertical direction. The model requires only stratigraphic information and common wellhead dam to predict casing and formation temperature distributions from two-phase flow and heat transfer algorithms. Those temperature distributions are passed to purpose-specific nonlinear finite element software, along with relevant materials properties, for calculation of thermally-generated strains and stresses in the casing and surrounding formations. The model has yielded interesting results, some of them being: substantial influence of annulus pressure on casing temperature; stress concentrations where casing penetrates formation interfaces; substantial interaction between clustered wells. The model promises to be an extremely powerful design tool after it is expanded to include well deviation and the effects of geotechnical activity in the reservoir. Introduction Much of Canada's, remaining hydrocarbon supply is asphalt-like bitumen which can be recovered economically only by heating it in the subsurface reservoirs. The bitumen becomes less viscous as its temperature increases, allowing it to flow to wells from which it can be pumped to surface. Steam injection is the most popular method of heating the bitumen in the reservoir. The steam is carried to the reservoir down wells lined with steel casing. The casing has been cemented w the surrounding formations, so high steam temperatures generated large thermal expansion stresses. Many casing failures have been attributed to thermal expansion of the casing, and conviction is growing that some casing failure are caused by thermally-induced deformations in the surrounding formations. Total failure numbers are known only by regulatory agencies, but operating com- panie's interest in improved design methods indicates that casing failures are numerous enough to be an economic and/or safety problem. Casing failures occur because design "safety factors" necessarily are small even though loads are imperfectly understood. Steam injection requires wellhead pressures between 10 MPa and 17 MPa, with corresponding wet steam temperatures between 310 ºC and 350 ºC, because appreciable qualities of steam normally can be injected only by fracturing the reservoir to create fluid paths. Medium strength L80 casing usually is specified to avoid stress corrosion cracking. The large thermal expansion stresses load such casing beyond its yield strength the first time it is exposed to steam temperatures, and recent laboratory testing (1) suggests that stress relaxation effects may subject this casing to cyclic plasticity. Imperfect understanding of casing loads stems from the operating environment's severity and its complexity. Directly measuring casing strains has not been successful; most instrumentation cannot survive exposure to the steam temperatures. The occurrence of casing failures clearly indicates that analytical determination of loads has not been entirely successful either, probably because all thermal recovery well designers have made simplifying assumptions.

Abstract Plans for a temporary harbour on the Yukon's north coast for Gulf Canada Resources Inc. were cancelled due to an extended government review process. This process was prolonged primarily because of the political controversy sparked by the proposal. Land-use applications in the north that force DIAND to deal with controversy can similarly be expected to prompt lengthy reviews, as the delays Gulf faced were generally the product of the political environment of the area and not of the technical difficulties facing the proposed project. Development contingency plans should be maintained as generating accurate assessments of approval status or forecasts of delays is extremely difficult. Introduction Gulf Canada Resources Inc., after over a year of consultation with the Department of Indian Affairs and Northern Development (DlAND), submitted an application in March of 1983 for use of an abandoned DEW Line station at Stokes Point as a temporary marine base. While the initial response provided by DIAND was positive, opposition to the project eventually forced the government to prolong the review well past construction deadlines. The proposal was effectively denied November 7, 1983 after close to two years of consideration. Technical Background Gulf has developed a new drilling system for the Beaufort Sea; the major components being two large drilling units and four Class IV icebreaking vessels. All have deep drafts and require deep-water facilities (+10 m). Existing harbours with depths equivalent to Esso's or Dome's at Tuktoyaktuk are too shallow, while Dome's "deep-water" base at McKinley Bay would have required extensive dredging to accommodate Gulf vessels. Even so, the facilities would have been cramped and ill-disposed for expansion. As information was gathered on initial plans to expand McKinley Bay, it became very clear that Gulf needed a new deep-water base. A project team was put together to determine the prime location for a new deep-water harbour using as key selection criteria cost, environmental considerations and operating flexibility. The sites that were considered stretched across the Beaufort rim, but as shown in Figure 1, were concentrated in the deep-water area along the Yukons' north slope. The site selected was located at the abandoned DEW Line station at Stokes Point. Political Background Before construction could begin, a land-use permit was required from DIAND. It was recognized that the review of the application permit could put DIAND in a difficult position because the decision would have to reflect the governments' position on a number of conflicting, high-priority, inter-related issues. The key issues that Gulf expected to be involved were: Exploration Agreement – Gulf and the federal government had just recently signed two exploration agreements covering work commitments of $650 million over and above commitments for capital expenditures of $674 million. The company considered that implicit in the agreements was the understanding that approvals would be provided to develop infrastructures required to meet the work commitments. Yukon Unemployment – It was recognized that a marine base on the north slope would provide much-needed jobs for the Yukon which was hard hit by the shutdowns in the mining industry.

Abstract Laboratory determined salinities of water extracted quite different pore systems in terms of microfrom oil base cores recovered from the Elmworth porosity and bound water. area showed variations from as low as 6,000 ppm to over 60,000 ppm (NaCl eq.). It was observed that low salinities were associated with reservoirzones characterized by high cation exchange capacities and substantial feldspar content. By contrast, clean quartzose sandstones yielded relatively high salinities. Thin section and Scanning Electron ~Microscope examinations reveal that diagenetic processes affecting the feldspathic sandstones have produced significant quantities of secondary clays, especially chlorite, kaolinite and subsequent illite. As a result, the lithologic differences have been enhanced, leading to quite different pore systems in terms of microporosity and bound water. Application of a Dual Water type model of shaly sands in conjuction with laboratory determined water saturation, porosity and cation exchangecapacity allowed estimation of free water salinity. This salinity was found to be in reasonable agreement with the salinity of produced waters. Log derived water saturations are generally in good agreement with laboratory derived values. Introduction Formation water resistivity, R w , is required for the determination of in-situ water saturation from resistivity logs. It is generally estimated from salinities of produced waters or from aconsideration of log responses in water saturated zones. Alternatively, R w may be derived from salinities of waters extracted from oil base cores. However, because such waters are likely to be d mixture of "free" (or "formation") water and fresher "clay bound" water, 2, 3 measured salinities must be corrected before being employed in log analysis calculations. An accurate knowledge of in situ water saturation is necessary to calculate hydrocarbon reserves of a reservoir, particularly for low permeability sands which are at the limit of economic producibi1ity. We have demonstrated that the laboratory determined salinity of the connate water of reservoir rods is the mean water salinity of the waterbound to the clay surface and that of free water. Depending upon the degree of shaliness of the rock, the laboratory determined salinities were generally found to be 1ower than the actual salinity of the produced formation water. Twenty three samples were selected from cores cut in oi1 base mud in the Elmworth Area of the so called "Deep Basin" of Western Canada. Porosity, cation exchange capacity (CEC), water saturation and water salinity were measured on each sample. Measured water salinities were then corrected for dilution by clay water, using a "Dual Water" shaly sand model, 2, 3 and compared with produced watersalinities. EXPERIMENTAL PROCEDURES Micro Extraction Salinity Determination Technique We have developed in our laboratory a technique or the determination of the volume of connate water and its salinity for small amounts of rock samples. 5–10g of the rock was crushed and thoroughly ground in dehydrated methanol in an inert atmosphere of nitrogen gas. The water andsalt in the rock was extracted by methanol and a known volume of the solution was made.

Abstract The last few years, and even more remarkably, the last few months have witnessed dramatic changes in the politics and social/economic aspirations of many countries of the. Free World and these "new" forces exert an ever increasing pressure on the multinational companies, mainly on the petroleum industry. Although many of these changes can be evaluated only qualitatively, at least those affecting the economies of anyone particular foreign venture must be assessed quantitatively and their relative importance judged in the changing circumstances. The qualitative aspects to be considered were discussed in the July – September 1972 issue of the JCPT: "Factors to be Considered in Foreign Investment Ventures (Part 1)". The present paper attempts to summarize, to evaluate and to compare quantitatively some of the currently prevailing international petroleum exploitation agreements and speculates on possible future events which might influence the international petroleum industry in their foreign operations. Introduction An outstanding feature of the international petroleum business is the economic interdependence it has created between three groups of countries: the producing countries, i. e. the "have countries " of the Middle East, North and West Africa. South America and Southeast Asia, the large consuming "have-not" countries of Western Europe and Japan, and the two large consuming "have oil in wrong place countries" of North America, namely Canada and the U. S. A. The interconnecting link between national oil companies, with the majority of them having their home base in the United States. Tile world oil industry does not exist thus in isolation, but it forms an integral and very important link of the entire world economy. This presentation will examine this interdependence in the past, today and as it could develop in the future. CURRENT AGREEMENTS Until the middle of the 1950's, the international oil companies operated throughout the world almost exclusively under concession type agreements granted to a few major oil companies before and immediately after World War II. However, during the 1950's numerous changes in the older concession terms were introduced and new types of agreements have been developed. Currently in foreign operations throughout the world, there are four major types of such agreements in effect, namely: "The Old Concession Types". which still prevail in several of the OPLC countries of the Middle East, Africa and Ecuador; "The Production Sharing or Profit Types" , which started in Indonesia and are currently gaining ever increasing favour in many of the developing countries, which recently opened their doors to oil exploration; Philippines, India, Thailand, Bulivia, Peru, Nigeria, etc.; "Partnership or Participating-Types" such as those concluded during the last few years in Iran, Saudi Arabia, Kuwait, Abu Dhabi and Libya; and "The Service Contract Agreements" , A few which have been concluded in Venezuela, Iraq and Iran during the past several years. Each of these four major types of agreement exhibits many variations, not only from one country to another, but also within the same country. However, despite these variations. each of the above four major groups has its own characteristics.