How are Wells Suspended

When oil and gas operators receive a drilling licence from the AER, they also become responsible for all well activities. In some cases, a licensee may choose to suspend a well. A well is considered suspended when it has been inactive for either 6 or 1 months, depending on the type of well. A licensee typically suspends a well because it is not currently considered to be economically viable but could become so in the future with improved technology, infrastructure, or commodity pricing. !o suspend a well, an operator must notify the AER and perform a series of procedures to ensure that the well poses no ris" to the public and environment while it is inactive. Auditing and Enforcement A well is only considered suspended by the AER when operators meet all re#uirements in Directive 013: Suspension Requirements for Wells. !he directive outlines inspection, monitoring, and pressure$testing re#uirements. %icensees are also re#uired to perform fre#uent inspections on suspended wells, and all subse#uent data must be reported to the AER within &' days of an inspection. (nder AER re#uirements, licensees must "eep all test results and details for suspended wells until such a time as they are abandoned. !o ensure compliance with regulations, licensees are sub)ect to audits by the AER. In the event of an audit, licensees must provide all information to the AER within ' days of the AER*s re#uest. !he AER*s enforcement process is specified in Directive 019: Compliance Assurance. A "ey role of the Alberta Energy Regulator is ensuring that operators comply with all regulatory re#uirements and that appropriate enforcement action is applied when a noncompliance is identified. (sing the compliance assurance program, the AER facilitates efficient and effective compliance through education, prevention, and enforcement. Where noncompliance is discovered, the AER has a powerful suite of enforcement tools to ensure that the company in #uestion immediately addresses any underlying issue, corrects the noncompliance, and ma"e certain it complies with re#uirements in the future. Reactivating Suspended Wells !o reactivate suspended wells, licensees must

inspect, service, and pressure test the wellhead+ inspect and service control systems and lease facilities+ retain all records+ and report reactivation of the well to the AER through the ,igital ,ata -ubmission .,,-/ system.

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