Prepared on behalf ofIRP 22 Development Committee

May 14, 2007

Prepared on behalf ofIRP 22 Development Committee

May 14, 2007

IRP 22:Underbalanced and Managed Pressure Drilling with Jointed Pipe

IRP 22:Underbalanced and Managed Pressure Drilling with Jointed Pipe

Presentation ByJeff Saponja, P.Eng.

President & CEOTriAxon Resources Ltd

Co-Chair IRP 22

Presentation ByJeff Saponja, P.Eng.

President & CEOTriAxon Resources Ltd

Co-Chair IRP 22

Traditional IRP MethodologyTraditional IRP Methodology

• Gather a large number of industry experts to compile their collective knowledge on a specific subject

• Develop a prescriptive “How To” manual

• Avoids Regulator trying to establish prescriptive regulations

• Attempt to update every 4 years

IRP 22 ChallengesIRP 22 Challenges

• How to address current EUB ID 94-3 Regulations inadequate and out of date (EUB was in the process of writing a “How To” manual update to ID 94-3)

• How to effective align to all other IRP’s and IADC UBO/MPD Committee

• How to avoid the 7-10 year IRP itch! A “one size fits all”solution does not exist.

• How to effectively and efficiently keep current• Address the critical sour UBD moratorium and resolve plan

for IRP 6• For UBD/MPD there is tight/small experience base

underpinned by relatively low frequency of operations (specialized service)

IRP 22 RationaleIRP 22 Rationale

• Accepted the industry perception that UBD/MPD operations could be conducted more safely and operationally more consistent (cost effectively)

• Site-specific and Western Canadian strategies are needed.

• Improved training and awareness are primarily required vs a “How To” manual.

• Today’s science cannot conclusively predict what is safe and what is unsafe.

• Use Risk-Based approach as per IRP 18

Why a Risk Based Approach for IRP 22?Why a Risk Based Approach for IRP 22?

1. Risk Tolerance:๏ Reduce the apparent very wide industry risk tolerance.๏ Awareness to potential train wrecks.๏ General lack of standards and understanding as to WHY

operations are conducted in a certain way.๏ “How To” manuals often fail to address Hazard Scenarios and

soon become outdated. Its not about the HOW !

2. Service Sector Technical Competency๏ Technical know how is generally resident in service companies,

but is extremely difficult to collectively codify๏ 100 different ways to make a UBD drill string connection!๏ Competitive issues

3. Framework for Regulatory Enforcement:๏ Impractical for EUB field inspectors to be experts of UBD/MPD.

Site inspections based on process used for addressing known hazard scenarios.

Risk Tolerance IssueRisk Tolerance Issue

LIKLIHOOD

CO

NS

EQ

UE

NC

E

Risk Level

Prescriptive Controls because risk is too high at this time

Varying Levels of Risk Tolerance is an Industry Issue

Person “A”

Person “B”

Quantitative Risk Assessment ChallengesQuantitative Risk Assessment Challenges

QRA Issues:• Complex and time consuming• Generally, not part of the Well

Engineer’s toolbox (in Canada).• Lack of basic understanding of what is a

risk assessment.• Not a risk adverse culture.• High frequency of wells and short

timeframe from planning to execution (not enough time available for QRA).

• Industry does not compile effective statistics for QRA thus quantification of risk is a huge challenge.

Risk Based StrategyRisk Based Strategy

• Challenged ourselves with: could we integrate Risk Mgt into the everyday process for designing and executing a UBD/MPD well?

• Avoid developing a comprehensive prescriptive “How To”manual; only be prescriptive in HSE Critical high risk hazard scenarios.

• Develop a Qualitative Risk Assessment process that can effectively address the risk tolerance issues.

• Ensure the Risk Assessment process is highly time efficient, to therefore allow for wellsite execution in less than 30 days (on average)

Preventive Controls•Engineering, Equipment design and barriers, training,plans/procedures

Protective Controls•Alarms & detection, emergency equipment / procedures

Preventive Controls•Engineering, Equipment design and barriers, training,plans/procedures

Protective Controls•Alarms & detection, emergency equipment / procedures

What can go wrong?• Apply Hazard and Risk Mgt

Process using Risk Register• Identify areas of attention

Test Base Program?• Establish how much work left

to do prior to well site execution

• Establish Engineering requirements and timeframe to execution

What can go wrong?• Apply Hazard and Risk Mgt

Process using Risk Register• Identify areas of attention

Test Base Program?• Establish how much work left

to do prior to well site execution

• Establish Engineering requirements and timeframe to execution

Stage 4:Execute Program and Implementand Monitor Effectiveness

Stage 4:Execute Program and Implementand Monitor Effectiveness

Stage 3:Resolve Hazard Scenario Controls and Prepare Final Program

Stage 3:Resolve Hazard Scenario Controls and Prepare Final Program

Stage 2:Assess Hazard Scenarios for Planned Operations

Stage 2:Assess Hazard Scenarios for Planned Operations

Stage 1:Establish a draft base plan/program c/w Process Flow Diagram

Stage 1:Establish a draft base plan/program c/w Process Flow Diagram

IRP 22 Required Process StagesIRP 22 Required Process Stages

Hazard and Risk Mgt ProcessHazard and Risk Mgt Process

AWARENESS WHAT CAN GO WRONG?• Apply simplified Hazard / Risk Mgt Process using IRP 22 Risk Register• Register is a compilation of historic “Train Wrecks”, but is to be

considered NON-EXHAUSTIVE• Identify and brings awareness to areas of attention / problems. Eye

opener on how prepared the draft base program is.• Tool is not design to solve hazard scenarios / problems, but offers

considerations (e.g., conduct HAZOP) and directs to prescriptiveenforced HSE requirements.

• Ensures Risk Assessment SHALL be part of UBD / MPD planning• Involves the team far-enough in advance of well site execution

(historically team was pulled together days before execution in a “pre-spud” meeting – often too late if Engineering controls are required.

Stage 2:Assess Hazard Scenarios for Planned Operations

Stage 2:Assess Hazard Scenarios for Planned Operations

Hazard and Risk Mgt ProcessHazard and Risk Mgt ProcessHazard Scenario What If: Single jeopardy statement used to identify potential problems due to

failure in pre job planning, training, procedures, or equipment failure

Hazard and Risk Mgt ProcessHazard and Risk Mgt ProcessApplicable: Choose "Y" if "Hazard Scenario What If" applies to operation and "N" if it does not.

Hazard and Risk Mgt ProcessHazard and Risk Mgt ProcessConsequences: A list of the potential consequences (HSE and NPT) of the "what if" occurring..

Hazard and Risk Mgt ProcessHazard and Risk Mgt Process

HAZARD SCENARIOS:• Evaluated in terms of both HSE and NPT• HSE hazard scenarios include all threats to Health, Safety, Assets and the

Environment.• NPT hazard scenarios includes threats to operational non-productive time (lost rig

time and cost).

Hazard Scenario

HSE NPT

NPT is tied to HSE, as unplanned events can

lead to unforeseen high risk hazard scenarios

Hazard and Risk Mgt ProcessHazard and Risk Mgt ProcessHSE: The risk of a situation/event with the potential to cause harm (to people, assets, or the

environment).

Hazard and Risk Mgt ProcessHazard and Risk Mgt ProcessNPT: The risk of Non Productive Time (NPT), which included lost time and costs, formation

damage and/or any operational deviation from the plan.

Qualitative Risk RankingQualitative Risk Ranking

• TRAINING required• Awareness to potential hazard scenario from industry

experience• Worker qualification / competency reviews required.• Should consider Procedures and Engineering

Low Risk

Those above, plus:• PROCEDURES required to mitigate / control hazard scenario• Safe work permits required.• Should consider Engineering

Medium Risk

Those above, plus:• ENGINEERING required for detailed, site-specific hazard

scenario plans prepared prior to execution• Documented risk assessment completed.• Documentation available to all at the work-site.

High Risk

Hazard and Risk Mgt ProcessHazard and Risk Mgt ProcessRequired HSE Critical Controls / Safeguards: Controls / safeguards, and detailed recommended

practices for high risk HSE items referenced to specific prescriptive IRP 22 enforcements.

Hazard and Risk Mgt ProcessHazard and Risk Mgt ProcessConsiderations: Recommendations, considerations, and informational statements on how to

reduce, eliminate, or manage Medium/Low Risk HSE items and all NPT items

Hazard and Risk Mgt ProcessHazard and Risk Mgt ProcessActions to be Taken: List of actions required to reduce/eliminate the potential occurrence

and/or severity if the hazard cannot be eliminated entirely.

Hazard and Risk Mgt ProcessHazard and Risk Mgt ProcessBy Who and When: Who = Party responsible for each action assigned.

When = Date by which the action is to be completed.

IRP 22 TimelineIRP 22 Timeline

Phase 1

Phase 2

Phase 3

2005 20072006

Phase 1

• Resolve IRP22 Process Methodology

• Review and compile existing industry standards

Phase 2

• Establish sub-committee Work Groups

• Populate Risk Register

Phase 3

• Test Hazard and Risk Mgt Process at SPE RTW

• Establish system for updating Risk Register

• Compile IRP document and release to industry

Wrap UpWrap Up

• IRP 22 is designed to integrate Risk Mgt into the everyday process for designing and executing a UBD/MPD

• Attempting to address a wide risk tolerance issue that is a result of a lack of hazard scenario and associated risk awareness.

• Adopted a simplified Hazard and Risk Assessment Process, underpinned by a non-exhaustive Risk Register

• NPT is an important component of the risk assessment, as many unforeseen HSE high risk hazard scenarios are realized during NPT events.

• Ready for Industry trials and feedback.

IRP 22:UBD and MPD with Jointed Pipe

IRP 22:UBD and MPD with Jointed Pipe