Owner: USA Division Safety Revision No: 00 Date last revised: 01/14/2013

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1 Well Shut-in Practice - Attachment 1 Practice Owner: USA Divisin Safety Revisin N: 00 Date last revised: 01/14/ Applicability This practice applies t all Encana Oil & Gas (USA) Inc. (Encana) emplyees and cntractrs at all facilities wned r perated by Encana. 2.0 Purpse The purpse f this practice is t establish minimum shut-in requirements fr wellbres, wellheads r assciated facilities. These minimum requirements must be in place prir t cnducting any activities that may impact the integrity f the abve, and are designed t prevent the uncntrlled r unplanned release f energy. 3.0 Definitins Term Shut-in Facilities Christmas Tree Master Valve Pressure Integrity Wellhead Wing Valve Definitin T identify and cntrl all ptentially harmful energy surces related t wellbres, wellheads r assciated facilities. Abve and belw grund pressure vessels, flw lines, piping, tanks etc. Assembly f equipment, including tubing-head adapters, valves, tees, crsses, tp cnnectrs and chkes attached t the uppermst cnnectin f the tubing head, used t cntrl well prductin Lwermst valve n the vertical bre f the christmas tree Structural and leak-resistant capability f a prduct t cntain applied pressure All permanent equipment between the uppermst prtin f the surface casing and the tubing-head adapter cnnectin Valve lcated n the christmas tree, but nt in the vertical run, which can be used t shut ff well flw 4.0 Cre infrmatin and requirements The cre infrmatin and requirements f this practice include the fllwing: 4.1 Hazard Eliminatin 4.2 Hazard Cntrl 4.3 Standard Operating Prcedure(s) Please cmments r suggested revisins t usa.ehs@encana.cm. The dcument wner will cnsider cmments and suggested revisins and revise this dcument based n urgency r annually n the revisin date. Uncntrlled when printed Page 1 f 6

2 Well Shut-in Practice - Attachment 1 Date last revised: 01/14/ Hazard Eliminatin Any activity that has the ptential t impact the integrity f wellbres, wellheads r assciated facilities can nly be carried ut nce all harmful energy surces are identified and apprpriate cntrls implemented. Increased expsure t fluids, frac prppants and high pressures in tday s wells has increased the number f pressure/ equipment related early life cycle well incidents and near hits. Shutting in a well head r BOP des nt always eliminate stred energy in assciated flw lines and surface facilities. Prppant blckages, dead fluid legs, hydrates and equipment malfunctin can lead t trapped pressure. Standard Operating Prcedures need t be develped t identify and eliminate any stred energy befre flw lines and equipment can safety be wrked n r arund. The temprary nature f early life cycle well flw lines (hammer unins, n x-rays, supprt structures), cmbined with the uncertainty in flw back prduct and pressure creates cnditins warranting additinal cntrls. Integrity management prgrams need t address the accelerated ptential fr blckages, pipe and valve failures. 4.2 Hazard Cntrl Cntrls that can be used t reduce r eliminate the hazards include; equipment cnfiguratin (gravity drainage, fewer cnnectins, clear labeling), equipment standards (irn quality, valve quality, inspectin frequency), pressure gauges/ indicatrs, duble blck and bleed cnfiguratins, and administrative cntrls including site specific prcedures and prgrams. Redundancy shuld be built in t ensure that the failure f ne cntrl will nt result in an incident. This culd include a duble blck and bleed system, cmbined with n g znes, and line restraints. 4.3 Standard Operating Prcedures Standard Operating Prcedure(s) must address the fllwing minimum requirements; An apprved Engineered Well Prgram must be in place prir t initiating wrk n a wellbre. Permanent facilities must be cnstructed in alignment with apprved engineered designs that meet all applicable regulatry standards. Changes t the Engineered Well Prgram r engineered facility design must fllw the current Encana MOC prcess. Service prvider prcedures must be in alignment with Encana best practices and prcedures. Prir t cnducting wrk that has the ptential t impact the integrity f wellbres, wellheads r facilities, a Hazard Assessment and/r Wrk Permit must be cmpleted. The Hazard Assessment/Wrk Permit must address, Scpe f wrk Risk mitigatin/cntrls Respnsible parties Cmmunicatin Energy islatin Physical barriers Please cmments r suggested revisins t usa.ehs@encana.cm. The dcument wner will cnsider cmments and suggested revisins and revise this dcument based n urgency r annually n the revisin date. Uncntrlled when printed Page 2 f 6

3 Date last revised: 01/14/2013 Well Shut-in Practice - Attachment 1 Fire and explsin hazard Cncurrent peratins Emergency respnse Training and cmpetency requirements 5.0 Rles and respnsibilities USA Divisin EH&S BU EH&S BU leadership BU staff Respnsible fr develping, implementing, cmmunicating, evaluating, maintaining, and imprving this practice. Implementatin cnsists f making this practice available t all staff thrugh Encana's intranet and prviding apprpriate training materials and system tls fr use by the business units (BUs). Evaluatin cnsists f, at a minimum, the perfrmance f Eths audits within the BUs r sub-business units (SBUs) n a rutine basis. Based n the results f audits and requests frm staff fr mdificatins, USA Divisin EH&S will make apprpriate changes t the practice t maintain and imprve it. Respnsible fr helping implement this practice within their respective BU and SBUs. Respnsible fr implementatin f this practice in their BU r SBU thrugh prviding adequate resurces t supprt the practice. Respnsible fr fllwing this practice and incrprating its requirements int their wrk. 6.0 Gals, bjectives and perfrmance measures Business Unit perfrmance measures related t this Practice, if any, are incrprated int Screcards. Individual perfrmance measures related t this Practice are incrprated int High Perfrmance Cntracts (HPCs). 7.0 Training The Encana r cntractr supervisr is respnsible fr assuring that each well peratr r service prvider is cmpetent t perate and shut-in the equipment he r she will use. Refresher training fr this practice shall be prvided when: the peratr has been invlved in an accident r near-hit incident; the peratr has received an interventin and evaluatin that reveals that he r she is nt perating the equipment safely; a cnditin in the wrkplace changes in a manner that culd affect safe peratins; An evaluatin f each peratr s perfrmance shall be cnducted nce every 3 years, at a minimum. 8.0 Resurces BUs shall identify, allcate, and verify apprpriate resurces t cmmunicate and implement this practice. Please cmments r suggested revisins t usa.ehs@encana.cm. The dcument wner will cnsider cmments and suggested revisins and revise this dcument annually n the revisin date. Uncntrlled when printed Page 3 f 6

4 Well Shut-in Practice - Attachment 1 Date last revised: 01/14/ Assciated frms, dcuments, and references 9.1 Dcuments/references P3 Fact Sheet 9.2 Decisin Recrd and Implementatin Plan The Decisin Recrd dcuments hw this practice was develped and pertinent decisins made during the develpment. The Implementatin Plan dcuments the purpse and audience f the practice as well as changes that were made either frm the previus versin f the practice r frm standard peratins. These recrds can be lcated by clicking n the links belw: Decisin Recrd fr the Well Shut-in Practice - Attachment 1 Implementatin Plan fr the Well Shut-in Practice - Attachment 1 Please cmments r suggested revisins t usa.ehs@encana.cm. The dcument wner will cnsider cmments and suggested revisins and revise this dcument based n urgency r annually n the revisin date. Uncntrlled when printed Page 4 f 6

5 Well Shut-in Practice - Attachment 1 Practice Owner: USA Divisin Safety Revisin N: 00 Date last revised: 01/14/2013 Attachment 1 Well testing and stimulatin wrk can subject equipment t exceptinal shrt term crrsin and ersin. The frequency f inspectins required by a quality assurance prgram will depend n the nature f the wrk. Hwever, they shuld be at least annual and after severe service. Severe service includes flw backs f acids, slvents, a substance with a large amunt f chlride, C02, r H2S, and fracturing sand r ther well debris Master valves are nrmally in the fully pen psitin and are never pened r clsed when the well is flwing (except in an emergency) t prevent ersin f the valve sealing surfaces. The lwer master valve will nrmally be manually perated, while the upper master valve is ften hydraulically actuated, allwing it t be used as a means f remtely shutting in the well in the event f emergency. An actuated wing valve is nrmally used t shut in the well when flwing, thus preserving the master valves fr psitive shut ff fr maintenance purpses. Hydraulic perated wing valves are usually built t be fail safe clsed, meaning they require active hydraulic pressure t stay pen. This feature means that if cntrl fluid fails the well will autmatically shut itself in withut peratr actin. The right hand valve is ften called the flw wing valve r the prductin wing valve, because it is in the flw path the hydrcarbns take t prductin facilities (r the path water r gas will take frm prductin t the well in the case f injectin wells). The left hand valve is ften called the kill wing valve. It is primarily used fr injectin f fluids such as crrsin inhibitrs r methanl t prevent hydrate frmatin. It is typically manually perated. The valve at the tp is called the swab valve and lies in the path used fr well interventins like wireline and ciled tubing. Fr such peratins, a lubricatr is rigged up nt the tp f the tree and the wire r cil is lwered thrugh the lubricatr, past the swab valve and int the well. This valve is typically manually perated. Please cmments r suggested revisins t usa.ehs@encana.cm. The dcument wner will cnsider cmments and suggested revisins and revise this dcument based n urgency r annually n the revisin date. Uncntrlled when printed Page 5 f 6

6 Well Shut-in Practice - Attachment 1 Practice Owner: USA Divisin Safety Revisin N: 00 Date last revised: 01/14/2013 ANSI/ API 6A Specificatin fr Wellhead and Christmas Tree Equipment Please cmments r suggested revisins t usa.ehs@encana.cm. The dcument wner will cnsider cmments and suggested revisins and revise this dcument based n urgency r annually n the revisin date. Uncntrlled when printed Page 6 f 6

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