International Association of Drilling Contractors (IADC)

DRILLBITS – May 2013

amy.rose — Wed, 15 May 2013 20:08:24 +0000

This Month’s Articles

IADC issues semi-annual report on international standards activities
BSEE announces SEMS II final rule
Hon. William K Reilly, Jay Hakes discuss environmental stewardship at annual IADC Environmental Conference and Exhibition
API publishes new industry standards for drilling operations
United States Coast Guard issues new marine casualty report forms
IADC issues letter on Illinois fracking legislation
EPA reissues national pollutant discharge elimination system vessel general permit
Well Servicing Committee to develop incident-reporting system, hold workshop
Safety alerts
Rigs receive ISP certificates
IADC welcomes new members

Subscribe to DRILLBITS

Sign Up To Receive DRILLBITS

IADC issues semi-annual report on international standards activities

IADC recently released its semi-annual report on international regulations that affect offshore drilling activities. Alan Spackman, IADC vice president – offshore division, is the author of the publication. “It’s important that offshore drillers have access to information that affects their operations. This report pulls together regulations from all sources into one easy-to-access location, and is a valuable resource for our members,” noted Mr Spackman.

The latest report, which covers November 2012 through March 2013, includes updates from the International Marine Organization (IMO), International Association of Oil and Gas Producers, the International Seabed Authority and the International Standards Organization (ISO), among others.

Highlights of the report include:

• ISO 22313:2012, Societal security – Business continuity management systems – Guidance

• ISO 19901-7, Petroleum and natural gas industries, specific requirements for offshore structures – Park 7: stationkeeping systems for floating offshore structures and mobile offshore units

• IMO finalization of regulations and a code on occupational noise onboard ships; guidelines on recovery of persons from the water and revised guideline for operational implementation of the ISM Code.

For more information on the report, please contact Mr Spackman at ext. 207 (Alan.Spackman@iadc.org).

Click here to access the IADC Semi-Annual Report on International Standards Activities

BSEE announces SEMS II final rule

On 5 April, more than 18 months after the close of the public comment period, BSEE released the much anticipated SEMS II Final Rule. In response to comments received, both from IADC and IADC-member companies, there were significant changes made to the original draft regulations.

Among the areas revised for the Final Rule are Job Safety Analysis (JSA), audit requirements, Ultimate Work Authority (UWA), Stop Work Authority (SWA), Employee Participation Program (EPP) and reporting of unsafe conditions. There are uncertainties regarding how the provisions of the rule will be implemented. IADC will continue its work to obtain clarification from BSEE and the US Coast Guard.

For more information, please contact Julia Swindle at ext. 220 (Julia.Swindle@iadc.org).

Click here to access the Federal Register’s website for the SEMS II Final Rule and explanation of changes.

Hon. William K Reilly, Jay Hakes discuss environmental stewardship at annual IADC Environmental Conference and Exhibition

Jay Hakes presents on energy development and environmental risks at the IADC Environmental Conference and Exhibition

The IADC Environmental Conference and Exhibition, held on 8-9 April in New York City, featured a lineup of industry veterans who reiterated industry’s commitment to the environment. A theme running through each of the presentations and panel discussions was industry’s interest in meeting and exceeding regulations, with an eye towards the future.

Jay Hakes, director of the Jimmy Carter Library and Museum discussed historical events from Santa Barbara to Macondo. He also pointed out the critical need to drill responsibly because drilling everywhere isn’t possible and, as equally, drilling nowhere is also not possible. He noted that the US has reduced imports from 60% in 2005, to within the 40th percentile now in 2013.

William K Reilly, administrator of the environmental protection agency under President George H.W. Bush and co-chairman of the national commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling, gave a featured presentation on the implications of energy efficiencies and shale development. He discussed the energy landscape saying, “We are as successful as we have been in terms of the resources that we have and the prospect to do all sorts of things for the areas in which shale gas is being developed economically.”

Mr Reilly also noted the shift in the US to cleaner industry. “Gas is just about a third of our electrical power capacity, and coal, which was 50% as recently as two years ago, is now down to the low 30’s,” he said. In his closing remarks, he urged the industry to continue its work on safety. “You have to care about safety even if the market appears not to. It is only a high-quality response and intensive involvement, in part by the CEO, that will ever transform a company,” he said

William K Reilly discusses the implications of energy efficiencies and shale development.

Dan Whittle, Cuba Program Director with the Environmental Defense Fund, Rick McCurdy with Chesapeake Energy Corporation, Lee Hunt, IADC president emeritus, Erik Milito of API and Heather Null of Transocean Offshore Drilling Inc, also spoke on various topics regarding environmental stewardship. Elizabeth “Libby” Cheney, global vice president of environment, health, safety, and social responsibility for Hess Corporation and Alby Modiano, president, United States Oil and Gas Association gave keynote presentations.

API publishes new industry standards for drilling operations

API announced on 1 April the publication of two new oil and natural gas industry standards for well design and drilling operations.

The first, Deepwater Well Design and Construction, API Recommended Practice 96, provides engineers a system-wide reference for offshore well design, drilling and completion operations using subsea blowout preventers. It covers the range of considerations that must be taken into account when planning for and undertaking deepwater drilling operations, including:

• Appropriate barrier and load case consideration to maintain well control.

• Guidance supplementing API 65-2 on barrier philosophy and management of API 90 on annular pressure buildup.

• Risk assessment and mitigation practices for casing and equipment installation operations.

The second, Protocol for Verification and Validation of High-Pressure High-Temperature Equipment, API Technical Report 1PER15K-1, establishes a process or evaluating equipment used in high-pressure and/or high-temperature (HPHT) environments both on and offshore. This new standard provides industry with a consistent approach for designing up-to-date drilling and completion equipment that is fit-for-service in deeper HPHT wells.

For more information, please contact Alan Spackman at ext. 207 (Alan.Spackman@iadc.org).

Click the link to access the standards at the API website.

United States Coast Guard issues new marine casualty report forms

Recently, the USCG revised their Form CG-2692 (Report of Marine Incident, Injury or Death) and Form CG-2692B (Report of Required Chemical Drug and Alcohol Testing Following a Serious Marine Incident). These new forms do not include substantial changes from the previous versions, which can still be used. However, the USCG recommends using these new forms, which were retitled and placed in a more user friendly, electronic format (PDF), thus allowing “fill-ins” and electronic delivery.

Additionally, IADC has a matrix available for MODUs to use to determine if and when submission of these forms is required.

For more information, please contact John Pertgen at ext. 203 (John.Pertgen@iadc.org).

Click the link to access the new electronic forms via the USCG website.

Click the link to access the IADC MODU matrix.

IADC issues letter on Illinois fracking legislation

On 4 April, IADC issued a letter to Illinois State Representative John Bradley regarding the proposed Amendment No. 3 to House Bill 2615, the Illinois Hydraulic Fracturing Regulatory Act.

The letter to the Illinois Democrat highlighted specific concerns, expressed by IADC members, on the proposed legislation. Steve Kropla, IADC group vice president – operational integrity, pointed out that the provisions of the subject amendment to the bill stand to compromise the safety of oil and gas drilling operations in the State of Illinois.

Secondarily, the letter noted that such regulations could decrease the attractiveness for investment by operating companies and the willingness of experienced drilling companies to operate in the state.

For more information, please contact Steve Kropla at ext. 211 (Steve.Kropla@iadc.org).

EPA reissues national pollutant discharge elimination system vessel general permit

The US Environmental Protection Agency recently reissued the National Pollutant Discharge Elimination System (NPDES) Vessel General Permit (VGP), which authorizes discharges incidental to normal vessel operation for non-military and non-recreational vessels that are greater than or equal to 79 feet in length when operating as a means of transportation within the three-mile territorial seas of the US.

This final permit issuance of the revised VGP, which will replace the one issued in December 2008, imposes a few more requirements such as: prescriptives technology-based effluent limitations for oil-to-sea interfaces, and numeric technology-based effluent limitations that are applicable to vessels with ballast water tanks, has an effective date of 19 December 2013. Those vessels, including MODUs, seeking to renew or obtain coverage, must submit a notice of intent at least 30 days prior to obtaining/renewing coverage.

An IADC work group provided guidelines for MODUs subject to the VGP in 2009 and plans to update that guidance publication, which is available on IADC’s website.

For additional information, please contact John Pertgen at ext. 203 (John.Pertgen@iadc.org).

Click the link to access the IADC guidelines for MODUs subject to the VGP

Well Servicing Committee to develop incident-reporting system, hold workshop

The IADC Well Servicing Committee, formed in 2008, continues to grow in the number of members and its scope of work. During its 13 February meeting, several new members joined the conversation and contributed feedback to ongoing issues. Specifically discussed was the creation of an incident statistics reporting system for the well services community. Although similar to the current IADC administered ISP program for drilling, the Well Servicing ISP will be tailored to the well servicing industry and will form the first voluntary database collection of such information. The data collected in the Well Servicing ISP will be used for benchmarking and comparison on a global basis.

Participation is completely voluntary and company names will not be shared. In addition to the Well Servicing ISP, the committee decided to move forward with the first IADC Well Services workshop.

The workshop is being organized by the committee with regards to topics that are relevant to the well servicing industry. The Well Services workshop will take place on 30 October 2013 at National Oilwell Varco’s offices in Houston.

“It is exciting for me personally to have been heavily involved with the IADC HSE Committee for many years on the drilling side of the business and now within the Well Servicing Committee,” said Kerric Peyton, vice president of HSEQ and training for Superior Energy Services. “IADC has accomplished so much for its members over the years,” he continued. “I would personally like to extend an invitation to all well servicing companies to join IADC and become an active member in the Well Servicing Committee.”

Click the link for more information about the IADC well services workshop.

Safety Alerts

For the latest safety alerts, visit www.iadc.org/alerts.htm

Alert 13-11: Failure to fully make up the top drive connection resulted in an injury

Alert 13-12: Employee standing in line of travel results in injury

Reminders

IADC response to IMO’s Review of Deepwater Horizon Incident Investigation Meeting, 21 May, Houston, Texas
IADC International Tax Seminar, 6-7 June, Houston, Texas
IADC Technical Publications Meeting, 6 June, Houston, Texas
IADC World Drilling 2013 Conference and Exhibition, 19-20 June, Instanbul, Turkey
IADC Accounting Issues/Procedures Committee Meeting, 20 June, Houston, Texas

Back to Top

Rigs Receive ISP Certificates

For certificates received since last LTI (in years):

Ensco: Ensco 106 (1) Ensco 8505 (1);
Justiss: Rig 58 (3)
Norton: Rig #2 (6)

For certificates received since last recordable incident (in years):

Bass Drill: Alpha 1 (1)
Ensco: Ensco 100 (3), Ensco 105 (4), Ensco 106 (2);
Scandrill: Scan Glory (2), Scan Patriot (6), Scan Producer (2), Scan Victory (2);
Savanna: 605 (1), 642 (1), 643 (1), 645(1), 649 (1), 650 (1), Rig 417 (1), Rig 439 (1), WS 47 (1), WS 103 (1), WS 105 (1),WS 108 (1).

New IADC Members

IADC welcomes 23 new members:

Adghal Oilfield Supplies, LLC, Dubai, United Arab Emirates;
Alexander Almario Almario, Barrancabermeja, Santander, Colombia;
Flexgen Power Systems, Durham,North Carolina;
Global Lifting Services Nigeria Limited, Port Harcourt, Rivers State, Nigeria
Hamilton Caster, Cart and Trailer Manufacturing, Hamilton, Ohio
Instituto Brasileiro de Construcao e Montagem Industrial Naval e Offshore, Rio de Janeiro, Brazil;
Key Management Consulting, Erie, Colorado;
Louisiana Safety Training, Inc, Cut Off, Louisiana;
Louisiana Tank Specialties, Larose, Louisiana;
MISR Training Center (MTC), Giza, Egypt;
Ofs & Tools SAS, Bogota, D.C., Colombia;
Petrolift, Cairo, Egypt;
Petrotech Trainers and Consulants PVT, Ltd., Kadavanthra, Kochi, Kerala, India;
Petrustech Oil and Gas, Houston, Texas;
PTTCO Ltd., Klongkum, Bangkok, Thailand;
Saul Ewing, LLP, Harrisburg, Pennsylvania;
Sinopec Training Center (KSA), Al-Khobar, Saudi Arabia;
Technical Resource Services, Inc., Broussard, Louisiana;
Well Control Training Center of Huabei Petroleum Admin Bureau, Renqiu City, Hebei Province, China;
Wellbore Specialties, Houston, Texas;
Foradex Tunisia SA, Bucharest,Romania;
PT Pertamina Drilling Services Indonesia, Jakarta Timur, Indonesia;
Tulsa Drilling Company, LLC, Tulsa, Oklahoma.

DRILLBITS Volume 23, Number 5

David Williams, Chairman • Stephen Colville, President and CEO • Amy Rose, Editor
PO Box 4287, Houston, TX 77210-4287 USA

All listed phone extensions are for IADC’s Houston headquarters,
+1/713-292-1945. Fax +1/713-292-1946.

Send comments/questions to Amy Rose at amy.rose@iadc.org.

To subscribe to Drill Bits, go to www.iadc.org/drillbits.htm.

To change/cancel a Drill Bits subscription, send an e-mail message to
IADC Director – Membership Sharon Thorpe at sharon.thorpe@iadc.org.

DRILLBITS – April 2013

amy.rose — Thu, 11 Apr 2013 18:52:29 +0000

This Month’s Articles

International Maritime Organization begins Deepwater Horizon casualty review
Organizations seek guidance on the US Foreign Corrupt Policy Act
Latin American Forum attendees weigh in on energy and environment
North Sea countries reach agreement on safety standards
IADC hires Rhett Winter as director of Onshore Operations
IADC joins industry associations to challenge ESA listing expansions
Advanced Rig Technology Committee Focuses on BOPs
Safety alerts
Rigs receive ISP certificates
IADC welcomes new members

Subscribe to DRILLBITS

Sign Up To Receive DRILLBITS

International Maritime Organization begins Deepwater Horizon casualty review

The International Maritime Organization (IMO) officially initiated its review of the Macondo incident during the 21st session of the Organization’s Subcommittee on Flag State Implementation on 4 to 8 March.

The group considered the marine investigation reports by the United States and the Republic of the Marshall Islands related to the explosions, fire and loss of the Deepwater Horizon rig. Several issues and considerations were identified relating to fire protection; design and equipment; stability; training; and oversight.

Pending endorsement by the IMO Maritime Safety Committee, the reports on the Macondo incident, as well as the analysis and comments of the subcommittee, will be forwarded to IMO technical subcommittees for more detailed review and action.

Alan Spackman, vice president of IADC’s Offshore Division, represented the association at the meeting. Warren Weaver of Transocean, and Tom Horan of Rowan Companies, also attended as members of the delegations of Vanuatu and the Marshall Islands, respectively.

Specific highlighted issues and recommendations forwarded for further consideration are:

Fire protection:

• gas detectors installed in the ventilation inlets and other critical locations were not set to automatically activate the emergency (ESD) system that would cause the engines to stop the flow of outside air into the engine rooms;

• the design of the main and emergency power sources did not adequately take into account that the proximity of the air inlets to each other created a risk that flammable gases could impact all six generators at once;

• the MODU did not have sufficient barriers to provide effective protection for the crew and one should consider conducting an explosion risk analysis to determine whether the barriers around a MODU’s accommodation areas, escape paths and embarkation stations provide adequate protection.

• the main fire system depended exclusively on electric motor-driven fire pumps and was rendered useless when the explosions caused a total loss of power;

• the spread of the fire after the explosions was not limited by the “A-class bulkheads” on the MODU;

• consider implementing clearer requirements for labeling and control of electrical equipment in hazardous areas and the continued inspection, repair, and maintenance of such electrical equipment;

• consider providing more detailed guidance for the design and arrangement of gas detection and alarm systems that will also identify recommended automatic and manual emergency shutdown actions to be performed following gas detection in vital areas;

• consider that ventilation inlets for machinery spaces containing power sources should be located as far as possible from hazardous locations;

• consider installation of a fixed water deluge system to fight fires on or near the Drill Floor, which may automatically activate upon gas detection;

• consider the installation of hydrocarbon fire-resistant bulkheads between the drilling area, adjacent accommodation spaces, and spaces housing vital safety equipment; and

• consider implementing standards on the maximum allowable heat exposure for personnel at the muster stations and lifeboat/liferaft lowering stations.

Design and equipment:

• the current lifeboat design and testing requirements did not adequately ensure the safe loading of a stretcher or permitted adequate seating to accommodate the physical build of the average offshore worker;

• the liferaft launch area had no effective barrier to shield it from the intense heat of the fire that threatened to incinerate the liferaft;

• consider equipping MODUs with a non-electrically powered fire pump to provide fire main pressure during a loss of electrical power; and

• consider the need for a fast rescue boat/craft on board MODUs.

Stability:

• massive quantities of water were directed towards the MODU without careful consideration of the potential effects of water entering the hull; and

• rig owner’s personnel engaged in the emergency response were not familiar with the vessel response plan and deviated from it in their selection of a salvage company.

Training:

• the dual-command organizational structure under which the offshore installation manager was in charge when the vessel was latched onto the well, while the master was in charge when the MODU was underway between locations or in an emergency situation, led to a command confusion at a critical point at the time of the emergency and may have impacted the decision to activate the emergency disconnect system;

• the onboard management team and crew had insufficient training and knowledge to take full responsibility for the safety of the vessel;

• consider requiring the crew to practice launching liferafts during evacuation drills; and

• consider the importance of clearly designating a person in charge under both operating and emergency conditions for MODUs.

Oversight:

• consider evaluating the need to require flag States to audit classification societies acting on their behalf as Recognized Organizations and the development of a code of conduct for Recognized Organizations; and

• consider developing a communication system between the relevant flag and coastal State regulatory bodies to address issues regarding units operating within the coastal State’s jurisdiction.

For more information, please contact Alan Spackman at ext. 207 (Alan.Spackman@iadc.org).

Organizations seek guidance on the US Foreign Corrupt Policy Act

IADC, along with 32 other organizations and associations, drafted a letter to the US Department of Justice and the US Securities and Exchange Commission (SEC) on 19 February seeking clarity on the enforcement of the Foreign Corrupt Practices Act.

A Resource Guide to the US Foreign Corrupt Practices Act, was issued on 14 November, 2012, and provides a single central source of information for compliance offers and others in regard to the views of the Department and SEC.

The signatories identified several areas of concern with the document and requested that the established dialogue continue in order to address noted issues. Signees also requested guidance regarding how compliance programs should be structured in order to merit favorable consideration in enforcement decisions.

For more information, please contact Brian Petty at (Brian.Petty@iadc.org).

Latin American Forum attendees weigh in on energy and environment

IADC’s Brenda Kelly, senior director, program development, participated in the Latin American Forum on Energy and Environment at the University of Texas at Austin’s Jackson School of Geosciences on 4-5 March.

The forum aims to strengthen relationships between the energy and enrivonmental sectors in Latin America, the Caribbean and the US.

This year’s meeting, the eighth time the forum has convened, offered a space for the policy makers, academics and industry leaders in attendance to share ideas about careful stewardship of environmental and energy resources.

Topics discussed at this year’s forum included the technical challenges of unconventional resources, a legal perspective on oil and gas investment in Latin America, geological and technical challenges of monetization of deep-water Gulf of Mexico resources, the challenges and opportunities in Trinidad and Tobago and the nexus of the environment, renewables and water, among others.

“My presentation showcasing IADC’s strategy to enhance operational integrity through people, equipment and processes sparked interest in collaborating on regional training initiatives to better equip local personnel for the deepwater drilling challenges and called attention to IADC initiatives that could benefit the industry,”said Ms. Kelly.

For more information, please contact Brenda Kelly at ext. 201 (Brenda.Kelly@iadc.org).

North Sea countries reach agreement on safety standards

The Norwegian Oil and Gas Association, NOGEPA (the Netherlands), Oil and Gas UK and Olie Gas Danmark (Denmark) worked collaboratively to develop an agreement on safety training that has validity across borders.

In the agreement, signed 15 February, members agreed to recognize safety training given in each of the other countries and to accept training schools and courses approved by the other national associations. The goal of all the participating groups is to develop a common standard that prepares the workforce to achieve a high level of competence in basic safety and emergency preparedness across northwest Europe.

Jens Hoffmark, IADC’s regional vice president, European operations, participated in the NOIA workgroup that has worked to harmonize basic training around the North Sea.

For more information, contact Mr Hoffmark (Jens.Hoffmark@iadc.org).

IADC hires Rhett Winter as director of Onshore Operations

Onshore drilling operations have been increasing steadily resulting in the need for additional IADC staff to support onshore members.

As part of its efforts to meet the regulatory, operations and HSE needs of the onshore industry, IADC’s Onshore Division has hired Rhett Winter as director, onshore operations.

Rhett has field experience as a roughneck, derrickman and driller. He has a Bachelor of Science from Texas A&M University. He joins Paul Breaux, who was recently promoted to director, onshore HSE, and Joe Hurt,vice president, onshore division.

Rhett can be contacted at ext. 235 (Rhett.Winter@iadc.org).

IADC joins industry associations to challenge ESA listing expansions

IADC has joined with industry association efforts regarding the possible listing of the Lesser Prairie Chicken as a “threatened species” by the US Fish and Wildlife Service under the Endangered Species Act. On 1 March, the associations sent comments to the docket listing a variety of concerns.

Should the lesser prairie chicken be listed, limits on drilling may be placed at well sites in Texas, Colorado, Kansas, Oklahoma and New Mexico.

This action has the potential to affect IADC members who drill wells in areas that are subject to the FWS regulations pertaining to the conservation of species and operate in areas identified as a lesser prairie chicken habitat.

IADC, along with API, Independent Petroleum Association of America, Western Energy Alliance, New Mexico Oil and Gas Association, Panhandle Producers and Royalty Owners Association, Oklahoma Independent Petroleum Association and the Mid-Continent Oil and Gas Association of Oklahoma, is concerned with protecting the environment and many members donate and assist in the protection of the bird’s habitat.

For more information, please contact Joe Hurt at ext. 224 (Joe.Hurt@iadc.org).

Advanced Rig Technology Committee Focuses on BOPs

Two subcommmittees within IADC’s Advanced Rig Technology Committee recently noted an increased interest in drilling Blow-Out Preventers (BOP) and their control systems. Undoubtedly, industry events of the last three years have driven the concern and curiosity, along with governmental objectives for reporting and certification. The primary concerns voiced by members have focused on the robustness and reliability of these important safety systems.

The Future Technology Subcommittee held a subsea BOP Workshop in Houston on 21 March, which received positive and enthusiastic feedback from attendees.

The Drilling Controls Systems Subcommittee has also received numerous requests on the subject of BOP Control Systems, both hydraulic and multiplexed electrical/electronic, for offshore and onshore applications. Due to the interest, the subcommittee has proposed the formation of a new BOP Controls Subcommittee. This task is currently underway, with discussions and debates continuing at the next subcommittee meeting on 15 May.

Interested members are encouraged to attend and aid in shaping the direction of IADC and the Advanced Rig Technology Committee.

For more information, please contact Scott Maddox at ext. 423 (Scott.Maddox@iadc.org).

Safety Alerts

For the latest safety alerts, visit www.iadc.org/alerts.htm

Alert 13-08: Caught between incident results in first aid injury

Alert 13-09: High pressure release results in injury

Alert 13-10: Hot work operations results in dropped object

Reminders

IADC/SPE Managed Pressure Drilling and Underbalanced Operations Conference & Exhibition, 17-18 April, San Antonio, Texas
IADC HSE Environmental Subcommittee Meeting, 17 April, Houston, Texas
IADC Training Committee Meeting, 17 April, Houston, Texas
IADC HSE Committee Meeting, 18 April, Houston, Texas
IADC Rig Moving Committee Meeting, 25 April, Houston, Texas

Back to Top

Rigs Receive ISP Certificates

For certificates received since last LTI (in years):

Atwood Oceanics: Vicksburg (4);
Ensco: Ensco 67 (6), Ensco 96 (13), Ensco 108 (5), Ensco 8500 (3), Ensco 8502 (3), Ensco DS-3 (3);
COSL Drilling: BH9H (2), BH 12 (2), BO HAI 9 HAO (1), BO HAI NO 12 (1), HAI YANG SHI YOU 9 (1), HYSY 921 (2), NAN HAI SI HAO (1), NHSH (2), YU SONG (1), YU SONG (2);
Justiss Oil Company: Rig 58 (3).

For certificates received since last recordable incident (in years):

Atwood Oceanics: Vicksburg (1)
Ensco: Ensco 58 (2), Ensco 94 (8), Ensco 80 (1);
COSL Drilling: BH 5 (2), BH 8 (2), HYSY 922 (2), HYSY 924 (2), HYSY 931 (2), HYSY 936 (2), HYSY 937 (2), HYSY 941 (2), NAN HAI YI HAO (1), NHYH (2).

New IADC Members

IADC welcomes 36 new members:

Amelco Formacion Profesional, Neuquen, Argentina;
Cactus Wellhead, LLC, Houston, Texas;
Ccapym Centro de Capacitacion Multiservicios S.A. de C.V., Cuidad del Carmen, Campeche, Mexico;
CWT Energy Services, Houston, Texas;
D.L. Taylor Consulting, Inc., Midland, Texas;
Daqing Well Control Training Center of China, Daqing, Heilongjiang, China
Durasafe PTE, Ltd., Singapore;
El Puente Comercializadora Industrial y de Servicios, S.A., de C.V., San Juan, Texas;
Elite Drilling Company Limited, Wangthonglang, Bangkok, Thailand;
Green-Edge Oilfield Services Limited, Port Harcourt, Rivers State, Nigeria;
International Earth Products LLC, Donna, Texas;
John Loftus Consulting & Training, Nerang DC, Queensland, Australia
Leviton Manufacturing, Melville, New York;
Life Cycle Engineering, Inc., Charleston, South Carolina;
Ludeca, Inc., Doral, Florida;
Megadrill Nigeria Limited, Port Harcourt, Rivers State, Nigeria;
Minassupply Corp., Houston, Texas;
Mind Merge Training Center, Al Khobar, Eastern Province, Saudi Arabia;
Motor Services Hugo Stamp, Inc., Fort Lauderdale, Florida;
Oilfield Supplies FZCO, Dubai, United Arab Emirates;
Petrolift, Cairo, Egypt;
Petromentor International Education (Beijing) Co, Ltd., Beijing, China;
Petroskills, Katy, Texas;
Proclad Academy LLC, Jebel Ali, Dubai, United Arab Emirates;
Proserv, Houston, Texas;
Saf-T Compliance International, McComb, Mississippi;
Safety Solutions LLC, Midland, Texas;
Shipper Owned Container, McKinney, Texas;
Sistems Ambientales Industriales de Mexico S.A. de C.V., Villahermosa, Tabasco, Mexico;
Spirit Truck Lines Inc., San Juan, Texas;
SW Electric Supply, Inc., Beaumont, Texas;
Travis Oilfield Services Corp., Houston, Texas;
Uniteam Offshore Training Centre, Yangon, Myanmar;
Well Human S.A. de C.V., Poza Rica, Veracruz, Mexico;
Wider Technologies Limited, Port Harcourt, Rivers, Nigeria;
Wintech Professional Institute, Darkuman, Accra, West Africa, Ghana

DRILLBITS Volume 23, Number 4

David Williams, Chairman • Stephen Colville, President and CEO • Amy Rose, Editor
PO Box 4287, Houston, TX 77210-4287 USA

All listed phone extensions are for IADC’s Houston headquarters,
+1/713-292-1945. Fax +1/713-292-1946.

Send comments/questions to Amy Rose at amy.rose@iadc.org.

To subscribe to Drill Bits, go to www.iadc.org/drillbits.htm.

To change/cancel a Drill Bits subscription, send an e-mail message to
IADC Director – Membership Sharon Thorpe at sharon.thorpe@iadc.org.

IADC supports latest BSEE Safety and Environmental Management Systems rule

amy.rose — Thu, 04 Apr 2013 20:52:08 +0000

Houston, 4 April 2013 -IADC supports the Safety and Environmental Management Systems (SEMS) II final rule issued today by the Bureau of Safety and Environmental Enforcement (BSEE).

This latest rule is a complement to the original SEMS rule, issued in October 2010 and known as the Workplace Safety Rule. The SEMS II ruling was drafted to further protect workers and the environment from preventable accidents. It provides for more participation by employees and empowers field personnel to make safety management decisions. Additionally, it will require audits be conducted by accredited third parties.

“IADC is pleased that BSEE has understood and responded in a positive way to many of the concerns raised by our organization and other industry stakeholders in response to the proposed rule,” said Alan Spackman, vice president, IADC offshore division. “This rule is intended to address a myriad of complex operations associated with the effective management of offshore oil and gas activities. One area of concern remains; because there were significant changes with respect to auditing, we have not had time yet to form a judgment regarding their potential impact on the industry. These primarily impact clients of IADC members, and IADC will be joining with other industry groups to address this issue and to analyze the rule in depth. We trust that BSEE will work with the industry to improve or provide further clarification of the rule should it prove necessary.”

The SEMS II rule issued today becomes effective on June 4, 2013.

About IADC

IADC is dedicated to enhancing the interests of oil-and-gas and geothermal drilling contractors worldwide. Founded in 1940, IADC’s mission is to improve industry health, safety and environmental practices; advance drilling and completion technology; and champion responsible standards, practices, legislation and regulations that provide for safe, efficient and environmentally sound drilling operations worldwide. IADC is headquartered in Houston and has offices in Washington D.C., the Netherlands, Thailand, and the United Arab Emirates, as well as chapters in the UK, Brazil, Australasia, South Central Asia, Southeast Asia, the Middle East and across the United States. For more information, visit the IADC websites www.iadc.org and www.drillingcontractor.org.

DRILLBITS – March 2013

amy.rose — Mon, 11 Mar 2013 18:58:22 +0000

This Month’s Articles

IADC applauds EU agreement on offshore oil and gas safety
Jack-up Rig Committee, Mike Hoyle receive awards
Elfriede Neidert named director of the IADC Quality Control & Quality Assurance Division
IADC to expand network of regional representatives
OSHA clarifies policy on drillers’ protective gear
ISO Offshore Modular Drilling Rig Standard announced
Dept of Interior renews Ocean Energy Safety Advisory Committee charter
IADC hosts regional operations forums
Danish Energy Agency updated on industry goals
Joint Ocean Commission Initiative to propose ocean agenda to Administration and Congress
Safety alerts
Rigs receive ISP certificates
IADC welcomes new members

Subscribe to DRILLBITS

Sign Up To Receive DRILLBITS

IADC applauds EU agreement on offshore oil and gas safety

IADC welcomed an agreement reached on 21 February between the European Parliament and European Council on a proposal for oil and gas safety regulation. The agreement was drafted in response to the Macondo disaster in the Gulf of Mexico and is expected to be formally approved in the coming months. Member States’ existing offshore safety protocols were reviewed to draw up the new legislation. The proposed guidelines aim to guarantee the world’s highest safety, health and environmental standards for all operations in the European Union.

IADC worked collaboratively with Oil and Gas UK and OGP to campaign against the European Council’s initial inclination to impose new regulations. Working with the governments of the United Kingdom, Denmark, The Netherlands and Norway, IADC championed a directive so that each country is responsible for drafting its own regulations.

“After more than two years of struggle, the industry has prevailed in making the argument for a directive and against regulations imposed by Brussels. The distinction sets a platform for individual Member States to develop their own regulations. Had there been a direct mandate for regulations, it would have gone into effect immediately and caused massive disruption in oil and gas operations,” said Brian Petty, IADC executive vice president, government and regulatory affairs. “The agreed-upon legislation will ensure a much better result from a regulatory standpoint with disrupting existing offshore operations in the EU.” For more information, please contact Brian Petty at +1 202-293-0670 (brian.petty@iadc.org).

Jack-up Rig Committee, Mike Hoyle receive awards

Awards were presented to the Jack-up Committee and Mike Hoyle of GL Noble Denton at the annual IADC Health, Safety, Environment and Training Conference in Houston on 5 February.

The Jack-up Committee was recognized with the IADC Presidential Achievement Award for its contribution to the publication of the International Organization for Standardization’s standards for site-specific assessment of mobile offshore units. David Lewis, president of Lewis Engineering Group, accepted the award on behalf of the committee. Mike Hoyle was presented with an Exemplary Service Award for his substantial contribution to the International Organization of Standardization’s standards for site-specific assessment of offshore mobile units.

Mr Hoyle is head of advanced engineering in GL Noble Denton’s UK marine and offshore operation and chairman of its Technical Policy Board. He has more than thirty-five years of experience in the offshore industry and is widely recognized for his expertise in jackup engineering. Since its inception, Mr Hoyle has been convener of the International Standards Organization Work Group covering the Site Specific Assessment of Mobile Offshore Units that developed ISO 19905-1 in 2012 and ISO 19905-2, which will soon be published.

Elfriede Neidert named director of the IADC Quality Control & Quality Assurance Division

Elfriede Neidert has been named director of IADC’s Quality Control & Quality Assurance Division. The move is the latest within the Operational Integrity Group. The QA/QC function was previously contained within the Accreditation and Credentialing Division (ACD), and it will continue to be primarily involved in the oversight of training providers accredited by ACD and ACD’s ISO 9001 certification.

Further separating QA/QC from the daily operations of ACD is designed to strengthen the independence and autonomy of this function, which is vital to maintaining credibility in IADC’s various accreditation programs.

“The new group name and structure is designed to highlight the roles these divisions play in helping our members improve their own performance and ensure the proper qualifications and competency of their employees,” said Steve Kropla, Group Vice President- Operational Integrity. Other divisions within the Operational Integrity Group consist of the Onshore Division, Offshore Division, Drilling & Well Services Division and ACD.

For more information, contact Steve Kropla at ext 211 (steve.kropla@iadc.org).

IADC to expand network of regional representatives

IADC is currently expanding its network of regional representatives to better address the needs of its members in all operating areas around the world. New regional representatives are being recruited for Brazil, Continental Europe and the North Sea. IADC’s network of regional reps provides focal points throughout all operating regions to serve as conduits for information about the association’s many initiatives, activities and programs.

Regional reps are presently assigned in Europe, the Middle East and Africa, Asia and Australasia. “Additional regional representatives will enhance IADC’s ability to address member needs in a timely and effective manner,” said Stephen Colville, IADC’s president and CEO. “They will also serve as members’ link to subject matter experts on the IADC staff.” The new regional representatives are expected to be in place by mid-year.

For additional information, contact Ken Fischer at (ken.fischer@iadc.org).

OSHA clarifies policy on drillers’ protective gear

OSHA issued the “Guidance on Handling Cases Developed Pursuant to the FRC Enforcement Policy Memorandum,” to regional administrators and solicitors on 18 December, 2012 It provides guidance on the 2010 enforcement memorandum, which required oil and gas well workers to wear flame-resistant clothing (FRC) to protect against flash fires.

The guidance details OSHA’s policy that compliance staff should closely review operations where FRC is not in use to determine its necessity to protect workers against flash fires. A citation requires evidence that the employer had notice of the need for equipment. To enforce the Personal Protection Equipment standard, an OSHA compliance officer must show that FRC is necessary to protect workeres from hazards in their workplace.

In the guidance, OSHA maintains that the October 2010 memorandum was not a significant rule change to the PPE regulation. IADC and other associations still contend that it is, in fact, a significant regulatory change.

For more information, please contact Joe Hurt at joe.hurt@iadc.org or Paul Breaux at paul.breaux@iadc.org.

ISO Offshore Modular Drilling Rig Standard announced

The International Organization for Standardization (ISO) has announced that a new project for development of a standard providing “Specification for offshore modular drilling rigs on fixed platforms” has been approved.

The project will be registered on the work program of Technical Committee 67 as NP 18647. The project was proposed by China, who provided detailed national standards for use in the development of the new standard. In addition, Germany, Qatar, Saudi Arabia and the United Kingdom have nominated experts to serve on the working group to develop the standard.

IADC members interested in participating should contact their national standards body regarding the possibility of participation.

For further information, contact Alan Spackman at ext. 207 (alan.spackman@iadc.org).

Dept of Interior renews Ocean Energy Safety Advisory Committee charter

The Department of Interior issued a Notice of Renewal for the Ocean Energy Safety Advisory Committee (OESC) on 6 February. The OESC was formed in early 2011 and originally given a two year charter.

The group met on 9-10 January in Washington DC to review progress-to-date and finalize recommendations to outgoing DOI Secretary Kenneth Salazar.

The meeting opened with remarks from BSEE Director James Watson, who focused on the proposed BOP rule, new oil spill response regulations, BAST and Arctic drilling. Secretary Salazar followed by thanking the committee for its work-to-date. He announced that the Administration’s Arctic policy had not changed, and that they are especially interested in the opportunity that the exploration phase allows for significant scientific research to be conducted.

Presentations were then made by each of the OESC subcommittees. As the OESC operates in an advisory capacity, no specific action items or plans were established by subcommittees or their members. All recommendations will be presented formally to BSEE for consideration and possible action.

For more information, please contact Julia Swindle at ext. 220 (julia.swindle@iadc.org).

IADC hosts regional operations forums

IADC is increasing contact and communications with United States Onshore members by hosting Regional Operations Forums, which feature presentations from IADC staff on efforts being undertaken for onshore contractors. The first forum was held in conjunction with the Permian Basin Chapter reorganization meeting on 12 February.

Other forums are currently scheduled for 12 March in Oklahoma City, 19 March in Denver and 15 May in Houston. Dates and locations for future forums will be forthcoming.

For additional information, please contact Joe Hurt at (joe.hurt@iadc.org) or Paul Breaux at (paul.breaux@iadc.org).

Danish Energy Agency updated on industry goals

Jens Hoffmark, IADC regional vice president, European operations, Denmark, met with the new management of the Danish Energy Agency on 4 February to highlight IADC’s role within the oil and gas industry.He pointed out the challenges facing the industry, such as the relatively high number of new rigs entering the market and finding and training personnel to ensure a competent and qualified workforce.

In his meeting with DEA vice president Dorte Nohr Andersen and director Katrine Nielsen, Mr Hoffmark answered questions related to the regulation of offshore safety among countries around the North Sea. Additionally, he invited them to actively participate in IADC’s conferences.

For more information, contact Mr Hoffmark at (jens.hoffmark@iadc.org).).

Joint Ocean Commission Initiative to propose ocean agenda to Administration and Congress

The Joint Ocean Commission Initiative (JOCI) held a meeting, “Setting the Ocean Agenda for the Administration and Congress,” on 20 February in Washington, D.C.

JOCI was established in 2005 as a bipartisan collaboration of senior leaders with diverse ocean viewpoints and interests. The group’s primary goal is to accelerate the pace of change to facilitate meaningful ocean policy reform. The meeting focused on five priority issue areas, which included: coastal management and resilience, ocean energy development, supporting state and regional priorities through national ocean policy, arctic management and international ocean management.

Attendees and participants represented both government and industry. IADC submitted perspectives about opportunities and challenges for ocean policy, science and funding for a panel entitled, “Perspectives on ocean and coastal priorities.” The panel was moderated by Dr Andrew Rosenberg, Director of the Center for Science and Democracy at the Union of Concerned Scientists. Participants included representatives from the Rhode Island Coastal Resource Management Council, Pew Environment Group, Florida Atlantic University and API, which presented the oil and gas industry viewpoint.

JOCI will use input from the gathering to develop an ocean agenda that outlines recommendations for actions that can be carried out over the next 2 to 4 years, and will present it to the Obama administration and Congress in Spring 2013.

For more information, please contact Brian Petty at (brian.petty@iadc.org).

Safety Alerts

For the latest safety alerts, visit www.iadc.org/alerts.htm

Alert 13-04: Lower marine riser package (LMRP) connector failure

Alert 13-05: Drill pipe dislodged from pipe bin during drilling operations

Alert 13-06: Poor communication amongst crew results in injury

Alert 13-07: Improper hand placement results in minor injury

Reminders

IADC Subsea BOP Workshop, 21 March, Houston, Texas
IADC AIP Committee Meeting, 21 March, Houston, Texas
IADC ART Committee Meeting, 25 March, Houston, Texas
IADC Environmental Conference & Exhibition, 8-9 April, New York City
IADC/SPE Managed Pressure Drilling & Underbalanced Operations Conference & Exhibition, 17-18 April, San Antonio, Texas

Back to Top

Rigs Receive ISP Certificates

For certificates received since last LTI (in years):

Ensco: Ensco 107 (4), Ensco 5004 (1), Ensco 5005 (5), Ensco 8503 (1);
Nabors Drilling International, Ltd: Rigs 54 (1), 115 (8), 144 (4), 212 (1), 217 (5), 298 (3), 302 (8), 326 (1), 336 (1), 338 (2), 393 (1), 529 (5), 536 (2), 575 (4), 585 (2), 607 (1), 609 (5), 622 (2), 652 (6), 654 (1), 809 (6), 819 (9), 825 (11), 828 (12), 835 (11), 838 (12), 839 (8), 859 (1), 860 (1), 863 (4), 984 (1), 986 (1), D111 (6), F18 (4), SS18 (1);
National Drilling Company (NDC):ND-17 (17);
Northern Offshore: Energy Driller (3), Energy Searcher (1);
Pt Ensco Sarida Offshore: Ensco 67 (6);
Weatherford Drilling International (BVI) Ltd: Rig 94 (2), Rig 401 (2), Rig 402 (2), rig 404 (2), Rig 405 (2), Rig 406 (2), Rig 408 (2), Rig 409 (2), Rig 410 (2), Rig 411 (2), Rig 412 (2), Rig 413 (2), Rig 414 (2), Rig 415 (2), Rig 416 (2), Rig 418 (2), Rig 419 (2), Rig 420 (2), Rig 421 (2), Rig 424 (2),Rig 429 (2), Rig 430 (2), Rig 431 (2), Rig 435 (2), Rig 436 (2), Rig 437 (2) Rig 438 (2), Rig 442 (2), Rig 443 (2), Rig 446 (2), Rig 460 (2), Rig 464 (2), Rig 465 (2), Rig 466 (2), Rig 473 (2), Rig 476 (2), Rig 481 (2), Rig 482 (2), Rig 486 (2), Rig 491 (2), Rig 497 (2), Rig 833 (2), Rig 834 (2), Rig 840 (2), Australia Support Team (4), NPRS-1 Support Team (2), NVBN Support Team (2), OBN Support Team (2), Rig-Builders Team #1 (2), Rig-Builders Team #2 (2), Rig-Builders Team #3 (2), Rig-Builders Team #4 (2), Venezuala Support Team (12).

For certificates received since last recordable incident (in years):

Ensco: 5004 (1);
Nabors Drilling International, Ltd: Rigs 103 (1), 115 (1), 144 (4), 210 (1), 298 (3), 302 (1), 326 (1), 336 (1), 338 (2), 536 (2), 585 (1), 654 (1), 660 (2), 679 (4), 794 (2), 802 (3), 809 (3), 827 (4), 839 (1), 859 (1), 986 (1), F18 (2), SD6 (1), SS18 (1);
SST Energy Corp.: Rig 3 (1), Rig 54 (1), Rig 57 (2), Rig 66 (1), Rig 88 (6);
Triumph Drilling: Triumph 101 (1);
Unit Drilling Co.:Rig 154 (4), Rig 235 (2), Rig 312 (1), Rig 323 (2);
Unit Texas Drilling LLC: Rig 201 (1), Rig 337 (1), Rig 341 (1);
Weatherford Drilling International (BVI) Ltd: Rig 94 (2), Rig 160 (1), Rig 401 (2), Rig 402 (2), Rig 404 (2), Rig 405 (2), Rig 406 (2), Rig 408 (2), Rig 409 (2), Rig 410 (2), Rig 411 (2), Rig 412 (2), Rig 413 (2), Rig 414 (2), Rig 415 (2), Rig 416 (2), Rig 418 (2), Rig 419 (2), Rig 420 (2), Rig 421 (2), Rig424 (2), Rig 429 (2), Rig 430 (2), Rig 431 (2), Rig 435 (2), Rig 436 (2), Rig 437 (2), Rig 438 (2), Rig 442 (2), Rig 443 (2), Rig 446 (2), Rig 460 (2), Rig 464 (2), Rig 465 (2), Rig 466 (2), Rig 473 (2), Rig 476 (2), Rig 481 (2), Rig 482 (2), Rig 486 (2), Rig 491 (2), Rig 497 (2), Rig 798 (1), Rig 832 (1), Rig 833 (2), Rig 834 (1), Rig 847 (1), Rig 867 (2), NPRS-1 Support Team (2), NVBN Support Team (2), Rig-Builders Team #1 (2), Rig-Builders Team #2 (2), Rig-Builders Team #3 (2), Rig-Builders Team #4 (2).

New IADC Members

IADC welcomes 25 new members:

Belisario Velasquez & Asociados LTDA, Bogota, Clombia;
• Coole Immersive, Inc., Edmonton, Alberta, Canada;
• Egyptian Drilling Skills, Cairo, Egypt;
• Freudenberg Oil and Gas FZE, Dubai, United Arab Emirates;
• Genesis Oilfield Pipe & Supply, Lafayette, Louisiana;
• Hytorc of Texas, Inc., Houston, Texas;
• Industrial Video & Control, Newton, Massachusetts;
• Kolad Energy (NIG) Limited, Lagos, Nigeria;
• Mahatta Trading Company, W.L.L., Kuwait;
• Medsafe, La Porte, Texas;
• Mud Check, Inc., Magnolia, Texas;
• QHSE Energy Services, Lima, Peru;
• R360 Environmental Solutions, Houston, Texas;
• Rig Manufacturing, LLC, Cypress, Texas;
• Safety Works, San Antonio, Texas;
• SDS Petroleum Consultants, Tyler, Texas;
• STC Multifold Ltd, Port Harcourt, Rivers State, Nigeria;
• Sunterra Well Services, LP, Denver, Colorado;
• Tolteq Group, LLC, Cedar Park, Texas;
• Trinity Holdings, Dubai, United Arab Emirates;
• Ulterra Drilling Technologies, Forth Worth, Texas
• Albrehta Limited, Biala Podlaska, Lubelskie, Poland;
• Optimum Engineering Standards Company Limited (OES), Al-Khobar, Eastern Province, Saudi Arabia;
• W.T. Drilling Co., Inc., Natchez, Mississippi;
• Shelf Drilling Offshore Holdings Limited, Dubai, United Arab Emirates.

DRILLBITS Volume 23, Number 3

David Williams, Chairman • Stephen Colville, President and CEO • Amy Rose, Editor
PO Box 4287, Houston, TX 77210-4287 USA

All listed phone extensions are for IADC’s Houston headquarters,
+1/713-292-1945. Fax +1/713-292-1946.

Send comments/questions to Amy Rose at amy.rose@iadc.org.

To subscribe to Drill Bits, go to www.iadc.org/drillbits.htm.

To change/cancel a Drill Bits subscription, send an e-mail message to
IADC Director – Membership Sharon Thorpe at sharon.thorpe@iadc.org.

IADC applauds EU agreement on offshore oil and gas safety

amy.rose — Fri, 22 Feb 2013 21:48:14 +0000

Houston, 22 February 2013 – The International Association of Drilling Contractors welcomes an agreement reached yesterday between the European Parliament and the European Council on a proposal for oil and gas safety legislation.

The agreement, reached yesterday, 21 February, was drafted in response to the Macondo disaster in the Gulf of Mexico and is expected to be formally approved in the coming months. The Commission reviewed Member States’ existing offshore safety protocols to draw up the new legislation. The proposed guidelines aim to guarantee the world’s highest safety, health and environmental standards for all operations in the European Union.

“After more than two years of struggle, the industry has prevailed in making the argument for a directive and against regulations imposed by Brussels. The distinction sets a platform for individual Member States to develop their own regulations. Had there been a direct mandate for regulations, it would have gone into effect immediately and caused massive disruption in oil and gas operations,” said Brian Petty, IADC executive vice president, government and regulatory affairs. “The agreed-upon legislation will ensure a much better result from a regulatory standpoint without disrupting existing offshore operations in the EU.”

For more information, including specifics on the agreement, please visit the Commission’s website

About IADC

DRILLBITS – Feb 2013

amy.rose — Thu, 07 Feb 2013 22:01:12 +0000

This Month’s Articles

IADC Drilling Manual update currently under way
New DOI rule on hydraulic fracturing to mandate disclosure of chemicals
Task group formed to rewrite IADC Deepwater Well Control Guidelines
IADC and allies fight threat to OCS leasing program posed by environmental activist group
IADC’s Tom Terrell to retire
Well Servicing Comm seeking new members
North Sea Chapter discusses priorities at special meeting
Environmental Conference to feature presentations by Hon. Willliam K Reilly, Jay Hakes and industry leaders
IADC to participate in Myanmar trade mission
Safety alerts
Rigs receive ISP certificates
IADC welcomes new members

Subscribe to DRILLBITS

Sign Up To Receive DRILLBITS

IADC Drilling Manual update currently under way

The IADC Drilling Manual, the definitive rig operations guide, is being rewritten for the first time in 20 years by a dedicated team of highly respected experts.

The new edition, the twelfth, will include guidelines, operating procedures and maintenance for numerous technologies that have evolved over the past two decades, as well as updates on longstanding equipment.

The 12th edition will be issued in both print and electronic formats, both featuring color graphics. The electronic edition will include video clips and animations of drilling operations and equipment.

Fran Kennedy-Ellis, IADC director publishing initiatives has organized the steering committee for the update.

Contributor Don Hannegan, drilling hazard mitigation technology development at Weatherford remarked, “The IADC Drilling Manual has been a valuable resource for drilling decisionmakers for several decades. IADC has engaged a world-class team of subject matter experts to assist in updating the manual to include current state-of-the art of drilling information.”

Shane Lalumandier, operations engineer, Precision Drilling, and a member of the committee, commented, “Through just a little volunteer work, one can impart their oilfield knowledge in an industry-respected published work such as the IADC Drilling Manual to help counter the effects of the great crew change and bridge knowledge gaps.”

Work is currently under way and subject- matter experts are still needed to contribute in the following areas: Rig Personnel, Tubulars, Casing & Tubing, Drill Collars, Subs and Heavy Weight Drill Pipe, Floating Drilling Operations and Equipment, and Special Problems. Young professionals, domestic, and international contractors are encouraged to participate.

The Steering Committee meeting will meet for lunch on March 6 in Amsterdam in conjunction with the SPE/IADC Drilling Conference. A subsequent Steering Committee meeting will be held on March 12 at IADC’s Houston Headquarters at 10 a.m. CST.

Aramco Services Co., Baker Hughes, Cameron, Caterpillar, Chevron ETC, ConocoPhillips, Derrick Equipment Company, DeWardt & Company, Frank’s Casing, GE Oil & Gas, Halliburton, Hamilton, H&P, Insight, Marathon, National Oilwell Varco, Precision Drilling, Repsol, RES Consultancy, Synergy Fluid Services, Smith Consulting, Topco, Tognum America Inc., Transocean, VAM Drilling, Weatherford International, WireCo World Group, as well as faculty from Texas A&M University, LSU and the University of Texas, have pledged support for the project.

Contact Fran at +1 713-600-1887 or (fran.kennedyellis@iadc.org)

New DOI rule on hydraulic fracturing to mandate disclosure of chemicals

The controversial draft rule to regulate hydraulic fracturing that drew much concern and criticism last May, is currently in the process of being revised by the US Department of the Interior.

The announcement from the Bureau of Land Management, on 18 January, did not detail the exact proposed changes, but did clarify that the new rule will still require disclosure of the chemicals companies inject underground, in addition to stringent standards on properly managing wastewater and ensuring wells do not leak.

Oil and gas groups have previously criticized the rule, noting that it would increase the cost of drilling on public lands, complicate the permitting process and duplicate regulations already overseen by the states.

After the announcement was made, Interior Secretary Ken Salazar held a meeting with major oil and gas industry representatives to discuss federal regulatory issues.

The Bureau of Land Management has sent the proposed changes to the White House for review and will invite public comment in the first quarter of 2013.

For more information, please contact Brian Petty at (brian.petty@iadc.org).

Task group formed to rewrite IADC Deepwater Well Control Guidelines

IADC is launching a rewrite of its landmark IADC Deepwater Well Control Guidelines. Louis Romo, BP, is chairing the task force, assisted by Moe Plaisance, Diamond Offshore Drilling

Inc, who serves as executive advisor. Mr Plaisance chaired the task group that published the original guidelines in 1998, and subsequently led the effort to add in 2002 a supplement on unplanned riser disconnects. The Offshore Operators Committee and Minerals Management Service joined in the effort.

“The refresh of the IADC Deepwater Well Control Guidelines comes at a time in which our Industry is undergoing tremendous change,” remarked Mr Romo, who is BP’s segment engineering technical authority-well control. “As such we are grateful to the many industry leaders who have volunteered their time in order to take on this effort, their labor will be of significance for many years to come.”

Under Mr Romo’s leadership, the task force will update the guidelines to address current technology, equipment, and practices. A kickoff meeting was held on 17 January 2013, in Houston.

The following companies have pledged to support this industry-wide effort to update the Guidelines: Anadarko Petroleum, BP, Chevron ETC, Diamond Offshore Drilling Inc.,Ensco, ExxonMobil, Signa Engineering, Noble Drilling Services, Inc., Rowan, Seadrill, Shell, Transocean, and TOTAL, as well as faculty advisors from the University of Texas at Austin and Louisiana State University.

For more information, contact Fran Kennedy-Ellis at (fran.kennedyellis@iadc.org).

IADC and allies fight threat to OCS leasing program posed by environmental activist group

The IADC, along with the API, IPAA and the US Oil & Gas Association, joined together in January to dismiss the Center for a Sustainable Economy’s challenge to the Obama administration’s five-year offshore oil and gas leasing program, arguing that the group does not have standing to bring suit.

The CSE, an environmental advocacy group, argued that the administration based the program on incomplete and flawed economic analysis that ignored key cost-benefit criteria. In particular, the group called attention to ultra deepwater leases, which it contends increases the risk of another catastrophic spill.

The offshore leasing program, initiated in August by the Interior Department, will hold 15 lease sales in the Gulf of Mexico and Alaskan coastal waters.

In a brief to the DC Circuit, the consortium noted that the CSE doesn’t have any members. The brief also stated, “while CSE may have a heartfelt interest in how the government goes about deciding where to engage in offshore oil and gas leasing, and may disagree vehemently with how that was done in the 2012-2017 leasing program,” ultimately, there is nothing in the program that will hurt the CSE’s ability to pursue its political agenda.

For its part, the Interior Department has said it will make parts of the Gulf and Arctic available for new development while adopting an approach that will simultaneously protect environmentally sensitive areas.

Industry organizations have previously said that the program is too restrictive and cuts off access to oil and gas reserves in West Coast waters and the Atlantic Ocean.

For more information, please contact Brian Petty at +1 202-293-0670 (brian.petty@iadc.org).

IADC’s Tom Terrell to retire

Tom Terrell, IADC senior vice president–corporate development, and chief of staff, will retire on 28 February.

Tom joined IADC in 2005 as senior vice president of business development, bringing with him a wealth of oil and gas industry experience that spans more than 50 years. Prior to joining IADC, he spent 15 years as publisher of Oil and Gas Journal. His years of experience include work in publishing, marketing and business experience with oil companies and service companies.

“I’ve been very familiar with every other not-for-profit oil and gas industry association during my career,” Tom said. “IADC is head and shoulders above the rest. I believe that the member benefits we offer, our involvement in the industry and our forward-thinking stance positions the IADC as the best in the industry.”

“Tom has been my rock over the past year, as he has been to the Association for the past eight years,” noted Stephen Colville, IADC President and CEO. “I have leant heavily upon him and he has been a great teacher and counselor.”

Upon his retirement, Tom has plans to spend time with his children and grandchildren and indulge his love of bird hunting.

Jason McFarland will assume the role of vice president-corporate development and chief of staff, and retain his membership and marketing roles.

Well Servicing Comm seeking new members

The IADC Well Servicing Committee seeks to reenergize its operations, and is seeking volunteers. Recognizing the importance of well servicing operations, IADC established the committee in 2011 to provide a space for members to discuss a wide range of topics, including fracking, wirelines, snubbing, coil tubing and salt water disposal.

“We invite all IADC members whose operations fall under the well-servicing umbrella, regardless of size, to join our quarterly meetings,” remarked committee chairman Roe Patterson, Basic Energy.

The group plans to develop quality initiatives, including training programs, workshops, conferences and the review, revision, and/or submission of industry recommended practices to regulatory bodies such as API and local, state and federal regulators.

For more information, please contact Scott Maddox at ext 423 (scott.maddox@iadc.org).

North Sea Chapter discusses priorities at special meeting

Seventeen members and officers of the North Sea Chapter participated in a special meeting on 22 January in Aberdeen.

Members discussed the future work of the NSC and to establish objectives and priorities. Ahead of the meeting, a survey was taken to identify members’ primary interests and key challenges. Many areas of consensus were addressed and it was clear that the role of the NSC is critical to drilling activity there.

Members discussed the need for dedicated technical support and agreed to suggest individuals qualified to represent the group in important industry initiatives. Suggestions will be reviewed at the Chapter’s next meeting on 26 February.

For more information, please contact Jens Hoffmark (jens.hoffmark@iadc.org) or Ken Fischer (ken.fischer@iadc.org).

Environmental Conference to feature presentations by Hon. Willliam K Reilly, Jay Hakes and industry leaders

IADC will host its annual Environmental Conference and Exhibition 8-9 April in New York City.

This year’s conference features presentations from some of the most heralded voices in the industry. Jay Hakes, director of the Jimmy Carter Library and Museum, Dan Whittle, Cuba Program Director with the Environmental Defense Fund, Bill McCurdy with Chesapeake Energy Corporation, Lee Hunt, IADC president emeritus and president, Lee Hunt LLC, Erik Milito of API and Heather Null of Transocean Offshore Drilling Inc, will speak on various topics regarding environmental stewardship.

Elizabeth “Libby” Cheney, global vice president of environment, health, safety, and social responsibility for Hess Corporation and Alby Modiano, president, United States Oil and Gas Association will each give keynote presentations.

William K. Reilly, administrator of the environmental protection agency under President George H.W. Bush, and cochair of the national commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling will give a featured presentation.

For more information, and to register, please visit www.IADC.org

IADC to participate in Myanmar trade mission

IADC’s Chit Hlaing and Brian Petty will participate in a US Chamber of Commerce led trade mission to Myanmar on 25 February. US-Myanmar Economic Relations: The Path Forward, will bring together senior business executives and government officials from both countries to identify Myanmar’s economic development priorities and objectives, and explore opportunities for expanding US-Myanmar trade and investment.

For more information, please contact Brian Petty at +1 202-293-0670 (brian.petty@iadc.org).

Safety Alerts

For the latest safety alerts, visit www.iadc.org/alerts.htm

Alert 13-01: Fall from V-door results in near miss

Alert 13-02: Lack of coordination during rig-up leads to injuries

Alert 13-03: Hose whiplash results in fatality

Reminders

IADC Well Control Committee meeting, 20 February, Houston, Texas
IADC Onshore Regional Operations Forums, 12 February, Midland, Texas and 18 February, Lafayette, Louisiana

Back to Top

Rigs Receive ISP Certificates

For certificates received since last LTI (in years):

Aban Offshore, Ltd: Aban III (5);
Ensco: Ensco 75 (1); Ensco 89 (6); Ensco 6002 (1); Ensco DS-4 (1);
Essar Oilfields Services Ltd: Essar Wildcat (4);
Parker Drilling: Orlan Platform (8);
Parker Drilling: Orlan Platform (7);
PV Drilling: PV Drilling III (3); PV Drilling 11 (1)
Weatherford Drilling International (BVI), Ltd: Rig 174 (15); Rig 732(2); Rig 825 (1); Bangladesh Support Team (2); Pakistan Support Team (1).

For certificates received since last recordable incident (in years):

Ensco: Ensco 75 (1); Ensco 99 (1); Ensco 6002 (1); Ensco DS-4 (1);
Parker Drilling: Orlan Platform (2);
Trinidad Drilling: Rig 100 (3); Rig 103 (2); Rig 108 (5); Rig 119 (1); Rig 138 (1); Rig 139 (2);
Weatherford Drilling International (BVI) Ltd: Rig 341 (3); Rig 798 (1); Rig 825 (1); Bangladesh Support Team (2); Kuwait Transport Team (3); Pakistan Support Team (1); Russia OBN Support Team (1).

New IADC Members

IADC welcomes 57 new members:

• 5D Rentals & Sales, LLC, Eunice, La.;

• Afterburner, Inc., Atlanta, Ga;

• Almajd Industry for Training, Jeddah, Saudia Arabia;

• Amerig Solutions, LLC, Houston, Texas;

• Aries Building Systems, LLC, Troy, Texas;

• Basin Drilling LP, Tyler, Texas;

• Bates Reliable Solutions, LLC/Stuff-4Water, Spring, Texas;

• Belisario Velasquez & Associados LTDA, Bogota, Columbia;

• Bench Tree Group, LLC, Georgetown, Texas;

• Beredco, LLC, Wichita, Kansas;

• Clean Harbors, Norwell, Mass.;

• Complete Drilling Solutions, LLC, Magnolia, Texas

• D.W.C. Drilling Ltd, Lagos, Nigeria

• Delta Seaboard Drilling, LLC, Broussard, La.;

• Dongying Eternal Petroleum TechnologyCo., Ltd, Dongying, Shandong, China;

• Doshi & Company (Hardware), Ltd, Nairobi Gpo, Nairobi, Kenya;

• El Puente Commercial, LLC, San Juan, Texas;

• Enerdrill Pty, Ltd, Perth, Western Australia;

• Entrac Petroleum, Ltd, Basra, Iraq;

• Express Energy Services, Houston, Texas

•Fastcap Systems, Corp., Boston, Mass.;

• Global Tech Motor & Controls, Inc., Pasadena, Texas

• Horizon Energy Services, LLC, Perkins, Okla.;

• Hub International Insurance Services, El Paso, Texas;

• IFS North America, Itasca, Ill.;

• JSL International, LLC, Houston, Texas;

• Kuchler Polk Schell Weiner & Richeson, LLC, New Orleans, La.;

• Logans Oilfield Services Ltd, Aberdeen, Scotland, United Kingdom;

• Manuli Hydraulics (Americas), Inc., Warrendale, Pa.;

• Mayer Brown LLP & Tauil & Chequer, Houston, Texas;

• Melton & Melton, LLP, Houston, Texas;

• Modern Integrated Systems, Cairo, Egypt;

• Nelson Dreil Company, Ltd, Lekki, Lagos State, Nigeria;

• Northwest Crane Service, LLC, Oklahoma, City, Okla.;

• On-Site Training & Instruction, Inc., Houma, La.;

• Petro Express Supply, Inc., Coral Springs, Fla.;

• Petrokamel Company for Services Field Oil and Gas, Sanaa, Haddah, Yemen;

• PT Energi Tata Persada, Jakarta, Indonesia;

• Ras Essa for Oil and Energy, Sana’a, Yemen;

• Seabulk Offshore Operators Nigeria Limited, Lagos, Nigeria;

• Seacon/Brantner & Associates, Houston, Texas

• Shale Workforce Solutions, Williamsport, Pa;

• Sopetro Drilling Ltd, S/W Ikoyi, Lagos, Nigeria;

• South Asia Energy Services PVT, Ltd, Ahmedabad, Gujarat, India;

• Stratagraph-Hestq, Lafayette, La;

• Tassili, Hassi Messaoud, Ouargla, Algeria;

• Tencate Protective Fabrics, Union City, Ga;

• The Aegis Technologies Group, Inc, Huntsville, Ala;

• Thermamax, Inc, Aurora, Ill;

• Total Solutions and Services, Poza Rica, Veracruz Llave, Mexico;

• Tracespec Global Resources Ltd, Port Harcourt, Rivers State, Nigeria;

• Tutis Training and Consultancy PVT, Ltd, Cochin, Kerala, India;

• Universidad Politecnica del Golfo de Mexico, Paraiso, Tabasco, Mexico

• Vanguard Incorporated, Houston, Texas;

• Walker Brothers Drilling Company, Tulsa, Okla.;

• Wenck Associates, Maple Plain, Minn.;

• WPX Energy, Tulsa, Okla.

DRILLBITS Volume 23, Number 2

David Williams, Chairman • Stephen Colville, President and CEO • Amy Rose, Editor
PO Box 4287, Houston, TX 77210-4287 USA

All listed phone extensions are for IADC’s Houston headquarters,
+1/713-292-1945. Fax +1/713-292-1946.

Send comments/questions to Amy Rose at amy.rose@iadc.org.

To subscribe to Drill Bits, go to www.iadc.org/drillbits.htm.

To change/cancel a Drill Bits subscription, send an e-mail message to
IADC Director – Membership Sharon Thorpe at sharon.thorpe@iadc.org.

IADC Environmental Conference to feature presentations by Hon. Willliam K Reilly, Jay Hakes and industry leaders

amy.rose — Fri, 01 Feb 2013 21:44:02 +0000

HOUSTON, Feb. 1, 2013 – Improving environmental performance and the impact of shale gas exploration, along with other environmentally relevant topics to the oil and gas industry, will be discussed at IADC’s annual Environmental Conference and Exhibition, 8-9 April in New York City.

A lineup of industry speakers will address new technologies and advances in emissions controls, water recycling and drilling waste treatment. Conference presenters will also touch on concerns specific to the Gulf of Mexico, Caribbean and Brazil, along with a discussion of corporate responsibility and policy issues.

The Hon. William K. Reilly, administrator of the environmental protection agency under President George H.W. Bush, and co-chair of the national commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling will give a featured presentation.

Jay Hakes, director of the Jimmy Carter Library and Museum, Dan Whittle, Cuba Program Director with the Environmental Defense Fund, Bill McCurdy with Chesapeake Energy Corporation, Lee Hunt, IADC president emeritus, Erik Milito of API and Heather Null of Transocean Offshore Drilling Inc, will speak on various topics regarding environmental stewardship.

Elizabeth “Libby” Cheney, global vice president of environment, health, safety, and social responsibility for Hess Corporation and Alby Modiano, president, United States Oil and Gas Association will each give keynote presentations.

This year’s conference is sponsored by Maersk Drilling, Hercules Offshore, Superior Energy Services, Clean Harbors and DNV Software and is endorsed by API, IPAA, NOIA and IPIECA.

Registration for the conference is $650 per attendee. For more information and to register, please visit the conference registration site.

Members of the press are invited to attend the conference. One representative from each publication will receive complementary registration. To register as a member of the press, click here.

About IADC

DRILLBITS – Jan 2013

amy.rose — Mon, 14 Jan 2013 21:50:54 +0000

This Month’s Articles

Intangible Drilling Costs Coalition strongly opposes tax changes
IADC and NOIA see broad far-reaching impacts from EPA suspension of BP
UK announces controls to mitigate seismic risks of exploratory hydraulic fracking
API issues Standard 53
Espeland, O’Shaughnessy receive IADC Exemplary Service Awards
PSA issues findings on well control study
IADC issues appeal on 46 US 8701
International Association of Oil and Gas Producers Wells and Services Committee publishes OGP 485
IADC receives Lantern Award from BMA
Safety alerts
Rigs receive ISP certificates
IADC welcomes new members

Subscribe to DRILLBITS

Sign Up To Receive DRILLBITS

Intangible Drilling Costs Coalition strongly opposes tax changes

ADC, along with 33 other associations, including 17 state oil and gas trade associations, signed a letter to members of Congress on 28 November as part of the Intangible Drilling Costs (IDC) Coalition.

The Coalition expressed concern that future tax reforms could seek to limit or eliminate the current deductibility of IDC’s. The tax code currently allows operators to deduct expenses such as labor, fuel, repairs, hauling and other non-salvageable expenses required for the drilling of oil and gas wells as they are incurred.

The letter went on to detail ramifications of such reforms, noting restrictions on expensing IDC’s would discourage new US oil and natural gas exploration and undermine energy security in the US. Signees stressed new investment in American energy as critical to meeting future energy demand, boosting US energy security and protecting and creating jobs.

The Coalition also pointed out the industry’s strong job creation numbers during the most recent recession, with more than 119,000 jobs created, as compared to other sectors, which lost more than 4.5 million jobs in the same time frame. It also noted the comparably high wages of those in the industry, noting that job creation and salary could be negatively impacted should modifications to IDC’s be enacted.

While the Coalition acknowledged that the letter, addressed to Dave Camp (R-MI), Chairman of the Committee on Ways and Means, Sander M. Levin (D-MI), Ranking Member, Committee on Ways and Means, Max Baucus (D-MT), Chairman, Committee on Finance and Orrin G. Hatch (R-UT), Ranking Member, Committee on Finance, is only a first step in the process, it is nonetheless pleased with the support of so many critical groups, including IADC.

For more information, please contact Brian Petty at +1/202-293-0670 (brian.petty@iadc. org).

IADC and NOIA see broad far-reaching impacts from EPA suspension of BP

Banning BP from bidding in future offshore lease sales could have a hugely negative ripple effect on drilling contractors and the rest of the offshore industry as well as the Gulf region, and even the Federal government, according to a press release issued jointly between IADC and NOIA in late November.

The offshore oil and gas industry, which is based almost entirely in the Gulf of Mexico, supported over 200,000 American jobs in 2010 and contributed nearly $80 billion in revenues to the Federal government from 2001-2010. BP is the largest operator in the Gulf of Mexico, and its investments in the region create business opportunities for many other companies, create and sustain good jobs in the region, and generate much needed government revenue.

The next offshore lease sale, scheduled for March 2013 in the Central Gulf of Mexico, is expected to bring in a much bigger take for the Federal government. NOIA and IADC, both of which count BP as a member, feel that EPA’s suspension may be overly punitive, considering BP’s diligent efforts to work with the federal government on cleanup and restoration efforts, and given the further potential far reaching impacts of the action.

“We are hopeful that the offshore industry, the Gulf region, and the Federal government can benefit from BP’s participation in the upcoming Central Gulf sale and future offshore lease sales,” said Brian Petty, IADC executive VP of government affairs.

For more information, please contact Brian Petty at +1/202-293-0670 (brian.petty@ iadc.org).

UK announces controls to mitigate seismic risks of exploratory hydraulic fracking

The UK’s Department of Energy and Climate Change (DECC) Secretary, Edward Davey, recently announced that exploratory hydraulic fracking for shale gas can resume in the UK, with the addition of newly instituted controls to mitigate the risks of seismic activity.

In a press release issued by the DECC, Mr Davey said, “Shale gas represents a promising new potential energy resource for the UK. It could contribute significantly to our energy security, reducing our reliance on imported gas, as we move to a low carbon economy.” He went on to announce the creation of the Office of Unconventional Gas and Oil, which will be led by the DECC, and will focus on regulatory efforts.

Further, he remarked, “We are still in the very early stages of shale gas exploration in the UK and it is likely to develop slowly. It is essential that its development should not come at the expense of local communities or the environment. Fracking must be safe and the public must be confident that it is safe.”

Exploratory fracking has been suspended in the country since 2011, when two seismic tremors were detected in an area where fracking operations were taking place. After a thorough investigation on the topic, the government concluded that the seismic risks associated with fracking can be managed with controls. These include a review to assess seismic risk before fracking begins; a plan, submitted to the DECC, that shows how seismic risks will be addressed; seismic monitoring before, during and after fracking; and a “traffic light” system that will alert operators to seismic activity and detail the appropriate response, along with a trigger mechanism that will stop operations in certain situations.

In addressing the newly instituted controls, Tony Grayling, head of Climate Change and Communities at the Environmental Agency said, “The Environmental Agency takes the potential risks arising from fracking for shale gas extraction very seriously and has undertaken a thorough assessment of them. We are satisfied that existing regulations are sufficient to protect people and the environment in the current exploratory phase. We have also established a Shale Gas Unit to act as a single point of contact for industry.”

For more information, please contact Brian Petty at +1/202-293-0670 (brian. petty@iadc.org).

API issues Standard 53

API recently issued a publication notice for API Standard 53, Blowout Prevention Equipment Systems for Drilling Wells, Fourth Edition. The standard provides requirements on the installation and testing of blowout prevention equipment systems on land and marine drilling rigs.

The revised document includes recommendations made by the Joint Industry Equipment Task Force and other organizations following the Macondo incident.

API sought the expertise of international oil and gas operators, manufacturers and contractors, and incorporated their recommendations into the latest revision. API 53 focuses on items specific to BOP equipment systems for drilling operations.

The newly revised document is reorganized into sections that contain provisions for surface BOP systems, subsea BOP systems, and those that apply to both. The latest version omits diverters, shut-in devices and rotating head systems.

For details, contact Alan Spackman at ext 207 (alan.spackman@ iadc.org

Stephen Colville, IADC president and CEO, presents the award to Precision Drilling’s Niels Espeland.

Espeland, O’Shaughnessy receive IADC Exemplary Service Awards

IADC recognized Niels Espeland and Pat O’Shaughnessy with Exemplary Service Awards recently at the 2012 IADC Critical Issues Middle East Conference and Exhibition in Dubai, 4 December.

Mr Espeland is president, International Operations, for Precision Drilling. Throughout his more than 35-year career in the international oilfield service and rig contracting industry, Mr Espeland has managed onshore and offshore operations in Latin America, Europe, Russia, the Middle East, Africa and Asia Pacific. He joined Precision Drilling in 2011 and served on IADC’s Executive Committee from 2010 through 2012.

United Gulf Energy Resource’s Pat O’Shaughnessy was recognized for his decades of leadership.

The second IADC Exemplary Service Award recipient was Mr O’Shaughnessy, Advisor to the Chairman at United Gulf Energy Resources. Mr O’Shaughnessy began his career in 1965 on drilling rigs in West Australia, and spent the next 27 years managing offshore and onshore operations in various international locations. In 1992, he joined National Drilling and Services Company in Oman as group general

manager, before becoming advisor to the chairman for United Gulf Energy Resources. He was recognized for his longime IADC leadership, having previously served as vice chairman of Oman for the Southern Arabia Peninsular Chapter and program committee member on the Critical Issues Middle East Conferences and Well Control Middle East Conferences

PSA issues findings on well control study

The Petroleum Safety Authority of Norway (PSA) held a meeting on 30 November with more than 100 shipowners, drilling contractors and drilling service contractors to discuss the findings of a PSA-initiated study on the risk potential of well-control incidents.

The study summarized four key challenges to reducing well-control incidents. The necessity of earlier detection of well-control incidents; increased attention to planning, barrier management and risk analysis; increased focus on major accident risk and investigation of incidents; and the necessity of creating a framework for good collaboration between operators and suppliers were emphasized.

Attendees reviewed the study findings and discussed the challenges they encounter in their interface with operating companies. They concluded that a joint arena where drilling and well service contractors can exchange ideas and experiences is needed in order to reduce the number of well control incidences on the Norwegian shelf.

Over the course of the next year, representatives from the Norwegian Shipowners Association will be taking the lead on establishing the proposed joint arena.

For details, contact Alan Spackman at ext 207 (alan.spackman@ iadc.org).

IADC issues appeal on 46 US 8701

IADC, along with the Offshore Marine Service Association (OMSA), issued a joint letter on 28 November to Rear Admiral Ray A. Nash, Commander of the Eighth Coast Guard District regarding the new interpretation and application of 46 USC 8701.

The law governs documents required by merchant mariners. An initial appeal issued on 15 August, 2012, was denied by the Commandant. The latest appeal again noted that the new application of the law, unchanged since 1983, appears to violate the requirements of the Administrative Procedures Act, and requested the Commandant reconsider his previous denial.

IADC and OMSA asked to participate in a meeting at Coast Guard Headquarters to discuss the possible severe consequences of the reinterpretation. Further, it was requested that the current stay of enforcement of this new application of 46 US 8701 remain in effect until final agency action occurs.

For details, contact Alan Spackman at ext 207 (alan.spackman@iadc.org)

International Association of Oil and Gas Producers Wells and Services Committee publishes OGP 485

The International Standards Task Force of the OGP Wells Expert Committee recently issued OGP 485. A reference list of commonly used documents issued by OGP and other organizations, including IADC, it addresses standards and guidelines for drilling, well construction and well operations.

The list is categorized by engineering design, systems and equipment related documents, management related documents and documents in development. It also includes documents currently under revision. OGP 485 will be updated and revised on a regular basis.

For details, contact Steve Kropla at ext 211 (steve.kropla@iadc.org).

IADC receives Lantern Award from BMA

Brian C. Parks and Mike Killalea accept the 2012 Lantern Award on behalf of IADC and Drilling Contractor Magazine.

The Business Marketing Association of Houston awarded IADC the 2012 Lantern Award for Best Original Photography on 29 November.

Brian C. Parks, IADC creative director and Mike Killalea, IADC group vice president/publisher, accepted the award, the BMA’s top honor, on behalf of IADC and Drilling Contractor magazine.

The award-winning photo, titled “Shine on, Winter Sun”, was taken by Mr Parks on the North Slope of Alaska and was previously used as the cover image for the 2012 Media Kit for Drilling Contractor Magazine and in various editorial pieces.

IADC was previously honored with a Lantern Award in 2007 for Best Magazine and has received multiple Awards of Excellence for editorial and design in the last several years

Safety Alerts

For the latest safety alerts, visit www.iadc.org/alerts.htm

Alert 12-31: High potential- dropped pony collar.

Alert 12-32: Inattentiveness results in injured employee.

Reminders

2013 IADC Health, Safety, Environment & Training Conference & Exhibition, 5-6 February, Houston.

Rigs Receive ISP Certificates

For certificates received since last LTI (in years):

Aban Singapore PTE Ltd: Aban VIII (3); Deep Driller 3 (5), Deep Driller 4 (3), Deep Driller 8 (3); Aban Offshore Ltd: Aban II (5);
COSL Drilling Pan-Pacific: COSL SEEKER (1)
Ensco: Ensco 52 (2), Ensco 76 (2), Ensco 87 (1), Ensco 93 (4), Ensco 99 (15), Ensco 100 (3), Ensco 8504 (1), Thunder Horse (3)
KS Drilling: Discoverer I (1)
Nabors Offshore Corp: Nabors M-202 (4), Nabors N-85 (8)
UMW Standard Drilling SDN BHD: NAGA2 (1)
Weatherford Drilling International (BVI) Ltd: Rig 180 (11), Rig 488 (1), Rig 777 (2), Rig 798 (3), Rig 822 (3), Rig 842 (3), Chad Support Team (11), Kuwait Support Team (11), Turkmenistan Support Team (1)

For certificates received since last recordable incident (in years):

Ensco: Ensco 76 (2), Ensco 87 (1), Ensco 88 (1), Ensco 5003 (1), Ensco 8500 (1); High Arctic Energy Services: Rig 104 (1);
KCA DEUTAG Drilling GMBH Russia: T-501 (4)
Latshaw Drilling Co: Rig 5 (1), Rig 7 (2), Rig 12 (1), Rig 13 (2), Rig 14 (1), Rig-Up Yard (1), Paint Yard (1)
Weatherford Drilling International (BVI) Ltd: CSG 6 (1), Rig 173 (1), Rig 291 (2), Rig 488 (1), Rig 777 (2), Rig 822 (3), Rig 843 (1), Turkmenistan Support Team (1)

New IADC Members

IADC welcomes 7 new members:

• Enterprise Fleet Management, Houston, Texas

• Ianadav LLC, Spring, Texas

• Instituto de Capacitacion de la Industria de la Construccion AC, Coatzacoalcos, Veracruz, Mexico

• Lenco Middle East FZC, Sharjah, United Arab Emirates

• Petro Solutions (PVT) Ltd, Islamabad City, Punjab, Pakistan

• Servicios Empresariales y Petroleros, SA de CV, Comalcalco, Tabasco, Mexico

• Shin Tai Holdings Ltd, Hong Kong, China

DRILLBITS Volume 23, Number 1

David Williams, Chairman • Stephen Colville, President and CEO • Amy Rose, Editor
PO Box 4287, Houston, TX 77210-4287 USA

All listed phone extensions are for IADC’s Houston headquarters,
+1/713-292-1945. Fax +1/713-292-1946.

Send comments/questions to Amy Rose at amy.rose@iadc.org.

To subscribe to Drill Bits, go to www.iadc.org/drillbits.htm.

To change/cancel a Drill Bits subscription, send an e-mail message to
IADC Director – Membership Sharon Thorpe at sharon.thorpe@iadc.org.

DRILLBITS – Dec 2012

katherine.scott — Thu, 06 Dec 2012 15:57:01 +0000

This Month’s Articles

Williams elected 2013 IADC chairman
Kudsk named 2012 IADC Contractor of the Year
IADC commends European Parliament stance on shale gas
US DOJ, SEC issue FCPA guidance
Industry groups fight NGO lease sale lawsuit
Andersson, Hannegan, Al Hussain awarded for IADC service
IADC to participate in Ocean Council Initiative
Accreditation updates
Safety alerts
Rigs receive ISP certificates
IADC welcomes new members

Subscribe to DRILLBITS

Sign Up To Receive DRILLBITS

Williams elected 2013 IADC chairman

David Williams

David Williams, Noble Corp chairman, president and CEO, was elected as the 2013 IADC chairman at the association’s Annual General Meeting in Scottsdale, Ariz., on 7-9 November. The IADC Board of Directors also elected Jay Minmier, president of Nomac Drilling, as its new vice chairman. Steve Colville was elected president and CEO of IADC.

Thomas Burke, Rowan Companies chief operating officer, will continue to serve as vice president of IADC’s offshore division, and Ron Tyson, president of Cactus Drilling Company, was elected as vice president of IADC’s onshore division. David Reid, National Oilwell Varco chief sales officer and senior vice president of global accounts, was re-elected as vice president of the association’s drilling and well services division. Scott McReaken, Seadrill Americasdirector of finance, was elected secretary treasurer.

Jay Minmier

Also re-elected were Brian Petty as IADC executive VP of government affairs; Tom Terrell as senior VP chief of staff; Mike Killalea as group VP and publisher; and Steve Kropla as group VP of operational integrity.

Mr Williams was named chairman, president and CEO of Noble Corp in January 2008. He previously served as the company’s senior VP and chief operating officer and as senior VP – business development of Noble Drilling Services.

He joined Noble with more than 28 years of experience in the energy industry, including positions with Diamond Offshore Drilling. He holds a bachelor of business administration degree in marketing from Texas A&M University.

IADC president/CEO Steve Colville (left) presents 2012 IADC chairman Dan Rabun with a plaque in appreciation of his year of service at the IADC Annual General Meeting, 7-9 November in Scottsdale, Ariz.

Mr Minmier has more than 25 years of experience in the drilling industry, including positions with Helmerich & Payne IDC, Grey Wolf Drilling Company and Precision Drilling. He has a bachelors in electrical engineering from the University of Texas at Arlington and a master of business administration from the University of West Florida.

Kudsk named 2012 IADC Contractor of the Year

2012 IADC Contractor of the Year Gregers Kudsk (right) receives his award plaque from Robin Macmillan of NOV, which sponsored the award, at November’s IADC Annual General Meeting.

Maersk Drilling vice president and senior technical advisor Gregers Kudsk was named the 2012 IADC Contractor of the Year at the association’s Annual General Meeting in Scottsdale, Ariz., on 9 November. The peer-selected award is now in its 25th year.

With a background in mechanical engineering, Mr Kudsk joined Maersk Drilling in 1973 and has focused on offshore structures and drilling technologies during his career. In accepting his award, Mr Kudsk thanked Maersk management and colleagues “for allowing me to spend my whole working life in an interesting environment.” He also thanked IADC, his many friends and colleagues throughout the industry, as well as his wife, Lene. Read more about Mr Kudsk’s career on www.DrillingContractor.org.

IADC commends European Parliament stance on shale gas

IADC commended the European Parliament’s recognition of the important role of shale gas in Europe, issuing in late November a press release welcoming the approval of two shale gas reports from the European Parliament’s Environment, Public Health and Food Safety Committee and the Industry, Research and Energy Committee.

“Shale gas exploitation in the EU holds the promise of vast new amounts of indigenous natural gas resources, which will be a boon for the European economies and give a diversity of supply that is not now present for natural gas,” IADC executive VP of government affairs Brian Petty said in the 21 November release.

The association pointed out that the technology used for shale gas development, hydraulic fracturing, has been used globally since the 1940s. “Here in the United States, we’ve seen a marked increase in shale gas drilling and completions in the last several years. The benefits are being felt by every citizen, with lower energy costs and lower carbon emissions with the added benefit of economic stimulation,” Mr Petty stated.

He added: “At IADC, we continue to advocate and lead the development of shale gas areas in Europe and offer our guidance on training a work force competent in the drilling process to reduce risks.”

IADC participates on the OGP Shale Gas Communications Task Force through John Beswick of PR Marriott Drilling.

For more information, please contact Brian Petty at +1/202-293-0670 (brian.petty@iadc.org).

US DOJ, SEC issue FCPA guidance

The US Department of Justice (DOJ) and Securities Exchange Commission (SEC) issued on 14 November guidance on the interpretation and enforcement of the Foreign Corrupt Practices Act (FCPA). The 130-page “resource guide” provides basic information on the law, as well as analysis of certain provisions and numerous case studies illustrating what would and would not be considered a violation of the law.

The guide also provides a series of factors in considering what constitutes a “foreign official,” a term around which there had been significant ambiguity. The issue of gift-giving is also discussed, with the document addressing when gifts to an overseas entity amounts to a bribe.

The guidance was co-signed by assistant attorney general Lanny Breuer, who met with IADC in April. The association was represented by Noble Corp’s James Sanislow, who is serving as chairman of the IADC Ethics Committee. Mr Sanislow provided Mr Breuer with industry input on the complexities involved in FCPA compliance and risk management.

For more information, contact Brian Petty at +1/202-293-0670 (brian.petty@iadc.org) or Jason McFarland at ext 214 (jason.mcfarland@iadc.org).

Industry groups fight NGO lease sale lawsuit

IADC has joined API and IPAA as intervenors in an NGO lawsuit challenging the 2012-2017 OCS Five-Year Program. The challenge, brought by the Center for Sustainable Economy (CSE) on 25 October in the US Court of Appeals for the District of Columbia Circuit, requested review of the Five-Year Program and its accompanying Programmatic Environmental Impact Statement (PEIS).

Industry groups are intervening on behalf of the US Bureau of Ocean Management (BOEM), which issued the proposed Five-Year Program in June 2012. It was approved by the Secretary of the Interior in August. The program schedules 15 oil and gas lease sales in six OCS planning areas, including three sales in three Alaska planning areas and 12 sales in three Gulf of Mexico planning areas. No Mid-Atlantic lease sales are planned. The first Alaska lease sale is planned for the Chukchi Sea in 2016.

Although little is currently known about the CSE challenge based on their single-page petition, industry groups expect that their collective role as intervenors will continue to be instrumental as in previous offshore litigation successes the federal government has enjoyed since April 2010.

For more information about this effort, please contact Brian Petty at +1/202-293-0670 (brian.petty@iadc.org).

Andersson, Hannegan, Al Hussain awarded for IADC service

Chevron’s Goran Andersson celebrates his IADC Exemplary Service Award with Brenda Kelly, IADC senior director of program development, at the association’s Annual General Meeting in November.

IADC recognized three longtime association supporters and industry veterans – Goran Andersson with Chevron, Don Hannegan with Weatherford, and Zuhair Al Hussain with Saudi Aramco – with Exemplary Service Awards at the 2012 IADC Annual General Meeting in Scottsdale, Ariz., on 8 November.

Mr Andersson, drilling and completions manager for Chevron, has led the Chevron drilling and completion training center in Houston, including the company’s global well control training program and related technical support services. There he initiated development of a competency assurance program that allowed drilling and completion professionals to demonstrate well control competency regardless of location by using advanced simulator equipment. Mr Andersson was recognized by IADC for his leadership of the IADC Well Control Committee and the WellCAP Curriculum Subcommittee, making significant implementations to strengthen the WellCAP curriculum.

The second IADC Exemplary Service Award went to Mr Hannegan, Weatherford strategic technology development manager for MPD. He was recognized by IADC for his leadership in the Underbalanced Operations and Managed Pressure Drilling Committee, a group of which he is also a charter member. He is author of numerous technical papers and recognized as a prolific inventor of enabling equipment and methods that reduce the loss of well control when drilling challenging wells.

Weatherford’s Don Hannegan was recognized for his leadership on the IADC UBO & MPD Committee.

The third Exemplary Service Award was given to Mr Al Hussain, who oversees Saudi Aramco’s drilling and workover engineering and operational activities covering exploratory development, delineation and injection gas, oil and water wells both onshore and offshore. He chaired and was a founder of the IADC Northern Arabian Gulf Chapter and served on the IADC Executive Committee for several years.

Ken Fischer, IADC vice president of international development, accepted the award on behalf of Mr Al Hussain.

IADC to participate in Ocean Council Initiative

IADC executive VP of government affairs Brian Petty will represent the association at an invitation-only meeting of the Joint Ocean Commission Initiative Leadership Council in mid-February in Washington, DC. The event will gather national leaders with strong interest in the way US oceans are managed to define an agenda for ocean policy, science and funding for the next Administration and Congress. Senior officials from the Administration and Congress will be invited.

For details, contact Brian Petty at +1/202-293-0670 (brian.petty@iadc.org).

Accreditation Updates

HSE Rig Pass

AASYNEC SA de CV, Veracruz, Mexico;
Amelco Formacion Profesional, Neuquen, Argentina;
America’s Top Safety Training Inc, Corsicana, Texas;
Cardinal Culinary, Alvin, Texas;
Casedhole Solutions, Houston, Texas;
Chamaleon Resources SAS, Cundinamarca, Colombia;
Chet Morrison, Veracruz, Mexico;
Colston Safety, The Woodlands, Texas;
Copa Servicios y Suministros, Tamaulipas, Mexico;
Grupo Industrial de Capacitacion, Adiestramiento y Construcciones SA de CV, Campeche, Mexico;
Integral Training & Development, Doha, Qatar;
i-Tec Well Solutions, Houston, Texas;
Kurrent Technologies, Nairobi, Kenya;
Lofton Energy Services, Houston, Texas;
Moxie Media, New Orleans, La.;Petrotex Global HSE Training & Engineering Solutions, Chennai, Tamilnadu, India;
SASIT Corporation SC, Tamaulipas, Mexico;
Servicios de Ingenieria, Construccion y Capacitacion SA de CV, Veracruz, Mexico;
Stark State College, North Canton, Ohio;
TC Safety Inc, Midland, Texas;
Training Consultors Mexico, Veracruz, Mexico.

WellCAP Accrediation

Harness Energy Training, Queensland, Australia (conditional);
San Antonio Internacional do Brasil Servicos de Petroleo Ltda, Bahia, Brazil (conditional);
Transocean Port Harcourt, Port Harcourt, Nigeria (conditional);
Well Control Group, Alberta, Canada (conditional).

Safety Alerts

For the latest safety alerts, visit www.iadc.org/alerts.htm

Alert 12-28: Driller inattention results in dropped blocks.

Alert 12-29: Electrostatic charge results in methanol tank explosion.

Alert 12-30: Unstable lifting device injures crewman.

Reminders

IADC Maintenance Committee meeting, 9 January, Houston.
IADC Rig Moving Committee, 17 January, Grapevine, Texas.
2013 IADC Health, Safety, Environment & Training Conference & Exhibition, 5-6 February, Houston.

Rigs Receive ISP Certificates

For certificates received since last LTI (in years):

COSL Drilling Pan-Pacific Ltd: 23012 (5), COSL Force (1);
Ensco: Ensco 104 (6);
High Arctic Energy Services: MORO/LF CREWS (4);
Maersk Drilling USA: Maersk Developer (3);
Nabors Offshore Corp: Nabors D-109 (9), Nabors M-150 (9);
PV Drilling: PV Drilling II (3).

For certificates received since last recordable incident (in years):

Ensco: Ensco 54 (2), Ensco 56 (5), Ensco 92 (1);
KCA DEUTAG Drilling GMBH Kazakhstan: T-47 (3);
KCA DEUTAG Drilling GMBH Russia: T-500 (1);
Keen Energy Services: Rigs 18 (1), 28 (1);
Unit Drilling Company: Rigs 34 (2), 15 (2), 152 (1), 306 (1).

New IADC Members

IADC welcomes 32 new members:

2022 Offshore Education, Goteborg, Sweden;
Arc Designs Inc, Cypress, Texas;
Awilco Drilling Plc, Westhill, Aberdeenshire, Scotland, United Kingdom;
Bolt Norge AS, Bryne, Rogaland, Norway;
CA Technologies, Houston, Texas;
CanElson Drilling (US) Inc, Midland, Texas;
Cardinal Culinary Services, Alvin, Texas;
Cranfield Energy LLC, New Iberia, La;
Environmental Resources Management North America Risk Practice, Houston, Texas;
Fleet Rofhas Energy Services Sdn Bhd, Bandar Seri Begawan, Brunei Darussalam;
Gemini Marine Servicos e Consultoria Ltda, Niteroi, Rio de Janeiro, Brazil;
Health Safety Training and Equipment SA de CV, Villahermosa, Tabasco, Mexico;
HSE Risk Ltda, Bogota, Cundinamarca, Colombia;
Industrial Safety Training Council, Nederland, Texas;
Lamunyon Drilling LLC, Enid, Okla.;
Leam Drilling Services, New Iberia, La.;
Maersk Oil, Copenhagen, Denmark;
Michael Kotlen Productions, Houston, Texas;
Odfjell Drilling AS, Bergen, Norway;
Omron Oilfield & Marine, Houston, Texas;
Pasada Global Resources Ltd, Port Harcourt, Rivers State, Nigeria;
Perfect Facilities Ltd, Lagos, Lagos State, Nigeria;
Petrolog Ltd, Houston, Texas;
Pioneer Energy Services, San Antonio, Texas;
PSRG Inc, Houston, Texas;
PT PJ-Tek Mandiri, Tangerang Selatan, Banten, Indonesia;
Quick ISO International Certification Pvt Ltd, Ahmadi, Kuwait;
Repsol, Madrid, Spain;
Safety Compliance Services Inc, Carencro, La.;
Sekura SA de CV, Veracruz, Medellin De Bravo, Mexico;
Southern Glove Manufacturing Company Inc, Newton, N.C.;
Survivex Ltd, Aberdeen, United Kingdom.

DRILLBITS Volume 22, Number 12

Dan Rabun, Chairman • Stephen Colville, President • Linda Hsieh, Editor
PO Box 4287, Houston, TX 77210-4287 USA

All listed phone extensions are for IADC’s Houston headquarters,
+1/713-292-1945. Fax +1/713-292-1946.

Send comments/questions to Linda Hsieh at linda.hsieh@iadc.org.

To subscribe to Drill Bits, go to www.iadc.org/drillbits.htm.

To change/cancel a Drill Bits subscription, send an e-mail message to
IADC Director – Membership Sharon Thorpe at sharon.thorpe@iadc.org.

NOIA and IADC see broad, far reaching impacts from EPA suspension of BP

amy.rose — Fri, 30 Nov 2012 17:06:16 +0000

Washington, D.C., (November 30, 2012) – Banning BP from bidding in future offshore lease sales could have a hugely negative ripple effect on drilling contractors and the rest of the offshore industry as well as the Gulf region, and even the Federal government. The offshore oil and gas industry, which is based almost entirely in the Gulf of Mexico, supported over 200,000 American jobs in 2010 and contributed nearly $80 billion in revenues to the federal government from 2001-2010. BP is the largest operator in the Gulf of Mexico, and its investments in the region create business opportunities for many other companies, create and sustain good jobs in the region, and generate much needed government revenue.

The timing of the EPA announcement was unfortunate, coming on the same day as the first offshore lease sale in the Administration’s new five year plan. Although BP submitted no bids, the Federal government profited by $133 million from this week’s Western Gulf lease sale. The next offshore lease sale, scheduled for March 2013 in the Central Gulf of Mexico, is expected to bring in a much bigger take for the Federal government. The National Ocean Industries Association (NOIA) and the International Association of Drilling Contractors (IADC), both of which count BP as a member, feel that EPA’s suspension may be overly punitive, considering BP’s diligent efforts to work with the federal government on cleanup and restoration efforts, and given the further potential far reaching impacts of the action. We are hopeful that the offshore industry, the Gulf region, and the Federal government can benefit from BP’s participation in the upcoming Central Gulf sale and future offshore lease sales.

About IADC

ABOUT NOIA
NOIA is the only national trade association representing all segments of the offshore industry with an interest in the exploration and production of both traditional and renewable energy resources on the nation’s outer continental shelf. NOIA’s mission is to secure reliable access and a fair regulatory and economic environment for the companies that develop the nation’s valuable offshore energy resources in an environmentally responsible manner.

International Association of Drilling Contractors supports European Parliament vote on gas shale development

amy.rose — Wed, 21 Nov 2012 17:01:39 +0000

Houston, Texas (Nov. 21, 2012) – The International Association of Drilling Contractors (IADC) is pleased with the European Parliament’s approval of two key reports on gas shale exploration and development.

The reports from the Environment, Public Health and Food Safety Committee (DG ENVI) and the Industry, Research and Energy Committee (DG ITRE), recognize the importance of shale gas development in Europe and again illustrates that a European Union (EU) moratorium on shale gas development is unnecessary.

“Shale gas exploitation in the EU holds the promise of vast new amounts of indigenous natural gas resources, which will be a boon for the European economies and give a diversity of supply that is not now present for natural gas,” said Brian Petty, IADC executive vice president, government and regulatory affairs.

In the EU, exploration and production of natural gas is heavily regulated with 14 pieces of EU legislation governing the process in addition to national and local regulations.

The technology used for shale gas development, hydraulic fracturing, has been in worldwide use since the 1940’s, with over 2 million wells drilled. During this period, numerous technological advances have enabled operators to drastically reduce the risk for surface and sub-surface incidents. With the introduction of horizontal drilling techniques, operators are able to drill fewer overall wells with the ability for each to reach a larger portion of the targeted development.

“Here in the United States, we’ve seen a marked increase in shale gas drilling and completions in the last several years. The benefits are being felt by every citizen, with lower energy costs and lower carbon emissions with the added benefit of economic stimulation,” said Mr. Petty. “At the IADC, we continue to advocate and lead the development of shale gas areas in Europe and offer our guidance on training a workforce competent in the drilling process to reduce risks.”

About IADC

DRILLBITS – Nov 2012

katherine.scott — Wed, 07 Nov 2012 20:12:59 +0000

This Month’s Articles

IADC files amicus brief in Nabors v Encana
OGP publishes well control recommendations
IADC provides updates on FCPA, local content at Drilling Africa
IADC report on standards developments
Senator questions BSEE jurisdiction expansion
IADC hires director of external relations
MARPOL Annex V goes into effect in January
Val Hood, ‘backbone’ of IADC NSC, passes away
Nelson recognized for IADC service
Accreditation updates
Safety alerts
Rigs receive ISP certificates
IADC welcomes new members

Subscribe to DRILLBITS

Sign Up To Receive DRILLBITS

IADC files amicus brief in Nabors v Encana

IADC has filed an amicus brief in support of Nabors Drilling USA’s request to reverse a portion of a judgment that awarded Encana Oil & Gas more than $2 million in damages on indemnity claims, as well as related attorneys’ fees, costs and interest for those discrete claims.

State District Judge John Fostel of Wise County, Texas, granted partial summary judgment in favor of Encana. Encana was seeking indemnification from Nabors for Encana’s contractual indemnity obligations with its other contractors in two separate personal injury lawsuits, expenses that Encana incurred before tendering indemnity to Nabors. Encana contended that Nabors breached the daywork drilling contract by refusing to indemnify Encana for claims paid under separate master service contracts.

IADC is concerned about the result of the trial court’s ruling and how it could adversely affect the oil and gas industry and other industries that use similar contracts, since the interpretation of the indemnity language will affect countless contracts and companies. IADC advises that a reversal is warranted because the trial court misapplied contractual construction rules and incorrectly applied the express negligence doctrine, according to the amicus brief.

The appeal involves a version of a model IADC contract – the Drilling Bid Proposal and Daywork Drilling Contract – US. Although Encana modified the model IADC contract form, the pertinent indemnity language at issue was not changed, the brief states. IADC has a compelling interest in this appeal to ensure that the indemnity provisions in its model drilling contracts areconsistently applied in accordance with industry practice and applicable law.

IADC’s model contracts are intended to fairly allocate risks commercially, not only to the party most able to manage the risk but also in accordance with the ability of the parties to insure or undertake to accept the risk. Upsetting the balance that has been established and that has been accepted as custom for decades threatens to jeopardize the livelihood of many drilling contractors and small operators upon whom the industry depends, the brief states.

IADC suggests that a discussion of the IADC model drilling contracts and land drilling operations will benefit the Court and will demonstrate how the trial court’s overly broad and incorrect construction of the Daywork Contract will adversely impact other drilling contracts in use throughout the US land and offshore operations.

For more information about the amicus brief, please contact Jason McFarland at ext 214 (jason.mcfarland@iadc.org).

OGP publishes well control recommendations

The International Association of Oil and Gas Producers (OGP) has issued a report on recommendations for enhancements to well control training, examination and certification that is available online.

The Human Factors Task Force of the OGP Wells Expert Committee prepared the report with input from IADC and the International Well Control Forum (IWCF). The well control training syllabi of IADC and IWCF were reviewed to develop the recommendations.

The document contains recommended improvements to current well control training, examination and certification processes, as well as related philosophies for adoption throughout the industry to improve well control preparedness and performance for all types of operations conducted on all wells worldwide.

Key recommendations include:

• Training on barrier management and risk management is included in well control training;

• Training on well influx detection and immediate response is improved;

• Training is adapted to better suit the well operation, rig type and role of the person involved with a well operation;

• Minimum levels of training are specified for personnel that may contribute to the avoidance of, response to or mitigation of a well control situation;

• Scenario or simulator-based training is evolved and adopted to complement existing training;

• General improvements to the technical content of the training syllabi;

• Learning, examination and certification processes are improved; and

• A more systematic auditing process to ensure training goals are consistently achieved.

The document highlights improvement that are expected to be adopted by well control training, examination and certification bodies, and management from operators, drilling contractors and service companies are asked to demonstrate support. They can be found at www.ogp.org.uk/pubs/476.pdf.

For details, contact Steve Kropla at ext 211 (steve.kropla@iadc.org).

IADC provides updates on FCPA, local content at Drilling Africa

Brian Petty, IADC executive VP – government affairs, provided updates regarding the US Foreign Corrupt Practices Act (FCPA) and local content requirements in Africa at the IADC Drilling Africa 2012 Conference in Lisbon, Portugal, 24-25 October.

Since the FCPA issue was raised at the first IADC Drilling Africa conference a few years ago, pressure has remained from the US Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) on its enforcement, Mr Petty stated. To address the issue on a global scale, to promote compliance and to allow the drilling contractor community to share lessons learned, IADC soon established the Ethics Committee. The group is now chaired by James Sanislow of Noble Drilling Services.

Mr Sanislow met with the DOJ and SEC earlier this year to discuss FCPA enforcement guidance, providing background on complexities in compliance and risk management arising from issues such as a lack of clarity around the definition of a “foreign official” and successor liability.

Local content requirements also remains a major issue in the Nigerian market. Mr Petty notes that IADC has organized a coalition that has received support from the US government, as well as the EU. IADC continues to meet with Nigerian legislators and authorities to work out practical solutions and also has met with a delegation from Ghana to discuss similar local content legislation in that country.

For more information, please contact Brian Petty at +1/202-293-0670 (brian.petty@iadc.org).

IADC report on standards developments

The newest edition of IADC’s semi-annual report, International Standards Activities Affecting the Offshore Oil and Gas Industries, is available at www.iadc.org/wp-content/uploads/2011/09/20121010-report.pdf.

This report provides a reference to standards development activities of various organizations with the potential to affect offshore oil and gas operations, e.g., the International Maritime Organization, International Labour Organization, the International Organization for Standardization and various international trade associations.

The report includes information on the International Maritime Labour Convention, MARPOL Annexes V (garbage) and VI (air pollution), the Ballast Water Management Convention, MODU Code amendments for confined space entry rescue drills, new IMO requirements for lifting appliances and newly issued ISO standards on conformity assessment, quality management and site assessment for jackups.

For more information about the report, please contact Alan Spackman at ext 207 (alan.spackman@iadc.org).

Senator questions BSEE jurisdiction expansion

In response to the US Bureau of Safety and Environmental Enforcement’s (BSEE) release of an interim policy document in August on “Issuance of an Incident of Non Compliance (INC) to Contractors,” (IDP No. 12-07) US Sen. David Vitter (R-La.) recently revisited the concern of the expansion of current regulatory authority to include contractors.

In a letter to BSEE director James Watson, Sen. Vitter referred to a December 2011 letter that concluded the department’s “legal authority over all activities conducted under federal offshore leases, whether such activity is engaged in by lessees, operators, or contractors.” Sen. Vitter also repeated a request for the legal analysis upon which the decision was based. “You declined to provide the Department’s legal analysis as ‘an internal process to facilitate decision making,’ which denies Congress, which has oversight responsibility of the Outer Continental Shelf Lands Act, of any practical understanding of BSEE’s rationale for its action,” Sen. Vitter wrote.

He requested BSEE to initiate a formal rulemaking process to ensure transparency and the ability of all stakeholders to provide their input before proceeding with enforcement.

For details, contact Brian Petty at +1/202-293-0670 (brian.petty@iadc.org).

IADC hires director of external relations

Amy Rose has joined IADC as director of external relations, reporting to IADC group vice president/publisher Mike Killalea. Ms Rose will be responsible for public relations, education initiatives and media outreach.

Before joining IADC, Ms Rose managed national and international media relations activities for the University of Pittsburgh Medical Center, a major multi-center nonprofit hospital system. Ms Rose was instrumental in developing and implementing a media relations strategy that resulted in high-profile media placements in print and television.

“Amy brings to IADC the precise experience and energy we need to raise IADC’s public profile,” Mr Killalea said. “We welcome Amy enthusiastically to the IADC team.”

Ms Rose is a graduate of John Carroll University with a bachelor’s degree in communications and is a member of the Public Relations Society of America.

Amy Rose can be reached at ext 415 (amy.rose@iadc.org).

MARPOL Annex V goes into effect in January

IADC reminds its members that the revised MARPOL Annex V on Prevention of Pollution by Garbage from Ships enters into force on 1 January 2013. The Convention is applicable to MODUs. The revised regulations include:

• A prohibition on the discharge to the sea of any garbage, except in accordance with express conditions established by the regulation;

• A requirement for a ship-specific Garbage Management Plan, including procedures for waste minimization and training;

• A requirement to post warning placards; and

• A revision to the requirements to maintain records of garbage discharge and transfer.

For more information, please contact Alan Spackman at ext 207 (alan.spackman@iadc.org) or John Pertgen at ext 203 (john.pertgen@iadc.org).

Val Hood, ‘backbone’ of IADC NSC, passes away

The IADC North Sea Chapter (NSC) has been left greatly saddened by the death of Val Hood on 15 September after her long battle with cancer. Ms Hood was 55.

Ms Hood was born in Arbroath, Scotland, and moved to Aberdeen to study languages at Aberdeen University before working for several years with Chevron. She then took a break to raise her family and started work with the NSC in January 1999.

Ms Hood played a key role in bringing the local drilling community together to discuss key issues, as well as organizing events, including the IADC NSC Annual Safety Awards to recognize safety achievements in the drilling industry.

“She was the backbone of the IADC here in Aberdeen, and her passing is a massive loss to us. I believe I speak for all of my drilling colleagues when I say that we – the North Sea drilling community – owe Val a huge debt of gratitude and appreciation,” said Darren Sutherland, director of European operations at Prospector Offshore Drilling and current NSC co-chairman. “Messages have been coming in from individuals around the world expressing their sadness but also their thanks for her tremendous support and guidance over the years.”

Ms Hood was involved in charity donations through IADC and personally. Donations are being accepted in her memory; they can be made online at www.justgiving.com/Val-Hood.

Ms Hood is survived by her husband George, son Adam and daughters Leanne and Steph.

Nelson recognized for IADC service

Ernie Nelson (left) and Ken Fischer (right)

Ken Fischer, IADC vice president of international development, presented an Exemplary Service Award to Ernie Nelson, vice president of contracts with Nabors Drilling USA, for his leadership as vice chairman, land, of the IADC Contracts Committee. Mr Nelson joined Nabors in 1992. He is responsible for all contracting activities for Nabors’ Lower 48 operations. “Ernie has been an integral part of every IADC land model contract revision in recent years,” Mr Fischer said. “Supported by Nabors, Ernie’s individual leadership and dedication of efforts and time have made a significant contribution to our industry.”

Accreditation Updates

DIT Programs

West Engineering Services, Brookshire, Texas (conditional).

HSE Rig Pass

A-N-L Services Inc, Edinburg, Texas;
Atwood Oceanics, Houston, Texas;
Cencetti Technical Services, Harleysville, Pa.;
CISHAC Carabobo, Venezuela;
Dual Treinamento e Consultoria Offshore Ltda, Rio de Janeiro, Brazil;
Falcon Multi Services, Maharashtra, India;
IFORTAB, Tabasco, Mexico;
Industrial Solutions Group, Lafayette, La.;
Marinse SC,Veracruz, Mexico;
Rukun Al Yaqeen Skills Development LLC, Muscat, Oman;
Safety Council of the Texas Mid-Coast Inc, Port Lavaca, Texas;
United Safety International, Dubai, UAE;
Viking Drilling, Odessa, Texas.

Safety Alerts

For the latest safety alerts, visit www.iadc.org/alerts.htm

Alert 12-25: Snagged hoist line results in fractured vertebrae.

Alert 12-26: Gloved hand caught in pipe spinner results in injury.

Alert 12-27: Hidden welding lead results in minor electrical shock.

Reminders

IADC UBO & MPD Committee meeting, 3-5 December, Copenhagen.
IADC ART Future Technology Subcommittee meeting, 4 December, Houston.
IADC Critical Issues Middle East 2012, 4-5 December, Dubai, UAE.

Rigs Receive ISP Certificates

For certificates received since last LTI (in years):

Ensco: Ensco 68 (1), Ensco 98 (6);
Nabors Offshore Corp: Nabors BR-11 (11), Nabors P-17 (9), Nabors D-110 (6);
Weatherford Drilling International (BVI) Ltd: Rigs 171 (2), 423 (1), 428 (3), 484 (3), 485 (3), 779 (8), 800 (2), 804 (1), 820 (3), 821 (3), 824 (2), Algeria Support Team (1), Egypt Transport Team (1), Kenya Support Team(1).

For certificates received since last recordable incident (in years):

Ensco: Ensco 98 (3);
Weatherford Drilling International (BVI) Ltd: Rigs 3 (3), 171 (2), 423 (1), 428 (3), 484 (3), 801 (1), 804 (1), 820 (3), 824 (2), Algeria Support Team (1), Egypt Transport Team (1), Kenya Support Team(1).

New IADC Members

IADC welcomes 39new members:

AIP Inc, San Antonio, Texas;
Alliance Oilfield & Drilling Services Ltd, Calgary, Alberta, Canada;
Alpha and Godman Engineering Services, Port Harcourt, Rivers State, Nigeria;
Applied Machinery Corp, Houston, Texas;
ASCOP, Villahermosa, Tabasco, Mexico;
BIOSFERA, Paraiso, Tabasco, Mexico;
Boko Consulting Inc, Raleigh, N.C.;
Cactus Premier Drilling Services SAOC, Muscat, Oman;
Coatsman Offshore Services Pvt Ltd, Thane, Maharashtra, India;
Cuadrilla Resources Ltd, Lichfield, Staffordshire, UK;
Daqing Drilling & Exploration Engineering Corp, Daqing, China;
Desert Drilling & Engineering Co Ltd, Sanna, Yemen;
Eagle Drilling LLC, Norman, Okla.;
Equustock LLC, Loves Park, Ill.;
Erazo Valencia SA, Cota, Cundinamarca, Colombia;
Felco Energy Solution Inc, Houston, Texas;
Finanzauto SA, Arganda Del Rey, Madrid, Spain;
Guidevue Inc, Houston, Texas;
Hawk Consultancy Pvt Ltd, Ahmedabad, Gujarat, India;
High Arctic Energy Services PNG Ltd, Papua New Guinea;
Institute of Petroleum Eng and Info Tech of Kazakh-Britishtechnical University, Almaty, Kazakhstan;
IFORTAB, Villahermosa, Tabasco, Mexico;
Lone Wolf Manufacturing LLC, Spring, Texas;
Majjan Equipment & Machinery LLC, Dubai, UAE;
Mining Accociates Pvt Ltd, Asansol MC, West Bengal, India;
Moorhouse Drilling & Completions, Keighley, West Yorkshire, UK;
Paul Musslewhite Trucking Co, Levelland, Texas;
Predator Drilling Inc, Red Deer County, Alberta, Canada;
QBS Supply, Houston, Texas;
Rangeland Energy Services, High River, Alberta, Canada;
Remote Medical International, Seattle, Wash.;
Shell International Exploration & Production, Rijswijk, Netherlands;
Texma Petroleum Machinery LLC, Houston, Texas;
Total Solutions & Services, Poza Rica, Veracruz, Mexico;
Tusker Energy, Luanda, Angola;
Universidad Politecnica del Golfo de Mexico, Paraiso, Tabasco, Mexico;
Vortex Ventures Inc, Houston, Texas;
WDI Drilling Equipment Services, Houston, Texas;
X-Drill, Houston, Texas.

DRILLBITS Volume 22, Number 11

Dan Rabun, Chairman • Stephen Colville, President • Linda Hsieh, Editor
PO Box 4287, Houston, TX 77210-4287 USA

All listed phone extensions are for IADC’s Houston headquarters,
+1/713-292-1945. Fax +1/713-292-1946.

Send comments/questions to Linda Hsieh at linda.hsieh@iadc.org.

To subscribe to Drill Bits, go to www.iadc.org/drillbits.htm.

To change/cancel a Drill Bits subscription, send an e-mail message to
IADC Director – Membership Sharon Thorpe at sharon.thorpe@iadc.org.

Andersson, Hannegan, Al-Hussain receive IADC Exemplary Service Awards

amy.rose — Wed, 07 Nov 2012 16:40:50 +0000

Houston, 7 November, 2012– The International Association of Drilling Contractors (IADC) awarded the 2012 recipients of the Exemplary Service Awards today at its Annual General Meeting in Scottsdale, Ariz.

The Awards recognize individuals for their outstanding contributions to IADC and the drilling industry and their commitment to improving and advancing its safety, training and technology.

The awardees are:

Goran Andersson, Drilling and Completions Manager, Chevron

Mr .Anderssonn has been involved in the drilling industry for more than 30 years in various positions at Chevron, Statoil, Shell and Maurer Engineering. Prior to his current position at Chevron, he led their Drilling and Completions Training Center in Houston. There, he initiated the development of a competency assurance program using advanced simulator equipment to allow D&C professionals to demonstrate competency, regardless of location. At IADC, he has held the position of vice chair of the Well Control Committee, as well as chair of the WellCAP Curriculum Subcommittee, where he led the revision of the program and implementation of measures to strengthen it.

Don Hannegan, Strategic Technology Development Manager, MPD, Weatherford International

Recognized as a prolific inventor of enabling equipment and methods that reduce the risks of loss of well control when drilling challenging wells, Mr. Hannegan was recognized by the Society of Professional Engineers (SPE) with the World Oil 2004 Innovative Thinker Award for his role in conceiving and developing managed pressure drilling technology. He is currently lead author on a book, “Drilling Hazard Mitigation Tools and Technology,” to be published by the University of Texas Petroleum Extension Service (PETEX). He is a charter member of the IADC Underbalanced Operations and Managed Pressure Drilling Committee.

Zuhair Al-Hussain, Executive Director, Drilling and Workover, Saudi Aramco

Mr. Al-Hussain has been with Saudi Aramco for more than 30 years, with a focus on oil production and drilling. In his current role, he oversees engineering and operational activities covering exploratory development delineation and injection gas, oil and water wells drilled both on- and offshore. He holds a director position with the Society of Petroleum Engineers Saudi Arabia section. In 2009 Mr. Al-Hussain was recognized by the group for his distinguished contribution to petroleum engineering in the area of drilling and completions in the Middle East region. An active IADC member, he was a founder and former chair of the Northern Arabian Gulf Chapter.

About IADC

DRILLBITS – Oct 2012

katherine.scott — Tue, 09 Oct 2012 15:29:33 +0000

This Month’s Articles

BSEE, industry discuss BOP rules
Industry to BLM: Well stimulation rule not needed
IADC launches comprehensive update to Drilling Manual
Subsea BOP Workshop to be held on 30 October
IADC hires director of publishing initiatives
Scott Maddox joins IADC
IADC seeks member input on application for OSHA ladder variance
New NPDES permit may require contractor NOI
Revised publications available from IADC
Oil & Gas Denmark launched in August
Accreditation Updates
Safety Alerts
Rigs Receive ISP Certificates
IADC Welcomes New Members

Subscribe to DRILLBITS

Sign Up To Receive DRILLBITS

BSEE, industry discuss BOP rules

Following an August meeting with James Watson, director of the US Bureau of Safety and Environmental Enforcement (BSEE), IADC, API, NOIA and the Offshore Operators Committee have sent a letter to the director reiterating industry concerns with possible requirements being included in upcoming proposed rules on BOPs.

During the meeting, BSEE had indicated that the agency was evaluating different and/or supplemental requirements for BOPs in addition to the requirements in the draft 4th edition of API Standard 53 (S53) even though S53 was in line with what BSEE was seeking. The industry discussed how it had to work through the current rig fleet, the newbuild rigs and future technology developments in drafting S53 and utilized the process to solicit and address comments from industry. Plans are to release S53 in Q4 2012, and BSEE has stressed the need to publish S53 as soon as possible in order to align with the time frame of the rulemaking process for the new BOP rule.

Industry also explained its concerns around specific requirements related to pipe rams and shearing capability. Of particular concern is the potential requirement for much longer space-out between shear rams, which would significantly impact the existing floating rig fleet. With the large number of new rigs under construction, significant new requirements could necessitate extensive modifications with cost and schedule impact, industry stated.

Industry also maintained that the focus should remain on well control rather than shearing. Shearing the pipe is a last resort, and all effort should be made to maintain communication with the bottom of the well to control pressure instead. The industry wondered if well control scenarios and practices are being fully considered by BSEE while the agency drafts the new rules and highlighted the potential unintended consequences if the rulemaking process solely focused on the BOP emergency functionality.

The industry further expressed the need to address risk assessment in future rulemaking and provided an explanation about risk assessment requirements included in S53.

In response to BSEE’s stated interest in life cycle analysis of critical equipment, the industry discussed efforts to develop a new document, API 16AR, which would address repair and re-manufacturing of well control equipment.

Additionally, BSEE asked about industry investment in next-generation well control equipment and confirmed the proposed BOP rule addresses shear capability, automation and enhanced sensors. Industry comments are:

Shear capability: Industry is strongly concerned about the focus on “shear certain” and believes greater focus should be placed on maintaining primary well control. The drive toward “shear certain” also can add significant complexity to an already sophisticated system, which in turn adds risks.
Automation: Automating the entire well control process would be an incredibly difficult task given the uncertain and changing subsurface pressures, fluids, rock strengths, etc.
Enhanced sensors: Manufacturers are already developing ram position indicators to monitor the “health” of subsea well control systems. Further research is needed to provide additional capabilities such as flow measurements as mentioned by BSEE and others.

For more information, please contact Alan Spackman at alan.spackman@iadc.org.

Industry to BLM: Well stimulation rule not needed

IADC, IPAA and more than 40 other groups have jointly filed comments urging the US Bureau of Land Management (BLM) to withdraw its proposed rule on well stimulation, including hydraulic fracturing, that was published in the Federal Register on 11 May 2012. Noting that there have been no incidents of contamination from hydraulic fracturing in over 1.2 million wells in more than 60 years, the groups called the proposed rule unwarranted.

“We are concerned that the rule is a misguided attempt to address concerns with well stimulation that may be based on inaccurate or unsubstantiated claims relating to the environmental and health impacts of the processes,” the 30-page comment document stated.

Industry groups further noted that the BLM’s proposed rule ignores the scope and effectiveness of existing state regulations, as well as issues related to state/federal water rights.
From an economic point of view, the proposed rule also will have a severe negative impact on small businesses, many of whom will not be able to endure the added compliance costs. It’s estimated that the total aggregate cost for new permits and well workovers alone resulting from this new rule would range from US $1.499 billion to $1.615 billion annually in just 13 western states. This is a conservative estimate of the delays and costs associated with the rule, equating to about $253,800 per well and $233,100 per re-fracture stimulation, the groups stated.

For details, please contact Brian Petty at +1/202-293-0670 (brian.petty@iadc.org).

IADC launches comprehensive update to Drilling Manual

IADC has launched a comprehensive update of the IADC Drilling Manual. The end-to-end revision aims not only to update existing chapters but also incorporate information on new technologies and industry best practices. As envisioned, the 12th edition will be published in print as well as electronically, featuring graphics, videos and animations.

The effort is being undertaken by the IADC Communications Department under the leadership of group vice president/publisher Mike Killalea.

“The update of this important industry resource will provide the industry with better materials that will catalyze improved performance at the rig site and the operations office,” Mr Killalea said. “In addition, we intend to maintain the IADC Drilling Manual as an evergreen resource, with regular updates by an informed group of technical experts.”

Fran Kennedy-Ellis, who recently joined IADC as director – publishing initiatives, is organizing a steering committee to shape the work ahead.

Subject-matter experts are needed to contribute on all aspects of drilling operations. Further, young professionals are encouraged to participate.

Thanks to the following companies and university that have already committed their support: ConocoPhillips, Halliburton, Marathon, National Oilwell Varco, Precision Drilling, Weatherford and Texas A&M.

A kick-off meeting will be held on 28 November at IADC’s Houston headquarters. For more information or to participate, contact Fran Kennedy-Ellis at +1/713-600-1887 (fran.kennedyellis@iadc.org).

Subsea BOP Workshop to be held on 30 October

IADC will hold a Subsea BOP Workshop on 30 October in Stavanger, Norway. The event, organized under the auspices of the IADC Future Technology Subcommittee (FTS), will seek to identify BOP-related problem areas for operators, drilling contractors and OEMs and foster discussion among BOP technology developers and users.

FTS vice chairman Dustin Torkay, Seadrill Americas, will provide welcoming remarks. Presentations will follow from Helge Ørgersen, Statoil; Per Wullf, Seadrill Management; David Dietz, GE Oil & Gas; and Mel Whitby, Cameron Drilling Systems. Technology sessions are planned for the afternoon on explosive shearing, electric BOP controls and BOP monitoring, followed by a panel discussion. For details or to register, go to www.iadc.org/event/iadc-subsea-bop-workshop/.

IADC hires director of publishing initiatives

Fran Kennedy-Ellis has joined IADC as director – publishing initiatives, reporting to IADC group vice president/publisher Mike Killalea. Ms Kennedy-Ellis will oversee the update of the IADC Drilling Manual, among other projects. Her duties will include author relations, content development, digital asset management, as well as permissions and copyright issues for print and electronic editions. In this role, she will organize a steering committee and work groups to revise existing chapters and write new ones, develop workshops to support IADC publishing initiatives and attend strategic IADC events to support the revision effort.

“Fran brings to IADC significant experience in revamping publications and enormous energy that will significantly benefit our members and our association,” Mr Killalea remarked. “We look forward to leveraging Fran’s abilities not only to reinvent the IADC Drilling Manual but to revise other IADC publications and develop new materials.”

Ms Kennedy-Ellis previously served as technical publications manager for the Petroleum Extension Service (PETEX) at the University of Texas at Austin. She earlier worked at SPE, overseeing its book program, technical journals, peer review and publications committees. She has a bachelor’s degree in English and a master’s in Administration from Texas Tech University.

Fran Kennedy-Ellis can be reached at fran.kennedyellis@iadc.org.

Scott Maddox joins IADC

Scott Maddox has joined IADC as director of the drilling & well services division, providing operational and technical support to the IADC Underbalanced Operations & Managed Pressure Drilling, Advanced Rig Technology and Well Servicing committees. He will also assist in assembling the technical content of IADC conferences and workshops.

Mr Maddox was most recently QHSE manager for the US unit of i-Tec Well Solutions. Previously he was corporate HSE manager for Xtreme Coil Drilling. Prior to that, he held HSE-related positions for Noble Drilling and Grey Wolf Drilling.

Before joining the energy industry, Mr Maddox was a firefighting instructor for the US Navy. He is a graduate of Columbia Southern University and is currently enrolled in the MBA program at Grantham University.

Scott Maddox can be reached at scott.maddox@iadc.org.

IADC seeks member input on application for OSHA ladder variance

IADC recently sent letters to its membership regarding the application for a permanent variance for ladders on rig derricks from OSHA. In 1973, OSHA issued an interim variance from 29 CFR 1910.27 for ladders on drilling rig derricks. IADC had obtained the interim variance because although most parts of derrick ladders may meet the requirements of 1910.27, some ladders or parts of derrick ladders do not.

From responses to IADC’s survey regarding derrick ladders, the association concluded that alternative ladder safety measures that members are using provides derrick ladder safety equal to that required in 1910.27.

After OSHA recently realized that they had not followed up and made the variance permanent, they asked IADC to make an application for permanent variance, but they also requested that each company wishing to be included in the variance sign the application form. If you are unsure whether your derrick ladders meet the requirements of 29 CFR 1910.27(b) (1) (i), (ii), (iii) or (c) (4), please complete and return the application to IADC before 31 October. IADC will accumulate all applications and submit them along with a cover letter to the OSHA variance office.

For more information about the ladder variance, please contact Joe Hurt at +1/713-292-1954 (joe.hurt@iadc.org).

New NPDES permit may require contractor NOI

The US EPA has issued a new National Pollutant Discharge Elimination System (NPDES) general permit, effective 1 October 2012, that covers oil and gas extraction facilities for the western portion of the Gulf of Mexico OCS for the next five years. The permit, which establishes the conditions on discharges from oil and gas facilities, including drilling operations, is substantially different from the previous one. Based on the changes, which includes multiple definitions of the term “operator,” many drilling contractors will need to submit a Notice of Intent (NOI) to cover discharges that are considered beyond the control of the primary operator.

For rigs working under contract with the present lease holder (operator) who has administratively extended its current NOI for continuous coverage under the previous permit, the deadline to file a new electronic NOI for coverage will be 31 January 2013. From today forward, contracts will need to take into consideration if and when an NOI submission is required.

This means that specific decisions will need to be taken as to who will obtain permit coverage for the operation of the cooling water intake structure, maintenance wastes (e.g., blasting and painting) and other authorized discharges (e.g., deck drainage, domestic or sanitary wastes, etc) that are regulated through the permit.

Additional information regarding the published general permit and the responses by EPA Region-6 to submitted comments are available at www.epa.gov/region6/water/npdes/genpermit/index.htm. For other information, please contact John Pertgen at ext 203 (john.pertgen@iadc.org).

Revised publications available from IADC

The IADC Drilling Rig Safety Inspection Checklist has been updated with additional inspection items and a reference to relevant OSHA and API standards for each item.
The newly updated Well Stimulation Treatments book addresses well stimulation treatments frequently used to rejuvenate old or poorly producing wells. Fracturing and acidizing treatments are common. Many wells that would otherwise be classified as dry holes have been made into profitable producers by fracture, acid or explosive stimulation treatments. In this book, the author discusses effective stimulation techniques, new methods and variables to consider in designing and implementing treatments.

For details or to order these publications, please contact Loretta Krolczyk at ext 215 (loretta.krolczyk@iadc.org).

Oil & Gas Denmark launched in August

Jens Hoffmark, IADC regional VP – European operations, attended the 23 August launch of Oil and Gas Denmark, an industry association that represents Danish drilling contractors, oil companies and service companies. The new group, headed by managing director Martin Næsby, has four focus areas: development of the oil and gas sector, infrastructure, HSE and development of competency.

In attendance at the launch event was Martin Lidegaard, Danish minister of energy. His inauguration speech emphasized the importance of the Danish oil and gas industry, which contributes about 9% of the total Danish export. Denmark has been self-sufficient in oil and gas since 1991 and has been a net exporter of energy. In the next five years, US $8 billion is expected to be invested in exploration and development. For more information, please contact Jens Hoffmark at jens.hoffmark@iadc.org.

Accreditation Updates

DIT Programs

Gulf Coast Training Technologies, Broussard, La. (conditional);
Icon Lifting & Rigging Inspections Ltd, Port Harcourt, Nigeria (conditional);
Training Consultors, Bogota, Colombia (conditional).

Safety Alerts

For the latest safety alerts, visit www.iadc.org/alerts.htm

Alert 12-22: Falling steel plate results in struck-by incident.

Alert 12-23: Exploding ball valve results in near-miss.

Alert 12-24: Misuse of high-pressure cleaner results in injury.

Reminders

IADC Drilling Africa 2012 Conference & Exhibition, 24-25 Oct, Lisbon, Portugal.
IADC Training Committee meeting, 24 Oct, Houston.
IADC HSE Committee meeting, 25 Oct, Houston.
IADC Rig Moving Committee meeting, 25 Oct, Grapevine, Texas.
IADC Subsea BOP Workshop, 30 Oct, Stavanger.

Rigs Receive ISP Certificates

For certificates received since last LTI (in years):

COSL Drilling Pan Pacific Ltd: COSL BOSS (2), COSL Superior (2);
Ensco: Ensco 53 (1), Ensco 83 (9), Ensco 91 (2), Ensco 105 (4), Ensco 109 (1), Ensco 5006 (1), Ensco 7500 (2);
Justiss Oil Company: Rig 57 (1);
KS Drilling: Discoverer 4 (2);
Mermaid Drilling Ltd: MTR 2 (3);
Nabors Drilling International Ltd: Rigs 103 (1), 603 (2), 621 (1), 785 (2), 833 (5), 866 (1), 985 (1), F17 (1);
Nabors Offshore Corp: Nabors P-54 (9), Nabors SD-1 (9);
Songa Offshore: Songa Eclipse (1), Songa Mercur (3), Songa Venus (1);
Weatherford Drilling International (BVI) Ltd: Rigs 3 (4), 143 (1), 155 (13), 403 (1), 437 (1), 703 (3)719 (2), 786 (1), 799 (4), 815 (2), 844 (2), Egypt Transport Team (3), North Iraq Support Team (1).

For certificates received since last recordable incident (in years):

Ensco: Ensco 52 (1), Ensco 5006 (1);
Nabors Drilling International: Rigs 77 (1), 309 (3), 603 (2), 814 (1), 826 (7), 866 (1), 985 (1);
Unit Drilling: Rigs 23 (3), 25 (1), 36 (1), 100 (1), 106 (4), 116 (2), 117(1), 121 (1), 136 (1);
Unit Texas Drilling LLC: Rigs 203 (3), 339 (1);
Weatherford Drilling International (BVI) Ltd: Rigs 143 (1), 155 (1), 180 (1), 403 (1), 437 (1), 719 (2), 813 (1), 823 (2), 844 (1), Egypt Transport Team (3), North Iraq Support Team (1).

New IADC Members

IADC welcomes 28 new members:

Adira Energy Ltd, Ramat Gan, Israel;
AMR Onsite Safety and Health, Jackson, Miss.;
A-N-L Services Inc, Georgetown, Texas;
Arabian Ocean Drilling Supplies and Trading FZCO, Dubai, UAE;
Blue Line Drilling Co LLC, San Angelo, Texas;
Capacitacion Industrial y Servicios de Veracruz, Veracruz, Mexico;
Complex Drilling Works Trust-SOCAR, Baku City, Azerbaijan;
Core-IRM Pte Ltd, Singapore;
DC International Inc, Lafayette, La.;
Dual Safety Training, Niteroi, Brazil;
Framework Offshore LLC, Houston, Texas;
Inflatable Packers International Pty Ltd, Perth, Australia;
Marinse SC, Poza Rica, Mexico;
MCE Consultores Asociados SAC, Lima, Peru;
Min Ingenieria y Servicios, Poza Rica, Mexico;
Perisai Petroleum Teknologi Bhd, Kuala Lumpur, Malaysia;
Petroworks SAS, Bogota, Colombia;
Pratt & Whitney Rocketdyne Inc, Huntsville, Ala.;
Ram Designs LLC, Broussard, La.;
RPS Australia Asia Pacific, Subiaco, Australia;
Sirius Well Manufacturing Services Australia Pty Ltd, Carboolture, Australia;
STH Competence Management Ltd, Pitlochry, United Kingdom;
Summit Drilling Company Inc, Emporia, Kan.;
Temeku Technologies, Herndon, Va.;
Unison Drilling Inc, Devine, Texas;
Upsyde Oil Well Maintenance LLC, Dubai, UAE;
Vishal Enterprise, Mehsana, India;
Wagenborg Foxdrill, Oldenzaal, The Netherlands.

DRILLBITS Volume 22, Number 10

Dan Rabun, Chairman • Stephen Colville, President • Linda Hsieh, Editor
PO Box 4287, Houston, TX 77210-4287 USA

All listed phone extensions are for IADC’s Houston headquarters,
+1/713-292-1945. Fax +1/713-292-1946.

Send comments/questions to Linda Hsieh at linda.hsieh@iadc.org.

To subscribe to Drill Bits, go to www.iadc.org/drillbits.htm.

To change/cancel a Drill Bits subscription, send an e-mail message to
IADC Director – Membership Sharon Thorpe at sharon.thorpe@iadc.org.

DRILLBITS – Sept 2012

katherine.scott — Fri, 14 Sep 2012 19:09:57 +0000

This Month’s Articles

IADC supports member case in Brazil
Industry wins dismissal of lease sale lawsuits
IADC VP visits Poland, assesses emerging shale gas market
Industry comments on fracturing guidance
Workshop proposed for Indonesia operations
Maritime Labour Convention to enter into force in August 2013
USCG: Credential required to work on vessels
IADC criticizes BSEE noncompliance citation policy
Jackup site assessment provisions available
Asia Operations Forum to be held 24 October
Accreditation Updates
Safety Alerts
Rigs Receive ISP Certificates
IADC Welcomes New Members

Subscribe to DRILLBITS

Sign Up To Receive DRILLBITS

IADC supports member case in Brazil

IADC recently provided supporting information to Transocean Brasil as the company works to reverse a court injunction effectively barring it from conducting offshore operations pending investigation of a November 2011 incident on the Frade field. IADC’s letter noted that, “due to the complex nature of our business, outsiders do not have a full understanding of the commercial and technical structure and the roles of the numerous contractors and other companies engaged in the process. Drilling a well is a complex endeavor conducted in accordance with the operator’s specifications and under their direction.”

Given the operator’s proprietary knowledge of the geological formations, nearby wells and other operational variables, the operator is generally responsible for:

Specification of technical parameters and operational procedures to drill the well;
Definition of the drilling fluid program, which includes safe operating pressures, pressure differentials and verification tests;
Definition of size and setting depth of casings and method of cementing; and
When unexpected conditions are encountered, the operator will adjust its drilling program accordingly and, if necessary, direct emergency response actions.

Drilling contractors and service companies may perform actions prescribed by the operator in accordance with contracts, but the responsibility to act in a timely and appropriate manner remains with the operator, IADC stated.

For more information, please contact Ken Fischer at ken.fischer@iadc.org.

Industry wins dismissal of lease sale lawsuits

Two separate lawsuits challenging a Gulf of Mexico (GOM) lease sale have been dismissed. In 2010, the Defenders of Wildlife and other NGOs in Alabama federal district court challenged the issuance of leases pursuant to Central GOM Lease Sale 213; the Center for Biological Diversity (CBD) in DC federal district court also filed a challenge.

Although Lease Sale 213 was conducted before Macondo, many leases were not issued until after the event, and the lawsuits challenged that the then-Minerals Management Service issued leases without engaging in new National Environmental Policy Act (NEPA) and Endangered Species Act (ESA) analyses.

IADC, API, the Independent Petroleum Association of America (IPAA) and the US Oil & Gas Association (USOGA) have succeeded in persuading the Alabama court first to dismiss all claims other than those relating to Lease Sale 213, and then to dismiss the Lease Sale 213 claims themselves. Defenders of Wildlife initially appealed the latter ruling to the Eleventh Circuit but later dropped the appeal.

Similarly, the DC court dismissed all claims other than those relating to Lease Sale 213, and the Lease Sale 213 claims remained pending, which made industry potentially vulnerable to an adverse ruling in DC on the Lease Sale 213 claims.
However, the CBD and the government have agreed on a Stipulation of Dismissal. The CBD dismissed its Lease Sale 213 NEPA claims with prejudice, and the CBD dismissed its Lease Sale 213 ESA claims without prejudice. The CBD will be able to pursue the ESA claims in the future only if the Bureau of Ocean Energy Management (BOEM) fails to complete its ongoing renewed ESA consultations by May 2013.

Separately, IADC, API, IPAA and USOGA are fighting challenges to Lease Sale 216/222, filing a motion to intervene in the litigation challenging the 20 June 2012 sale, which resulted in more than US $1.7 billion in high bids on 454 tracts.
Oceana, Defenders of Wildlife and the CBD challenge the adequacy of the Supplemental Environmental Impact Statement prepared by BOEM with respect to Lease Sale 216/222 pursuant to NEPA.

Industry groups believe they are entitled to intervene in this litigation as of right or through permissive intervention. The court recently granted the groups’ motion to intervene in a similar lawsuit challenging Western GOM Lease Sale 218.

For more information about these legal efforts, please contact Brian Petty at +1/202-293-0670 (brian.petty@iadc.org).

IADC VP visits Poland, assesses emerging shale gas market

IADC regional VP of European operations Jens Hoffmark recently visited oil companies, suppliers and regulators in Krakow and Warsaw, Poland. The goal was to collect information on shale gas development in the country and promote awareness of the IADC Critical Issues for Shale Europe 2013 Conference & Exhibition, 23-24 October in Warsaw.

Poland currently imports 98% of its oil from Russia, and its natural gas production of 3.5 billion cu meters per year is not enough to meet the total demand of 14.5 billion cu meters. The country has been in search of alternatives, such as shale gas and renewable energy, in an effort to increase energy independence.

The Polish Ministry of Environment has granted 112 concessions so far to several international oil companies, with the most positive traces of shale gas being found close to the Baltic Sea in the northern part of Poland. It is reported that six companies out of 11 are considering further development based on exploration results thus far.

The US Geological Survey forecasted in 2009 that Poland could hold approximately 3 trillion to 5 trillion cu meters of shale gas. The estimate has since been revised to 38 billion cu meters, although no certainty can be established until additional drilling is carried out. A minimum of 200 wells are required to produce a more precise reserves estimate, but only 28 wells have been drilled so far.

One challenge is that the Polish government is still lacking clear guidelines on taxation, HSE requirements and ownership rights to shale gas discoveries. To address this, the government is negotiating two bills on taxation and technical issues such as HSE. The Ministries of Finance, Environment, Economy and Treasury are working out relevant legislation, and it remains to be seen when the work will be completed. Until then, oil companies working in Poland are still left with uncertainty.

For further information, please contact Jens Hoffmark at jens.hoffmark@iadc.org.

Industry comments on fracturing guidance

IADC, along with the Independent Petroleum Association of America, the Association of Energy Service Companies and the International Association of Geophysical Contractors, recently submitted comments to the US EPA in regards to permitting guidance for oil and gas hydraulic fracturing activities using diesel fuels.

The groups urged the EPA to retract both its website assertion of an Underground Injection Control (UIC) permitting requirement under the Safe Drinking Water Act (SDWA) and the Draft Guidance document.

The industry groups believe the EPA should “revisit its use of this authority in the context of (1) the current state regulatory programs and (2) the mandates of the SDWA prohibiting regulations that would impede or interfere with American oil and natural gas production unless requirements are essential to assure that underground sources of drinking water (USDW) will not be endangered by injection.”

The EPA and other federal officials have repeatedly confirmed that hydraulic fracturing has not adverse affected USDW. Industry groups believe the EPA’s actions have violated its overarching SDWA mandate.

The EPA’s Draft Guidance also seeks to expand the group’s authority, which is limited to regulating the use of diesel fuel in the context of hydraulic fracturing. The EPA has proposed regulation of chemical products that are not diesel fuel, and current and proposed actions threaten the federal-state primacy structure. Further, the definition of diesel fuel must be written to be easily understood, certain and stable.

Industry suggests the EPA initiate a rulemaking process that includes examination of:

Whether authority of the SDWA needs to be used or if existing state regulatory programs effectively manage the risks of diesel fuel use in hydraulic fracturing;
If the authority is used, what is the appropriate structure under the UIC program;
To what extent is diesel fuel used in the fracturing process and to what extent will it continue to be used if a new federal requirement is created; and
How the creation of new requirements will affect American oil and natural gas production within the mandates of the SDWA.

Workshop proposed for Indonesia operations

IADC is planning to hold a workshop for its drilling contractor members on understanding the procedures of goods and services procurement based on Indonesia’s amended Procurement Working Procedure Manual PTK 007/Rev.2/I/2011.

A minimum of 10 participants is required for IADC to hold the workshop, which would be a one-day session conducted by Indonesian consulting firm PT Patra Mitra Konsulindo on 25 October at the Marina Bay Sands Expo and Convention Centre in Singapore.

To express interest in participating or to get more information, please contact IADC Asia regional representative Chit Hlaing at chit.hlaing@iadc.org or IADC industry affairs consultant Derek Morrow at derek.morrow@iadc.org.

Maritime Labour Convention to enter into force in August 2013

The International Labour Organization (ILO) has announced that the Maritime Labour Convention 2006 (MLC 2006) has met the criteria for entry into force, having been ratified by 30 nations representing more than 33% of the world’s gross shipping tonnage. As a result, MLC 2006 will enter into force on 20 August 2013.

The Convention establishes minimum requirements for almost all aspects of working conditions for seafarers, including conditions of employment, hours of work and rest, accommodation, recreational facilities, food and catering, health protection, medical care, welfare and social security protection. Intended as a “flag-State” instrument, MLC 2006 is particularly ill-suited for application to MODUs, where the coastal States in which these units operate commonly extend their social and labor requirements to MODUs operating in areas under their jurisdiction and where large numbers of third-party personnel (who may be considered “seafarers” under the Convention) may be employed on board.

For further information, contact Alan Spackman at ext 207 (alan.spackman@iadc.org).

USCG: Credential required to work on vessels

The US Coast Guard (USCG) Eighth District has issued a new interpretation and application of section 8701 of the United States Code as it applies to US merchant vessels of at least 100GRT – except MODUs – with regard to the requirement for personnel employed onboard these vessels to obtain and hold a valid merchant mariner’s document.

In particular, the USCG denied a recent request to allow non-crew member, specialist personnel to conduct business on a US-flag offshore supply vessel because these specialists did not hold merchant mariner credentials.

This negatively affected that offshore vessel’s operations immediately, and IADC is concerned this may further expand to encompass all personnel on offshore energy vessels. This could include maintenance gangs, diver teams, ROV teams, paint and blasting teams, wireline crews, plug and abandon teams, hydraulic fracturing teams, classification surveyors, SEMS auditors, ISM auditors, oil spill cleanup personnel and thousands of others.

In response to this USCG denial, IADC and the Offshore Marine Service Association have submitted comments to the Eighth District Commander expressing the offshore industry’s concerns and offering assistance in rectifying the questionable interpretation and application of this statute.

For more information, please contact John Pertgen at ext 203 (john.pertgen@iadc.org).

IADC criticizes BSEE noncompliance citation policy

IADC has expressed concern about the Interim Policy Document by the US Bureau of Safety and Environmental Enforcement (BSEE), which affirms that BSEE inspectors can issue Incidents of Noncompliance (INCs) to drilling contractors as well as oil companies. The unprecedented policy demonstrates a significant deviation from the global paradigm of holding operators ultimately responsible for accidents at the well site.

“BSEE’s guidance is inconsistent with the industry model and creates a whole new area of ambiguity,” said Brian Petty, IADC executive vice president – government affairs. Global government regimes have always held operators responsible, he said.

“This new guidance opens the door to unknown levels of liability for contractors and additional uncertainty for contractors. At a minimum, it could increase contractors’ insurance premiums, but it also could potentially eliminate coverage for many companies in the US altogether.” Such additional costs and uncertainty could drive contractors out of the US Gulf of Mexico.

For more information about the BSEE policy, please contact Brian Petty at +1/202-293-0670 (brian.petty@iadc.org).

Jackup site assessment provisions available

ISO 19905-1:2012 – Site-specific Assessment of Mobile Offshore Units – Part 1: Jackups is available from ISO, national standards bodies and various technical publications providers. The standard specifies requirements and guidance for the site-specific assessment of independent-leg jackups. It addresses (1) manned non-evacuated, manned evacuated and unmanned jackups and (2) the installation phase at a specific site.

A related document, ISO/TR 19905-2 – Site-specific Assessment of Mobile Offshore Units – Part 2: Jackups Commentary and Detailed Sample Calculation, has passed ballot and will be available soon. To ensure reliability, the provisions of ISO 19905-1:2012 form an integrated approach, which is used in its entirety for the site-specific assessment.

For further information, contact Alan Spackman at ext 207 (alan.spackman@iadc.org).

Asia Operations Forum to be held 24 October

IADC will hold its second Asia Operations Forum meeting of the year on 24 October at the Marina Bay Sands Expo and Convention Centre in Singapore.

The meeting provides a forum to discuss key regional issues, as well as an update of IADC activities in the Asia Pacific region. IADC also will invite a guest speaker.

To suggest topics of interests or critical issues for discussion at the meeting, please contact IADC Asia regional representative Chit Hlaing at chit.hlaing@iadc.org.

Accreditation Updates

HSE Rig Pass

Industrial Solutions Group, Lafayette, La.

WellCAP Accreditation

Egyptian Drilling Skills, New Maadi, Egypt.

Safety Alerts

For the latest safety alerts, visit www.iadc.org/alerts.htm

Alert 12-19: Deep vein thrombosis.

Alert 12-20: Helideck obstruction hazard – marking and notification.

Alert 12-21: Lack of communication results in multiple injuries.

Reminder

IADC HSE Case Users Group meeting, 28 Sept, Amsterdam.
IADC Maintenance Committee meeting, 10 Oct, Houston.
IADC Contracts & Risk Management Conference, 16-17 Oct, Houston.
IADC ART Reliability & Guidelines Subcommittee meeting, 16 Oct, Houston.
IADC Training Committee meeting, 24 Oct, Houston.

Rigs Receive ISP Certificates

For certificates received since last LTI (in years):

Caspian Drilling Co: DADA GORGUD (3);
Nabors Drilling International: Rigs 117 (1), 128 (3), 143 (3), 488 (9), 604 (2), 669 (1), 679 (2), 695 (2), 756 (4), 813 (9), 815 (10), 826 (10), 1465 (2), Goodwin A (5), P16 (1), P18 (9), S802 (5), SS17 (1);
National Drilling & Services Co LLC: Rig 32 (5);
Weatherford Drilling International (BVI) Ltd: Rigs 104 (2), 151 (1), 160 (1), 341 (3), 342 (10), 441 (1), 710 (2), 735 (1), 814 (1), 838 (1), 839 (2), 847 (1), Chad Transport Team (11).

For certificates received since last recordable incident (in years):

Caspian Drilling Co: DADA GORGUD (3);
Nabors Drilling International: Rigs 18 (1), 238 (1), 283 (3), 609 (4), 655 (1), 669 (1), 679 (2), 695 (2), 810 (2), 825 (2), 833 (3), 838 (5), 996 (2), 1465 (2), Goodwin A (5), SS17 (1);
Rowan Companies Inc: Rowan Norway Rig 090 (1);
Trinidad Drilling: Rigs 105 (3), 106 (3), 107 (5), 109 (2), 112 (5), 121 (3), 124 (3), 133 (2), 134 (2), 139 (1), 222 (2);
Weatherford Drilling International (BVI) Ltd: Rigs 104 (2), 151 (1), 172 (1), 441 (1), 735 (1), 801 (1), 838 (1), 842 (1), Venezuela Support Team (7).

New IADC Members

IADC welcomes 24 new members:

AMAK Drilling and Petroleum Services (AMAKDPS), Cairo, Egypt;
Atlas Drilling Co Pty Ltd, Brisbane, Australia;
Bowen, Miclette & Britt, Houston, Texas;
Colston Safety & Training Inc, The Woodlands, Texas;
Daqing Drilling & Exploration Engineering Corporation, Daqing, China;
Depthwize Nigeria Ltd, Lagos, Nigeria;
Duco Energy Services LLC, Conroe, Texas;
Egyptian Chinese Drilling Co, Cairo, Egypt;
Fincantieri, Trieste, Italy;
Glitz Globl Services Ltd, Port Harcourt, Nigeria;
Gryphon Energy Sdn Bhd, Kuala Lumpur, Malaysia;
Halcon Resources, Houston, Texas;
Keane Group Holdings, Mansfield, Pa.;
Key Energy Services Cyprus Ltd, Houston, Texas;
Maritime Rescue Services Ltd, Warwickshire, United Kingdom;
Murphy Exploration & Production Co, Houston, Texas;
Oilpatch Hardbanding Consultancy LLC, Rio Frio, Texas;
Ramsey Engineering, The Woodlands, Texas;
Rukun Al Yaqeen Skills Development LLC (RAY Skills), Madinat Sultan Qaboos, Oman;
Safety Drill de Mexico SA de CV, Tamaulipas, Mexico;
Sekura SA de CV, Veracruz, Mexico;
Synergy Fluid Services, Houston, Texas;
Waukesha-Pearce Industries Inc, Houston, Texas;
Wellcare Oil Tools Private Ltd, Bhiwadi, India.

DRILLBITS Volume 22, Number 9

Dan Rabun, Chairman • Stephen Colville, President • Linda Hsieh, Editor
PO Box 4287, Houston, TX 77210-4287 USA

All listed phone extensions are for IADC’s Houston headquarters,
+1/713-292-1945. Fax +1/713-292-1946.

Send comments/questions to Linda Hsieh at linda.hsieh@iadc.org.

To subscribe to Drill Bits, go to www.iadc.org/drillbits.htm.

To change/cancel a Drill Bits subscription, send an e-mail message to
IADC Director – Membership Sharon Thorpe at sharon.thorpe@iadc.org.

IADC criticizes BSEE policy for citing drilling contractors

amy.rose — Fri, 17 Aug 2012 18:51:16 +0000

Houston, 17 August, 2012 – The International Association of Drilling Contractors (IADC) is gravely concerned with the Interim Policy Document issued this week by the U.S. Bureau of Safety and Environmental Enforcement (BSEE). By affirming that BSEE inspectors can issue Incidents of Noncompliance (INCs) to drilling contractors as well as oil companies, this unprecedented policy demonstrates a significant deviation from the global paradigm of holding operators ultimately responsible for accidents at the well site.

“BSEE’s guidance is inconsistent with the industry model and creates a whole new area of ambiguity,” said Brian Petty, IADC executive vice president – government affairs. “Global government regimes have always held operators responsible. This new guidance opens the door to unknown levels of liability for contractors and additional uncertainty for contractors. At a minimum it could increase contractors’ insurance premiums, but it also could potentially eliminate coverage for many companies in the U.S. altogether.”

These additional costs and risk exposure, combined with the possibility for civil penalties and fines, could drive drilling contractors out of the U.S. Gulf of Mexico, where experienced and high-quality drilling contractors are desperately needed. “Drilling activity is strong around the world, with significant rig demand in areas like Brazil, West Africa and Asia Pacific. Drilling contractors could well decide to leave the Gulf for places where they won’t have to bear the same risks,” Petty said.

DRILLBITS – Aug 2012

katherine.scott — Wed, 01 Aug 2012 18:16:18 +0000

This Month’s Articles

IADC, BROA detail MLC implementation issues
IADC applauds effort to improve OCS leases
IADC supports Trans-Pacific Partnership for investment in services
Charities benefit from NSC annual safety awards fundraising
BLM fracturing rule comment time extended
IADC boosts ACD with two new employees
IADC leaders visit Maersk training center
Pertgen named IADC director, offshore affairs
Safety Alerts
Rigs Receive ISP Certificates
IADC Welcomes New Members

Subscribe to DRILLBITS

Sign Up To Receive DRILLBITS

IADC, BROA detail MLC implementation issues

IADC and the British Rig Owners Association (BROA) have jointly responded to the Maritime Labour Convention (MLC), 2006. IADC and BROA, the trade association for British owned and managed rigs operating on the UK continental shelf, wrote in support of prior comments submitted by the UK Chamber of Shipping and addressed potential impacts of MLC ratification and implementation within the UK. The joint letter included annexes that addressed:

Crew accommodation regulations: Multiple occupancy cabins for crews are normal practice and are necessitated by the density of equipment and size of the work force. To change this in favor of single-occupancy cabins on new platforms is not feasible in all cases and may be prohibitively expensive. Also, specifications of ventilation system performance are beyond the scope of the MLC itself, and the excessive requirements should be removed.
Food and catering regulations: Better guidance is needed on the use of chlorine and chloramine in water treatment. Further, the requirement for fresh water tanks to be emptied, inspected, cleaned and overhauled on a 12-month basis is considered excessive given the longevity of modern systems.
Medical care regulations: The requirement to carry a doctor if more than 36 hrs of sailing time from a suitable port is not suited to MODUs, which are covered by other means of assistance and personnel transfer, such as helicopter services and standby vessels. Additionally, the liability of the shipowner for expenses related to a seafarer’s illness or injury should be constrained to that imposed by the MLC. The proposed wording of “any expense reasonably incurred” is too wide and will lead to inconsistent application.
Shipowner liability: The MLC is specific about which shipowner is required to provide financial security, and the UK’s implementation should mirror that clarity.
Other comments on MLC and MODU operations: International understanding of whether the flag or coastal State will have responsibility for: identification of competent authorities, enforcement responsibilities, employment agreements, control over wages and calculation of wages for work exceeding eight hours per day, hours of work and rest regulations, inspections and consultation. Also, obligations for repatriation to the country of residence should not be placed upon the shipowner for foreign nationals who have obtained authority to work in the coastal State, were hired in the coastal State and are governed by a labor agreement in the coastal State. It must be clear whether the coastal State will be willing/obligated to accept the manning levels established by the flag state.

The groups’ concerns, among others within those categories, are derived from the fact that MODUs are subject not only to their flag State’s maritime regulations and maritime enforcement but also to the laws of the nation on the continental shelf of which they operate. These regulations, in combination with the MLC, can create conflict between requirements of local land-based regulators and those of the MLC/flag State.

For more information, please contact Alan Spackman at ext 207 (alan.spackman@iadc.org).

IADC applauds effort to improve OCS leases

IADC and its allies API, NOIA and IPAA have expressed strong support for HR 6082 in a joint letter to US Rep. Doc Hastings, R-Wash., noting that the bill proposes significant improvements to the Obama Administration’s final Outer Continental Shelf (OCS) Oil and Gas Leasing Program for 2012-2017. Congressman Hastings is chairman of the House Committee on Natural Resources, which has jurisdiction over OCS leasing and which reported HR 6082 to the full House. HR 6082 is titled “Congressional Replacement of President Obama’s Energy Restricting and Job Limiting Offshore Drilling Plan.”

“The provisions in HR 6082 propose a more robust offshore leasing program that would encourage a greater number of offshore projects, resulting in greater growth in domestic oil and natural gas production and create jobs in far greater numbers than could be expected from the Administration’s final program,” IADC, API, NOIA and IPAA wrote in a letter initiated by IADC and drafted by all four associations.

HR 6082, if enacted into law, also would begin the process of determining how to lease and develop federal resources offshore Virginia.

“It is through drilling exploration activities in the new areas provided by HR 6082 that will lead the country to greater energy security,” the letter stated.

For more information about HR 6082, please contact Brian Petty at +1/202-293-0670 (brian.petty@iadc.org).

IADC supports Trans-Pacific Partnership for investment in services

IADC was among 22 organizations that wrote to US Trade Rep. Ron Kirk in June in strong support for a Trans-Pacific Partnership (TPP) agreement that would aim to liberalize cross-border trade and investment in services.

The benefits of raising the level of trade and investment in services across the Pacific has the potential to ripple through the manufacturing and agricultural sectors as well, given the “TPP includes disciplines and market-access commitments that support the services sector, building upon high standards achieved through existing bilateral and plurilateral free trade agreements (FTAs) between the US and its trading partners,” the letter stated. The services sector accounts for 70% of world economic output and 70% of employment.

The organizations suggest the TPP should address:

High standards achieved in services, financial services, investment and intellectual property in recent FTAs;
New and increasing challenges in the international economy, which have the potential to distort trade and investment and undermine the competitive opportunities for US enterprises;
Express delivery services to strengthen and improve previous FTAs, maintaining standards and not diluting them;
Cross-border information flows that do not mandate the use of local computing infrastructure and that digital products are not subject to customs duties and fees; and
Rules to prohibit regulations requiring local content for service providers, as well as prohibit requirement that business services be provided locally.

TPP members, including Canada and Mexico, accounted for more than $823 billion in worldwide services exports in 2010. In the US alone, about 80% of the Gross Domestic Product and 80% of employment are in services, where US services exports in 2011 totaled $589 billion – more than the combined sums of the second-ranked Germany and third-ranked Britain.

“The price and quality of services also influence costs and productivity in other sectors of each economy,” the groups stated. “Thus, when liberalized and made more efficient, services have a strong multiplier effect on the competitiveness of every economy,” the letter stated.

For more information, please contact Brian Petty at +1/202-293-0670 (brian.petty@iadc.org).

Charities benefit from NSC annual safety awards fundraising

In addition to the £23,500 donated recently to two Scottish charities, the IADC North Sea Chapter (NSC) has donated an additional £7,000 to two more charities – Archway and Befriend a Child. Funds raised at the chapter’s annual safety awards ceremony in May were matched by the NSC, totaling £10,500. The Children’s Hospice Association of Scotland (CHAS) was the third charity, also receiving £3,500.

Checks were accepted on behalf of Archway by Janine Davies and Archway residents Jennifer and Caroline, and on behalf of Befriend a Child by Andrew Reid.

NSC chairman Jon Richards of Diamond Offshore Drilling presented the checks along with current co-chairmen Darren Sutherland, Prospector Drilling, and Gavin Sutherland, KCA DEUTAG. They acknowledged the generous donations made by NSC members.

The chapter also recently donated £20,000 to the Aberdeen branch of RNLI from NSC funds.

Image Details: TOP: Archway residents Jennifer and Caroline (back row, center) accept the donation check from NSC co-chairmen Gavin Sutherland (back row, left) and Darren Sutherland (back row, right). Archway offers care and support to more than 200 people with learning disabilities. LEFT: Darren Sutherland (left) presents a check to Andrew Reid of Befriend a Child. The group provides long-term child-centered support for disadvantaged children in Aberdeen.

BLM fracturing rule comment time extended

On 11 May 2012, the US Bureau of Land Management (BLM) published in the Federal Register a proposed rule to regulate hydraulic fracturing on public and Indian lands. The rule would require public disclosure of chemicals used in hydraulic fracturing on those lands, strengthen regulations related to wellbore integrity and address issues related to flowback water.

This rule is aimed at providing useful information to the public and to help ensure that hydraulic fracturing is conducted in a way that adequately protects the environment.

Due to the complexity of the rule and the issues surrounding it, the BLM is extending the comment period for 60 days. The comment period will now close on 10 September 2012.

For more information about the BLM rule or how to submit comment, please contact Joe Hurt at ext 224 (joe.hurt@iadc.org).

IADC boosts ACD with two new employees

Two employees have joined IADC’s Accreditation and Certification Department (ACD). Brooke Comeaux has been named competence and learning development specialist, and Alma Roberts will serve as accreditation and certification coordinator.

Ms Comeaux’s responsibilities include development and upgrades of IADC’s various training programs, new technology integration and program coordination. She is a graduate of McNeese State University, where she earned a bachelor’s degree in education. In addition, she has a Master of Education degree in technology leadership from McNeese State and a Master of Education degree from Stephen F. Austin University in education administration. Ms Comeaux has worked as a teacher and as a technology project coordinator in a local school system.

Ms Roberts will be primarily responsible for managing the IADC Rig Pass program. She attended El Camino College in Torrance, Calif., and specialized in finance and accounting. She has 18 years of banking experience, most recently as a relationship liaison at Zions Bancorporation, where she provided specialized support to more than 200 banking centers in Texas and California.

Brooke Comeaux can be reached at ext 247 (brooke.comeaux@iadc.org), and Alma Roberts can be reached at ext 324 (alma.roberts@iadc.org).

IADC leaders visit Maersk training center

Stephen Colville, IADC president and CEO, and Jens Hoffmark, IADC regional VP of European operations, visited companies and authorities within the Danish oil and gas industry last month.

One highlight was a visit to the Maersk training center in Svendborg. The company is in the process of building a US $10 million dome simulator, which will be among the world’s most advanced. Maersk Drilling expects the new simulator will enhance the skills of the crew and thereby increase safety onboard the rigs. The simulator training will be available for Maersk crews as well as third-party contractors; the simulator will be inaugurated in October.

Image Details: Stephen Colville, IADC president and CEO, operates a drilling rig simulator during a visit to the Maersk training center in Svenborg.

Pertgen named IADC director, offshore affairs

John Pertgen has been promoted to director – offshore regulatory & technical affairs. He joined IADC in 2006 as assistant director – offshore technical and regulatory affairs.

Mr Pertgen’s responsibilities involve identifying and responding to national technical and regulatory proposals and initiatives, serving as liaison to IADC committees, and participating in industry work groups as the IADC representative. Mr Pertgen joined the offshore industry after retiring from the US Coast Guard, where he became an experienced marine inspector, investigating officer and engineering officer.

John Pertgen can be reached at ext 203 (john.pertgen@iadc.org).

Safety Alerts

For the latest safety alerts, visit www.iadc.org/alerts.htm

Alert 12-17: Sudden slewing of crane boom dislodges load.

Alert 12-18: Loose machine guarding results in minor injury.

Reminder

IADC ART Future Technology Subcommittee meeting, 28 Aug, Houston.
IADC UBO & MPD Committee meeting, 10-12 Sept, Houston.
IADC Ethics Committee meeting, 19 Sept, Houston.
IADC Drilling HSE Europe 2012 Conference & Exhibition, 26-27 Sept, Amsterdam.
IADC HSE Case Users Group meeting, 28 Sept, Amsterdam.

Rigs Receive ISP Certificates

For certificates received since last LTI (in years):

Atwood Oceanics: Atwood Beacon (7);
Ensco: Ensco 56 (7); Ensco 71 (1); Ensco 72 (1); Ensco 86 (6); Ensco 5001 (1); Ensco 8505 (1); Ensco DS-1 (1); Ensco DS-2 (1);
KCA DEUTAG Drilling Russia: T-2000 (3);
Nabors Offshore Corp: Nabors BR-300 (10); Nabors MODS-140 (10); Nabors New Iberia Yard (10);
UMW JDC Drilling Sdn Bhd: Naga 1 (12);
Union Drilling Inc: Rigs 21 (1); 44 (1); 52 (2); 53 (1); 54 (2); 58 (2); 59 (1); 60 (1); 110 (5); 116 (2); 121 (1); 122 (2); 123 (1); 124 (2); 125 (2); 126 (1); 206 (1); 210 (2); 211 (3); 216 (3); 219 (2); 222 (1); 224 (1); 225 (1); 226 (2); 227 (1); 228 (1); 229 (1).

For certificates received since last recordable incident (in years):

Atwood Oceanics: Atwood Aurora (1); Atwood Beacon (1);
Cactus Drilling Co LLC: Rigs 101 (2); 123 (1); 133 (4); 135 (2); 136 (2); 139 (1); 141 (1); 143 (1); 145 (1); 148 (2); 152 (1);
Ensco: Ensco 53 (2); Ensco 67 (1); Ensco 71 (2); Ensco 5005 (1); Ensco 8505 (1); Ensco DS-1 (1);
Keen Energy Services: Rigs 24 (1); 26 (1); 29 (1); 36 (2); 40 (1);
Mermaid Drilling Ltd: MTR 2 (1);
Northern Offshore: Energy Endeavour (1);
Parker Drilling Co: Orlan Platform (1);
Unit Drilling Co: Rigs 8 (1); 118 (1); 128 (1); 134 (2); 150 (1); 301 (1); 366 (1);
Unit Texas Drilling Co LLC: Rig 325 (2).

New IADC Members

IADC welcomes 32 new members:

ABS Consulting, Houston, Texas;
ACE-OCTG FZCO, Dubai, United Arab Emirates;
Ada Energy Services LLC, Ada, Okla.;
Alshaleif International Group for Trading & Investment, San‘a, Yemen;
Australian Well Control Centre Pty Ltd, Blackwood, Australia;
Biochematics, Houston, Texas;
Bravo Land Drilling, Ciudad del Carmen, Campeche, Mexico;
Bronco Manufacturing, Houston, Texas;
Certified Training & Safety Inc, Port Lavaca, Texas;
CNPC USA, Houston, Texas;
Consorcio Tecnico de Mantenimiento Industrial, Protección Ambiental, Consultoría y Capacitación S de RL de CV, Villahermosa, Tabasco, Mexico;
Diamond Tank Rental Inc & Transportation, Odessa, Texas;
Drill Maak for Drilling & Workover, San‘a, Yemen;
First National Capital LLC, Foothill Ranch, Calif.;
Foley Engineering LLC, Lafayette, La.;
FOX Engenharia Consultoria e Trenamentos On & Offshore, Macae, Rio de Janeiro, Brazil;
Gulf Coast Reliability DBA Lubrication Engineers, Sugar Land, Texas;
Harness Training Pty Ltd, Murarrie, Australia;
HCC Corporate College, Houston, Texas;
HSE Training Solutions SAS, Bogota, Cundinamarca, Colombia;
KTM Services Inc, Houston, Texas;
Middle East Builders Mechanical Group, Dubai, United Arab Emirates;
New Mexico Junior College, Hobbs, N.M.;
NSH Asia Drilling LLC, Polazna, Russia;
Performance Drilling Consultants, Hong Kong, China;
Qualified Specialists LLC, Houston, Texas;
Silverline Engineering & Constructions Pvt Ltd, Maharashtra, Mumbai, India;
TC Safety Inc, Midland, Texas;
TCM Offshore, Houston, Texas;
Terra Directional Services, Spring, Texas;
Viking Sea Tech, Aberdeen, United Kingdom;
Well Control Group, Edmonton, Alberta, Canada.

DRILLBITS Volume 22, Number 8

Dan Rabun, Chairman • Stephen Colville, President • Linda Hsieh, Editor
PO Box 4287, Houston, TX 77210-4287 USA

All listed phone extensions are for IADC’s Houston headquarters,
+1/713-292-1945. Fax +1/713-292-1946.

Send comments/questions to Linda Hsieh at linda.hsieh@iadc.org.

To subscribe to Drill Bits, go to www.iadc.org/drillbits.htm.

To change/cancel a Drill Bits subscription, send an e-mail message to
IADC Director – Membership Sharon Thorpe at sharon.thorpe@iadc.org.

IADC and allies applaud US House’s effort to improve OCS leasing plan through H.R. 6082

anthony.garwick — Wed, 25 Jul 2012 16:20:10 +0000

Note to editors: For more information, contact Brian Petty, IADC executive vice president-government affairs at 202-293-0670.

Houston, 25 July, 2012 – The International Association of Drilling Contractors and its allies find significant improvements in H.R. 6082, the Congressional Replacement of President Obama’s Energy Restricting and Job Limiting Offshore Drilling Plan, over the current administration’s final Outer Continental Shelf Oil and Gas Leasing Program for 2012-2017.

In a joint letter to U.S. Rep. Doc Hastings, R-Wash., chairman of the House Committee on Natural Resources, which has jurisdiction over OCS leasing, and which reported H.R. 6082 to the full House, IADC, the American Petroleum Institute, National Ocean Industries Association and the Independent Petroleum Association of America wrote, “The provisions in H.R. 6082 propose a more robust offshore leasing program that would encourage a greater number of offshore projects, resulting in greater growth in domestic oil and natural gas production and create jobs in far greater numbers than could be expected from the Administration’s final program.”

Importantly, H.R. 6082, if enacted into law, will begin the process of determining how to lease and develop federal resources offshore Virginia. “It is through drilling exploration activities in the new areas provided by HR 6082 that will lead the country to greater energy security,” the letter reads.

IADC welcomes OCS lease plan announcement, but calls for opening all US waters

anthony.garwick — Mon, 02 Jul 2012 13:12:59 +0000

Houston, 2 July, 2012 – The International Association of Drilling Contractors (IADC) welcomes the announcement by Bureau of Ocean Energy Management (BOEM) Director Tommy Beaudreau that the next five-year Outer Continental Shelf (OCS) leasing program will provide for 15 lease sales. IADC is also encouraged that another lease sale under the existing program will occur in the Western Gulf of Mexico before the end of this year.

“The remarkable recent Central Gulf sale yielding over $1 billion in bonus bids by industry speaks to the confidence industry has in US offshore resource potential,” remarked IADC President/CEO Stephen A. Colville. “IADC greatly regrets, however, that due to a history of Congressional offshore leasing moratoria, and Presidential moratoria beginning with the George H.W. Bush Administration, most of US waters are closed to exploration and development. That is completely inconsistent with the nation’s energy needs and with the practice of virtually all other coastal nations with active offshore leasing programs.”

Mr. Colville added that IADC is nonetheless pleased to see movement on Arctic OCS development, an area holding huge oil and natural gas reserves. But with the continued moratoria elsewhere, the US is denying itself the potential for a stronger economy, jobs growth and lessened dependence on resources from unstable or unreliable suppliers outside its borders.

“We urge the President and Congress to expand OCS access beyond Alaska and the Gulf of Mexico,” Mr. Colville added. “The technology and investment appetite is proven. Drilling contractors are ready and able to do the job.”

New IADC Project Will Enhance Competency Guidelines For Drilling-Rig Personnel

anthony.garwick — Mon, 04 Jun 2012 19:20:01 +0000

Houston, 4 June, 2012 – The International Association of Drilling Contractors (IADC) announced today a major drilling industry project to develop enhanced competency guidelines for rig personnel. Building upon IADC’s existing Knowledge, Skills and Abilities (KSA) templates, virtually all rig positions will be covered, with priority focus on safety-critical positions with well-control responsibilities.

The main objective is to provide the tools for confirming proficiency levels of the current drilling work force, developing competence levels for new entrants, and helping to ensure industry accepted levels of competency exist when recruiting. In industry parlance, competency is the ability of an individual to perform a job properly, combining knowledge, skills and behavior, as developed through training and experience.

“IADC is the global leader in developing competency and training programs for the drilling industry,” said IADC Chairman Dan Rabun, Chairman, President and CEO of Ensco plc. “This ambitious expansion of IADC’s KSAs represents a step change for safety and competency in our industry. It is another demonstration of the commitment across all IADC members – oil companies, drilling contractors and others – to work together to improve our performance.”

“The revamped KSAs will provide the industry with a benchmark for globally consistent drilling position requirements, as well as recommend means for effectively evaluating personnel,” remarked Stephen Colville, IADC President and CEO. “It will also help personnel identify areas where further training and development are needed and point them to resources to help close those gaps.”

In addition to generic rig positions, the new project will cover enhanced KSAs for highly specialized occupations, such as subsea engineers. By defining key competencies, the KSAs can also form the building blocks of future IADC accreditation and certification programs. IADC is renowned as an accreditor for drilling-industry training programs conducted by oil companies, drilling contractors, oil-field service firms and independent training institutions.

The KSA project will be conducted under the leadership of Steve Kropla, IADC Group Vice President-Operations & Accreditation. Mr Kropla’s group also oversees IADC’s accreditation and certification programs.

The IADC KSA templates were originally released in 2000 and represented the basic skills and knowledge necessary for competence for 12 rig positions. In addition to job-specific KSAs, the IADC Training Committee also developed a general KSA focused on health, safety and environmental issues.

IADC has contracted Petrofac Training Services (PTS) to assist in the effort. PTS will collect data across different industry sectors to develop a list of competence guidelines. The first Phase of the project will focus on safety-critical drilling positions with well control responsibilities.

Petrofac Training Services (PTS) is a division of Petrofac, a leading international service provider to the oil & gas production and processing industry. For more than 30 years, PTS and its heritage companies have provided the energy industry with learning and competence assurance solutions to increase workforce capability and minimize risk. To learn more, please visit www.petrofactraining.com.

IADC is dedicated to enhancing the interests of oil-and-gas and geothermal drilling contractors worldwide. IADC’s contract-drilling members own most of the world’s land and offshore drilling units and drill the vast majority of the wells that produce the planet’s oil and gas. IADC’s membership also includes oil-and-gas producers, and manufacturers and suppliers of oilfield equipment and services. Founded in 1940, IADC’s mission is to improve industry health, safety and environmental practices; advance drilling and completion technology; and champion responsible standards, practices, legislation and regulations that provide for safe, efficient and environmentally sound drilling operations worldwide. IADC holds Accredited Observer status at the International Maritime Organization and the International Seabed Authority, specialized agencies of the United Nations. The Association is a leader in developing standards for industry training, notably its Well Control Accreditation Program (WellCAP)® and rig-floor orientation program, RIG PASS®. IADC is headquartered in Houston and has offices in Washington D.C., the Netherlands, Thailand, and the United Arab Emirates, as well as chapters in the UK, Venezuela, Brazil, Australasia, South Central Asia, Southeast Asia, the Middle East and across the United States. For more information, visit the IADC websites www.iadc.org and www.drillingcontractor.org.