Interpretation Guidelines Manual
British Columbia Employment Standards Act and Regulations

Employment Standards Regulation - Appendix 4

ESR Appendix 4 - Oil and Gas Well Drilling and Servicing Occupations - Salary and Bonus Compensation System

Contents:

Summary
Text of Legislation
Policy Interpretation
Related Information


Summary

This Appendix defines the occupations within the oil and gas well drilling and servicing occupations that are entitled to special terms of employment when employed on a salary and bonus compensation system.

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Text of Legislation

Appendix 4

[en. B.C. Reg. 355/97, s. 3.]

Oil and Gas Well Drilling and Servicing Occupations —
Salary and Bonus Compensation System


Truck drivers engaged in the transport of oilfield equipment including drilling rigs to and from lease sites.

Vacuum workers engaged in the vacuum removal of wet and dry waste from well sites and gas plants to recover fluids and other materials for removal of pollutants and recovery of by-products.

Mud logging workers engaged in the supplying and monitoring of drilling fluids used to control and lubricate the well drilling operations, sampling of drill cuttings and analysis of materials brought to the surface.

Hole drilling and service rig anchoring workers
engaged in providing the initial hole at a drilling location prior to the location of the drilling rig, and locating anchoring devices in the ground that can be used to secure rigs and flare stacks.

Power swivel operators engaged in providing rotary power for the cutting of casing, drill pipe, and drilling out packers.

Down pumping and fracturing workers engaged in providing the service to pump fracture cement, chemicals and other materials required down the hole at a well site.

Wireline and perforating and completion workers providing downhole logging, perforating and completion of the well.

Power Tong operators and snubbers engaged in connecting casing and running tubulars into the hole.

Wellhead service workers engaged in the replacement of pipes and valves situated on a producing wellhead to control pressure and the flow of liquids.

Sump pit service workers engaged in chemically treating and controlling the disposal of waste fluids produced in operating and servicing oil and gas wells.

Well testing workers determining the flow rate and pressure of the hydrocarbons found in the formation.

Fire fighters
when required to control or monitor the burning of hydrocarbons on a lease site.

Safety workers who provide emergency response, air trailers and first aid services required on drilling or production locations.

Tool handlers and directional drillers engaged in running downhole tools and supervising directional drilling operations.

Note: this regulation replaces B.C. Reg. 37/81

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Policy Interpretation

This Appendix identifies workers within certain occupations in the oil and gas well drilling and servicing industry who are paid on a salary and bonus compensation system and who fall under provincial jurisdiction and are, therefore, covered by the B.C. Employment Standards Act.

The following guidelines apply when determining the jurisdiction of employees working on oil and gas pipelines:

Provincial jurisdiction (B.C. Employment Standards Act and Regulation):
Construction and maintenance of intraprovincial oil or gas pipelines
  • All intraprovincial oil and gas pipelines, that start and stop within B.C., both during their construction and in their operation.
Construction of interprovincial/international oil or gas pipelines (upon completion, jurisdiction generally moves to federal jurisdiction)
  • Employees of a contractor retained by the interprovincial/international pipeline owner or operator who do maintenance, provided that the economic purpose of their employer is not restricted to doing interprovincial/international pipeline maintenance
Federal jurisdiction (Human Resources Development Canada, Labour Program, Labour Standards & Workplace Equity):
Maintenance of interprovincial/international oil or gas pipelines
  • Includes operating interprovincial oil or gas pipelines that start or stop in another province or country
  • Interprovincial oil or gas pipelines that are not longer being constructed but where construction has been completed
  • Employees of the pipeline owner or operator who performs interprovincial/international pipeline maintenance
Employees who fall under provincial jurisdiction have the following special terms of employment, as defined in this Regulation and are excluded from certain provisions of the Act as follows:

ESR Section 37.51- Oil and gas field first aid and camp cater workers
  • Special rest periods with special rates of pay; overtime requirements
ESR Section 37.6 - Oil and gas field workers – salary and bonus compensation
  • Special definition of “regular wage” (Excluded from definition of “regular wage” in section 1 of the Act)
  • Special definition of “wages” (Excluded from definition of “wages” in section 1 of the Act)
  • Exclusion from section 36(1) of the Act - Hours free from work
  • Special approval process for salary and bonus compensation scheme under this Regulation

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Related Information

Related sections of the Act or Regulation

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