Cutting red tape for service rigs

Minister of Transportation, Ric McIver and Mark Scholz, president and CEO of the Canadian Association of Oilwell Drilling Contractors sign a Memorandum of Agreement that will help cut unnecessary red tape for the oilwell service rig industry.

In June 2019, Alberta and Saskatchewan cut red tape for service rigs by replacing the annual commercial vehicle inspection program with an inspection every five years, and excluding service rigs from Safety Fitness Certificate requirements that apply to full-time heavy truck drivers. 

Now, Alberta is partnering with the Canadian Association of Oilwell Drilling Contractors (CAODC) to take further action in cutting red tape by applying these same rules to service rig support vehicles, including equipment trucks, pump and tank trucks and crew trailers, otherwise known as dog houses.

“Support vehicles work hand-in-hand with service rigs and spend 95 per cent of their time working on oil wells, not on the road. These changes will get service rigs where they need to be —working in the oilfield, not hung up on red tape and paperwork.”

Ric McIver, Minister of Transportation

“Streamlining rules for service rig support vehicles is a welcome change that cuts red tape, gets Albertans back to work faster and makes our oil well service rigs more efficient. Thank you, Minister McIver, for taking action and supporting changes that will benefit our oil and gas industry.”

Grant Hunter, Associate Minister of Red Tape Reduction

“On behalf of CAODC members, I would like to thank Minister McIver for his support as this agreement will help get Albertans back to work on service rigs.”

Mark Scholz, president and CEO, Canadian Association of Oilwell Drilling Contractors

By removing rules meant for commercial transport vehicles rather than oilfield service and support vehicles, government is cutting red tape that has restricted the movement of service rigs between job sites.

Service rigs will continue to follow all safety standards and have robust safety checks in place, including valid permits for transport and operation, regular vehicle and equipment inspections and compliance with all Occupational Health and Safety requirements.

Quick facts

  • Service rigs are large, heavy vehicles with mounted derricks that are used to service and maintain oil wells.
  • These changes are being made by permit through the government’s Memorandum of Agreement with the CAODC.
  • Government has had a Memorandum of Agreement with the CAODC since 1998 to support the operations of the service rig industry.

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