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Compliance Glossary Term

Produced Water

Water extracted from the ground alongside oil and gas during production. Subcontractors handling, transporting, or disposing of it must meet strict environmental regulations. Improper management can trigger fines and halt site operations.

Related Terms

BLM (Bureau of Land Management)

Compliance

A U.S. federal agency that manages public lands and issues permits for oil, gas, and construction operations on those lands. Subcontractors working on BLM-administered land must comply with specific permit conditions, environmental rules, and access requirements. Non-compliance can result in work stoppages or contract penalties.

Leachate

Compliance

Liquid that has filtered through soil, waste, or contaminated material, picking up pollutants along the way. Subcontractors working near landfills, tailings ponds, or remediation sites must manage and contain it under environmental regulations. Improper handling can trigger compliance violations and costly site shutdowns.

Surety

Compliance

A third party, usually an insurance or bonding company, that guarantees a subcontractor will fulfil their contractual obligations. If the subcontractor defaults, the surety compensates the project owner. Many upstream and construction clients require surety bonds before awarding work.

Resource Road

Compliance

A privately maintained access road built to reach remote work sites in oil & gas or forestry operations. Subcontractors must follow strict user agreements covering speed limits, radio protocols, and load restrictions. Non-compliance can result in access suspension, halting your crew's ability to reach site.

MI (Mechanical Integrity)

Compliance

A regulatory and operational standard confirming that pressure-containing equipment is fit for service and free from defects. Subcontractors working on vessels, pipelines, or wellheads must often meet MI requirements before commencing work. Non-compliance can halt operations and trigger liability for field service crews.

Near Miss

Compliance

An unplanned event that did not result in injury or damage but had the potential to do so. Subcontractors are typically required to report near misses to the prime contractor or site owner. Failing to report can jeopardise your safety record and standing on site.

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