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ComplianceGlossary Term

Separation Distance

The minimum required space between workers, equipment, or hazardous materials on a job site. Subcontractors must verify these distances before mobilising crews or staging equipment. Violating specified separation distances can trigger stop-work orders and affect contract standing.

Related Terms

Produced Water

Compliance

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.

Third-Party Locator

Compliance

An independent company hired to identify and mark underground utilities before excavation or drilling begins. Subcontractors often rely on third-party locators when the site owner's in-house locate services are unavailable. Their clearance report is typically required before ground disturbance can proceed.

ANWR (Arctic National Wildlife Refuge)

Compliance

A federally protected area in Alaska where oil and gas exploration access is subject to ongoing political and regulatory debate. Subcontractors bidding on Arctic projects must track leasing status closely, as work authorisations can be delayed or cancelled. Mobilisation costs in remote ANWR areas are extremely high, requiring careful contract risk assessment.

Consequential Damages

Compliance

Indirect losses a party claims resulted from a contractor's failure, such as lost production revenue or project delays. Most subcontracts include a mutual waiver clause excluding these claims entirely. Always confirm this waiver is present before signing any field service agreement.

Industrial Carbon Pricing

Compliance

A federal and provincial regulatory system that charges large emitters for greenhouse gas output above set limits. Subcontractors may face pass-through costs on fuel, equipment, and site operations. Understanding these charges helps you anticipate cost increases when bidding on projects.

Stop-Before-Strike

Compliance

A mandatory work pause requiring crews to verify no buried utilities or underground hazards exist before digging or drilling begins. Subcontractors are typically contractually responsible for completing all locates and documented checks before breaking ground. Failure to comply can void insurance coverage and expose your company to full liability for strikes.

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