Non-conformance Reports

Non-conformance reports (NCR's) provide a means of recording deviations from product, procedure or compliance specifications. To most obvious NCR is for equipment failures, but it may also be raised for operations not executed in line with the required standard, or specification or program (e.g. omitting a required pressure test, use of equipment with other than the planned specifications).

Identification

These fields are recorded to identify the NCR and the person assigned to ensure follow-up, investigation and close out of the NCR.

The NCR # field is mandatory and may have any value, but within the context of a well it should be unique (i.e. no duplicate numbers).

Status

Three options (selected from a drop-down list) are available for the Status of the NCR:

1.Open. The NCR is only reported. No investigations or follow-ups have been started yet.

2.Pending. Investigations and/or follow-ups to the NCR have been started but are ongoing

3.Closed. All investigations and follow-ups have been completed and fully closed out. If the status is set to Closed, section 6 (Close Out) should also be completed.

Whenever the Status is changed, the Status date should be updated in accordance.

Description of NCR

This section is to describe the non-conformance. A brief Description should be provided as well as all Details that may relevant to the investigation and/or follow-up. Provide as many details as possible (circumstances, parameters applied, mud details, etc., etc.).

If the non-conformance involved (or was caused by) a third-party (or the third party will investigate the NCR), the Company and Contact person should also be entered.

Impact of NCR

In this section the impact of the non-conformance can be logged. If the non-conformance lead to non-productive time, NPT should be checked. SI should be checked if NPT was caused by a third-party (e.g. not the Operator of the well or owner of the rig). Estimated hours lost may be entered as well.

Rig cost should be the estimated cost of operating the rig for 24 hrs. This should not just be the day rate for the rig, but include ancillary costs like fuels, vessels and third-party rentals (the so-called 'spread rate'). Additional costs are costs incurred by the non-conformance (e.g. a dedicated helicopter flight or truck delivery).

The Estimated cost of NCR is calculated as (Rig cost / 24) x Estimated hours lost + Additional costs.

References

Here the non-conformance may be referenced to a Wellpath, BHA or Daily Report that may provide additional detail.

Close out

The Close out section should be completed when the non-conformance is Closed (see section 2). It should describe in detail the Findings from the investigations and/or follow-ups and provide Recommendations on how the non-conformance may be prevented in the future.