In 2008 the Government of Alberta committed $2 billion
to large scale carbon capture and storage (CCS) projects. CCS is a
process that captures carbon dioxide emissions from large
industrial emitters and stores them in geological formations
kilometres below the earth's surface. To assist in facilitating
the implementation of this technology, on November 1, 2010, Bill
24: Carbon Capture and Storage Statutes Amendment Act was
introduced and given first reading in the Alberta Legislature,
making Alberta the first jurisdiction in Canada to consider
comprehensive legislation to regulate CCS projects.
When Bill 24 was introduced, Energy Minister Ron Liepert
identified the following three objectives it was intended to
To clarify the ownership of pore space in Alberta
To create a scheme whereby the Province accepts long-term
liability for injected carbon dioxide
To create a stewardship fund, financed by CCS operators, which
will be used for remedial and ongoing monitoring costs associated
Regarding the ownership of pore space, notably, Bill 24 proposes
to introduce a provision to the Mines and Minerals Act
which declares that the pore space below the surface of all land in
Alberta, other than land owned by the Federal Crown as of the date
that the provision comes into force, to be the property of the
Crown in right of Alberta. This declaration would apply regardless
of whether the Mines and Minerals Act or an agreement
issued under the Mines and Minerals Act grants rights in
respect of a subsurface reservoir or in respect of minerals
occupying a subsurface reservoir.
In accordance with Bill 24, the Alberta Government would take
over the permanent liability related to the injected carbon dioxide
once the CCS operator has collected data substantiating that the
stored carbon dioxide is "contained".
The CCS operator will be responsible for any mitigation work
during the operation until a closure certificate has been issued by
the Province. CCS operators will also pay into a postclosure
stewardship fund (in an unspecified amount) to be managed by the
Alberta Government. The fund will cover ongoing monitoring and any
remedial work required.
As stated by Energy Minister Liepert, "[t]he legislation
ensures we are on track to reduce greenhouse gas emissions...By
using some of the captured CO2 for enhanced oil recovery, we expect
it to double Alberta's conventional oil recovery generating
tens of billions of dollars in provincial royalties and
taxes". According to a News Release issued by the Government
of Alberta on November 1, 2010, the Alberta Carbon Capture and
Storage Development Council estimates that carbon captured and used
in enhanced oil recovery to increase production from depleting
conventional reservoirs could produce an additional 1.4 billion
barrels of oil, generating up to $25 billion in provincial
royalties and taxes.
Bill 24 proposes significant amendments not only to the
Mines and Minerals Act, but to numerous other statutes as
well, including the Energy Resources Conservation Act and
the Oil and Gas Conservation Act.
BLG will be monitoring the progress of Bill 24 as it proceeds
through the legislative process.
Canada is a constitutional monarchy, a parliamentary democracy and a federation comprised of ten provinces and three territories. Canada's judiciary is independent of the legislative and executive branches of Government.
In Bank of Montreal v Bumper Development Corporation Ltd, 2016 ABQB 363, the Alberta Court of Queen's Bench enforced the "immediate replacement" provision in the Canadian Association of Petroleum Landmen 2007 Operating Procedure...
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).