By December 2013 the AER will have assumed regulatory functions
not only from the ERCB, but from AESRD and Alberta Energy
If all goes as planned, by December 2013 the AER will have
assumed regulatory functions not only from the ERCB, but from AESRD
and Alberta Energy, thereby becoming Alberta's single regulator
for upstream oil, gas, oil sands and coal development.
In the June 2013 edition of our Oil and Gas Bulletin (found here), we discussed the proclamation of
the Responsible Energy Development Act ("REDA")
as of June 17, 2013, save and except for Part 3 and other specified
sections.1; As stated in that Bulletin, at this
time, the soon to be single regulator, the Alberta Energy Regulator
(the "AER"), has only assumed the energy development
regulatory functions formerly administered by the Energy Resources
Conservation Board (the "ERCB"). The AER's assumption
of regulatory functions and responsibilities from Alberta
Environment and Sustainable Resource Development
("AESRD") under the Environmental Protection and
Enhancement Act, the Water Act and the Public
Lands Act, and from Alberta Energy under Part 8 of the
Mines and Minerals Act, will only occur, and the
enforcement of "private surface agreements" under Part 3
of REDA will only become available, once the corresponding
sections of REDA have been proclaimed in force.
In our July 2013 Oil and Gas Alert (found here), we reported on further
developments in connection with REDA and the
AER.2 In that Alert we referred to an AER News Release
dated June 17, 2013 which referred to the launch of the AER on June
17 as "the first step in a [three phase] approach towards full
implementation of the AER, with additional regulatory functions to
be added over the coming months". We stated that while it is
not entirely clear what steps will comprise the other two phases,
the proclamation of Part 3 of REDA and the sections
dealing with the AER's assumption of regulatory functions and
responsibilities from AESRD and Alberta Energy, are expected to
comprise one or both of these.
This has now been confirmed, and details regarding the timing of
the implementation of phases 2 and 3 have been disclosed.
In a presentation delivered September 26, 2013 at the Petroleum
Technology Alliance Canada 2013 Air Issues Forum, Jim Ellis, Chief
Executive Officer of the AER, is reported to have
The sustainable resource development personnel are being folded
into the new agency and Phase 2 - the geophysical, public lands,
landowner registry and enhanced participation by Albertans –
is to be in place by December.
Phase 3 – the Water Act and the Environmental Protection
Act – will also enter the AER at that time.
As a result, provided the December timeframe is not extended, as
of December 2013, the AER will have added to the regulatory
functions it has already assumed from the ERCB, those functions of
AESRD and Alberta Energy which are set out above, thereby becoming
the single regulator for energy development in Alberta.
We intend to continue following and reporting on further
developments with REDA and the AER.
1In that Bulletin, we also discussed the making
of four Regulations under REDA.
2Including the appointment of the members of the
AER Board of Directors, chief hearing commissioner and other full
time hearing commissioners, and the making of two new Regulations
3As reported in "New Regulator Part of
Improved Government Policy Making", September 30, 2013, Daily
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.
The Government of Alberta recently announced a number of policy changes that will impact the Alberta Electricity Market, composed of its generators, transmitters, distributors, retailers, electricity consumers and wholesale electricity market.
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