On August 19, 2014, the Alberta Energy Regulator released its 12 page Manual 008: Oil Sands Exploration and Coal Exploration Application Guide which sets out the application requirements, processes, and expected timelines for oil sands exploration and coal exploration programs. As explained in the Guide's FAQ section, although the general rules and guidelines for these programs have not changed, with the formation of the AER, some of the processes have been altered. Consistent with the recommendations flowing from the Province's Regulatory Enhancement Project to attract investment to develop Alberta's resources (more found here), the Guide is an attempt to explain and streamline those processes so that decisions on applications can be made in the most efficient and effective manner possible.
The Guide's stated objectives are: a) to help industry plan its programs; and b) to help all interested parties understand the regulatory process for exploration under the Public Lands Act, the Environmental Protection and Enhancement Act, the Oil Sands Conservation Act, and the Oil and Gas Conservation Act. The AER's hope is that the Guide will enable the submission of complete applications that can be evaluated by the AER within expected timelines.
In AER Bulletin 2014-26, which announced the release of the Guide, Rob Wadsworth, Vice President, Authorizations, is quoted as stating the following:
The AER is committed to improving the transparency of its authorization processes and providing certainty that applications will be processed within set timeframes. Providing guidance on the AER's authorization process for exploration programs is important to ensure timely decisions for operations where access is limited to the winter season.
Highlights of the Guide
- Oil sands exploration ("OSE") programs and coal exploration programs ("CEPs"), to determine the presence and evaluate the quality of oil sands and coal resources, can be approved for a term of up to five years – two years for operations and three years for reclamation.
- Caribou protection plans can be submitted or amended at any time.
- A decision on a complete CEP or OSE program application under the Public Lands Act without any Statements of Concern can be expected within 60 business days. Due to the unique issues associated with winter drilling periods, for a complete OSE program application submitted before September 15, 2014, the AER has committed to making a decision by October 31, 2014.
- Applicants are encouraged to include the range of location variability or flexibility they may want during operations when conducting First Nations consultation.
It is confirmed in the FAQ section that these new processes are available to industry starting immediately. For applications that have already been submitted, companies are to contact the AER land use officers to discuss their applications. Any changes to the land area identified in an application already submitted to the AER will require an amendment and will need to be reposted for public notification under section 31 of the Responsible Energy Development Act.
Implications
The Guide can be viewed by industry as a further step which has been taken in an attempt to reduce what were considered by many to be overly complicated regulatory processes governing the development of Alberta's resources. With the availability of the processes set out in the Guide, regulatory certainty can be said to have been enhanced, and the regulatory regime governing Alberta's oil and gas sector may be seen as being more attractive for investment.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
