January Regulatory Newsletter

January 2022

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AB: Geothermal Resource Development Act (GRDA) Proclamation

On December 8, the Government of Alberta proclaimed the Geothermal Resource Development Act (GRDA). This establishes the AER as the primary regulator for deep geothermal energy developments in Alberta.

The final requirements are planned to be published in spring 2022.

Additional information can be found here: Bulletin 2021-46

AB: Geothermal Resource Tenure

As enabling legislation to the GRDA, the Geothermal Resource Tenure Regulation under the Mines and Minerals Act became effective on January 1, 2022.

It provides the framework for a regulatory system, which includes certainty regarding how to acquire and retain geothermal tenure.

In order to proceed with geothermal exploration and development, a company must first have the requisite geothermal rights. These rights may be acquired through an application process, but may also be encompassed within existing or future mineral agreements

Additional information can be found here: IL 2022-02

AB: Directive 010: Minimum Casing Design Requirements

New edition of Directive 010 was released on December 16, 2021.

The update is in regard to AER formatting standards.

Additional information can be found here: Directive 010

AB: Amendment to the Mines and Minerals Act Allowing Lessees to Replace a Nonresponsive Designated Representative

The Mines and Minerals Act has been updated to include subsection 29(5), a new provision that provides lessees of a Crown mineral agreement an option to replace a nonresponsive Designated Representative. The amendment became effective December 8, 2021.

This amendment was developed to alleviate administrative difficulties imposed on the lessees of a Crown agreement when the current representative, who is also a lessee, is not responding to communications from the remaining lessees. However, Section 29(5) is intended to be used only as a last resort.

Additional information can be found here: IN 2021-44

MB: Well Suspension Guidelines

On December 14, 2021, an updated Well Suspension Guidelines has been published. Informational Notice 21-04 supersedes Informational Notice 94-5.

BC: Gas Processing Plant Fluid Analyses

Effective December 6, 2021, permit holders of gas processing plants in B.C. must use eSubmission online portal when submitting annual analyses of fluids entering the plant. This includes both the gas analysis and associated hydrocarbon liquid analysis, and each marketable product leaving the plant. This is due by January 31 each year.

Additional information can be found here: INDB 2021-31

BC: Adoption of ParcelMap BC

The BCOGC has transitioned to ParcelMap BC, replacing the Integrated Cadastral Fabric (ICF) as the source for cadastral data, including parcel descriptions and land ownership status.

Industry users of cadastral data are encouraged to use ParcelMap BC to support consistent language and communication around land ownership and parcel descriptions in communications and applications to the BCOGC.

Additional information can be found here: INDB 2021-32

Well Testing Services at Benoit

To support Benoit's regulatory application and compliance related submissions, Benoit utilizes an in-house well test analysis expert, Mr. Reza Ali, C.E.T.

Mr. Ali has over 30 years of experience specializing in domestic and international Flow and Build-Up, Production Data and DFIT Analyses.

If you would like a well test analyzed or if you would simply like more information on our well testing services, please feel free to contact Robyn (at 403.263.3690) or Jason (at 403.874.6769). You may also contact Reza Ali directly at 403.454.0430

Integrated Compliance Management Program (ICMP) at Benoit

Did you know that Benoit provides a service which covers our regulatory application, liability management ratio and evaluation services under one umbrella?

Under this program , Benoit acts as a “regulatory arm” for your company by receiving and responding to all compliance related matters on your company’s behalf.

As your regulatory designate, in addition to our regulatory application service, Benoit conducts a number of additional services including, but not limited to:

· Inactive Well Compliance Program Monitoring

· Liability Management Rating Forecasting

· DDS Entry for Well/Completion Details

· Flaring Notifications

· Well Test Data Submissions

· Gas Conservation Economic Analyses

· Monthly VRR calculations/updates for Enhanced Recovery Schemes

If you're interested in this service or would like to discuss this further, please contact us or visit our website for more information.

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