July Regulatory Newsletter

July 2021

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AB: New Functionality Moved to OneStop

On July 8, 2021, industry must submit the following data using OneStop.

Well Licence - submit an application in OneStop to resume activity on an existing well.

Cancellations - wells system-generated cancellations for expiries will now be auto-completed in OneStop. The cancellation notice will go to the most recently updated master security administrator in the Digital Data Submission System (DDS) for the company.

Submit Well Log Files - submit Log ASCII Standard (LAS) and raster well logs through OneStop. CD/DVD submissions will no longer be accepted. Well log summary reports will no longer be required.

Public Lands - Environmental Protection and Enhancement Act (EPEA) approvals can be linked to Public Lands in-situ applications based on specific disposition types, purposes, and activity codes.

Submit a Record of Site Condition (RoSC) - submit all RoSCs and associated professional reports through OneStop unless the submission is required under an EPEA approval for mining operations.

Additional information can be found Bulletin 2021-25

AB: Mandatory Closure Spend Targets

Industry-wide closure spend targets will be released annually by July 31 for a five year period on the AER website—the first two years being set, and the final three years forecasted.

For the 2022, closure spent target is $422 million and for the 2023 is $443 million.

Beginning January 1, 2022, each oil and gas licensee with liability associated with inactive infrastructure will be required to meet an individual annual mandatory target determined by the AER. Targets take into consideration financial information as required through Directive 067: Eligibility Requirements for Acquiring and Holding Energy Licences and Approvals. As such, licensees need to submit Directive 067 requirements by 180 days after fiscal year end.

Targets will be visible by July 31 for the following year within the OneStop closure report, which is where all closure spend will be reported. Licensees may still commit to a voluntary closure spend target that is more than their mandatory target to qualify for incentives. Further information about the inventory reduction program, closure targets (mandatory & voluntary), and associated incentives for an increased spend will be available in the fall.

Additional information can be found Bulletin 2021-23

AB: Invitation for Feedback on Proposed New Licensee Life-Cycle Management Directive

The AER is seeking feedback on the proposed new Directive XXX: Licensee Life-Cycle Management which will result in changes to Directives 001, 0060, 011, 024, 068 and 075. This directive supports the Government of Alberta (GoA)'s new Liability Management Framework and is enabled by rule changes announced in our Bulletin 2020-26.

To provide feedback on the proposed new directive, complete the comment form available on the directive's webpage. Feedback or questions on the directive should be sent by email to DirectiveFeedback@aer.ca.

Feedback will be accepted through July 25.

Additional information can be found Bulletin 2021-22

AB: Invitation for Feedback on Directives 055 and 058

The AER is seeking feedback on new editions of Directive 055: Storage Requirements for the Upstream Petroleum Industry and Directive 058: Oilfield Waste Management Requirements for the Upstream Petroleum Industry.

Directive 055 now includes technical requirements for engineered containment ponds and bladders with structural frames and expanded requirements for aboveground synthetically lined walled storage systems.

Directive 058 now includes storage of water for reuse in hydraulic fracturing as a waste storage activity.

To provide feedback on the proposed revisions to the directives, complete the comment form available on the Directive 055 and Directive 058 webpages or send feedback by email to RegManagement@aer.ca. Feedback will be accepted through July 25.

Additional information can be found Bulletin 2021-24

Alberta Energy: Change in Administration of Declaration Document upon Agreement Expiry

Alberta Energy (AE) and the AER have agreed that effective July 1, 2021 the AE will assume administration of the options available to well licensees upon mineral agreement expiry or Crown Mineral Activity (CMA) authorization cancellation.

This change is simply to streamline the process by removing the AER as intermediary. The only notable change is that well licensees will receive a letter and Declaration Document from the department rather than the AER.

The options available on the Declaration Document remain the same, and include:

• re-instating the lease, posting the mineral rights,

• linking the well to an active agreement,

• converting the wellbore to use for observation, water source, disposal or injection, and

• abandonment.

Well licensees must email their completed Declaration Document within 30 days to Energy.LeaseExpiries@gov.ab.ca. Well licensees must submit the respective tenure application using the Electronic Transfer System (ETS) and that application must include the same option identified on the respective Declaration Document. Applicants must record the ETS request number adjacent to the selected option (linking application, posting or CMA application).

If a completed Declaration Document is not received within 30 days, then the AER will be notified to begin the abandonment process. There are no changes to the AER’s well abandonment process.

Additional information can be found Bulletin 2021-02

SK: Oil and Gas Cost Recovery Levy

On July 6, 2021 the Ministry of Energy and Resources (ER) intends to issue invoices for the 2021 - 22 Oil and Gas Cost Recovery Levy (Administrative Levy). Invoices, as in past years, will appear in a licensees IRIS account. For 2021-22, the budget established for regulatory oversight of the wells and pipelines licensed under The Oil and Gas Conservation Act has been set at $26.34 million and industry portion will be $20.1 million.

Additional information can be found Bulletin 2021-22

SK: IRIS - Enhanced Recovery Application Update

Enhancement to submission of Enhanced Oil Recovery (EOR) and Waterflood application in IRIS has been implemented on June 23, 2021.

Details of the subject update can be found in BT2020-009.

A training module for the Enhanced Recovery Application can be found in the User Learning Center.

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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