November 2023
Planning drilling operations this season? 
Benoit is your expert guide throughout the entire well drilling process from preparing H2S release rates reports to ensuring compliance with D056 well licensing and D059 well drilling and completion data filing requirements.

Our dedicated team is here to support your drilling projects. Have questions?

Don't hesitate to reach out at MRonald@benoitregulatory.com – we're here to help.
Reminder: Directive 040 pressure requirements 
Directive 040 Section 2.2.3 requires that annual pressure and testing surveys be completed by December 31, 2023, and submitted by March 31, 2024. 

Failure to obtain and submit the required pressures and, in some instances, fluid analysis, will result in a $1000 administrative penalty (fine) plus you will still have to obtain and submit the test data to fulfil the 2023 requirement. 
Contact us if you require assistance requesting a waiver.

The list of wells and projects requiring annual testing can be found HERE
AB: The New Pipeline Rules and OneStop Updates
On November 15, 2023, a new edition of the Government of Alberta’s Pipeline Rules came into effect, accompanied by the release of new pipelines functionality in OneStop.

 
Details regarding to the main changes can be found in Bulletin 2023-40.

The OneStop updates include changes to pipeline discontinuance, abandonment, removal, and resumption, Alberta Boilers Safety Association (ABSA) registration, and more. Further details are available in Bulletin 2023-39

Effective November 16, 2023, applicants must complete the appropriate form(s) when providing information on pipeline pressure testing using gaseous test media or liquid test media other than fresh water, and temporary surface pipelines (TSPs) for well testing, bypass, or water conveyance. The new forms can be found under the “Forms” tab on the OneStop landing page.

OneStop “Public Lands” and “Water Act” modules also have been updated. 
AB: Ongoing Implementation of the Liability Management Framework
The AER is implementing the Government of Alberta’s new Liability Management Framework in phases, replacing the Licensee Liability Rating (LLR) Program and the Liability Management Rating (LMR), and establishing a new security framework under the Oil and Gas Conservation Act.

The current method of collecting security based on a licensee's LMR is being restructured to align with the government's framework. The new approach will be:

  • Risk-based, holistic assessment as described in Directive 088 to determine when and how much security needs to be collected.
  • Applies throughout the entire energy development life cycle (application, construction, operation, and closure).
  • Complementary to the Inventory Reduction Program, enhancing closure efforts in Alberta.
  • Upholds the polluter-pay principle in a way that is fair and manageable.
  • Financially and administratively feasible for both industry and the AER.

This updated framework will be phased in, starting in late 2024. The LLR program's definition of "deemed liability" for the 2024 orphan fund levy calculations remains unchanged.

The Liability Rating Report in the DDS system is no longer supported. Licensees should transition to using the OneStop Liability Assessment Report.

Additional information can be found here: Bulletin 2023-41
AB: Change to Survey Plan Requirements for Public Lands Act Dispositions
On December 4, 2023, the Alberta Forestry and Parks announced that the Public Lands Administration Regulation (PLAR) Table A2: Alberta Energy Regulator (AER) has been revised and the requirement for a survey plan for many dispositions has been replaced with either a sketch plan or the new “surveyor sketch” plan type.

Additional information can be found here: Bulletin 2023-42
SK: Update to Enhanced Recovery Project Progress Reporting Requirements
On November 24, 2023, Minister's Order (MRO) 171/23 was posted to the Oil and Gas Public Notices and Minister’s Order Bulletin Board.

When MRO 171/23 comes into force on January 1, 2024, operators of EOR and Waterflood projects will no longer be required to submit annual progress reports prior to the end of the 2023-2024 fiscal year and going forward.

Please note that by January 31, 2024, the existing project progress report obligations are going to be removed from the Integrated Resource Information System (IRIS).

Additional information can be found here: BT2023-013
SK: Surface Rights Amendments
On November 7, 2023, SER announced changes to Surface Rights legislation as outlined in the Expanded Protections for Landowners news release.

Effective January 1, 2024, the following changes will be implemented:

• The Surface Rights Acquisition and Compensation Act (SRACA) will allow the Surface Rights Board of Arbitration to hear cases and to issue compliance orders on oil and gas companies for payment of delinquent surface rights compensation owed to landowners;

• Add an obligation in The Oil and Gas Conservation Act (OGCA) for operators to comply with Board orders for compensation. If those orders are not complied with, ER could suspend a licensee’s ability to operate;
• Amendments to The Surface Rights Acquisition and Compensation Act and Regulations will raise the maximum compensation for off-lease damages from $1,000 to $30,000

• Modifications to The Surface Rights Acquisition and Compensation Regulations will empower the Board to adjudicate surface access for lithium and helium, expanding beyond its current jurisdiction over oil, gas, and potash matters.
 
Additional information can be found here: BT2023-012
BC: The BCER lifted the suspension for selected water sources
With increased precipitation and mild temperatures in parts of BC, the BCER lifted the suspension for the following water sources:

·       DIR 2023-12 effective on November 21, 2023, for Coldwater River and Pine River
·       DIR 2023-11 effective November 6, 2023, for water sources in the North
Thompson River Basin
·       DIR 2023-10 effective October 31, 2023, for the Parsnip River
BC: Perforation Data Submission Update
Effective January 1, 2024, perforation file submissions will require, for each interval in a stage, values of top depth, base depth and shot count. The prior value “number of shots per meter” will no longer be collected.

Additional information can be found here: TU 2023-17
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phone: 587.880.2249 | email: questions@benoitregulatory.com