The Alberta Energy Information Bulletin 2023-01, released on September 13, 2023, provides an overview of the application process and requirements for Small-Scale and Remote (SSR) Carbon Sequestration Tenure in Alberta. This is different from the CCS hub application process in that there is no closing deadline for submissions, as yet.
Projects injecting carbon dioxide (CO2) for enhanced recovery purposes do not need to obtain carbon sequestration tenure.
Existing acid gas disposal (AGD) operations do not need to apply for carbon sequestration tenure for ongoing operations.
However, should AGD operators choose to increase the amount of captured CO2
e.g. from their facility operations, and if this change affects their approval under
Directive 065, they will need to apply for a grant of pore space (referred to as carbon sequestration tenure, not a Crown authorization).
All new AGD operations will be required to apply for a grant of pore space from Alberta Energy.
Application Process
Only the following eligible scenarios qualify for SSR carbon sequestration tenure applications for:
- the carbon emissions are located far from infrastructure hubs, or
- emissions are less than 200,000 tonnes of CO2 annually, or
- the emissions are waste gas disposal (sour or acid gas), or
- the carbon emissions arise from carbon capture testing facilities.
Applicants must identify and address overlapping interests and activities within the requested location. The requested lands cannot overlap with an existing carbon sequestration agreement or grant of pore space. This would include Subsurface Reservoir Leases, and carbon sequestration agreements (e.g., evaluation permits, leases, or carbon sequestration hub agreements).
Successful applications will result in two agreements:
(1) a tenure agreement for carbon sequestration into a pore space, and
(2) a unit agreement addressing various interests in the location, including Crown interests.
Application Details
Applicants will receive notifications via email regarding the department's decision or requests for additional information.
Fees
Approved applicants must pay a prescribed agreement issuance fee of $625 and the first year's rent before receiving the pore space agreement.
Rent is $3.50 per hectare, with a minimum of $50, due annually on the last day of the preceding year of the agreement term.
No issuance fee or annual rent applies to the pore space unit agreement, which is issued after the pore space agreement is issued.
Regulatory Approvals
As in the case of the CCS Hub agreements, prior to commencing sequestration activities, pertinent regulatory approvals must be obtained from the Alberta Energy Regulator (AER). Issuance of a pore space agreement or pore space unit agreement by Alberta Energy does not guarantee AER approval.
Please feel free to contact Robyn Swanson at 587.436.4250 rswanson@benoitregulatory.com or Jason Benoit at 403.874.6769 jbenoit@benoitregulatory.com if you would like to discuss these changes with respect to your operations or would like us to assist you with the application process.
