Carbon Sequestration Tenure Regulation (Alberta Tenure Regulation)

Jurisdiction(s)
Instrument Date
Effective Date
Instrument Type
Secondary
Relevant Regulatory Authority
Alberta Energy; Alberta Environment and Sustainable Resource Development
Purpose and Context
The Alberta Tenure Regulation elaborates the rights and responsibilities established under agreements entered into between the Minister and CCS operators in accordance with the Alberta M&M Act with regard to exploratory drilling and carbon sequestration leases. This scope includes requirements regarding monitoring, reporting and verification, and site closure.  
Relevant links
Associated instruments

Oil and Gas Conservation Act

Mines and Minerals Administration Regulation

Instrument Access Date
6 June 2012
I. Regulatory scope and definitions
Definitions

Article/Section No.

Regulation 1

Instrument Text

Definitions

1            

In this Regulation,

(a) “Board” means the Energy Resources Conservation Board;

(b) “carbon sequestration lease” means an agreement under section 116 of the Act issued in the form of a lease under section 9;

(c) “deep subsurface reservoir”, in respect of a permit or lease, means the pore space within an underground formation that is deeper than 1000 metres below the surface of the land within the location of that permit or lease;

(d) “Directive 65” means Directive 65, “Resources Applications for Conventional Oil and Gas Reservoirs”, published by the Board;

(e) “evaluation permit” means an agreement under section 115 of the Act issued in the form of an evaluation permit under section 3;

(f) “lessee” means the holder of a carbon sequestration lease;

(g) “minerals” means minerals as defined in the Act; (h) “permittee” means the holder of an evaluation permit.

(i) “pore space” means the pores contained in, occupied by or formerly occupied by minerals or water below the surface of land. ion �X rap'� � facility unless:

 

(a)       the person holds a valid licence authorizing the activity; or

(b) the facility is exempt from the requirement of holding a licence by regulation.

(2) Notwithstanding subsection (1), a person may, without a licence: (a)         survey the site for a facility; or

(b)       on the direction or with the consent of the minister undertake operations to suspend or abandon a facility.

2011, c.11, s.9.

[…]

Issuance of licence

9(1) The minister may:

(a)       issue a licence if the minister is satisfied that:

(i)         the applicant has complied with this Act and the regulations;

(ii)        the applicant meets the prescribed eligibility requirements; and

(iii)       it is in the public interest to do so; or

(b)       refuse to issue the licence.

(2) The minister may include as a provision of the licence any terms and conditions that the minister considers appropriate.

(3)           Where the minister refuses to issue a licence pursuant to clause (1)(b), the minister shall provide the applicant with written reasons for the refusal.

Compliance with licence required

9.1       Every licensee shall comply with the terms and conditions of the licence. 2001, c.26, s.5.

[…]

Forfeiture of machinery, etc.

17.06  The minister may order that any machinery, equipment or materials or oil, gas or products at the site of a well or facility be forfeited to the Crown in right of Saskatchewan if:

(a)       the machinery, equipment or materials or oil, gas or products are located at the site of a well or facility that is no longer active;

(b)       the abandonment, restoration, remediation or reclamation of the well or facility or the site of the well or facility is, in the minister’s opinion, required; and

(c)        the owner, operator or licensee of the well or facility cannot be located.

[…]

Power of Lieutenant Governor in Council

18        The Lieutenant Governor in Council may make regulations deemed necessary to carry out the provisions of this Act according to their true intent and, without restricting the generality of the foregoing, the Lieutenant Governor in Council may make regulations:

[…]

(b) governing the suspension of operations and the abandonment and reconditioning of wells and facilities.

II. The scope and management of rights
Competition with other Interests

Summary

The Alberta Tenure Regulation provides that evaluation permits and carbon sequestration leases do not grant include right to win, work or recover any minerals found within the relevant land, but does not otherwise address the issue of competition between CCS and other resource activities. 

Article/Section No.

Regulation 3
Regulation 9

Instrument Text

Evaluation permit

3

(5)An evaluation permit does not grant the permittee the right to win, work or recover any minerals found within the location of the permit.

[…]

Carbon sequestration leases

9

(5)A carbon sequestration lease does not grant the lessee the right to win, work or recover any minerals found within the location of the lease.

III. Permitting storage site exploration, project development and CO2 injection
Permitting exploration activities

Summary

With respect to the drilling of exploration wells in accordance with Section 115 of the Alberta M&M Act, the Alberta Tenure Regulation provides that:

  1. an agreement entered into by the Minister to grant exploration drilling rights may permit the drilling of wells and injecting of substances into deep subsurface reservoirs, to evaluate the properties of the reservoirs and determine their suitability for CO2 sequestration (see regulation 3(3));
  2. the term of an evaluation permit is five years(see regulation 4);
  3. the area covered by an evaluation permit must not exceed 73 728 hectares (see regulation 5); and
  4. the rent for an evaluation permit is as prescribed in the Mines and Minerals Administration Regulation (see regulation 6).

 

An evaluation permit does not, however, grant the holder the right to win, work or recover any minerals found within the land covered by the permit.

 

Under regulation 3(2), a party wishing to obtain an evaluation permit must:

  1. submit an application for a permit in a form satisfactory to the Minister;
  2. pay the application fee prescribed in the Mines and Minerals Administration Regulation;
  3. pay the rent applicable for the first year of the evaluation permit; and
  4. submit a monitoring, measurement and verification plan for approval.

 

Regulation 21 amends the Mines and Minerals Administration Regulation to provide that:

  1. the rent payable for evaluation permits is CAD$1.00 per year for each hectare covered by the permit, subject to a minimum of $50 per year; and
  2. the fee for issuance of an evaluation permit is CAD$625.

 

Under regulation 7, monitoring, measurement and verification plans must:

  1. set out the monitoring, measurement and verification activities to be undertaken;
  2. contain an analysis of the likelihood that the operations will interfere with mineral recovery; and
  3. contain any other information requested by the Minister.

 

An applicant seeking multiple contiguous evaluation permits may also apply under regulation 8 for the permits to be grouped together, for the purpose of submitting one monitoring, measurement and verification plan in respect of those permits.

Article/Section No.

Regulation 3
Regulation 4
Regulation 5
Regulation 6
Regulation 7
Regulation 8
Regulation 21

Associated Legislation:
Mines and Minerals Administration Regulation

Instrument Text

Evaluation permit

3

(1)A person may apply to the Minister for an agreement under section 115 of the Act.

(2)The Minister may issue an agreement under section 115 of the Act to an applicant in the form of an evaluation permit if the Minister receives from the applicant

(a) an application in a form that is satisfactory to the Minister,

(b) the application fee prescribed in the Schedule to the Mines and Minerals Administration Regulation (AR 262/97) for an evaluation permit,

(c) the annual rental prescribed under section 6 for the first year of the term of the evaluation permit, and

(d) a monitoring, measurement and verification plan that meets the requirements set out in section 7.

(3)Subject to subsection (4), an evaluation permit grants, in accordance with the terms and conditions of the permit, the right to conduct evaluations and testing, including the drilling of wells and injection of substances as approved by the Board, into deep subsurface reservoirs within the location of the permit to evaluate the geological or geophysical properties of the deep subsurface reservoirs for the purposes of determining their suitability for use for the sequestration of captured carbon dioxide.

(4)The Minister may limit the operations or activities that may be conducted under an evaluation permit to those operations or activities specified by the Minister in the evaluation permit.

(5)An evaluation permit does not grant the permittee the right to win, work or recover any minerals found within the location of the permit.

 

Term of evaluation permit

4        

The term of an evaluation permit is 5 years from the term commencement date shown in the permit.

 

Area and boundaries of evaluation permit

5

(1)The area of the location of an evaluation permit must not exceed 73 728 hectares.

(2)The boundaries of the location of an evaluation permit must be acceptable to the Minister.

(3)The Minister may reduce the area of an evaluation permit at any time during the term of the permit if the permittee makes an application to the Minister indicating the area that is to be retained in the permit.

 

Annual rental for evaluation permit

6        

The rental for each year of the term of an evaluation permit is the amount payable at the rate prescribed in section 20(3.1) of the Mines and Minerals Administration Regulation (AR 262/97).

 

Monitoring, measurement and verification plan for permit

7

(1)The Minister may approve a monitoring, measurement and verification plan received under section 3 in relation to an evaluation permit if the plan

(a) sets out the monitoring, measurement and verification activities that the permittee will undertake for the term of the permit,

(b) contains an analysis of the likelihood that the operations or activities that may be conducted under the permit will interfere with mineral recovery, and

(c) contains any other information requested by the Minister.

(2)A permittee must not conduct any operations or activities under the evaluation permit unless

(a) a monitoring, measurement and verification plan has been approved in relation to the permit, and

(b) the permittee complies with the approved plan.

 

Grouping of evaluation permits

8

(1)A permittee, or an applicant for more than one evaluation permit, may apply to the Minister for the grouping of evaluation permits for the purpose of submitting one monitoring, measurement and verification plan in respect of all of the permits in the approved permit group.

(2)Subject to this section, the Minister may approve an application for grouping of evaluation permits, subject to any terms and conditions that the Minister may specify.

(3)An evaluation permit may not be included in more than one permit group at a time.

(4)The location of evaluation permits within a permit group must be contiguous.

 

 

[…]

 

Consequential amendments

21

(1) The Mines and Minerals Administration Regulation (AR 262/97) is amended by this section.

(2) Section 20 is amended

(a) in subsection (3) by adding “or 116” after “section 57(5)(c)”;

(b) by adding the following after subsection (3):

(3.1)A rental for a year of the term of an agreement under section 115 or 116 of the Act is payable at the rate of $1.00 per year for each hectare in the area of the location of the evaluation permit or carbon sequestration lease, subject to a minimum of $50 per year.

(3) The Schedule is amended

(a) in item 2 by adding “, other than an agreement referred to in item 2.1,” after “of the Act”;

(b) by adding the following after item 2:

2.1 Fee for the issuance of an evaluation permit or carbon sequestration lease under the Carbon Sequestration Tenure Regulation $625 g fisct�er0��p'�>

 

(b)       a financial statement showing the business of the fund for the preceding fiscal year in a form that may be required by Treasury Board.

(2)       The minister shall, in accordance with The Tabling of Documents Act, 1991, lay before the Legislative Assembly each report and statement mentioned in subsection (1).

2001, c.26, s.13; 2011, c.11, s.34.

Audit of the fund

20.97  The Provincial Auditor or any other auditor or firm of auditors that the Lieutenant Governor in Council may appoint shall audit the accounts and financial statements of the orphan fund:

(a)       annually; and (b)      at any other times that the Lieutenant Governor in Council may require.

2001, c.26, s.13.

Regulations

20.98  For the purposes of this Part, the Lieutenant Governor in Council may make regulations:

(a)       defining, enlarging or restricting the meaning of any word or expression used in this Part but not defined in this Part;

(b)       respecting the administration of the orphan fund;

(c)        establishing fees to be levied on wells and facilities and deposited in the orphan fund, determining who is required to pay those fees and providing for their collection;

(d) authorizing the minister to determine whether a well or facility is inactive for the purposes of the fees to be levied pursuant to clause (c);

(e)        respecting the orphan fund fee to be deposited in the orphan fund;

(f)        authorizing the minister to deposit in the orphan fund all or part of the net proceeds from the sale of machinery, equipment or materials forfeited to the Crown in right of Saskatchewan pursuant to section 17.06;

(g)        prescribing the purposes for which money from the orphan fund may be used and authorizing the minister, in consultation with the fund advisory committee, to carry out those purposes and to determine when money from the orphan fund may be used for those purposes;

(h) providing for the allocation and payment of all or any part of the administration costs of the orphan fund, including costs related to the fund advisory committee, from the orphan fund;

(i)  respecting the membership of the fund advisory committee;

(j) respecting the functions of the fund advisory committee;

(k) prescribing the fiscal year of the orphan fund;

(l)         prescribing minimum amounts to be retained in reserve in the orphan fund;

(m)      prescribing any matter or thing required or authorized by this Part to be prescribed in the regulations;

(n)       respecting any other matter or thing that the Lieutenant Governor in Council considers necessary to carry out the intent of this Part.

2001, c.26, s.13; 2007 c.7, s.5; 2011, c.11, s.35. orma7 � o0��p'� destroyed, mutilated, altered, falsified or removed from Saskatchewan;

 

(e)        obstruct or interfere with the minister or any person acting on behalf of the minister in the exercise of any of the powers conferred by this Act, the regulations or an order made pursuant to this Act; or

(f)            fail to comply with this Act, the regulations or an order made pursuant to this Act.

(2) Every person who contravenes a provision of this Act, the regulations or an order made pursuant to this Act is guilty of an offence and liable on summary conviction to:

(a)       a fine not exceeding $500,000 for each day or part of a day during which the offence continues;

(b)       imprisonment for a term not exceeding one year; or

(c)        both that fine and imprisonment.

(3)       If a person is convicted of an offence pursuant to this Act and the court is satisfied that as a result of the commission of the offence monetary benefits accrued to the offender, the court may order the offender to pay, in addition to a fine pursuant to subsection (2), a fine in an amount equal to the court’s estimation of the amount of those monetary benefits.

(4) Every director, officer or agent of a corporation who directed, authorized, assented to, acquiesced in or participated in an act or omission of the corporation that would constitute an offence by the corporation is guilty of that offence and is liable on summary conviction to the penalties provided for that offence whether or not the corporation has been prosecuted or convicted.

Additional order from convicting court

59.1(1)            In addition to or instead of any penalty imposed pursuant to this Act, the convicting court, having regard to the nature of the offence and the circumstances surrounding its commission, may make an order doing one or more of the following:

(a)       requiring the convicted person to remove a substance in a manner and within the period specified by the order;

(b)       prohibiting the convicted person from doing any act or engaging in any activity that, in the opinion of the court, may result in the continuation of the offence;

(c) directing the convicted person to repair, mitigate or minimize any damage to the environment or subsurface formations that resulted from the commission of the offence in a manner and within the period specified by the order, or to restore or reclaim any property that has been damaged as a result of the commission of the offence in a manner and within the period specified by the order;

(d)       requiring the convicted person to take steps to prevent any damage to the environment or subsurface formations that may result from the commission of the offence in a manner and within the period specified by the order;

(e)        directing the convicted person to pay to the minister an amount of money as compensation, in whole or in part, for the cost of any corrective action taken by or at the direction of the minister as a result of the commission of the offence;

(f)        requiring the convicted person to do any other thing that, in the opinion of the court, is necessary in the circumstances.

(2) An order made pursuant to subsection (1) may contain any other conditions with respect to the circumstances of the offence and of the person who committed or contributed to the commission of the offence as the court considers appropriate to prevent similar unlawful conduct or to contribute to the rehabilitation of the person.

Vicarious liability

59.2    In any prosecution of a person for an offence pursuant to this Act, it is sufficient proof of the offence to establish, in the absence of any evidence that the offence was committed without the person’s knowledge, that it was committed by an employee, helper or agent of the person, whether or not the employee, helper or agent:

(a)       is identified; or

(b)       has been prosecuted or convicted for the offence.

Limitation on prosecutions

59.3    No prosecution for a contravention of this Act or the regulations is to be commenced more than three years after the facts on which the alleged contravention is based first came to the knowledge of the minister.

Offence

60.1    Every person summoned as a witness pursuant to subsection 7.5(5) who refuses or fails to:

(a) attend; (b)            answer questions;

(c) produce documents, records, books, data, plans, maps, specifications, drawings, samples or other property or things;

is guilty of an offence and liable on summary conviction to a fine not exceeding $25,000.

Prosecution does not bar action for damages

62        A prosecution under this Act shall not deprive any person suffering damage or injury of any cause of action he may have.

Minister may apply for compliance order

63(1)   The minister may apply to a judge of the Court of Queen’s Bench for all or any of the following:

(a)       an order compelling a person to comply with this Act, the regulations, an order made pursuant to this Act or the terms and conditions of a licence, permit or minister’s approval;

(b)       an order enjoining any person from proceeding contrary to this Act, the regulations, an order made pursuant to this Act or the terms and conditions of a licence, permit or minister’s approval.

(2) On an application pursuant to this section, the judge of the Court of Queen’s Bench may make the order requested or any other order that the judge considers appropriate on any terms and conditions that the judge considers appropriate.

2011, c.11, s.46.

1990-91, c.39, s.31; 2011, c.11, s.48.

(3)       The minister may apply for an order pursuant to subsection (1) regardless of whether an order pursuant to this Act has been made with respect to the matter.

Effect of payment of penalty and of forfeiture

64        The payment of a penalty shall not operate to legalize any oil, gas or product involved in the violation in respect of which the penalty is imposed; and the payment of a penalty or the forfeiture of any oil, gas or product shall not relieve a person from liability to any other person for damages arising out of the violation in respect of which the penalty is imposed or the forfeiture is incurred.

R.S.S. 1965, c.360, s.63; R.S.S. 1978, c.O-2, s.64.

Remedies for enforcement of regulation or order

65        Where the minister has more than one remedy for the enforcement of any regulation or order or for the payment of any money payable pursuant to any regulation or order made under this Act, the minister may resort to any or all such remedies from time to time as he may deem proper, either concurrently or successively, until such time as the regulation or order has been complied with or the money payable thereunder together with all costs and expenses has been fully paid and satisfied.

R.S.S. 1965, c.360, s.64; R.S.S. 1978, c.O-2, s.65.

Permitting CO2 injection and storage

Summary

With respect to the injection and storage of CO2 in accordance with Section 116 of the Alberta M&M Act, the Alberta Tenure Regulation provides that:

  1. a carbon sequestration lease entered into by the Minister (as lessor) to grant CO2 injection and storage rights may permit the drilling of wells, evaluation and testing, and the injection of CO2 into deep subsurface reservoirs within the location covered by the lease (see regulation 9(3));
  2. the term of a carbon sequestration lease is fifteen years (see regulation 10), renewable for a further fifteen years in accordance with regulation 11;
  3. the area covered by a carbon sequestration lease must not exceed 73 728 hectares (see regulation 12); and
  4. the rent for a carbon sequestration lease is as prescribed in the Mines and Minerals Administration Regulation (see regulation 13).

A carbon sequestration lease does not, however, grant the holder the right to win, work or recover any minerals found within the land covered by the lease.

Under regulation 9(2), a party wishing to obtain a carbon sequestration lease must:

  1. submit an application for a lease in a form satisfactory to the Minister;
  2. pay the application fee prescribed in the Mines and Minerals Administration Regulation;
  3. pay the rent applicable for the first year of the lease;
  4. submit evidence that the area covered by the application is suitable for CO2 sequestration;
  5. submit a monitoring, measurement and verification plan for approval; and
  6. submit a closure plan.

Regulation 21 amends the Mines and Minerals Administration Regulation to provide that:

  1. the rent payable for carbon sequestration leases is CAD$1.00 per year for each hectare covered by the lease, subject to a minimum of $50 per year; and
  2. the fee for issuance of a carbon sequestration lease is CAD$625.

Under regulation 14, an applicant seeking multiple contiguous carbon sequestration leases may also apply for the leases to be grouped together, for the purpose of submitting one monitoring, measurement and verification plan in respect of those leases.

 

Article/Section No.

Regulation 9
Regulation 10
Regulation 11
Regulation 12
Regulation 13
Regulation 14
Regulation 21

Associated Legislation:
Oil and Gas Conservation Act

Mines and Minerals Administration Regulation

Instrument Text

Carbon sequestration leases

9

(1) A person may apply to the Minister for an agreement under section 116 the Act.

(2)The Minister may issue to an applicant an agreement under section 116 of the Act in the form of a carbon sequestration lease if the Minister receives from the applicant

(a) an application in a form that is satisfactory to the Minister,

(b) the application fee prescribed in the Schedule to the Mines and Minerals Administration Regulation (AR 262/97) for a carbon sequestration lease,

(c) the annual rental prescribed under section 13 for the first year of the term of the carbon sequestration lease,

(d) evidence satisfactory to the Minister that the location specified in the application is suitable for use for the sequestration of captured carbon dioxide,

(e) a monitoring, measurement and verification plan that meets the requirements set out in section 15, and

(f) a closure plan that meets the requirements set out in section 18.

(3)Subject to subsection (4), a carbon sequestration lease grants, in accordance with the terms and conditions of the lease, the right to drill wells, conduct evaluation and testing and inject captured carbon dioxide into deep subsurface reservoirs within the location of the lease.

(4)The Minister may limit the operations or activities that may be conducted under a carbon sequestration lease to those operations or activities specified by the Minister in the lease.

(5)A carbon sequestration lease does not grant the lessee the right to win, work or recover any minerals found within the location of the lease.

 

Term of carbon sequestration lease

10     

The term of a carbon sequestration lease is 15 years from the term commencement date shown in the lease.

 

Renewal of carbon sequestration lease

11

(1)The Minister may renew a carbon sequestration lease for further terms of 15 years if the Minister receives from the lessee

(a) an application for renewal in a form that is satisfactory to the Minister,

(b) a monitoring, measurement and verification plan that meets the requirements set out in section 15,

(c) a closure plan that meets the requirements set out in 19(3), and

(d) evidence satisfactory to the Minister that the lessee has the approval of the Board under section 39 of the Oil and Gas Conservation Act for the injection of the captured carbon dioxide in the location of the lease.

(2)The renewal of a carbon sequestration lease under subsection (1)

(a) may apply to a portion or portions of its location or to a zone or zones within the location determined by the Minister, and

(b) is subject to any terms and conditions that the Minister prescribes at the time the renewal is granted.

 

Area and boundaries of carbon sequestration lease

12

(1)The area of the location of a carbon sequestration lease must not exceed 73 728 hectares.

(2)The boundaries of the location of a carbon sequestration lease must be acceptable to the Minister.

(3)The Minister may reduce the area of a carbon sequestration lease at any time during the term of the lease, if the lessee makes an application to the Minister indicating the area that is to be retained in the lease.

 

Annual rental for lease

13     

The rental for each year of the term of a carbon sequestration lease is the amount payable at the rate prescribed in section 20(3.1) of the Mines and Minerals Administration Regulation (AR 262/97).

 

Grouping of carbon sequestration leases

14

(1)A lessee, or an applicant for more than one carbon sequestration lease, may apply to the Minister for the grouping of carbon sequestration leases for the purpose of submitting one monitoring, measurement and verification plan in respect of all of the leases in the approved lease group.

(2)Subject to this section, the Minister may approve an application for grouping of carbon sequestration leases, subject to any terms and conditions that the Minister may specify.

(3)A carbon sequestration lease may not be included in more than one lease group at a time.

(4)The location of carbon sequestration leases within a lease group must be contiguous.

[…]

Consequential amendments

21

(1) The Mines and Minerals Administration Regulation (AR 262/97) is amended by this section.

(2) Section 20 is amended

(a) in subsection (3) by adding “or 116” after “section 57(5)(c)”;

(b) by adding the following after subsection (3):

(3.1)A rental for a year of the term of an agreement under section 115 or 116 of the Act is payable at the rate of $1.00 per year for each hectare in the area of the location of the evaluation permit or carbon sequestration lease, subject to a minimum of $50 per year.

(3) The Schedule is amended

(a) in item 2 by adding “, other than an agreement referred to in item 2.1,” after “of the Act”;

(b) by adding the following after item 2:

2.1 Fee for the issuance of an evaluation permit or carbon sequestration lease under the Carbon Sequestration Tenure Regulation $625 l �s-0��p'�:1'>       The minister shall, in accordance with The Tabling of Documents Act, 1991, lay before the Legislative Assembly each report and statement mentioned in subsection (1).

 

2001, c.26, s.13; 2011, c.11, s.34.

Audit of the fund

20.97  The Provincial Auditor or any other auditor or firm of auditors that the Lieutenant Governor in Council may appoint shall audit the accounts and financial statements of the orphan fund:

(a)       annually; and (b)      at any other times that the Lieutenant Governor in Council may require.

2001, c.26, s.13.

Regulations

20.98  For the purposes of this Part, the Lieutenant Governor in Council may make regulations:

(a)       defining, enlarging or restricting the meaning of any word or expression used in this Part but not defined in this Part;

(b)       respecting the administration of the orphan fund;

(c)        establishing fees to be levied on wells and facilities and deposited in the orphan fund, determining who is required to pay those fees and providing for their collection;

(d) authorizing the minister to determine whether a well or facility is inactive for the purposes of the fees to be levied pursuant to clause (c);

(e)        respecting the orphan fund fee to be deposited in the orphan fund;

(f)        authorizing the minister to deposit in the orphan fund all or part of the net proceeds from the sale of machinery, equipment or materials forfeited to the Crown in right of Saskatchewan pursuant to section 17.06;

(g)        prescribing the purposes for which money from the orphan fund may be used and authorizing the minister, in consultation with the fund advisory committee, to carry out those purposes and to determine when money from the orphan fund may be used for those purposes;

(h) providing for the allocation and payment of all or any part of the administration costs of the orphan fund, including costs related to the fund advisory committee, from the orphan fund;

(i)  respecting the membership of the fund advisory committee;

(j) respecting the functions of the fund advisory committee;

(k) prescribing the fiscal year of the orphan fund;

(l)         prescribing minimum amounts to be retained in reserve in the orphan fund;

(m)      prescribing any matter or thing required or authorized by this Part to be prescribed in the regulations;

(n)       respecting any other matter or thing that the Lieutenant Governor in Council considers necessary to carry out the intent of this Part.

2001, c.26, s.13; 2007 c.7, s.5; 2011, c.11, s.35. orma7 � o0��p'� destroyed, mutilated, altered, falsified or removed from Saskatchewan;

 

(e)        obstruct or interfere with the minister or any person acting on behalf of the minister in the exercise of any of the powers conferred by this Act, the regulations or an order made pursuant to this Act; or

(f)            fail to comply with this Act, the regulations or an order made pursuant to this Act.

(2) Every person who contravenes a provision of this Act, the regulations or an order made pursuant to this Act is guilty of an offence and liable on summary conviction to:

(a)       a fine not exceeding $500,000 for each day or part of a day during which the offence continues;

(b)       imprisonment for a term not exceeding one year; or

(c)        both that fine and imprisonment.

(3)       If a person is convicted of an offence pursuant to this Act and the court is satisfied that as a result of the commission of the offence monetary benefits accrued to the offender, the court may order the offender to pay, in addition to a fine pursuant to subsection (2), a fine in an amount equal to the court’s estimation of the amount of those monetary benefits.

(4) Every director, officer or agent of a corporation who directed, authorized, assented to, acquiesced in or participated in an act or omission of the corporation that would constitute an offence by the corporation is guilty of that offence and is liable on summary conviction to the penalties provided for that offence whether or not the corporation has been prosecuted or convicted.

Additional order from convicting court

59.1(1)            In addition to or instead of any penalty imposed pursuant to this Act, the convicting court, having regard to the nature of the offence and the circumstances surrounding its commission, may make an order doing one or more of the following:

(a)       requiring the convicted person to remove a substance in a manner and within the period specified by the order;

(b)       prohibiting the convicted person from doing any act or engaging in any activity that, in the opinion of the court, may result in the continuation of the offence;

(c) directing the convicted person to repair, mitigate or minimize any damage to the environment or subsurface formations that resulted from the commission of the offence in a manner and within the period specified by the order, or to restore or reclaim any property that has been damaged as a result of the commission of the offence in a manner and within the period specified by the order;

(d)       requiring the convicted person to take steps to prevent any damage to the environment or subsurface formations that may result from the commission of the offence in a manner and within the period specified by the order;

(e)        directing the convicted person to pay to the minister an amount of money as compensation, in whole or in part, for the cost of any corrective action taken by or at the direction of the minister as a result of the commission of the offence;

(f)        requiring the convicted person to do any other thing that, in the opinion of the court, is necessary in the circumstances.

(2) An order made pursuant to subsection (1) may contain any other conditions with respect to the circumstances of the offence and of the person who committed or contributed to the commission of the offence as the court considers appropriate to prevent similar unlawful conduct or to contribute to the rehabilitation of the person.

Vicarious liability

59.2    In any prosecution of a person for an offence pursuant to this Act, it is sufficient proof of the offence to establish, in the absence of any evidence that the offence was committed without the person’s knowledge, that it was committed by an employee, helper or agent of the person, whether or not the employee, helper or agent:

(a)       is identified; or

(b)       has been prosecuted or convicted for the offence.

Limitation on prosecutions

59.3    No prosecution for a contravention of this Act or the regulations is to be commenced more than three years after the facts on which the alleged contravention is based first came to the knowledge of the minister.

Offence

60.1    Every person summoned as a witness pursuant to subsection 7.5(5) who refuses or fails to:

(a) attend; (b)            answer questions;

(c) produce documents, records, books, data, plans, maps, specifications, drawings, samples or other property or things;

is guilty of an offence and liable on summary conviction to a fine not exceeding $25,000.

Prosecution does not bar action for damages

62        A prosecution under this Act shall not deprive any person suffering damage or injury of any cause of action he may have.

Minister may apply for compliance order

63(1)   The minister may apply to a judge of the Court of Queen’s Bench for all or any of the following:

(a)       an order compelling a person to comply with this Act, the regulations, an order made pursuant to this Act or the terms and conditions of a licence, permit or minister’s approval;

(b)       an order enjoining any person from proceeding contrary to this Act, the regulations, an order made pursuant to this Act or the terms and conditions of a licence, permit or minister’s approval.

(2) On an application pursuant to this section, the judge of the Court of Queen’s Bench may make the order requested or any other order that the judge considers appropriate on any terms and conditions that the judge considers appropriate.

2011, c.11, s.46.

1990-91, c.39, s.31; 2011, c.11, s.48.

(3)       The minister may apply for an order pursuant to subsection (1) regardless of whether an order pursuant to this Act has been made with respect to the matter.

Effect of payment of penalty and of forfeiture

64        The payment of a penalty shall not operate to legalize any oil, gas or product involved in the violation in respect of which the penalty is imposed; and the payment of a penalty or the forfeiture of any oil, gas or product shall not relieve a person from liability to any other person for damages arising out of the violation in respect of which the penalty is imposed or the forfeiture is incurred.

R.S.S. 1965, c.360, s.63; R.S.S. 1978, c.O-2, s.64.

Remedies for enforcement of regulation or order

65        Where the minister has more than one remedy for the enforcement of any regulation or order or for the payment of any money payable pursuant to any regulation or order made under this Act, the minister may resort to any or all such remedies from time to time as he may deem proper, either concurrently or successively, until such time as the regulation or order has been complied with or the money payable thereunder together with all costs and expenses has been fully paid and satisfied.

R.S.S. 1965, c.360, s.64; R.S.S. 1978, c.O-2, s.65.

IV. Operating and closing storage facilities
Monitoring, reporting and verification

Summary

Regulation 17 of the Alberta Tenure Regulation provides that CO2 injection and storage operations may only be undertaken in accordance with an approved monitoring, measurement and verification plan.

Regulation 15 requires that monitoring, measurement and verification plans:

  1. set out the monitoring, measurement and verification activities to be undertaken;
  2. contain an analysis of the likelihood that the operations will interfere with mineral recovery; and
  3. contain any other information requested by the Minister.

Under regulation 16, a party holding a carbon sequestration lease must:

  1. submit a new monitoring, measurement and verification plan every three years, and upon any renewal of the lease; and
  2. report to the Minister, on an annual basis, the party’s findings and observations from the monitoring, measurement and verification activities. 

Under regulation 9(2), a party wishing to obtain a carbon sequestration lease must:

  1. submit an application for a lease in a form satisfactory to the Minister;
  2. pay the application fee prescribed in the Mines and Minerals Administration Regulation;
  3. pay the rent applicable for the first year of the lease;
  4. submit evidence that the area covered by the application is suitable for CO2 sequestration;
  5. submit a monitoring, measurement and verification plan for approval; and
  6. submit a closure plan.

 

Article/Section No.

Regulation 15 Regulation 16 Regulation 17

Associated Legislation:
Oil and Gas Conservation Act

Instrument Text

Monitoring, measurement and verification plan for lease

15     

The Minister may approve a monitoring, measurement and verification plan received under section 9 or 11 in relation to a carbon sequestration lease if the plan

(a) sets out the monitoring, measurement and verification activities that the lessee will undertake while the plan is in effect,

(b) contains an analysis of the likelihood that the operations or activities that may be conducted under the carbon sequestration lease will interfere with mineral recovery, based on the geological interpretations and calculations the lessee is required to submit to the Board pursuant to Directive 65 in its application for approval of the injection scheme under the Oil and Gas Conservation Act, and

(c) contains any other information requested by the Minister.

 

Duration and renewal of plan

16

(1)A monitoring, measurement and verification plan that is approved by the Minister in relation to a carbon sequestration lease ceases to have effect on the earlier of

(a) the third anniversary of the date on which the plan was approved, and

(b) the date that the lease is renewed.

(2)A lessee must submit a new monitoring, measurement and verification plan for approval under section 15 no fewer than 90 days before the date on which the approved plan ceases to have effect.

 

Compliance with plan

17

(1)A lessee must not conduct any operations or activities under a carbon sequestration lease unless

(a) a monitoring, measurement and verification plan has been approved and is in effect for the lease, and

(b) the lessee complies with the approved plan.

(2)Each year, before the anniversary date of the monitoring, measurement and verification plan that is in effect for the carbon sequestration lease, the lessee must submit to the Minister a report that sets out the findings and observations from the monitoring, measurement and verification activities that the lessee has conducted.

Site closure

Summary

Regulation 9 of the Alberta Tenure Regulation requires a party wishing to obtain a carbon sequestration lease to, among other things, submit a closure plan to the Minister for approval.

 

To approve the closure plan, the Minister must be satisfied in accordance with regulation 18 that the applicant will undertake appropriate activities to close down sequestration operations and facilities.

 

Under regulation 19, a party holding a carbon sequestration lease must submit a new closure plan every three years, and upon any renewal of the lease.

Article/Section No.

Regulation 9
Regulation 18
Regulation 19

Instrument Text

Carbon sequestration leases

9

(1) A person may apply to the Minister for an agreement under section 116 the Act.

(2)The Minister may issue to an applicant an agreement under section 116 of the Act in the form of a carbon sequestration lease if the Minister receives from the applicant

(f) a closure plan that meets the requirements set out in section 18.

[…]

Initial closure plan

18     

The Minister may approve a closure plan received under section 9 in relation to a carbon sequestration lease if the plan sets out a description of the activities satisfactory to the Minister that the lessee will undertake to close down sequestration operations and facilities.

 

Duration and renewal of closure plan

19

(1)A closure plan that is approved by the Minister under section 18 ceases to have effect on the earlier of

(a) the third anniversary of the date on which the plan was approved, and

(b) the date that the carbon sequestration lease is renewed.

(2)A lessee must submit a new closure plan for approval no fewer than 90 days before the date that an approved plan ceases to have effect.

(3)The Minister may approve a closure plan submitted under subsection (2), or received under section 11, in relation to a carbon sequestration lease if the plan sets out a description of the activities satisfactory to the Minister that the lessee will undertake to close down sequestration operations and facilities, and contains the following:

(a) a summary of the activities that have been conducted by the lessee on the location of the carbon sequestration lease since it was issued;

(b) the quantity of captured carbon dioxide that has been injected;

(c) an evaluation of whether the injected captured carbon dioxide has behaved in a manner consistent with the geological interpretations and calculations the lessee submitted to the Board pursuant to Directive 65 in its application for approval of the injection scheme under the Oil and Gas Conservation Act;

(d) the most recent geological interpretations and calculations that may have been made by the lessee with respect to the injected carbon dioxide and any associated pressure front;

(e) a description of the location, condition, plugging procedures and integrity testing results for every well that has been used for the injection of captured carbon dioxide under the lease;

(f) a description of any decommissioning, abandonment or reclamation activities undertaken by the lessee in the location of the lease;

(g) an inventory of the reports and documents that the lessee has submitted to the Board or a department or agency of the Crown in right of Alberta or the Crown in right of Canada since the approval of the first closure plan related to the carbon sequestration lease, whether or not those reports and documents were required to be submitted;

(h) advice and recommendations about the monitoring, measurement and verification activities that should be conducted after the issuance of a closure certificate is issued for the carbon sequestration lease under section 120 of the Act.

V. Management of long-term responsibilities and liabilities
Financial contributions to long term stewardship

Summary

Regulation 20 of the Alberta Tenure Regulation With provides, respect to the requirement under section 121 of the Alberta M&M Act for operators to make payments into the Post-Closure Stewardship Fund, that the Minister is to establish the rate for payment as a fee per tonne of CO2 injected. 

Article/Section No.

Regulation 20

Instrument Text

Post-closure Stewardship Fund

20     

A lessee shall pay into the Post-closure Stewardship Fund a fee per tonne of captured carbon dioxide injected into the location of a carbon sequestration lease at the rate established by the Minister.