By: Nigel Bankes
Decisions Commented On: Persist Oil and Gas Inc v Flowers, 2023 ABLPRT 236 (CanLII) (the ROE Decision), Flowers v Persist Oil and Gas Inc., 2024 ABLPRT 271 (CanLII) (the Compensation Decision), and Flowers v Persist Oil and Gas Inc., 2025 ABKB 142 (CanLII) (the KB Decision)
PDF Version: Can An Oil and Gas Operator Carry On Bitcoin Operations Under The Terms of a Surface Lease?
Bitcoin operators have an incentive to co-locate with natural gas production sites that offer the opportunity to self-generate electricity to power the bitcoin operations without needing to pay interconnection charges. Just bring some portable generators onto the site, add the necessary computing capacity and let it rip! While other approvals will usually be required, some bitcoin operators have played fast and loose until brought into line through the enforcement actions of the Alberta Utilities Commission (AUC). I wrote about one example of this a few years ago in “Off-Grid Energy for Bitcoin Mines in Alberta: A Problematic Legal Regime” (2021).