By: Nigel Bankes
Matter Commented On: Application by Enhance Energy for a Scheme Approval for its Origins Carbon Capture and Storage Project, December 2024, AER Application No. 1956215
PDF Version: Who Owns Brine-Hosted Minerals in Alberta?
In December 2024 Enhance Energy Inc filed an application with the Alberta Energy Regulator (AER) for a scheme approval (see Directive 065 and Oil and Gas Conservation Act, RSA 2000, c O-6 (OGCA) for its Origins Carbon Capture and Storage Project. The open file is currently available through the AER’s Integrated Application Registry (IAR) using application # 1956215. This link is currently functional. A large number of Statements of Concern (SOC) have been filed with the AER in response to this application. Many of these SOC filers are owners of mineral titles of one form or another who claim that the injection of carbon dioxide into the Leduc formation will be prejudicial to their mineral interests because of the potential to impair recovery of brine-hosted minerals, specifically lithium, in the reservoir. The underlying premise for SOCs that are framed in this way (i.e. specific to brine-hosted minerals rather than, for example, alleging prejudice to the recovery of hydrocarbons) must be that the SOC filer’s mineral title includes brine-hosted minerals. In this post I question that premise or assumption. I begin with a brief discussion of the nature of brine-hosted minerals and then discuss the relevant case law and statute law. My working conclusion is that since brine-hosted minerals are dissolved in water, and since the Crown in right of Alberta or the government of Alberta owns all the water in the province (at least outside federal lands), then brine-hosted minerals are part of that water title and not part of a mines and minerals title. It would follow from this that SOCs that are based solely on an interference with a brine-hosted mineral title have no merit.
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