Category Archives: Energy

The AER Does Not Have the Jurisdiction to Consider New Coal Applications for the Grassy Mountain Coal Deposit

By: Nigel Bankes

Matter commented on: Applications by Northback Holdings Corporation for a Coal Exploration Program on the Grassy Mountain Coal Deposit, including Application Number 1948547, Deep Drilling Permit

PDF Version: The AER Does Not Have the Jurisdiction to Consider New Coal Applications for the Grassy Mountain Coal Deposit

On September 5, 2023, Northback Holdings Corporation filed an application with the Alberta Energy Regulator (AER) for a Deep Drilling Permit in support of a coal exploration program on the Grassy Mountain coal deposit. This deposit is located north of Blairmore, Alberta on a combination of Crown coal lands and Northback’s privately owned land. Northback proposes to commence its exploration program as soon as possible. Northback’s applications have triggered an outpouring of opposition from the coalition of interests that fought the original Grassy Mountain coal project: see here (CPAWS) and here (Corb Lund). There has also been considerable media coverage of this latest development: see here (Bob Weber) and here (Andrew Nikiforuk). My purpose in writing this post is to make the case that (1) Northback was not entitled to make these applications to the AER, and (2) the AER has no business considering the merits of these applications because Northback’s new applications are subject to the general “no new coal rule” contained in a 2022 Ministerial Order directed at the AER (details below). Others have also made this case, including Canadian Parks and Wilderness Society (Southern Alberta Chapter) (CPAWS-SAB) and the Timberwolf Wilderness Society, but it still seems useful to summarize the arguments. Continue reading

Now 40% Worse: The Mine Financial Security Program in 2023

By: Drew Yewchuk and Martin Olszynski

Documents Commented on: Mine Financial Security Program – Security and Liability (2023); Annual Mine Financial Security Program Submissions 2023 Submissions for 2022 Reporting Year

PDF Version: Now 40% Worse: The Mine Financial Security Program in 2023

This brief post is in response to the Alberta Energy Regulator (AER) publishing the annual submissions required under the Mine Financial Security Program (MFSP). We provide an update on the state of Alberta’s system for obtaining financial security for the closure of oilsands and coal mines. Drew last provided an update in 2021, and that post describes the problems with the MFSP. He skipped 2022 because there was not much to say: it was bad news, but the same bad news as 2021. The numbers this year contain some notable surprises. Continue reading

The Crown Pore Space Lease and Pore Space Unit Agreement

By: Nigel Bankes

Documents commented on: The Crown Pore Space Lease and Pore Space Unit Agreement

PDF Version: The Crown Pore Space Lease and Pore Space Unit Agreement

As I discussed in my last ABlawg post the Government of Alberta (GoA) recently announced the adoption of the Small-Scale and Remote (SSR) Carbon Sequestration Tenure. As part of this announcement, the GoA also released a standard form pore space lease (PSL) and a model Pore Space Unit Agreement (PSUA). This is my attempt to unpack these two agreements and to offer what I hope will be understood as constructive comments on these documents. Continue reading

Alberta Rolls Out Yet Another Form of Sequestration Agreement

By: Nigel Bankes

Document commented on: Mineral Rights Information Bulletin, 2023-01, Small-Scale and Remote (SSR) Carbon Sequestration Tenure, September 14, 2023

PDF Version: Alberta Rolls Out Yet Another Form of Sequestration Agreement

The Government of Alberta (GoA) is experimenting with several different forms of carbon sequestration tenure. But while the initial development of sequestration tenure and policy between 2010 and 2013 was open and transparent – as reflected in the Regulatory Framework Assessment – there is very little in the way of public explanation for the more recent changes, and, as noted in previous ABlawg posts (my last post contains relevant links), very little in terms of overall transparency. Continue reading

The 2024 Industry-Wide Closure Spend Lowered Without Explanation

By: Drew Yewchuk

Regulatory Bulletin Commented on: AER Bulletin 2023-31, Industry-Wide Closure Spend Requirement for 2024

PDF Version: The 2024 Industry-Wide Closure Spend Lowered Without Explanation

The Alberta Energy Regulator’s (AER) Bulletin 2023-31 sets the industry-wide closure spend requirement for 2024 at $700 million, lower than the $764 million forecasted last year. This is another post on how poorly and secretively the AER is handling the industry-wide closure spend requirement, following previous posts here and here. Continue reading