Category Archives: Energy

Transmission Policy in Alberta

By: Nigel Bankes

Document commented on: Alberta, Ministry of Affordability and Utilities, Transmission Policy Review: Delivering the Electricity of Tomorrow, A Green Paper, October 23, 2023

PDF Version: Transmission Policy in Alberta

The Ministry of Affordability and Utilities is currently engaged in a short-fuse consultation on important questions of transmission policy in Alberta. Existing policy in Alberta is informed by a policy paper issued in 2003 that was implemented through provisions of the Electric Utilities Act, SA 2003, c E-5.1 (EUA) and amendments to the Transmission Regulation initially adopted in 2004: Alta Reg 86/2007 (TReg). The principal vehicle for the current consultation is what the Ministry describes as a ‘Green Paper’, Transmission Policy Review: Delivering the Electricity of Tomorrow. As the Green Paper acknowledges, the world has changed significantly since 2003 and it is important to reflect on whether the policy choices made two decades ago are still appropriate given developments in technology, generation mix, and energy and climate policy. Continue reading →

Comments on the AER’s Draft Regulations for Rock-Hosted Mineral Mining

By: Drew Yewchuk

Regulatory Documents Commented on: AER Bulletin 2023-36: Invitation for Feedback on Proposed New Requirements for Rock-Hosted Mineral Resource Development; Draft Directive 0XX: Rock-Hosted Mineral Resource Development

PDF Version: Comments on the AER’s Draft Regulations for Rock-Hosted Mineral Mining

Despite the Alberta Energy Regulator (AER)’s poor reputation and history of scandals, the Alberta government expanded the role of the AER to include a broader role in regulating mining operations. In March 2023 changes to the Responsible Energy Development Act, SA 2012, c R-17.3 gave the AER new powers to regulate almost all types of mining under the Mineral Resource Development Act, SA 2021, c M-16.8. In my view, expanding the mandate and role of the AER is a mistake given their institutional failures and the public’s justified low confidence in the AER. Continue reading →

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 →