Compliance – Risk Mitigation
The AER advised that it is aware of cryptocurrency mining operations running alongside AER-regulated activities. The AER is looking to better understand the situation and work with regulated parties to manage potential risks and ensure compliance and overall safety of AER-regulated operations. The AER requested that all regulated parties provide information related to current or future cryptocurrency mining operations associated with their sites.
Site Safety
AER-regulated parties must adhere to the spacing requirements set out in Directive 056: Energy Development Applications and Schedules, including the location of any flame type equipment, exhausts, or sources of ignitable vapours relative to third-party activities on site. Should an incident occur with third-party operation equipment or infrastructure that affects or has the potential to affect AER-regulated oil and gas activities, the AER-regulated parties must notify the AER in accordance with the requirements in Directive 071: Emergency Preparedness and Response Requirements for the Petroleum Industry.
Public Land Dispositions
Dispositions to conduct AER-regulated activities on public land are specific to those activities. Additional activities require their own dispositions, even if being carried out near to or at the same location as an AER-regulated activity.
Produced Gas Consumption
Cryptocurrency mining operations that consume gas produced by AER-regulated activities are considered consumers, even if the third-party operation is owned or operated by the same entity that produced the gas. The AER regulates delivery point measurement and reporting of produced gas by AER-regulated parties. When gas produced by AER-regulated activities is delivered to consumers, the AER-regulated party must ensure that it is measured and reported as sales gas in accordance with Directive 017: Measurement Requirements for Oil and Gas Operations and Directive 007: Volumetric and Infrastructure Requirements and that royalties are paid on the gas volumes delivered to third-party operations.
