Geothermal Resources
The Geothermal Resource Development Act provides the AER with the authority to regulate the safe, efficient, and responsible development of Alberta’s geothermal resources. The Geothermal Resource Development Rules (the “Rules”) and Directive 089: Geothermal Resource Development (“Directive 089”) were issued to complete the regulatory framework for geothermal resource development. The Rules and Directive 089, effective August 15, 2022, set out the requirements for the entire life cycle of a geothermal development when developing geothermal resources below the base of groundwater protection. The Rules and Directive 089 introduce requirements and processes unique to geothermal energy and include references to applicable oil and gas regulatory instruments.
The AER also updated Manual 012: Energy Development Applications Procedures and Schedules with guidance for geothermal applications (wells, facilities, pipelines), including how the AER will apply liability management to geothermal resource developments.
Finally, the AER updated the Oil and Gas Conservation Rules (“OGCR”) to align with the geothermal regulatory framework. The definition of oilfield waste in the OGCR has been updated to include waste from a geothermal resource development. A new provision has been added to the OGCR that requires an application for amendment where a licensee intends to change a well licensed under the Oil and Gas Conservation Act to a geothermal well.
