Directive 056: Energy Development Applications and …

1 Directive 056 Directive 056: Energy Development Applications and Schedules (March 16, 2023) i Release date: March 16, 2023 Effective date: March 16, 2023 Replaces previous edition issued March 2, 2023 Energy Development Applications and Schedules Contents 1 Introduction .. 1 Purpose of This Directive .. 1 AER Requirements .. 1 What s New in This Edition .. 1 How to Use This Directive .. 2 Continuous Improvement .. 2 Directive 056 3 2 Licence Applications .. 5 Overview .. 5 Before Filing a Licence Application .. 5 Business Associate Codes .. 5 Prelicensing Approvals and Variances .. 5 Applicant Responsibilities .. 6 Submission Procedures .. 6 Incomplete Licence Applications .. 7 Checking the Status of a Licence Application .. 7 AER Licence Application Process.

2 7 Application Disposition .. 7 3 Participant Involvement .. 9 Overview .. 9 Planning a Participant Involvement Program .. 10 Who to Include .. 10 What Information to Disclose .. 12 Alberta Energy Regulator ii Directive 056: Energy Development Applications and Schedules (March 16, 2023) Personal Information .. 13 Implementing the Participant Involvement Program .. 14 Personal Consultation and Confirmation of Nonobjection .. 14 Notification .. 16 Extended 17 Addressing Concerns/Objections and Alternative Dispute Resolution .. 18 Documenting the Participant Involvement Program .. 19 Expiry of the Personal Consultation and Notification Program .. 19 Additional Participant Involvement Requirements for Facilities .. 20 Licence Expiry .. 20 Licence 20 Consultation and Notification Requirements by Facility.

3 21 Exempted Activities and Facilities .. 23 Other Participant Involvement Requirements for Facilities .. 23 Setback Requirements .. 24 Noise Requirements .. 24 Additional Participant Involvement Requirements for Pipelines .. 24 Licence Expiry .. 24 Licence 24 Consultation and Notification Requirements by Pipeline Type .. 25 Exemptions .. 25 Other Participant Involvement Requirements for Pipelines .. 27 Participant Involvement Requirements for Pipeline Licence 28 Additional Participant Involvement Requirements for Wells .. 30 Licence Expiry .. 30 Licence 31 Consultation and Notification Requirements by Well Type .. 31 Licence Amendments .. 33 Other Participant Involvement Requirements for Wells .. 33 4 Application Audit Process .. 35 Overview.

4 35 Audit Selection .. 36 Audit Types .. 36 Full or Partial Audit Review .. 36 Immediate Audit .. 36 Prelicensing Audit Reviews .. 36 Link to AER Field Surveillance Inspections .. 36 Alberta Energy Regulator Directive 056: Energy Development Applications and Schedules (March 16, 2023) iii Audit Documentation .. 36 Acquisitions .. 37 Compliance Records .. 37 Additional Audit Documentation Requirements for Facilities .. 37 Participant Involvement 37 Emergency Response Planning .. 40 Application Category .. 40 Design Criteria .. 40 Technical Information .. 41 Gas Plants .. 43 H2S Information .. 44 Compressors or Pumps .. 45 Additional Audit Documentation Requirements for Pipelines .. 45 Participant Involvement 46 Emergency Response Planning .. 48 Transportation and Utility Corridor.

5 48 Environmental Information .. 48 Pipeline Technical Information .. 48 Pipeline Installation Technical Information .. 52 Additional Audit Documentation Requirements for Wells .. 53 Participant Involvement 53 Emergency Response Planning .. 55 Well Purpose .. 55 Minimum Casing Testing Requirements .. 56 Well Detail .. 56 Surface Casing Requirements .. 56 Well Classification .. 56 Rights for All Intended Purposes .. 57 Rights for the Complete Drilling Spacing Unit .. 57 Water Body Setback Requirements .. 57 Other Setback Requirements .. 57 Environmental Requirements .. 58 CBM Wells .. 58 H2S Release Rate .. 58 Intermediate Casing .. 58 Drilling Critical Wells .. 59 Alberta Energy Regulator iv Directive 056: Energy Development Applications and Schedules (March 16, 2023) 5 Facility Licence Applications .

6 61 Overview .. 61 Licence Expiry .. 62 Licence 62 Category Type and Consultation and Notification Requirements .. 63 Exemptions .. 63 Single-Well Facility Sites .. 63 Other Facilities .. 64 Exempt Activities .. 64 Licence Amendments .. 65 Technical Requirements .. 66 Emergency Response Planning .. 66 Licensee Liability Rating .. 66 Proliferation .. 67 Facility Design Criteria .. 68 Sulphur Recovery .. 68 Process Flow Diagrams .. 69 Total Continuous Emissions .. 70 Compressor and Pump Additions .. 71 Setback Requirements .. 73 Plot Plans, Equipment and Off-Lease Spacing Requirements .. 73 Vapour Recovery and Odour Control .. 75 Noise Requirements .. 76 Alberta Environment and Protected Areas .. 76 Alberta Culture .. 77 AER Environmental Requirements.

7 77 Working Interest Participants .. 77 Additional Application 77 6 Pipeline Licence Applications .. 79 Overview .. 79 Licences .. 80 Licence Expiry .. 80 Licence 80 Category Type and Consultation and Notification Requirements .. 80 Exemptions .. 81 Pipeline Installations .. 81 Pipeline Activities .. 81 Alberta Energy Regulator Directive 056: Energy Development Applications and Schedules (March 16, 2023) v Licence Amendments .. 82 Technical Requirements .. 83 Emergency Response Planning .. 83 Setback Requirements .. 83 Pipeline Leak Detection .. 84 Steam Distribution Pipelines .. 84 Pipeline Discontinuation .. 84 Pipeline Abandonment .. 85 Partial Pipeline Removals .. 85 Pipeline 85 Pipeline 86 Pipeline Replacement .. 86 Surface 86 Calgary and Edmonton Transportation and Utility Corridors.

8 88 Pipeline Spatial Data .. 88 Maximum Operating Pressure Increase .. 88 Maximum Operating Pressure Decrease .. 89 Substance Change .. 89 Connecting Pipelines with Different Substances .. 90 Liner Type .. 90 Sour Service Pipelines .. 90 CSA Group .. 91 Pipelines Transporting Carbon Dioxide .. 91 Stainless Steel Pipelines .. 92 Injecting Natural Gas Containing H2S into a Producing 92 Stress Level .. 92 Pipeline 93 Blending of Products .. 96 Proliferation .. 96 AER Environmental Requirements .. 96 Conservation and Reclamation Requirements .. 97 Pipelines Used in Geothermal and Brine-Hosted Mineral Resource Developments .. 97 Additional Application 97 Alberta Energy Regulator vi Directive 056: Energy Development Applications and Schedules (March 16, 2023) 7 Well Licence Applications .

9 99 Overview .. 99 Licence Expiry, Extensions, and Cancellations .. 100 Category Type and Consultation and Notification Requirements .. 100 Exemptions .. 101 Abandoned Well Remediation .. 101 Licence Amendments and Information Updates .. 101 Amendments .. 102 Information Updates .. 102 Re-entry, Resumption, and Deepening .. 102 Technical Requirements .. 103 Spatial Data and Survey Plans .. 103 Well Names .. 105 Emergency Response Planning .. 105 Critical Sour Well .. 105 Minimum Casing Testing Requirements Re-entry and Resumption of Drilling .. 106 Terminating Formation .. 108 AER Classifications .. 108 Assigning Initial Confidentiality to New Wells .. 111 Drill-Cutting Sample Requirements .. 114 Groundwater Protection .. 114 Surface Casing and Exemptions.

10 115 Right to Evaluate, Produce, or Operate .. 119 Setback Requirements .. 121 AER Environmental Requirements .. 124 H2S Release Rate Assessments .. 125 Working Interest Participants .. 134 Additional Application 134 8 Additional Application Requirements (Special Circumstances) .. 135 Overview .. 135 Battle Lake Area Application Requirements .. 135 Background .. 135 Battle Lake Tier 1 Area Definition .. 136 Application Requirements for the Tier 1 Area .. 137 Non-Tier 1 Areas .. 138 Sour Gas Planning and Proliferation Application Requirements .. 138 Background .. 139 Alberta Energy Regulator Directive 056: Energy Development Applications and Schedules (March 16, 2023) vii Application Requirements for Sour Gas Development .. 139 Addressing Concerns and Objections.