From low commodity prices to new climate change requirements and increased regulatory obligations arising from the Redwater Decision, the Alberta oil and gas industry finds itself in the eye of the storm. There is uncertainty for the future of pending energy projects in Alberta. As Borden Ladner Gervais LLP (“BLG”) wrote in February 2015, the Alberta Energy Regulator (“AER”) launched its Play-Based Regulation (“PBR”) Pilot Project to address cumulative effects of unconventional resource developments.
Is this the answer to industry’s current woes and what is the current status of PBR? In September 2014, AER launched a pilot (the “PBR Pilot”) in the Fox Creek area to test a new approach to regulate unconventional oil and gas development. The PBR Pilot is an integrated application process that allows energy companies to submit one application for all activities under an energy development project, instead of submitting separate applications for each activity.
Energy companies are required to engage stakeholders for the entire project plan instead of for each individual well. This also allows the AER to better understand the broader impacts of projects to ensure steps are taken to minimize potential impacts on the environment, communities, and stakeholders. The PBR Pilot is an initiative under the Energy Resources Conservation Board’s Unconventional Regulatory Framework discussion paper released in 2012, which described a play-focused approach to regulation.
Chidinma Thompson and Alan Ross – Borden Ladner Gervais LLP – October 25 2016.
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