Alberta Energy Regulator

Last updated

Alberta Energy Regulator
Alberta Energy Regulator logo.svg
Agency overview
Jurisdiction Alberta
Agency executive
Parent department Alberta Energy, Alberta Environment and Protected Areas
Website www.aer.ca

The Alberta Energy Regulator (AER) is a quasi-judicial, independent agency regulating the development of energy resources in Alberta. Headquartered in Calgary, Alberta, the AER's mandate under the Responsible Energy Development Act (REDA) is "to provide for the efficient, safe, orderly and environmentally responsible development of energy resources and mineral resources in Alberta.” [1]

Contents

Responsible for all projects from application to reclamation, the AER administers the Public Lands Act, [2] the Environmental Protection and Enhancement Act [3] and the Water Act. [4] [5] [6]

The AER operates at arm's length from the Government of Alberta, under an appointed board of directors. [7] [8]

Background

Energy regulation in Alberta has evolved over time to meet changing technologies and public needs. Since the creation of the Petroleum and Natural Gas Conservation Board in 1938, [9] the regulatory body has consistently overseen energy development in the province.

It has existed under several names throughout its history, including the Alberta Oil and Gas Conservation Board, the Alberta Energy and Utilities Board, and the Alberta Energy Resources Conservation Board. The AER builds off of this legacy, but it is now, under the REDA, an entirely new organization with new regulatory functions and authority over energy-related applications and developments.

In December 2012, REDA passed in the Alberta Legislature as part of the Regulatory Enhancement Project. On 17 June 2013, all regulatory functions previously carried out by the Energy Resources Conservation Board were taken over by the AER. [10]

Responsibilities

The AER "ensures the safe, efficient, orderly, and environmentally responsible development of hydrocarbon resources over their entire life cycle. This includes allocating and conserving water resources, managing public lands, and environmental protection while providing economic benefits for all Albertans." [11] [12] These hydrocarbon resources are among the world's largest reserves at 167 billion barrels of bitumen and crude oil, 33.7 trillion cubic feet of natural gas, and 37 billion tons of coal. [13] The AER also regulates the infrastructure associated with these reserves, including a provincial pipeline network of 415,000 kilometres (km), over 181,000 operating wells, more than 50,000 oil and gas facilities, over 200 thermal oil sands projects, nine oil sands mines, 11 coal mines, and four coal processing plants. [13]

The Government of Alberta has granted the AER authority to review and make decisions on proposed energy developments, to oversee all aspects of energy resource activities in accordance with government policies, to regularly inspect energy activities to ensure that all applicable requirements are met, to penalize companies that fail to comply with AER requirements, and to hold hearings on proposed energy developments. As the single regulator, it is responsible for all energy-related applications under the Environmental Protection and Enhancement Act, the Water Act, the Public Lands Act, and the Mines and Minerals Act. The AER also responds to concerns from landowners, First Nations, industry, and other stakeholders regarding energy regulations in Alberta and mediates disputes surrounding energy projects.

In the past the Energy Resources Conservation Board and Alberta Environment conducted investigations separately, but, with the creation of a single regulatory body for energy developments, the AER now conducts investigations and inspections to ensure compliance with all regulatory, environmental, and safety requirements. [14] The AER can enforce industry compliance with regulations using tools that include more frequent and detailed inspections, more stringent planning requirements, enforcement orders, shutting down operations, administrative penalties, [notes 1] and prosecution. The AER regularly posts details of compliance activities on the AER website, which also includes copies of all investigation reports.

Since the Energy Resources Conservation Board (ERCB) was succeeded by AER, as part of their succession title pages of all existing ERCB directives such as Directive 074 regarding oil sands tailings ponds performance dated 3 February 2009, now carry the AER logo. [15]

Leadership composition

As of March 2024, prior to several resignations and additions that spring, the AER's executive and leadership consisted of:

AER Executive
NamePositionBackgroundCompensation

(2022, in CAD$)

Laurie PushorPresident/CEOSenior Advisor for Government of Saskatchewan, Deputy Minister of the Economy & Deputy Minister of Energy and Resources (involved in a multi-million dollar land sale scandal with Global Transportation Hub Authority), [16] worked for the government's of Peter Lougheed and Ralph Klein $459,149.06
Martin FoyCOORegional Compliance and Enforcement/Operations Manager at Government of British Columbia, Regional Approvals/Compliance Manager at Alberta Environment, Executive Director at Alberta Environment and Parks $362,506.8
Sean SextonEVP of Law Branch & General CounselLawyer at Nickerson Roberts Holinski & Mercer, Lawyer at Alberta Municipal Government Board $340,176.83
Mike DaltonVP Finance/CFOSenior Operations & Production Accountation at Canadian Natural Resources and Baytex Energy, Manager at PwC, Accounting Manager at Central Global Resources ULC, Director of Finance at Raytheon Company/Raytheon Calgary, Officer Commanding Headquarters Squadron at Canadian Armed Forces (deployed with United Nations Protection Force during Croatian War of Independence), CFO at Guardian Exploration Inc., Eguana Technologies, Controller at ATCO Frontec, Director at Mental Health Commission of Canada, Director at Calgary Co-op, and Treasurer at King's Own Calgary Regimental Funds Foundation

Claims to have NATO Security Clearances: Secret and Top Secret. [17]

$330,132.61
Erin KurchinaVP People, Culture, and LearningVP HR/EHS at Enmax $312,798.09
AER Board of Directors
NamePositionBackgroundCompensation

(2022, in CAD$)

David GoldieBoard ChairSenior Exploration Geophysicist at Imperial Oil, Lead Geophysical Interpreter at Exxon, Exploration Manager at PanCanadian Petroleum, VP at Encana, VP of Wabasca Oil Field Operations at Cenovus Energy, and Senior Planning Advisor at Cenovus Energy $134,333.68
Corinna BrysonDirectorSenior Projects Engineer at Shell (designed Mackenzie Valley Pipeline), VP and Director of Oil Sands Planning at CNOOC Petroleum North America (Nexen), Director at Emissions Reduction Alberta, Director at Alberta Petroleum Marketing Commission, Director at Canada-Nova Scotia Offshore Petroleum Board, Editorial Committee at Canadian Heavy Oil Association $68,327.93
Jude DanielsDirectorDirector at Aquatera Utilities Inc., Board Member at Spiriti North$60,896.57
Georgette HabibDirectorManager at Alberta Energy and Utilities Board, Board Member at National Energy Board, Board of Governor Member at University of Calgary, President at GE Energy Consulting Ltd., and Board Member at Alberta Electric System Operator $62,533.83
Gary LeachDirectorPresident of Explorers and Producers Association of Canada $62,633.83
Tracey McCrimmonDirectorExecutive Director at Sundre Petroleum Operators Group, Senior Advisor at Compton Petroleum $64,537.52
Katarzyna (Kasha) PiquetteDirectorDeputy Minister of Alberta Environment and Protected Areas, Regional Manager at Royal Bank of Canada Investments, Senior Relationship Manager at Barclays Wealth in the United Arab Emirates, Director and Team Lead at Scotiabank, VP of Private Banking at National Bank of Canada, Director for Financial/Business Services at Invest Alberta, CSO/Co-founder of Transformation Re, President of Alberta Water Council, Governor at Canadian Energy Executive Association ---
Allison Rippin ArmstrongDirectorLands and Environment Manager for the Dene Nation, Environmental Specialist at BHP Billiton, VP of Sustainability at Kaminak Gold Corporation $17,094.48

Governance structure

Under the AER's governance structure, the board of directors determines the general direction of the regulator rather than overseeing the AER's day-to-day operations and decisions – these are the responsibility of the chief executive officer. The CEO receives and makes decisions on applications, monitors and investigates energy resource activities for compliance, and oversees the closure of energy developments, including reclamation and remediation of the land.

Hearing commissioners constitute another part of the AER's structure. They conduct all hearings into energy applications and regulatory appeals, in addition to helping to develop the organization's hearing procedures and rules as well as other day-to-day operations. Hearing commissioners are independent adjudicators, and their decisions may only be reviewed by the Court of Appeal of Alberta.

Funding

The AER is 100 per cent funded by industry and is authorized to collect funds through an administrative fee levied on oil and gas wells, oil sands mines, and coal mines. The industry-funded model is sometimes used by regulatory agencies in Canada, such as the Alberta Utilities Commission and the BC Oil and Gas Commission. [11] [13] Its budget is established through a formal process between the Government of Alberta's Treasury Board and the AER, and the budget must be approved by the Government of Alberta. The AER has an annual budget of more than $165 million and more than 1200 staff working in 15 locations across Alberta. [11]

Criticism

Critics raised concerns the AER would lead to less transparency in the regulation of the oil, gas and coal industry and would weaken environmental protection. [18] Alberta Surface Rights Group, the United Landowners of Alberta, First Nations, farmers and ranchers have expressed concerns about the streamlining of regulatory processes that may benefit oil and gas industries at their expense. Energy Minister Ken Hughes argued that the Policy Management Office would oversee AER when it takes over from Environment and Sustainable Resource Development (ESRD) in issuing permits related to water and to the environment. The Canadian Association of Petroleum Producers (CAPP) welcomes the change that will streamline access to water and environmental permits for oil companies, by creating a one-stop-shop with "much needed clarity". Rachel Notley, Alberta New Democrat's environment critic, expressed concern that the security of water and the environment would be compromised if the all decisions relating to development in the energy sector—including oil, gas and coal—are regulated under the AER, which is entirely funded by these industries. Prior to REDA, the Alberta Environment regulated these permits under three provincial laws, the Water Act, the Public Lands Act, and the Environmental Protection and Enhancement Act. [18]

In June 2015, Alberta Premier Rachel Notley expressed concerns that the AER appeared to have a "conflicting mandate" as both an energy promoter and "the primary vehicle of environmental protection in Alberta" and considered splitting it. [5] She was concerned that AER had "responsibility for most of the environmental protection and monitoring part and standards development within the energy sector." [5] Some in the oil industry insiders, such as Bill Andrew, CEO of Long Run Exploration, supports splitting up "AER's functions because the current regulator has too much on its plate". [5] Others, however such as Gary Leach, president of the Explorers and Producers Association of Canada, argue that AER's primary role is "environmental protection, public safety and resource conservation – not the promotion of energy development," and that the "many jurisdictions in North America and around the world" see AER "as a leading regulator for energy projects." [5]

On 5 October 2019, three independent investigations into AER's International Centre of Regulatory Excellence (ICORE), submitted their findings. In response to a whistle-blower complaint, the three agencies—the Alberta Ethics Commissioner Marguerite Trussler, the Public Interest Commissioner, and the Auditor General had undertaken launched separate probes into the AER in 2018. [19]

Global New's request for a freedom of information resulted in the release of AER CEO Laurie Pushor's 20 April 2020 "internal briefing note" consisting of 60 pages of emails. [20]

Between 2020 and 2023, AER and Imperial Oil conspired to hide an ongoing and massive tailings pond seepage at the Kearl Oil Sands resulting in the release of over 5.6 million litres of contaminated wastewater into the nearby ecosystem. [21] Provincial Minister of Energy and Minerals, Brian Jean, visited the Kearl site and applauded Imperial's "commitment to environmental protection" as "top notch", days before the AER announced another 670,000 litre leakage. Jean deflected criticisms, claiming that "it's just muddy water". [22] On March 6, 2024, the Athabasca Chipewyan First Nation sued the AER for $500 million alleging "negligence, nuisance, breach of the duty to consult, breach of the Honour of the Crown, breach of fiduciary duty and unjustified Treaty infringement." [23] The AER subsequently imposed on Imperial administrative penalties of $50,000 for failing to report the leak for over nine months. [24]

See also

Notes

  1. ↑ Administrative penalties under the Responsible Energy Development Act, unlike separate criminal penalties, are limited to $500,000 or less for a corporation and $50,000 or less for an individual, for each individual infraction.

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References

  1. ↑ Responsible Energy Development Act, SA 2012, c R-17.3, 1 March 2024, retrieved 14 May 2024
  2. ↑ Public Lands Act, RSA 2000, c P-40, 23 June 2020, retrieved 22 December 2020
  3. ↑ "Revised Statutes of Alberta 2000 Chapter E-12" (PDF), Government of Alberta, Environmental Protection and Enhancement Act, 23 June 2020, retrieved 22 December 2020
  4. ↑ "Water Act", Government of Alberta, 23 June 2020, retrieved 22 December 2020
  5. 1 2 3 4 5 Henton, Darcy (23 June 2015), "NDP Eyes Regulator Split", Calgary Herald, Calgary, Alberta, retrieved 23 June 2015
  6. ↑ "Regulatory Enhancement Project". Alberta Energy. 12 June 2013. Archived from the original on 25 September 2013. Retrieved 24 June 2013.
  7. ↑ Varcoe, Chris (26 April 2024), "Province to appoint new chair, three other board members to AER amid stormy times for regulator", Calgary Herald, Calgary, Alberta, retrieved 5 June 2024
  8. ↑ Weber, Bob (5 June 2024), "Alberta government reducing independence of province's energy regulator: Opposition", Calgary Herald, Calgary, Alberta, retrieved 5 June 2024
  9. ↑ Jaremko, Gordon (2013). Steward (PDF) (1 ed.). Calgary, Canada: Energy Resources Conservation Board. ISBN   978-0-9918734-0-1 . Retrieved 3 June 2014.
  10. ↑ "News Release 2013-06-17". Archived from the original on 2 August 2013. Retrieved 24 June 2013.
  11. 1 2 3 "The Alberta Energy Regulator" (PDF). The Alberta Energy Regulator (AER). 2013. Archived from the original (PDF) on 21 April 2014.
  12. ↑ "Alberta Energy Regulator Operations Continue During Southern Alberta Floods". Calgary, Alberta: Marketwired. 22 June 2013.
  13. 1 2 3 "What is the Alberta Energy Regulator". Alberta Energy Regulator. Alberta Energy Regulator. Archived from the original on 6 June 2014. Retrieved 3 June 2014.
  14. ↑ "Inspections and Enforcement of Energy Developments in Alberta". Alberta Energy Regulator. Alberta Energy Regulator. Archived from the original on 6 June 2014. Retrieved 3 June 2014.
  15. ↑ "Directive 074: Tailings Performance Criteria and Requirements for Oil Sands Mining Schemes", AER, 3 February 2009
  16. ↑ Rusnell, Charles (23 March 2023). "On the Hot Seat: Alberta Energy Regulator CEO Laurie Pushor". The Tyee.
  17. ↑ "Mike Dalton CA MBA ICD.D | LinkedIn". ca.linkedin.com. Retrieved 29 November 2023.
  18. 1 2 Pratt, Sheila (17 March 2013). "New energy regulator will weaken environmental protection, say critics" (PDF). Edmonton Journal. Edmonton, AB. Archived from the original (PDF) on 2 April 2015. Retrieved 8 March 2015.
  19. ↑ Bakx, Kyle (12 October 2019). "Board members asked few questions as AER executives racked up bills, withheld information". Canadian Broadcasting Corporation.
  20. ↑ De Souza, Mike (17 July 2020). "Emails show how oil patch lobbied Alberta Energy Regulator for coronavirus relief". Global News. Retrieved 17 July 2020.
  21. ↑ Weber, Bob (2 October 2023). "Imperial and Alberta regulator knew for years about oilsands tailings seepage, documents show". CBC Edmonton. Retrieved 28 November 2023.
  22. ↑ "First Nation shares frustration over water incident at Kearl oilsands mine in northern Alberta | Globalnews.ca". Global News. Retrieved 29 November 2023.
  23. ↑ "First Nation sues Alberta Energy Regulator over tailings leaks from oilsands mine | cbc.ca". CBC. Retrieved 19 September 2024.
  24. ↑ "Alberta regulator fines Imperial Oil over Kearl tailings pond leaks | cbc.ca". CBC. Retrieved 19 September 2024.

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