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Timeline

Our estimated processing time for this application is 75 business days. See our timeline spreadsheet for updates.

Purpose of the Application

We classify injection wells based on their injection fluid type. Our classification system is described in Directive 051: Injection and Disposal Wells – Well Classifications, Completions, Logging, and Testing Requirements.

Companies must use class III fluid injection well for CO2 injection and class II fluid injection for water injection for water alternating gas (WAG) schemes.

Carbon dioxide (CO2) EOR storage schemes are often referred to as carbon capture, utilization, and storage (CCUS) projects. CO2 EOR storage schemes should optimize flood design and well placement for extracting additional residual oil and promote long-term storage and trapping (net geological sequestration) of CO2.

Process Checklist

Wells proposed for CO2 EOR storage do not have to be drilled before submitting a CO2 EOR storage application. If the CO2 EOR storage injection well has not yet been drilled, an optional two-step application process may be used in which the application under Directive 065 may be accompanied by an application for a well licence under Directive 056, either by submitting the applications at the same time or by submitting the Directive 065 application after the Directive 056 application has been submitted or approved. The pre-drill scheme approval areas and the proposed pre-drill injection wells must be within the AER pool boundary.

This optional two-step application process provides operators with information on the conditions of their approval before an investment is made in drilling the CO2 EOR storage wells and enables an applicant to stage the submission requirements. Applications submitted under this process will still be reviewed using the same assessment criteria as applications submitted under the regular Directive 065 application process, and all other existing rules and regulations will apply.

In the first step of the optional pre-drill process, we will review the Directive 056 application, if not already approved, and the Directive 065 application to confirm that they meet our requirements. If the applications meet our requirements and we issue a well licence, we will issue a provisional Directive 065 approval for the CO2 EOR storage project that is subject to certain conditions. One of the conditions will require the operator to submit the penetration data for the candidate CO2 EOR storage well under a separate Directive 065 application.

In the second step of the optional pre-drill process, we will review the well penetration data to confirm the geological and engineering information of the target AER defined oil pool and its suitability for CO2 EOR storage. Once we have confirmed the formation’s suitability, we will issue the final Directive 065 approval.

If this process is not used, the regular application for an enhanced recovery process under Directive 065 must be used, which requires the proposed CO2 EOR storage well to be drilled before application.

Submit an Application

Companies must submit their applications through our Digital Data Submission (DDS) system. We will register each application and assign a reference number.

Participation involvement, including surface notification and public involvement, must be conducted in accordance with Directive 056. As stipulated in Section 3.2 Planning a Participant Involvement Program, it is industry’s responsibility to assess the area beyond a specified radius to determine if the radius should be expanded to include those that have expressed interest.

Review Process and Checklist

Please note that additional approvals from the AER or other governmental agencies may be required. A standalone checklist is also available.

  1. We share all applications on our Public Notice of Application page to notify the public of applications that have been filed with the AER.
  2. Anyone who believes they may be directly and adversely affected by an application can file a statement of concern (SOC). If we receive an SOC, it may take us longer to process the application.
  3. We will assign the application to a subject matter expert for initial review. If information is missing (i.e., the application is not complete), we will return the application. Otherwise, we will proceed with a full technical review. In our review, we look at our requirements, including whether the following have been met:
    • In the case of a new ER scheme, notifying licensees of all wells (including abandoned wells) within the entire AER-designated pool area.
    • In the case of an ER amendment that includes proposed injectors, notifying licensees of all wells, including licensees of abandoned wells, within 1.6 km of the proposed injector.
    • If on Freehold lands, the applicant must send a letter of indemnification to the Crown as it pertains to the proposed CO2 OR storage activities.
    • If the applied-for well or facility site falls within an area covered by the Lower Athabasca Regional Plan or the South Saskatchewan Regional Plan, our review will be more stringent.
    • Offset wellbores must be reviewed for potential high-risk hydraulic isolation deficiencies.
    • The wellbore integrity of the proposed CO2 EOR storage well must be suitable for the proposed operation (to comply with Directive 051).
    • The focus of the wellbore risk assessment is to ensure reservoir containment in all spheres from the injection zone to surface. It should cover evaluation and compliance of the associated wellbores with the changing CO2 position over the lifecycle of the project from nearby initial injection to ultimate extent at closure.
    • Wells must be completed or abandoned as per Directive 020 in a manner that ensures hydraulic isolation for the proposed CO2 EOR storage as described in section 2.1.5 of Directive 065.
    • The proposed maximum wellhead injection pressure must be appropriate for the operation.
    • CO2 EOR storage will be limited by a maximum reservoir operating pressure less than the formation fracture pressure. If the maximum reservoir operating pressure is reached, injection may be stopped.
    • An initial shut-in stabilized reservoir pressure test must be conducted in accordance with Directive 040: Pressure and Deliverability Testing Oil and Gas Wells prior to commencement of injection.
    • Notification requirements in Directive 065 must be met, specifically that licensees of all wells (including abandoned wells) notified in accordance with table 1 of Directive 065.
    • The containment assurance requirements in Directive 065, section 2.1.5, must be met.
  4. We may request additional information (through a supplemental information request) to complete our technical review.
  5. We will decide to approve, return, or deny the application. If we return it, the applicant may reapply without prejudice.
  6. We will provide the applicant with a link to the letter with our decision, which is accessible through the Integrated Application Registry. We will also share our decision on our Publication of Decision page.