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Timeline

Our estimated processing time for this application is 130 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 apply to use a class III fluid disposal well for CO2 sequestration. 

COsequestration schemes are often referred to as carbon capture and storage (CCS) projects. CO2 sequestration schemes involve the permanent storage and trapping of CO2 in approved subsurface geological formations. There must be no impact to public safety and no adverse effects on the environment or hydrocarbon recovery in the surrounding area.

Process Checklist

Applications must meet our technical and safety requirements in the following documents:

Wells proposed for CO2 sequestration do not have to be drilled before submitting a CO2 sequestration application. If the CO2 sequestration 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. 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 sequestration project that is subject to certain conditions. One of the conditions will require the operator to submit the penetration data for the candidate CO2 sequestration 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 formation and its suitability for CO2 sequestration. Once we have confirmed the formation’s suitability, we will issue the final Directive 065 approval. 

The optional two-step pre-drill process must meet the following:

  • Directive 056 application for a well licence must be submitted as stipulated in Directive 056 with rights for all intended purposes. (Refer to the Initiating a New Carbon Capture Well Licence Application Quick Reference Guide for helpful tips.) Directive 065 application for the pre-drill or post-drill must be accompanied by evidence that you have the right to inject captured CO2 for sequestration into the proposed zone.

If the two-step process is not used, the regular CO2 sequestration application process under Directive 065 must be used, which requires the proposed CO2 sequestration well be drilled before application.

Submit an Application

Companies must submit CO2 sequestration applications through our Digital Data Submission (DDS) system. We will register each application and assign it a reference number.
Participation involvement, including surface notification and public involvement, must be conducted in accordance with Directive 056. The monitoring, measurement, and verification (MMV) plans may help inform applicants on the expanded area of notification. There are no surface notifications for Directive 065 CO2 sequestration pre-drill or post-drill applications. Directive 065 scheme approval is not required or issued during the evaluation phase of a CO2 sequestration project. 

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:
    • 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 sequestration 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 of the associated wellbores with the changing CO2 plume position over the life cycle of the project, including impacts from nearby injection to the ultimate extent of the plume at closure.
    • The proposed maximum wellhead injection pressure must be appropriate for the operation.
    • CO2 sequestration 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) are notified in accordance with table 1 of Directive 065.
    • The proposed formation depth must be greater than or equal to one thousand metres true vertical depth from the surface of the land. 
  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.
  7. The operational status of a CO2 sequestration well should be changed to CARBON DIOXIDE INJECTION in PETRINEX by the approval holder.
Summary of AER's CO2 Sequestration Applications Process