ALBERTA ENERGY REGULATOR ADMINISTRATION FEES RULES AMENDMENT REGULATION
Responsible Energy Development Act
April 6, 2022
56/2022
For information only: Made by the Alberta Energy Regulator on March 28, 2022 pursuant to section 29 of the Responsible Energy Development Act. 1 The Alberta Energy Regulator Administration Fees Rules (AR 70/2019) are amended by this Regulation. 2 Section 1 is amended by adding the following after clause (b): (b.1) "facility" means a facility as defined in the Oil and Gas Conservation Act except that it includes (i) a processing plant as defined in the Oil Sands Conservation Act, and (ii) a pipeline as defined in the Pipeline Act that is licensed by the Regulator and over which the Regulator has jurisdiction; 3 Section 2 is amended (a) in subsection (1) by striking out "or oil sands project" and substituting ", oil sands project or facility"; (b) in subsection (2) by striking out "for the 2021-2022 fiscal year is December 31, 2020" and substituting "for the 2022-2023 fiscal year is December 31, 2021". 4 Section 3 is amended (a) by repealing subsection (2) and substituting the following: (2) For the 2022-2023 fiscal year, the annual adjustment factor is 3.721143. (b) in subsection (4)(f) by striking out "July 15" and substituting "January 31". 5 Section 4 is amended (a) in subsection (1) by striking out "2020 calendar year" and substituting "base year"; (b) in subsection (2) by striking out "$0.446721" and substituting "$0.861248". 6 Section 5 is amended (a) in subsection (4) by striking out "5.162912" and substituting "4.232472"; (b) in subsection (5) by striking out "2.991896" and substituting "2.334535"; (c) in subsection (6) by striking out "8.047694" and substituting "5.695956"; (d) in subsection (7) by striking out "2.320594" and substituting "2.640234"; (e) in subsection (8) by striking out "16.653068" and substituting "12.528503". 7 The following is added after section 5: Gas plants 5.1(1) An operator of a facility licensed under the Oil and Gas Conservation Act shall pay an administrative fee with respect to the facility if the facility (a) is categorized by the Regulator as a gas plant with an active, new or unknown activity status, and (b) has an inlet rate greater than or equal to 10 000.00 thousand cubic metres per day as of December 31 of the base year. (2) The administrative fee shall be calculated as follows: administration fee = individual facility inlet rate (thousand cubic metres) x $2.044546 for each thousand cubic metres per day Processing plants 5.2(1) Subject to subsection (4), an operator of a processing plant approved under the Oil Sands Conservation Act shall pay an administrative fee with respect to the processing plant if the processing plant is categorized by the Regulator as having an operating status as of December 31 of the base year. (2) The administration fee shall be calculated as follows: administration fee = individual facility inlet rate (cubic metres) x $3.071925 for each cubic metres per day (3) For the purposes of calculating the administration fee in subsection (2), if a processing plant processes gas, its individual facility inlet rate in thousand cubic metres is to be adjusted by a conversion factor of 1.00. (4) This section does not apply to processing plants approved under the Oil Sands Conservation Act (a) that are subject to an administration fee under section 5, or (b) for which approvals have been issued under the Environmental Protection and Enhancement Act and the Water Act by Alberta Environment and Parks. Pipelines 5.3(1) For the purposes of this section, a "satellite" means an arrangement of equipment, not including oil storage tanks, located at a point between a group of wells and a battery that (a) separates and measures the components of each oil well's production, and (b) recombines the production for transport to a battery for further processing or storage. (2) Subject to subsection (5), an operator of a pipeline licensed under the Pipeline Act shall pay an administration fee calculated as follows with respect to the segments of a pipeline within each class, multiplied by the annual adjustment factor set out in subsection (3): (a) Class A - $50 per kilometre; (b) Class A (Discontinued) - $25 per kilometre; (c) Class B - $60 per kilometre; (d) Class B (Discontinued) - $30 per kilometre; (e) Class C - $200 per kilometre; (f) Class C (Discontinued) - $100 per kilometre. (3) For the 2022-2023 fiscal year, the annual adjustment factor is 0.586598. (4) For the purposes of this section, pipelines subject to an administration fee are classed as follows: (a) Class A - pipelines that have a diameter of less than 168.3 millimetres; (b) Class A (Discontinued) - Class A pipelines that are categorized by the Regulator as discontinued as of December 31 of the base year; (c) Class B - pipelines that have a diameter of greater than or equal to 168.3 millimetres and less than 609.6 millimetres; (d) Class B (Discontinued) - class B pipelines that are categorized by the Regulator as discontinued as of December 31 of the base year; (e) Class C - pipelines that have a diameter of greater than or equal to 609.6 millimetres; (f) Class C (Discontinued) - class C pipelines that are categorized by the Regulator as discontinued as of December 31 of the base year. (5) The following are exempt from payment of an administration fee: (a) all segments of a pipeline categorized by the Regulator as abandoned as of December 31 of the base year; (b) when a pipeline licence contains a segment that connects to and from a well, all segments of the pipeline within the licence; (c) when a pipeline licence contains a segment that connects to and from a satellite, all segments of the pipeline within the licence. 8 Section 6 is amended (a) in subsection (1) by striking out "or one or more oil sands projects" and substituting ", one or more oil sands projects or one or more facilities"; (b) in subsection (2) (i) in clause (b) by striking out "and oil sands projects" wherever it occurs and substituting ", oil sands projects and facilities"; (ii) in clause (c) by striking out "and oil sands project" and substituting ", oil sands project and facility"; (c) in subsection (4) by striking out "or oil sands project" wherever it occurs and substituting ", oil sands project or facility". 9 Section 7(1) is amended by striking out "unless the Regulator otherwise directs" and substituting "or the date otherwise prescribed by the Regulator". 10 Section 8(1)(a) and (b) are amended by striking out "or oil sands projects" wherever it occurs and substituting ", oil sands projects or facilities". 11 Section 9(2), (3) and (4) are amended by striking out "or oil sands project" wherever it occurs and substituting ", oil sands project or facility". 12 Section 10 is amended (a) in clause (a) by striking out "or oil sands projects" wherever it occurs and substituting ", oil sands projects or facilities"; (b) by striking out "or coal mine" and substituting ", coal mine or facility"; (c) by adding "or facility" after "the project". 13 Section 11 is amended by striking out "December 31, 2022" and substituting "March 31, 2023".