© Published by Alberta King’s Printer Alberta King’s Printer Suite 700, Park Plaza 10611 - 98 Avenue Edmonton, AB T5K 2P7 Phone: 780-427-4952 E-mail: kings-printer@gov.ab.ca Shop on-line at kings-printer.alberta.ca Province of Alberta Office Consolidation Alberta Regulation 116/2022 With amendments up to and including Alberta Regulation 6/2026 Current as of February 2, 2026 GEOTHERMAL RESOURCE DEVELOPMENT ACT GEOTHERMAL RESOURCE DEVELOPMENT RULES

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Note All persons making use of this consolidation are reminded that it has no legislative sanction, that amendments have been embodied for convenience of reference only. The official Statutes and Regulations should be consulted for all purposes of interpreting and applying the law.

(Consolidated up to 6/2026) ALBERTA REGULATION 116/2022 Geothermal Resource Development Act GEOTHERMAL RESOURCE DEVELOPMENT RULES Table of Contents

Part 1

Interpretation 1

Interpretation 2 Resident defined 3 Directives

Part 2 Applications, Licences, Security and Variances 4 Application for approval or discharge of agent 5 Exemption from requirement to appoint agent 6 Licence eligibility requirements 7 Application for well licence 8 Application for facility licence 9 Application to change au thorized purpose of well 9 . 1 Application to change authorized purpose of facility 10 Transfer of licence 11 Security for wells and facilities 12 Directives re licensee assessment, licensee management, liability and security 13 Variances

Part 3 Geothermal Operations Drilling, Completing, Servicing and Other Operations 14 Approval of certain operations 15 Emergency variation or departure from program 16 Approval of injection or disposal 17 Approval of comminglin g of formation fluids 18 Advising field centre on commencement of drilling 19 Deviation and directional surveys

AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 2 20 Removal of rig 21 Control of encountered fluids 22 Licence specifications 23 Minimum casing requirements 24 Surface casing requirements 25 Intermediate casing 26 Hydraulic fracturing operations 27 Use of high vapour pressure hydrocarbons 28 Casing cementing requirement 29 Annulus between casing 30 Tubing requirement 31 Recovered casing 32 Use of isola tion packer 33 Surface and subsurface equipment 34 Testing, reports and repair requirements 35 Risk assessment, moni toring, mitigation and response Drilling and Operations Near Underground Mines 36 Drilling within 3 km of underground mine 37 Requirement for p illar in coal seam 38 Hole diameter requirements in coal seam 39 Decision of Regulator final Signage 40 Posting of licence and amendments 41 Posting of entrance and wellhead signs Emergency Preparedness and Response 42

Definitions 43 Emergency management program 44 Corporate emergency response plan 44.1 Operation-specific emergency response plan 44.2 Maintenance of plan and training 44.3 Ability to implement plan re water body 44.4 Records, forms and notifications 45 Incidents and emergencies Storage 46 Use of earthen struct ures or excavations 47 Storage of materials 48 Venting of relief devices to open tank

AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 3 Prevention of Spills or Releases 49 Equipment 50 Control of spills or releases from well or facility 51 Spill during transport from well or facility 52 Spill response contingency plans and training 53 Wells or facilities closer than 100 m to water 54 Abandonment of source of serious water pollution Air Emissions Management 55 Compliance with Directive 060 56 Burning at a well or facility 57 Equipping wells if samples > 50 mol/kmol H 2S gas 58 Flaring at well producing H 2S gas 59 Wells where > 10 mol/kmol H 2S gas present 60 Facilities where > 10 mol/kmol H 2S gas present 61 Pumping well with potential to flow H 2S to atmosphere Waste 62 Management of oilfield waste 63 Management of drilling waste 64 Alternative management of waste Blowout Prevention 65 Blowout prevention requirements 66 Drilling and servicing inspections Fire Hazards, Exhaust and Smoking 67 Fire risks 68 Operation of vehicles near wellhead 69 Smoking Fencing 70 Fencing of facility 71 Marking and fencing of well Miscellaneous 72 Conservation 73 Detection of hydrocarbons in production fluids 74 Noise 75 Participant involvement

AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 4

Part 4 Well Sampling, Testing, Records and Reports Sampling and Submission of Well Data 76 Submission of well data 77 Well tests, analyses, surveys, reports and logs 78 Analysis of reservoir fluids 79 Drillstem tests 80 Samples of drill cuttings 81 Core samples 82 Submission of core reports 83 Submission of well logs Measurement 84 Calibration of instruments 85 Metering errors 86 Measurement of injection wells 87 Measurement requirements in Directive 089 Record, Reports and Confidentiality 88 Records and reports o f well operations 89 Records of status of well 90 Record of production 91 Records under Directive 076 92 Report of fire 93 Report of casing leak or failure 94 Financial information 95 Confidentiality

Part 5 Suspension, Abandonment and Closure 96 Suspension of wells 97 Abandoned wells 98 Abandonment operations 99 Closure quotas 100 Regulator request for closure plans 101 Eligible requesters request for closure plan 102 Application for determination of costs 103 Abandonment of well drilled through coal

Section 1 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 5

Part 6 General 104 Fees 105 Service of notice of garnishment 106 Forwarding garnished money or revenue 107 Service of notices 108 E x p i r y 109 Coming into force Schedules

Part 1

Interpretation

Interpretation 1(1) In these Rules (a) “applicant” means an appli cant for a licence for a well or a facility under the Act; (b) “closed-loop well” means a well that is expected to have zero fluid injection and zero fluid production from a zone when fluids are circulated within the wellbore; (c) “closure” means the pha se of the energy resource development life cycle that involves the permanent end of operations including the abandonment and reclamation of wells, facilities, well sites and facility sites; (d) “Designated Information S ubmission System” means the online data submission process established by the Regulator; (e) “drilling waste” means the mud and cuttings generated from drilling a well; (f) “energy resource” means en ergy resource as defined in the Responsible Energy Development Act; (g) “observation well” means a well used to monitor downhole temperature or pressure; (h) “OGCA facility” means a facility licensed under the Oil and Gas Conservation Act; (i) “OGCA well” means a well licensed under the Oil and Gas Conservation Act;

Section 2 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 6 (j) “oilfield waste” means an unwanted substance or mixture of substances that results from the construction, operation, abandonment or reclamation of a well, facility, well site or facility site, but does not include an unwanted substance or mixture of substances from such a source that is received for storage, treatment, disposal or recycling at a facility that is regulated by the Department of Environment and Protected Areas; (k) “open-loop well” means a we ll that is used to inject fluids into a zone or produce fluids from a zone; (l) “underground mine” m eans an excavation and the associated infrastructure used to extract a mineral from the subsurface without removing the overburden.

(2) A decision of the Regulator is final as to whether a definition in subsection (1) is applicable in a particular case. AR 116/2022 s1;216/2022 Resident defined 2 For the purposes of

section 20 of the Act and these Rules, (

a) a licensee who is an individual is resident in a jurisdict ion if the individual makes the individual’s home in and is ordinarily present in that jurisdiction, and (

b) a licensee that i s a corporation is resident in a jurisdiction if a director or officer of the corporation or a person employed or retained to provide services to the corporation makes their home in that jurisdiction, is ordinarily present in that jurisdiction and is authorized to (

i) make decisions respec ting a licence for a well or facility issued by (

A) the regulatory authority in that jurisdiction, or (

B) in the case of Alberta, the Regulator, (ii) operate the well or facility, and (iii) implement directions fro m the regulatory authority or, in the case of Alberta, the Regulator, relating to the well or facility.

Section 3 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 7 Directives 3 In these Rules a reference to one of the following directives means a reference to that directive as published by the Regulator and amended from time to time: (

a) Directive 001: Requirements for Site Specific Liability Assessments in Support of the ERCB’s Liability Management Programs; (

b) Directive 007: Volum etric and Infrastructure Requirements; (

c) Directive 008: Surface Ca sing Depth Requirements; (

d) Directive 009: Casing Cementing Minimum Requirements; (

e) Directive 010: Minimum Casing Design Requirements; (

f) Directive 013: Suspension Requirements for Wells; (

g) Directive 017: Measure Re quirements for Oil and Gas Operations; (

h) Directive 020: Well Abandonment; (

i) Directive 036: Drilling Bl owout Prevention Requirements and Procedures; (

j) Directive 037: Service Rig Inspection Manual; (

k) Directive 038: Noise Control; (

l) Directive 040: Pressure an d Deliverability Testing Oil and Gas Wells; (

m) Directive 050: Drilling Waste Management; (

n) Directive 055: Storage Requirements for the Upstream Petroleum Industry; (n.1) Directive 056: Energy Development Applications and Schedules; (

o) Directive 058: Oilfield W aste Management Requirements for the Upstream Petroleum Industry; (

p) Directive 059: Well Drilli ng and Completion Data Filing Requirements; (

q) Directive 060: Upstream Petroleum Industry Flaring, Incinerating and Venting;

Section 4 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 8 (

r) Directive 067: Eligibility Req uirements for Acquiring and Holding Energy Licences and Approvals; (

s) Directive 068: E RCB Security Deposits; (

t) Directive 071: Emergency Preparedness and Response; (

u) Directive 076: Operato r Declaration Regarding Measurement and Reporting Requirements; (

v) Directive 079: Surface De velopment in Proximity to Abandoned Wells; (

w) Directive 080: Well Logging; (

x) Directive 083: Hydrau lic Fracturing – Subsurface Integrity; (

y) Directive 087: Well Integrity Management; (

z) Directive 089: Requirements for Geothermal Resource Development. AR 116/2022 s3;19/2023;6/2026

Part 2 Applications, Licences, Security and Variances Application for approval or discharge of agent 4 An application for the approval of an agent or for consent to discharge an agent must be made in the form established for that purpose by, and obtainable from, the Regulator. Exemption from requirement to appoint agent 5(1) In this section, “mutual recognition agreement” means a valid and subsisting agreement made between the Minister and a regulatory authority of another jurisdiction for the purpose of recognizing substantial regulatory equivalency and enabling reciprocity between Alberta and that jurisdiction.

(2) The Regulator, on application, may grant an exemption from the requirement under

section 20 of the Act to appoint an agent if the licensee applying for the exemption (

a) is resident in a jurisdictio n outside Alberta that is a party to a mutual recognition agreement and is subject to the authority of the regulatory authority in that jurisdiction,

Section 5 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 9 (

b) is in compliance with all ap plicable legislation in Alberta and in the jurisdiction in which the licensee is resident and all applicable directives, orders, decisions, directions and other instruments of the regulatory authority referred to in clause (

a) and of the Regulator, (

c) provides evidence satisfactory to the Regulator that the licensee meets, and during the time the licence or approval is in effect will continue to meet, the requirements set out in subsection (3), and (

d) agrees to attorn to the ju risdiction of Alberta with respect to all matters, obligations and liabilities pertaining to licences and approvals issued by the Regulator.

(3) An exemption under subsection (2) is subject to the condition that, in substitution for the requirements of

section 20(2) of the Act, the licensee must have (

a) sufficient numbers of individuals who are trained and competent to (

i) carry out operations rel ating to a well or facility, as the case may be, in compliance with the requirements of all applicable legislation and all applicable directives, orders, decisions, directions and other instruments of the Regulator, and (ii) respond sufficiently to incidents, including emergencies, a n d (

b) representatives at a we ll site during any drilling, completion, stimulation, servicing and abandonment operations at the well site who are authorized to make decisions respecting all aspects of those operations.

(4) An exemption under subsection (2) ceases to have effect immediately on (

a) the licensee ceasing to meet a requirement referred to in subsection (2)(a), (

b) or (d), or (

b) the Regulator determining t hat it is no longer satisfied that the licensee meets or will continue to meet the requirements set out in subsection (3). AR 116/2022 s5;6/2026

Section 6 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 10 Licence eligibility requirements 6(1) No person may acquire or hold a licence unless the person meets the licence eligibility requirements set out in Directive 067 and Directive 089, and in the case of a corporation, is (

a) registered, with an active status, under the Business Corporations Act, (

b) incorporated by or under

an Act of the Legislature, other than the Business Corporations Act, and approved by the Regulator as a corporation that may acquire or hold a licence, (

c) incorporated under the Bank Act (Canada), (

d) a railway company incorporated under

an Act of the Parliament of Canada, (

e) registered under the Loan and Trust Corporations Act, or (

f) an insurer licensed under the Insurance Act.

(2) If an applicant meets the licence eligibility requirements of Directive 067 and Directive 089 to the satisfaction of the Regulator, the Regulator may grant licence eligibility subject to any restrictions, terms or conditions the Regulator considers appropriate.

(3) If an applicant does not meet the licence eligibility requirements of Directive 067 and Directive 089 to the satisfaction of the Regulator, the Regulator may refuse to grant licence eligibility.

(4) The Regulator may revoke or restrict the licence eligibility of an applicant if the applicant fails to acquire licences under the Act within a year of the day of the licence eligibility being granted by the Regulator.

(5) A licensee must continue to meet the licence eligibility requirements of Directive 067 and Directive 089 to the satisfaction of the Regulator.

(6) The Regulator may restrict a licensee’s eligibility to hold a licence if the licensee does not meet the licence eligibility requirements of Directive 067 to the satisfaction of the Regulator. Application for well licence 7 An application for a licence for a well, or amendment of a licence for a well, must be made in accordance with Directive

Section 8 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 11 Application for facility licence 8 An application for a licence for a facility, or for an amendment to a licence for a facility, must be made in accordance with Directive 089. Application to change authorized purpose of well 9(1) If a licensee intends to change the authorized purpose of the licensee’s well under the Act to a purpose authorized under the Oil and Gas Conservation Act or the Mineral Resource Development Act, the licensee must apply to the Regulator to amend the licence to change the authorized purpose of the well.

(2) An application to amend a licence to change the authorized purpose of the well must be made in accordance with Directive 089 and as directed by the Regulator. AR 116/2022 s9;19/2023 Application to change authorized purpose of facility 9.1(1) If a licensee intends to change the authorized purpose of the licensee’s facility under the Act to a purpose authorized under the Oil and Gas Conservation Act or the Mineral Resource Development Act, the licensee must apply to the Regulator to amend the licence to change the authorized purpose of the facility.

(2) An application to amend a licence to change the authorized purpose of the facility must be made in accordance with Directive 056 and as directed by the Regulator. AR 19/2023 s4 Transfer of licence 10(1) A transfer of a licence is not effective unless this

section is complied with.

(2) An application for a transfer of a licence must be made in accordance with Directive 089 and submitted through the Designated Information Submission System.

(3) If the Regulator directs the transfer of a licence under

section 9(5) of the Act, the person to whom the licence is so transferred must pay the Regulator the fee set out in

Schedule 1.

(4) If a licensee changes its name or amalgamates with another company that results in a change of name, the licensee must submit certificates of proof satisfactory to the Regulator in accordance with Directive 067. AR 116/2022 s10;19/2023

Section 11 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 12 Security for wells and facilities 11(1) The Regulator may require an applicant for a licence or for an amendment of a licence to provide a security deposit before issuing or amending the licence.

(2) The Regulator may require a licensee, or an applicant for a transfer of a licence who is not a licensee, to provide a security deposit (

a) before approving a transfer of a licence, (

b) at any time where the Regula tor considers it appropriate to do so to offset the estimated costs of suspending, abandoning or reclaiming a well, facility, well site or facility site, (

c) at any time where the Regulator considers it appropriate to do so to offset the estimated costs of providing care and custody for a well, facility, well site or facility site, and (

d) at any time where the Regula tor considers it appropriate to do so to offset the estimated costs of carrying out any other activities necessary to ensure the protection of the public and the environment.

(3) The Regulator may require a security deposit to be provided, and may administer a security deposit, on either of the following bases and may convert a security deposit from one basis to the other: (

a) relative to a particular w ell, facility, well site or facility site; (

b) relative to the operations of the licensee generally.

(4) If the Regulator determines that a security deposit currently held by the Regulator is inadequate for the purposes provided for in subsection (2), the Regulator may require the licensee to provide any additional amounts that the Regulator considers necessary.

(5) A security deposit must be in one of the following forms, as determined by the Regulator: (

a) cash; (

b) an irrevocable letter of cre dit in a form acceptable to the Regulator; (

c) another form of security acceptable to the Regulator.

Section 11 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 13

(6) The Regulator may require that a security deposit be provided in one payment or in portions in the amounts and at the times specified by the Regulator.

(7) If a licensee fails to meet an obligation or carry out an activity in respect of which the security deposit was provided, the Regulator may, (

a) in the case of a cash secu rity deposit, apply all or part of the security deposit held in the name of the licensee and any earned interest towards the costs required to meet the obligation or carry out the activity, (

b) in the case of a secur ity deposit in the form of a irrevocable letter of credit, cash the irrevocable letter of credit and apply any or all of the cash towards the costs required to meet the obligation or carry out the activity, or (

c) in the case of another form of security, call on the security and apply any or all of the funds towards the costs required to meet the obligation or carry out the activity.

(8) If a person other than the licensee does anything for the purposes of meeting the obligation or carrying out the activity in respect of which the security deposit was provided, the Regulator may distribute any or all of the security deposit to that person for that purpose.

(9) On the request of a licensee, the Regulator must return a security deposit, together with any earned interest, where the Regulator is satisfied that the licensee (

a) has fully met all of the obligations and carried out all o f the activities in respect of which the security deposit was provided, and (

b) has met the other eligibility requirements of the Regulator for a full refund of the security deposit.

(10) On the request of a licensee, the Regulator may return part of a security deposit where the Regulator is satisfied that the licensee (

a) has partially met the oblig ations and carried out the activities in respect of which the security deposit was required, and (

b) has met the other eligibility requirements of the Regulator for a partial refund of the security deposit.

Section 12 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 14 Directives re licensee assessment, licensee management, liability and security 12(1) A licensee must comply with information requirements set out in Directive 089 in respect of licensee assessments and licensee management.

(2) A licensee must comply with the requirements set out in Directive 001 and Directive 089 in respect of liability assessments and Directive 068 and Directive 089 in respect of security deposits, as applicable. Variances 13(1) An applicant or licensee may, in accordance with Directive 089, apply for a variance from a requirement in these Rules related to licences, wells or facilities that is specified in that Directive.

(2) The Regulator may approve the variance, with any conditions the Regulator considers appropriate.

Part 3 Geothermal Operations Drilling, Completing, Servicing and Other Operations Approval of certain operations 14(1) The licensee of a well must apply for and obtain the permission of the Regulator before performing any of the following operations, or causing or permitting them to be performed: (

a) suspend normal drilling operations; (

b) resume drilling operations a fter a previous completion, suspension or abandonment of the well; (

c) abandon or plug back the well with a mechanical well bore problem; (

d) undertake remedial operations for the purposes of eliminating a vent flow or gas migration in accordance with Directive 087; (

e) undertake remedial operations for the purposes of eliminating a leaking, open-hole abandonment.

(2) An application under subsection (1) must be made in the manner directed by the Regulator.

(3) The Regulator may vary a program approved or alter a condition prescribed in an approval granted under this section.

Section 15 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 15

(4) If an operation approved under this

section will deepen a well beyond the formation authorized by the well licence, the Regulator must amend the licence accordingly.

(5) The Regulator may first give orally an approval required under this section. Emergency variation or departure from program 15 In case of an emergency in which an immediate departure from or variation in a program of operations approved or prescribed by the Regulator is necessary, the departure or variation may be made to the extent that it is necessary, and the licensee must immediately advise the Regulator by the quickest effective means and must further report to the Regulator as directed.

Approval of injection or disposal 16(1) No scheme for the injection or disposal of any fluid or other substance to an underground formation through a well may be proceeded with unless the Regulator has approved the scheme under Directive 065 on any terms and conditions that the Regulator prescribes.

(2) All fluid produced at a well or facility must be injected or disposed of in accordance with a scheme approved by the Regulator under subsection (1).

(3) A licensee may not inject reservoir fluids into a formation that is different from the formation from which the reservoir fluids were produced unless approved by the Regulator. Approval of commingling of formation fluids 17(1) Unless approved by the Regulator, a licensee may not inject into, or produce fluids out of, multiple formations without segregation in the well bore.

(2) The Regulator may, on application, approve injection or production without segregation in the well bore, where the Regulator is satisfied that it is appropriate in the circumstances.

(3) An application for commingling of formation fluids must be made as directed by the Regulator. Advising field centre on commencement of drilling 18 On commencement of the drilling of a well the licensee must, within 12 hours or as otherwise arranged with the Regulator, advise the appropriate field centre of the Regulator.

Section 19 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 16 Deviation and directional surveys 19(1) Unless the Regulator otherwise directs in writing, the licensee of a well must make tests during drilling or cause tests to be made during drilling at depth intervals not exceeding 150 m, for the purpose of ascertaining to what extent the well deviates from the vertical.

(2) The licensee must, immediately on making a directional survey, send to the Regulator the report of the survey.

(3) The Regulator may order the licensee to make any further deviation or directional surveys that the Regulator considers necessary, and may give directions as to the manner in which such tests or surveys must be made. Removal of rig 20(1) The licensee of a well may not remove or cause or permit to be removed the rig, derrick or other equipment from a well without first obtaining written approval of the Regulator, unless the licensee has (

a) completed the well in acc ordance with the licence, or (

b) suspended operations or ab andoned the well in accordance with the approval of the Regulator under

section 14.

(2) Notwithstanding subsection (1), the Regulator may first give an approval required under this

section verbally. AR 116/2022 s20;19/2023 Control of encountered fluids 21 The licensee of a well must, at all times during which the well is being drilled, tested, completed or reconditioned, (

a) conduct operations, and (

b) maintain casing and control equipment so that any oil, gas or water encountered is effectively controlled. Licence specifications 22 The licensee of a well must comply with any specifications stipulated in the licence for the well and with any further equipment specifications that the Regulator, after consultation with the licensee, may from time to time stipulate.

Section 23 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 17 Minimum casing requirements 23(1) The licensee of a well must case it in a manner prescribed by the Regulator in Directive 010 and Directive 089.

(2) Notwithstanding subsection (1), the Regulator may, on application by the licensee of a well, (

a) consider and approve the use of a casing engineered to an alternative standard, or (

b) if the Regulator is satis fied that in the particular circumstances casing is not required, dispense with the requirement to case the well. Surface casing requirements 24(1) The licensee must set surface casing and meet requirements as prescribed in Directive 008 and Directive 089.

(2) Where the required surface casing setting depth is less than (a) 180 m, or (

b) the base of groundwater protection depth, the casing string next to the surface casing must be cemented full length.

(3) Notwithstanding any other provision, for any specific well or area, the Regulator may prescribe and require the licensee of the well to ensure that the surface casing is installed at any greater or lesser depth that the Regulator considers appropriate in the circumstances.

(4) The licensee must ensure that the surface casing is cemented full length before drilling more than 10 m beyond the casing setting depth.

(5) Notwithstanding the surface casing exemptions set out in Directive 008, the licensee of a closed-loop well must have the surface casing completed to the base of ground water protection. Intermediate casing 25 The licensee of a well may not drill beyond a depth of 3600 m without first setting intermediate casing unless the Regulator is satisfied that the casing is not required.

Section 26 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 18 Hydraulic fracturing operations 26 If a well is hydraulically fractured, the licensee of the well must comply with Directive 083 and Directive 089. Use of high vapour pressure hydrocarbons 27(1) In this

section “high vapour pressure hydrocarbon” means any hydrocarbon and stabilized hydrocarbon mixture with a Reid vapour pressure greater than 14 kPa.

(2) Where the licensee of a well uses a high vapour pressure hydrocarbon in an operation at a well other than in the hydraulic fracturing of a formation, the licensee must comply with the following: (

a) no open tanks may be used f or storing, gauging or measuring the pumping rate; (

b) a minimum distance of 50 m must be maintained between the wellhead and the storage tank; (

c) positive shut-off valves must be installed between the tan k and the pump and between the pump and the wellhead; (

d) a check valve must be installed between the pump and the well to prevent backflow from the well; (

e) all surface lines downstr eam from the pump must be pressure tested to 10 000 kPa above the anticipated maximum pressure to be encountered; (

f) no significant wastage may occur.

(3) Unless approved by the Regulator, high vapour pressure hydrocarbons must not be used for the purpose of hydraulically fracturing a formation. Casing cementing requirement 28 The licensee must cement casing as required by Directive 009 unless the Regulator (

a) exempts the licensee from the requirements, or (

b) prescribes another method for cementing the casing for a particular well or area.

Section 29 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 19 Annulus between casing 29(1) The licensee of a well must leave the annulus between the 2nd casing string and the surface casing open to the atmosphere in the manner described in subsection (2).

(2) Subject to any other specifications that the Regulator may prescribe in a particular case, the licensee of a well must vent the annulus by a line that (

a) has a minimum d iameter of 50 mm, (

b) extends at least 60 cm above ground level, (

c) terminates so that any flow is directed either in a downward direction or parallel to the ground, and (

d) is equipped with a valve where the hydrogen sulphide concentration in a representative sample of gas from the well is found to exceed 50 mol/kmol.

(3) The working pressure rating in kPa of all parts of the surface casing vent must be at least 25 times the numerical equivalent of the surface casing depth in metres required.

(4) The Regulator may exempt a well from the requirements of this

section in accordance with Directive 087 where, in the opinion of the Regulator, the circumstances warrant the exemption.

(5) Wells that are exempt from surface casing requirements under Directive 008 are exempt from the requirements of subsections (1) to (3). Tubing requirement 30(1) All production from or injection to a well, except for a closed-loop well, must be through tubing.

(2) The Regulator may, on application by the licensee, exempt a well from the requirements of subsection (1) where, in the opinion of the Regulator, the circumstances warrant the exemption.

(3) A licensee applying for an exemption under subsection (2) must demonstrate that the measures the licensee has taken to reduce the risk of escape of fluids resulting from corroded materials are adequate. Recovered casing 31 No casing recovered from a well may be run as intermediate or production casing unless it has been tested in a manner satisfactory to the Regulator and shown to meet the Regulator’s requirements.

Section 32 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 20 Use of isolation packer 32(1) Before any fluid other than potable water is injected to a subsurface formation through a well the licensee must (

a) set an isolation packer in the well as closely above the injection interval as is practicable, and (

b) fill the space between the tubing and outer steel casing with a non-corrosive, corrosion-inhibited liquid, but the Regulator, on application and in writing, may relieve the licensee from any requirement of this subsection.

(2) If a well is equipped with an isolation packer as required by subsection (1), the licensee must report test results in accordance with Directive 087.

(3) If requested by the Regulator, the licensee must submit (

a) evidence to show, to the sa tisfaction of the Regulator, that the liquid between the tubing and casing is isolated from the fluid being injected, and (

b) the data that substantiates the isolation. Surface and subsurface equipment 33(1) The surface and subsurface equipment of a completed well must be arranged so as to permit the ready measurement of the tubing pressure, production casing pressure, surface casing pressure and bottom hole pressure, and permit any reasonable test required by the Regulator except insofar as a completion technique approved by the Regulator precludes such measurement or test.

(2) The surface equipment must include such valve connections as are necessary to sample the fluids produced except insofar as a completion technique approved by the Regulator precludes such connections.

(3) The licensee of a well, on completion of the well and on any subsequent alteration, must keep and make readily available to the Regulator an accurate and detailed description of all subsurface equipment and its location in the well. Testing, reports and repair requirements 34(1) A licensee must test, report and repair packer isolation, vent flows, gas migrations and casing failures for all open-loop wells in accordance with Directive

Section 35 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 21

(2) A licensee must test, report and repair vent flows, gas migrations and casing failures in accordance with Directive 087 for all closed-loop and observation wells. Risk assessment, monitoring, mitigation and response 35 A licensee must meet the requirements in Directive 089 related to risk assessment, monitoring, mitigation and response. Drilling and Operations Near Underground Mines Drilling within 3 km of underground mine 36(1) Subject to subsection (2), no person may drill within 3 km of an underground mine that is not abandoned or within 400 m of an underground mine that is abandoned unless the person complies with sections 37 and 38.

(2) The Regulator may, in writing, (

a) grant relief from any of the provisions of sections 37 and 38, or (

b) direct, in a particular case, a change in any of the provisions of

section 37.

(3) The Regulator, in a particular case, may require compliance with sections 37 and 38 by a person drilling at a greater distance than stipulated in subsection (1) from an underground mine, and in such a case sections 37 and 38 are deemed to apply to such a drilling operation.

Requirement for pillar in coal seam 37 No person may drill a well through a coal seam in which subsurface mining has been undertaken unless there can be left surrounding the well bore a pillar of coal of a radius measured from the well bore of 400 m, unless permission in writing is obtained from the Regulator, subject to whatever direction the Regulator makes for the drilling, completion and abandonment of the well.

Hole diameter requirements in coal seam 38(1) If a well is drilled through a seam of coal within 3 km of an underground mine that is not abandoned or within 400 m of an abandoned underground mine, the diameter of the hole to a depth of at least 50 m below the base of the lowest workable coal seam must be at least 90 mm larger than the diameter of the first casing string to be set through the coal.

Section 38 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 22

(2) The first casing string in the well to be set through the coal must be (

a) new, (

b) equipped with suitable fl oat equipment and a positive means of insuring that the cement in the casing is not displaced from the bottom 10 m of the casing string, (

c) assembled with the lowest 2 lengths of casing fastened together by a suitable thread bonding material or other equivalent means, (

d) run and set at a point at l east 50 m below the base of the lowest workable coal seam, and (

e) equipped with suitably locat ed centralizers and scratchers on the lowest length of casing and both above and below each coal seam.

(3) If the distance between coal seams is less than 15 m, not more than one centralizer and 3 scratchers are required for each 15 m of casing.

(4) The licensee must (

a) cement the well’s first casin g string to be set through the coal as required by subsection (2) from bottom to top by the circulation method with cement containing a proportion of accelerator of not more than 0.04 t per t or other proportion as the Regulator may approve for a particular well or area, (

b) have a survey made before t he shoe of the casing is drilled out, if cement returns are not received at the surface, to determine to the satisfaction of the Regulator the position of the top of the cement, and (

c) take such action following a survey under clause (

b) to re- cement as the Regulator may require.

(5) The cement at the shoe of the casing string set through the coal may not be drilled out until 24 hours after the completion of cementing or such longer length of time as the Regulator may require in a particular case.

(6) If the lowest workable coal seam is below prudent surface casing depth, the Regulator may require that the surface casing be set at a shallower depth and that (

a) an intermediate string be r un, to which subsections (1) to (5) must apply, or

Section 39 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 23 (b) subsections (1) to (4) must apply to the part of the hole and the production casing extending from the shoe of the first casing string to 50 m below the base of lowest workable coal seam.

(7) If a subsequent string of casing is run (

a) its equipment must include an approved type of float shoe or collar and an adequate program of centralizers and scratchers, (

b) it must be cemented in compliance with the conditions prescribed by the Regulator, (

c) the upper 150 m of cement a round the casing must contain not more than 0.03 t per t additives and the remainder of the cement must develop not less than the minimum 24-hour strength specified by the Regulator, (

d) the licensee must, before a ny testing or producing of the well, have a temperature or other approved survey made to determine the fill up of cement that, if it is a temperature survey, must be made within 24 hours of the placement of cement, (

e) if the cement does not r each the required level, the licensee immediately must advise the Regulator and take such action to re-cement as the Regulator may require, and (

f) the cement may not be drille d out until at least 24 hours after the completion of cementing.

(8) The licensee must notify the Regulator through its appropriate area office of an intention to cement any casing string or to run plugs at least 12 hours before commencing such operations and may not proceed with such operations until a representative of the Regulator is present to inspect the casing and witness the cementing.

(9) If in the Regulator’s opinion special circumstances are present, the Regulator may alter the requirements of subsections (1) to (7) or specify other requirements or provisions that the Regulator considers necessary. Decision of Regulator final 39 For the purposes of sections 36 to 38, the decision of the Regulator as to (

a) whether an underground mine is or is not abandoned, or

Section 40 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 24 (

b) whether a coal seam is workable is final. Signage Posting of licence and amendments 40 During drilling operations, the licensee of a well must post and keep prominently displayed at the well site a duplicate of the licence for the well, together with a duplicate of any amendments to the licence. Posting of entrance and wellhead signs 41(1) The licensee of a well must identify a well and the licensee of a facility must identify a facility by the use of a conspicuous sign erected at the primary entrance to the well or facility that indicates (

a) the name and telephone number of the licensee, and (

b) the legal description of t he surface location of the well or facility. (2) Subsection (1) does not apply to a licensee of a well during drilling and initial completion operations.

(3) A licensee must maintain a sign that is erected pursuant to subsection (1) in a manner that is satisfactory to the Regulator.

(4) A licensee who operates more than one facility at a facility site may erect one sign to identify all of the facilities at that site.

(5) A licensee who drills more than one well from one surface location must identify the bottom hole location of each well on a sign affixed to the wellhead.

(6) The licensee of a well or facility must post the following categories of warning symbol, as applicable: (

a) Category I: Flammable (gas or liquid); Class 3; (

b) Category II: Poison Gas; Class 2.

(7) A Category II warning symbol must be used in the following cases: (

a) where a facility handles or a well may produce gas containing 0.01 mol/kmol of hydrogen sulphide or greater; (

b) where the Regulator so directs,

Section 42 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 25 and a Category I warning symbol must be used in all other cases.

(8) Warning symbols must be of the size, design and colour shown in

Schedule 2.

(9) Warning symbols must be posted adjacent to all entrances to the developed area of wells and facilities or, for wells and facilities that have no access roads or developed areas, warning symbols must be posted at the wellhead or facility.

(10) A warning symbol may be posted on a sign that is erected at the primary entrance to a well or facility pursuant to subsection (1).

(11) No licensee may (

a) post warning symbols if a hazard does not exist, or (

b) post warning symbols that are not in compliance with this

section and

Schedule 2. Emergency Preparedness and Response

Definitions 42 In this

section and sections 43 to 45 (a) “corporate ERP” means an ERP that applies to all wells and facilities of a licensee; (b) “emergency” means a present or imminent event, outside the scope of normal operations, that requires prompt coordination of resources to protect the health, safety or welfare of people or to limit damage to property and the environment; (c) “ERP” means an emergency response plan to protect the public and the environment that includes (

i) criteria for assessing an emergency, (ii) procedures to mobilize response personnel and agencies, and (iii) procedures to establish communications and ensure coordination of the emergency response; (c.1) “operation-specific ERP” me ans an ERP that applies to a specified geographic area or to a specified well, facility or operation of a licensee. (d), (

e) repealed AR 6/2026 s4. AR 116/2022 s42;6/2026

Section 43 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 26 Emergency management program 43(1) In this section, “EMP” means a corporate emergency management program to (

a) identify, assess and mitig ate hazards associated with all wells and facilities of a licensee, and (

b) manage the preparation for and response to an emergency.

(2) A licensee must, in accordance with Directive 071, develop, implement and maintain an EMP. AR 6/2026 s5 Corporate emergency response plan 44 A licensee must, in accordance with Directive 071, (

a) develop a corporate ERP, and (

b) submit the corporat e ERP to the Regulator. AR 6/2026 s5 Operation-specific emergency response plan 44.1(1) If required by Directive 071, a licensee must, in accordance with Directive 071, develop an operation-specific ERP.

(2) A licensee must, in accordance with Directive 071, submit each operation-specific ERP to the Regulator for approval. AR 6/2026 s5 Maintenance of plan and training 44.2 A licensee must, in accordance with Directive 071, (

a) maintain the corporate ER P and any operation-specific ERP, and (

b) undertake training and exer cises related to the corporate ERP and any operation-specific ERP. AR 6/2026 s5 Ability to implement plan re water body 44.3 If, in the opinion of the Regulator, a well or facility is a risk to a water body due to its location near the water body, the Regulator may require the licensee of the well or facility to demonstrate that the licensee has the equipment and the ability to implement all applicable ERPs. AR 6/2026 s5 Records, forms and notifications 44.4 A licensee must, in accordance with Directive 071, (

a) maintain and submit records to the Regulator,

Section 45 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 27 (

b) submit forms to the Regulator, and (

c) provide notifications to the Regulator in relation to emergency preparedness and responses. AR 6/2026 s5 Incidents and emergencies 45 A licensee must, in accordance with Directive 071, (

a) manage incidents, and (

b) in the case of an incid ent that is an emergency, (

i) implement all applicable ERPs, and (ii) report the emergency to the Regulator. AR 6/2026 s5 Storage Use of earthen structures or excavations 46 Earthen structures or excavations may not be used as receptacles for operational fluids, hydrocarbons, process chemicals, produced water, process water or oilfield wastes (other than drilling wastes) produced from a well or facility, either by design or normal operating practice, without the written approval of the Regulator. Storage of materials 47(1) Materials that are used, produced or generated at a well site or facility, other than fresh water and inert solids, must be stored in accordance with the requirements of Directive 055.

(2) Aboveground tanks, underground tanks, containers, lined earthen excavations, bulk pads and any other storage device or system referred to in Directive 055 must meet the requirements in Directive 055.

(3) The Regulator, on application, may approve storage methods, systems or devices alternative to those set out in Directive 055 if in the Regulator’s opinion the level of environmental protection provided is at least equal to that outlined in the Directive.

(4) Tanks or batteries of tanks containing fluids other than fresh water at a well or facility must be located so that the distance from the outer perimeter of the dike to any surface improvement other than a public roadway is not less than 60 m or a lesser distance permitted by the Regulator.

Section 48 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 28 Venting of relief devices to open tank 48(1) Notwithstanding

section 59(5) and subject to subsection (2), where a pressure relief valve, rupture disk or burst plate is installed on a separator, treater or other pressure vessel that receives production from a well, the licensee must connect the valve, rupture disk or burst plate fitting by suitable piping to an open tank to contain the liquids.

(2) The Regulator, on application, may allow a licensee to use a system of automatic controls or other method of avoiding spills if it is satisfied that the degree of protection provided is equivalent to or better than the venting of relief devices to an open tank. Prevention of Spills or Releases Equipment 49 A licensee must install equipment that will provide for the protection of the environment from spills or uncontrolled releases of fluids from the site.

Control of spills or releases from well or facility 50(1) If operating fluid, oilfield waste, water or hydrocarbon is spilled or released from a break or leak in a wellhead, tank, separator, treater or process vessel, the licensee of the well or the facility from which the spill or release occurred must immediately take reasonable steps to contain and clean up the spill or release and must ensure that the spilled or released material is processed in the licensee’s facility, if appropriate, or is treated or disposed of, or both, in accordance with Directive 058.

(2) If a spill or release referred to in subsection (1) (

a) is not confined to the s ite of the well or facility from which the spill or release occurred, (

b) is on site and is in excess of 2 m 3, or (

c) is on site and of a size that may cause, is causing or has caused an adverse effect as defined in the Environmental Protection and Enhancement Act, the licensee must immediately report the size and location of the spill or release to the Regulator by telephoning the Energy and Environmental Response Line.

(3) When so directed by the Regulator, a report made under subsection (2) must be confirmed in a written report to the Regulator and be supplemented with at least the following additional information:

Section 51 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 29 (

a) the time the spill or release occurred; (

b) a description of the circu mstances leading to the spill or release; (

c) a description of the sp ill or release containment and recovery procedures; (

d) a description of steps to be taken to prevent similar future spills or releases; (

e) the size and location of the spill or release; (

f) any other information that the Regulator may require. AR 116/2022 s50;6/2026 Spill during transport from well or facility 51 If operating fluid, oilfield waste, water or hydrocarbon is spilled or released while being transported, otherwise than by pipeline, from a well or facility to the intended destination, the licensee of the well or facility must immediately (

a) report the size and location of the spill or release to th e Regulator by telephoning the Energy and Environmental Response Line, (

b) take reasonable steps to contain and clean up the spilled or released material, and (

c) ensure that the spilled or released material is treated or disposed of in accordance with Directive 058, unless otherwise approved by the Regulator. AR 116/2022 s51;6/2026 52 Repealed AR 6/2026 s8. Wells or facilities closer than 100 m to water 53 If a well or facility is located closer than 100 m to the normal high-water mark of a water body or permanent stream, or is in a location where in the opinion of the Regulator a spill or leak may reach the water, the licensee must (

a) install on the wellhead, if the well is not on pump, a val ve that closes automatically to shut off an uncontrolled flow of effluent from the well in the event of a failure of the wellhead, surface facilities or gathering line, (

b) install in the well, at the direction of the Regulator, a packer and a subsurface valve to shut off automatically an

Section 54 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 30 uncontrolled flow of effluent from the well in the event of a failure of the wellhead or production casing, (

c) construct pits, dikes, trenches or other structures or installations to contain effluent or spill material, and (

d) submit, at the request of the Regulator, a plan to limit the spread of effluent or spill material and to recover effluent or spill material from the surface of the water in the event of a leak or spill, which includes details of procedures, materials and equipment proposed to be used. AR 116/2022 s53;19/2023 Abandonment of source of serious water pollution 54 If, in the opinion of the Regulator, the location or condition of a well or facility is such that the well or facility may become a source of serious water pollution, the Regulator may require that the well or facility be abandoned.

Air Emissions Management Compliance with Directive 060 55 The licensee of a well or facility must comply with the requirements of Directive 060. Burning at a well or facility 56(1) No person may burn, and no licensee, in the case of a well or facility, may cause or permit to be burned, any oil, gas, oily waste or other material produced or used at a well or facility except under conditions of controlled combustion where there is no significant or visible emission of smoke. (2) Subsection (1) does not apply where the Regulator approves the burning.

(3) Notwithstanding subsection (1), burning of effluent from a well or facility is permissible under emergency conditions and due to equipment failure, but the burning must be immediately reported to the Regulator. Equipping wells if samples > 50 mol/kmol H2S gas 57(1) This

section applies to a well at which the hydrogen sulphide concentration in a representative sample of gas from the well is found to exceed 50 mol/kmol, or a higher or lower ratio that the Regulator may stipulate with respect to any well or group of wells in an area, having regard to pressures, nature of production, remoteness of the area and other circumstances.

Section 58 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 31

(2) Unless the well is produced by artificial lift, the licensee must equip the well with (a) 2 master valves, (

b) in the case of an open-loop well, an isolation packer, set as closely above the producing formation as is practicable, with the annular space between the tubing and production casing filled with a suitable non-corrosive, corrosion-inhibited liquid, and (

c) a wellhead with a working p ressure rating that is not less than the bottom hole pressure of the producing formation, except for the surface casing vent, which must have a working pressure rating in accordance with

section 29(3).

(3) If a well is equipped with an isolation packer, as required by subsection (2)(b), the licensee must report test results in accordance with Directive 087.

(4) If requested by the Regulator, the licensee must submit (

a) evidence to show, to the sa tisfaction of the Regulator, that the liquid between the tubing and casing is isolated from the fluid being injected, and (

b) the data that substantiates the isolation.

(5) Stimulation treatments employing maximum pressures in excess of 75% of the minimum internal yield pressure of the production casing must be carried out through the tubing and below a packer seated as near to the producing formation as is practicable.

(6) If the Regulator so directs, the licensee of a well must install in the tubing of the well, at a minimum depth of 30 m below the surface, or such other depth that the Regulator may prescribe, a valve that may be controlled from the surface that will close automatically in the event of an uncontrolled flow of fluids or gas, or a failure in the system that operates the valve.

(7) The Regulator may, on application, exempt from any provision of this

section a well or group of wells in an area where, in the opinion of the Regulator, the pressures, nature of production, remoteness of the area or other circumstances warrant the exemption. AR 116/2022 s57;19/2023 Flaring at well producing H2S gas 58(1) If gas

Section 59 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 32 (

a) from a well producing gas containing more than 50 mol/kmol of hydrogen sulphide, or any higher or lower ratio stipulated by the Regulator, or (

b) produced from a well design ated as a critical sour well is flared during any test, during any period of cleaning out the well or during well-servicing operations, the licensee must obtain approval from the Regulator of the method, stack height and equipment to be used to flare the gas.

(2) An application for approval under subsection (1) must be in accordance with Directive 060. Wells where > 10 mol/kmol H2S gas present 59(1) This

section applies to any well that produces gas containing more than 10 mol/kmol hydrogen sulphide, or a higher or lower ratio that the Regulator may stipulate with respect to any well or group of wells in an area, having regard to pressures, nature of production, remoteness of the area and other circumstances.

(2) The licensee of a well may not discharge or permit to be discharged to the atmosphere any vapours or gas from process equipment, tanks or the well, unless they are burned so that essentially all sulphur compounds are converted to sulphur dioxide, but the Regulator on written application may approve another method of disposal.

(3) If no gas analysis has been taken from the well within the preceding 12-month period, gas from the formation produced at the well must be tested at the commencement of flaring to determine the hydrogen sulphide content.

(4) If a flare stack is to be installed at a well for burning gas produced during normal depressurizing operations or other routine flaring, the licensee must install a flare stack constructed in accordance with the specifications for a flare stack set out in subsection (8).

(5) If a pressure relief valve, rupture disk or burst plate is installed on a separator or other pressure vessel that receives production from a well, the valve, rupture disk or burst plate fitting must be connected to the flare stack required by subsection (4).

(6) If a pressure relief valve, rupture disk or burst plate is installed on a separator, treater or other pressure vessel that receives production from a well, the vessel must be equipped with pressure and liquid level sensors that cause a valve installed on the inlet to close and isolate the vessel from the flow stream.

Section 60 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 33

(7) The Regulator may, on application, exempt a licensee from the requirements of subsection (6) and permit the use of a tank referred to in

section 48 where, in the opinion of the Regulator, the nature of the production, the remoteness of the area or any other circumstance warrants the exemption.

(8) If gas is produced from any well to the atmosphere during a drillstem test, the licensee must burn the gas through a flare stack, which must (

a) terminate with a vertical r iser of at least 12 m or any greater or lesser height that the Regulator directs in a particular case, (

b) be provided with a suitable guard to prevent the wind from extinguishing the flame, (

c) be provided with a sweet gas pilot or ignition device, if the gas flow may be intermittent, to ensure continuous ignition of any vented gas, and (

d) be provided with a suitabl e vessel to separate and collect any liquids to prevent the liquids from reaching the flame.

(9) If hydrocarbon liquids are produced from a well during any test, during any period of cleaning out the well or during well-servicing operations, the liquids must be separated and piped to a storage tank and all gas must be discharged to a flare stack that meets the requirements of subsection (8)(a), (

b) and (c).

(10) Unless the licensee of a well equips and operates the well so that the maximum operating flow line gauge pressure cannot exceed 1400 kPa, the licensee must install on the wellhead a mechanism that halts the flow of fluids or gas in the event of an uncontrolled drop in pressure or an equipment failure.

(11) The licensee of the well must, when requested to do so by the Regulator, file with the Regulator an outline of emergency procedures to ensure public safety that will be followed by the licensee in the event of an uncontrolled emission of fluids or gas.

(12) The Regulator may exempt a well or group of wells in an area from any provision of this

section where, in the opinion of the Regulator, the pressure, nature of production, remoteness of area or other circumstances warrant the exemption. Facilities where > 10 mol/kmol H2S gas present 60(1) This

section applies to any facility that receives fluids containing more than 10 mol/kmol of hydrogen sulphide in the gas phase, or a higher or lower ratio as the Regulator may stipulate

Section 61 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 34 having regard to the nature of production, the remoteness of the area and other circumstances.

(2) The licensee of a facility may not discharge or permit to be discharged to the atmosphere any vapours or gas from process equipment, tanks or the facility, unless it is burned so that essentially all sulphur compounds are converted to sulphur dioxide, but the Regulator on written application may approve another method of disposal.

(3) Gas burned or disposed of by a method approved under subsection (2) must be burned or disposed of so as to ensure that the concentrations of hydrogen sulphide and sulphur dioxide do not exceed (

a) the maximum permissible concentrations set out in the Alberta Ambient Air Quality Objectives and Guidelines

Summary as established and amended from time to time by the Department of Environment and Protected Areas, (

b) standards to which the facility is subject under the Environmental Protection and Enhancement Act, and (

c) standards specified by the Regulator.

(4) Gas that is required under subsection (2) to be burned must be discharged from a flare stack that is in accordance with the specifications outlined in

section 59(8).

(5) The Regulator may, on application, exempt a facility from any provision of this

section where, in the opinion of the Regulator, the nature of production, the remoteness of the area or any other circumstance warrants the exemption. AR 116/2022 s60;216/2022 Pumping well with potential to flow H2S to atmosphere 61 A licensee of a pumping well that has the potential to flow to atmosphere at sustained rates of at least 8 m3/day of fluids and has a hydrogen sulphide content of 10 mol/kmol or greater in the gas phase must ensure that the well is equipped with a full opening master valve, a hydraulic rod blowout preventer and an environmental blowout preventer.

Waste Management of oilfield waste 62(1) In this section, “oilfield waste” includes waste generated from the development of geothermal resources but does not include drilling waste.

Section 63 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 35

(2) The licensee of a well or facility generating oilfield waste must (

a) properly characterize an d classify oilfield wastes, (

b) use appropriate oilfield w aste storage, treatment and disposal practices, (

c) understand the capabilities and limitations of the methods selected for the treatment and disposal of oilfield wastes that are generated, (

d) complete and maintain accurate oilfield waste documentation and records, (

e) disclose to waste carriers and receivers the characteristi cs and classification of the oilfield wastes, and (

f) ensure that waste operatio nal requirements have been satisfied and, if applicable, approvals are in place for on-site oilfield waste management in accordance with the requirements outlined in Directive 058 and any other requirements as directed by the Regulator.

(3) The licensee of a well or facility must maintain the well or facility in a clean condition and must ensure that oilfield wastes do not create or constitute a safety hazard or nuisance or adversely affect air, soil, surface water or groundwater. Management of drilling waste 63(1) A licensee of a well must ensure that an earthen excavation at a well site used to store drilling waste (

a) is located and constructed so that it will not collect natural run-off water, and (

b) is located and constructed so that it will not allow contaminants from the drilling waste to migrate beyond the pit walls and bottom.

(2) If the surface topography or soil conditions are such that a satisfactory storage pit of sufficient design and capacity cannot be constructed, the licensee of the well must contain drilling waste in tanks and must dispose of the waste without undue delay.

(3) The licensee of a well must ensure that all drilling waste is treated and disposed of in accordance with (

a) the requirements in Directive 050, (

b) the requirements in Directive 058, or

Section 64 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 36 (

c) other requirements approved by the Regulator. Alternative management of waste 64 The Regulator may, on application made in accordance with Directive 050, Directive 055 or Directive 058, approve alternative storage, treatment and disposal methods to those prescribed in sections 47, 62 and 63 if the Regulator is satisfied that those alternative methods will not adversely affect air, soil, surface water or groundwater. Blowout Prevention Blowout prevention requirements 65(1) The requirements of Directive 036 and Directive 037 apply to any well that is being drilled, tested, abandoned, completed, reconditioned or serviced.

(2) A licensee of a well referred to in subsection (1) must comply with Directive 036, Directive 037 and with any other requirements as directed by the Regulator.

(3) The Regulator may, on its own initiative or on application, vary or specify the blowout prevention requirements that apply to any well or wells.

(4) The Regulator may, on its own initiative or on application, vary a classification set out in Directive 036 or Directive 037 for any well or wells.

(5) The Regulator may, on its own initiative or on application, vary the design or requirements for any classification set out in Directive 036 or Directive 037.

(6) Prior to making application for a well licence, the licensee must (

a) research offset well record s to determine maximum pore pressures and hole problems that may be encountered while drilling the proposed well, and (

b) incorporate the information determined under clause (

a) into the well design.

(7) A licensee must make the information determined under subsection (6)(

a) available to the Regulator on request.

Section 66 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 37 Drilling and servicing inspections 66(1) The Regulator may make a direction requiring the licensee of the well to (

a) test the operation and eff ectiveness of blowout prevention equipment required by Directive 036 and Directive 037, (

b) conduct a pressure test of the blowout prevention equipment referred to in clause (a), using where necessary a hanger plug or casing packer, and (

c) perform a blowout prevention drill.

(2) On a direction made by the Regulator and if the licensee believes it is safe to do so, the licensee of a well must suspend or cause to be suspended any operation or service being performed at a well until any test required to be made, under subsection (1), has been completed.

(3) Any direction made by the Regulator under subsection (1) may be made to the licensee of the well or to any contractor or other person performing an operation or service referred to in subsection (2). Fire Hazards, Exhaust and Smoking Fire risks 67(1) In this section, (a) “fire” means any open or enclosed flame or other source of ignition except (

i) an open or enclosed flame from a flare stack or incinerator, or (ii) a source of ignition associated with the installation and operation of electrical equipment; (b) “flame-type equipment” m eans any fired equipment using an open or enclosed flame and includes, without limitation, a space heater, torch, heated process vessel, boiler, open-flame welder and thermoelectric generator, but does not include a flare stack or incinerator; (c) “process vessel” means a h eater, separator, treater or any vessel used in the processing or conversion of geothermal heat.

(2) No person may create or cause to be created any fire within 50 m of a well or any source of ignitable vapour at a well or facility.

Section 67 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 38

(3) No oil storage tank may be placed or remain within 50 m of any well, but the Regulator may prescribe a distance of less than 50 m but not less than 15 m in any field or at any well, having regard to the products of the well.

(4) No flame-type equipment may be placed or operated within 25 m of a well or any source of ignitable vapour except (

a) where the well is a water supply well, (

b) where the well is a water injection well equipped with a suitable packer and with the surface casing annulus vented outside any building, (

c) where the equipment is required to be used for emergency work and the wellhead valves and the blowout preventer, if one is installed, are closed, or (

d) where extenuating circumstances exist and the Regulator has suspended the application of this subsection in the area.

(5) No flame-type equipment may be placed or operated within 25 m of any process vessels unless the flame-type equipment is fitted with an adequate flame arrestor.

(6) No flame-type equipment may be located in the same building as any process vessel or other source of ignitable vapour, unless (

a) the air intakes and flues o f all burners are located outside the building, (

b) relief valves, safety heads and other sources of ignitable vapours are vented outside the building and discharged above roof level, and (

c) the building is adequately cross ventilated.

(7) All process vessels and equipment from which any ignitable vapour may issue must be safely vented to the atmosphere, and all vent lines from oil storage tanks that are vented to flare pits or flare stacks must be provided with flame arrestors or other equivalent safety devices.

(8) All installations at or near any well, process vessel or a source of ignitable vapour must be made in compliance with regulations made under the Safety Codes Act and the Occupational Health and Safety Act.

(9) An exhaust pipe from an internal combustion engine, located within 25 m of any well, process vessel or other source of ignitable vapour, must be constructed so that

Section 68 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 39 (

a) any emergence of flame along its length or at its end is prevented, and (

b) the end is not closer than 6 m to the vertical centre line of the well, is projected upward and is directed away from the well.

(10) Each licensee of a well or facility at which there is located a source of ignitable vapour must enforce the provisions of this section. Operation of vehicles near wellhead 68 The licensee of a well must ensure that no vehicles operate within a 3 m radius of the wellhead, except vehicles that are specifically required to do so as part of an operation being performed on a well. Smoking 69(1) No person may smoke within 25 m of a well, separator, oil storage tank or other unprotected source of ignitable vapour, or on a rig or derrick, at a well site.

(2) Each licensee of a well and each contractor who has contracted to manage or perform any operation at a well must enforce the provisions of subsection (1) at the well site.

(3) If a person contravenes subsection (1), the licensee and the contractor referred to in subsection (2) who is the employer of that person are in contravention of subsection (2) regardless of whether they had knowledge of the smoking or took steps to guard against the smoking. Fencing Fencing of facility 70(1) If the Regulator considers that a facility may, due to its location or nature, constitute a serious hazard to the general public, the Regulator may require the licensee of the facility to construct and maintain an adequate fence around the facility.

(2) For the purpose of subsection (1), a fence must be considered adequate if, (

a) where a facility is within 800 m of an occupied dwelling, a school or a location developed for camping, picnic or day use by the public, the fence (

i) is at least 2 m high,

Section 71 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 40 (ii) is small mesh industrial type, (iii) completely encloses the facility, and (iv) is equipped with a gate that is locked when the facility is unattended, a n d (

b) where a facility is located elsewhere, it is a cattle-type fence with a minimum of 4 strands of barbed wire and either a gate or a cattle guard. Marking and fencing of well 71(1) In this section, “unrestricted country development” means any collection of permanent dwellings situated outside of an urban centre and having more than 8 permanent dwellings per quarter section.

(2) The licensee of a well must ensure that the wellhead is conspicuously marked or fenced in a manner that makes it visible in all seasons.

(3) The licensee of a well that is equipped with a pumping unit and located in or within 800 m of (

a) the boundaries of a city, town, new town, village, summer village, hamlet or other incorporated centre, (

b) an unrestricted country development, (

c) a public facility, (

d) an occupied dwelling, (

e) a school, or (

f) a location developed for camping, picnic or day use by the public must enclose the well and pumping unit with a fence suitable for preventing access to or tampering with the well and pumping unit.

(4) A fence required by subsection (3) must be (

a) of steel mesh, with the mesh not greater than 130 cm 2, (

b) not less than 2 m high, (

c) placed around the entire pumping unit, wellhead and cellar, and

Section 72 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 41 (

d) equipped with a gate that is locked when the well is unattended.

(5) If, in the opinion of the Regulator, the location of a well that is equipped with a pumping unit is or may become a serious hazard to the general public, the Regulator may require that the well be fenced in accordance with subsection (4).

(6) The Regulator may, on application, exempt the licensee from or vary any of the requirements of this

section where, in the opinion of the Regulator, circumstances warrant the exemption or variation. Miscellaneous Conservation 72 A licensee may not waste energy resources. Detection of hydrocarbons in production fluids 73(1) If production fluids from a well contain any incidental hydrocarbons, the licensee of the well must (

a) cease operations, unless th ey have the right to produce the hydrocarbons, (

b) immediately notify the Regulator, and (

c) apply to amend the licence, if directed to do so by the Regulator, to change the authorized purpose of the well in accordance with

section 9.

(2) If the licensee has the right to produce the hydrocarbons and has not been directed by the Regulator to apply to amend the licence, the licensee must (

a) meet the hydrocarbon-relat ed measurement requirements in Directive 017, and (

b) report the production in a ccordance with Directive 007. Noise 74 The licensee of a well or facility must meet the noise control requirements in Directive 038. Participant involvement 75 The licensee of a well or facility must meet the participant involvement requirements in Directive

Section 76 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 42

Part 4 Well Sampling, Testing, Records and Reports Sampling and Submission of Well Data Submission of well data 76 If a licensee of a well conducts or obtains well tests, analyses, surveys, reports or logs, the licensee must submit all results to the Regulator within the time period specified by the Regulator. Well tests, analyses, surveys, reports and logs 77 The Regulator may require the licensee of a well to conduct or run any reasonable or conventional test, analysis, survey or log or perform any instrument calibration and to submit to the Regulator the information so obtained.

Analysis of reservoir fluids 78 The licensee of a well must conduct initial and annual sampling and analysis of reservoir fluids in accordance with Directive 089 and must submit the analysis in accordance with Directive 040 and Directive 089. Drillstem tests 79 The licensee of a well must submit any drillstem tests that are conducted at the well site to the Regulator in accordance with Directive 040 and Directive 089. Samples of drill cuttings 80(1) The licensee of a well must take samples of drill cuttings in accordance with Directive 089.

(2) Within 2 weeks of the finished drilling date of a well, the licensee must deliver the samples at the licensee’s expense to the Regulator’s Core Research Centre, 3545 Research Way N.W., Calgary, Alberta T2L 1Y7.

(3) Samples submitted under subsection (2) must meet the following requirements: (

a) the samples are washed and dried; (

b) the samples are in 2 dram (19 mm x 48 mm) plastic vials; (

c) the vial caps are round and of low density polyethylene;

Section 81 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 43 (

d) the vial labels are 16 mm x 63 mm of latex laser sheet label quality; (

e) the information on the label includes the unique well identifier and the depth from which the sample was taken; (

f) the vials are packaged and submitted in lidded sample trays. Core samples 81(1) When directed by the Regulator, the licensee of a well must core each formation or part of a formation to which the direction applies.

(2) Unless otherwise directed by the Regulator, the licensee may remove and retain from any core recovered one longitudinal slab not thicker than the lesser of 25 mm or 1/2 the thickness of the core.

(3) The licensee must (

a) place all core or parts of core remaining after the removal of a slab in accordance with subsection (2) in cardboard core boxes that fulfill the labelling and packaging requirements of the Regulator, and (

b) forward the core intact at the licensee’s expense, within 3 months of the finished drilling date of the well from which the core was recovered, to the Regulator’s Core Research Center, 3545 Research Way N.W., Calgary, Alberta T2L 1Y7. Submission of core reports 82 The licensee must submit to the Regulator, within one month of the completion of any analyses made of the core involving measurements of reservoir characteristics, 2 copies of reports of that analyses. Submission of well logs 83(1) The licensee must, (

a) before completion, abandonment or suspension of drilling operations at a well, take well logs in accordance with Directive 080, (

b) within one month of the rig release date of a well, submit to the Regulator a copy of each log, survey or chart taken at the well together with all pertinent data other than the

Section 84 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 44 check shot calibrations made with reference to a velocity survey, and (

c) within one month of the run date, submit to the Regulator any additional logs, including flow meter logs and related analysis, taken at the well after the original logging operation.

(2) Logs, surveys, charts and other data submitted under this

section must be in a format acceptable to the Regulator.

(3) The Regulator may on application allow substitution or grant relief from the requirements of this

section where special circumstances warrant. Measurement Calibration of instruments 84 The licensee of a well must use instruments that meet the following requirements: (

a) any dead weight gauge that is used to calibrate wire line instruments for taking subsurface pressure measurements must be certified annually by a calibration laboratory accredited by the Standards Council of Canada through the Calibration Laboratory Assessment Service of the National Research Council of Canada or another calibration laboratory certified as meeting ISO/IEC 17025 standards; (

b) the calibration must be obtained using an approved dead weight gauge at a minimum of (

i) within 3 months prior to use in any survey, (ii) twice after repairs or abnormal stresses, and (iii) once annually under the necessary conditions to check temperature sensitivity. Metering errors 85 On the discovery of any metering error, the licensee must have the meter corrected immediately and must report corrected production for the period during which the meter measured incorrectly.

Section 86 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 45 Measurement of injection wells 86 If gas, water or another substance is injected through a well to an underground formation, it must be continuously measured by a method satisfactory to the Regulator. Measurement requirements in Directive 089 87 A licensee must meet the measurement requirements in Directive 089.

Records, Reports and Confidentiality Records and reports of well operations 88 The licensee of a well must keep and file with the Regulator records and reports relating to the operations of the well in accordance with Directive 059 and Directive 089. Records of status of well 89(1) The licensee of a well must, when required by Directive 007 or Directive 089, keep a record relating to the status of a well and file the record in accordance with that Directive.

(2) The licensee of a well must keep any other records relating to the status of a well in addition to those described in subsection (1) and file with the Regulator any other reports that the Regulator may require. Record of production 90(1) The licensee of a well or a facility must, when required by Directive 007 or Directive 089, keep records of any power, heat or hydrocarbons encountered, and any water, air or other substances produced, and file those records in accordance with those Directives.

(2) The licensee of a well or facility must keep a daily record of the production operations of the well or facility in a form satisfactory to the Regulator and keep the original recording of a measurement used to determine the particulars for the record filed with the Regulator under subsection (1).

(3) If a substance is received or delivered to a pipeline regulated under the Pipeline Act, the licensee of the facility must, when required by Directive 007 or Directive 089, keep records of the substance and file the records with the Regulator in accordance with those Directives.

(4) The licensee of a well or facility must keep any other records relating to production from a well or facility in addition to those

Section 91 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 46 described in this

section and file with the Regulator any other reports that the Regulator may require. Records under Directive 076 91 If Directive 076 applies to a well or facility, the licensee of the well or facility must keep records in accordance with the requirements of Directive 076 and provide copies of the records to the Regulator on request. Report of fire 92(1) The licensee of a well or facility must immediately report to the Regulator any fire that occurs at a well or facility where the loss exceeds 2 m3 of fluid or where damage to the wellhead occurs.

(2) Each report to the Regulator under subsection (1) must specify the location of the well or facility. Report of casing leak or failure 93 The licensee of a well must notify the Regulator immediately on detection of a casing leak or failure and, if requested by a representative of the Regulator, must provide a report assessing the leak or failure, including a discussion of the cause, duration, damages, proposed remedial program and measures to prevent future failures. Financial information 94(1) A licensee must provide financial information to the Regulator as and when directed by the Regulator for the purposes of (

a) assessing licensee eligibility, (

b) administering the liability management programs set out in directives published by the Regulator, or (

c) to ensure the safe, orderly and environmentally responsible development of energy resources in Alberta, including closure.

(2) The information provided under this

section must be kept confidential by the Regulator for a period of 5 years. Confidentiality 95(1) The following types of well data will remain confidential for one year from the finished drilling date:

Section 95 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 47 (

a) any log and drillstem test data; (

b) wire line formation test data; (

c) pressure, temperatu re and flow test data; (

d) completion details; (

e) fluid analysis data; (

f) sample drill cuttings or core; (

g) core analysis data; (

h) hours on production and injection.

(2) The licensee may request extension of the period of confidentiality, and if the licensee satisfies the Regulator that continued confidentiality is warranted after the period referred to in subsection (1), the Regulator may extend the confidentiality for a further period that the Regulator considers appropriate.

(3) The Regulator, at any time, must make available to the public, from records, reports or information submitted to or acquired by it, (

a) any application or submission of an applicant or intervener in any proceedings before the Regulator under the Act or these Rules and to which the Alberta Energy Regulator Rules of Practice (AR 99/2013) apply, whether or not the proceeding goes to a hearing or is otherwise disposed of, or any record, report or information of an applicant or intervener filed by the applicant or intervener in connection with the proceeding, (

b) the surface and bottom hole l ocations, elevation, current depth, drilling status or casing and cementing data of a well, (

c) the monthly totals of each t ype of fluid injected into or produced from a well, and (

d) any information submitted re garding hydraulic fracturing fluids used in operations at any well.

(4) If interpretive data to determine the maximum hydrogen sulphide release rate of a well that may encounter hydrogen sulphide are submitted to and accepted by the Regulator as confidential, the Regulator must make the data available to the public only with the consent of the applicant or licensee.

(5) If any record, report or information submitted to or acquired by the Regulator is not available to the public by reason of this

Section 96 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 48 section, the Regulator may, with the consent in writing of the person by whom it was submitted or from whom it was acquired, make the record, report or information available to the public.

(6) Notwithstanding these Rules, the Regulator may make any data, record, report or information available to a peace officer for the purpose of enforcing the Criminal Code (Canada) or the laws of Alberta.

(7) Nothing in this

section requires the Regulator (

a) to obtain for the purpose of making it available any data it otherwise does not have, (

b) to publish any data or make it available otherwise than on request, or (

c) to make any data available otherwise than putting it on view at the facilities provided for that purpose by the Regulator and on payment of the Regulator’s usual fees for such services.

(8) Notwithstanding anything in this section, the Regulator may make any data, record, report or information submitted to the Regulator available to the Minister of Energy and Minerals for the purpose of calculating or otherwise determining royalties on geothermal resources or other substances receivable by or payable to the Crown in right of Alberta. AR 116/2022 s95;19/2023;98/2023

Part 5 Suspension, Abandonment and Closure Suspension of wells 96 A licensee must suspend a well when required by and in accordance with Directive 013 and Directive 089, or as otherwise directed by the Regulator. Abandoned wells 97 A licensee must abandon a well or facility (

a) on the termination of the m ineral lease or surface lease, (

b) where the licensee fails to obtain the necessary authorization for the intended purpose of the well, if the licensee does not hold the right to drill for and produce the geothermal resource from the well,

Section 98 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 49 (

c) if the licensee has contrave ned

an Act, a rule, a regulation or an order or direction of the Regulator and the Regulator has suspended or cancelled the licence, (

d) if the Regulator notifies the licensee that in the opinion of the Regulator the well or facility may constitute an environmental or a safety hazard, (

e) if the licensee is not or cea ses to be a working interest participant in the well or facility, (

f) if the licensee (

i) is not or ceases to be resident in Alberta, (ii) has not appointed an agent in accordance with

section 20 of the Act, and (iii) does not hold a subsisting exemption under

section 5 from the requirement to appoint an agent, (

g) if the licensee is (

i) a corporation registered, incorporated or continued under the Business Corporations Act whose status is not active or has been dissolved or if the corporate registry status of the corporation is struck or rendered liable to be struck under any legislation governing corporations, or (ii) an individual who is deceased, (

h) if the licensee has suspen ded the well in contravention of the requirements established by the Regulator under

section 96, (

i) when required by the Regulator under timelines set out in directives related to closure published by the Regulator, or (

j) where otherwise ordered to do so by the Regulator. Abandonment operations 98(1) Abandonment operations, including well abandonment, casing removal, zone abandonments and plug backs, must be conducted in accordance with Directive 020.

(2) A licensee must comply with all of the requirements of Directive 079, including requirements for locating and testing wells that are considered abandonment operations for the purposes of sections 14, 15, 16, 17 and 19 of the Act.

Section 99 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 50 Closure quotas 99(1) The Regulator may establish closure quotas that are applicable to some or all licensees with respect to the required amount of work or the amount to be spent, or both, as directed by the Regulator and for the period determined by the Regulator, with respect to the closure of the licensee’s wells and facilities.

(2) A licensee must comply with any closure quota applicable to it, unless otherwise directed by the Regulator. Regulator request for closure plans 100(1) When requested by the Regulator, a licensee must submit a closure plan regarding some or all of its wells and facilities, in accordance with any direction of the Regulator given under subsection (3).

(2) A closure plan must contain the information required by the Regulator and the plan must be approved by the Regulator subject to any terms and conditions imposed by the Regulator.

(3) The Regulator may direct the timing and priority for performing work with respect to the closure of the licensee’s wells and facilities.

(4) A licensee must comply with any terms and conditions of the licensee’s approved closure plan. Eligible requesters request for closure plan 101(1) For the purpose of this section, “eligible requester” means, (

a) in the case of a well or f acility situated on private land, the landowner, (

b) in the case of a well or f acility situated on public land, (

i) the Minister responsible for the Public Lands Act, and (ii) the holder, if any, of a disposition issued under

Part 3 of the Public Lands Administration Regulation (AR 187/2011), (

c) in the case of a well or facility situated on an Indian reserve, the reserve as represented by the council of the band as defined in the Indian Act (Canada), (

d) in the case of a well or facility situated on a Metis settlement, the Metis settlement, and

Section 102 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 51 (

e) in the case of a well or f acility situated on land owned by a municipality as defined in the Municipal Government Act, the municipality.

(2) If (

a) a well or facility has remained in either an inactive or abandoned state for 5 or more years, and (

b) a request for closure has been made to the Regulator by an eligible requester, unless otherwise directed by the Regulator, the licensee of the well or facility must prepare a closure plan respecting the well or facility. AR 116/2022 s101;19/2023 Application for determination of costs 102(1) An application under

section 17(3) of the Act (

a) for a determination of the costs of providing reasonable care and measures to prevent impairment or damage, suspension costs, abandonment costs, remediation costs or reclamation costs for a well, facility, well site or facility site, and (

b) for the allocation of the c osts in clause (

a) to each working interest participant in accordance with each working interest participant’s proportionate share in the well or facility made by a person who conducted the work where ordered or directed by the Regulator must be made in accordance with this section.

(2) Unless otherwise directed by the Regulator, an application referred to in subsection (1) must include (

a) the applicant’s full lega l name, business address, telephone number, email address and the name of a contact person for the applicant, (

b) the legal descriptio n and licence number of (

i) the well, facility, well site or facility site that has been provided with reasonable care and measures to prevent impairment or damage, (ii) the well, facility, well s ite or facility site that has been suspended or abandoned, or

Section 102 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 52 (iii) the well site or facility s ite that has been remediated or reclaimed, (

c) a complete list, totalling 100% of the working interest, o f the working interest participants in the well or facility at the time the costs were incurred, (

d) each working interest partic ipant’s full legal name, last known business address, telephone number and email address, the name of a contact person for each working interest participant and the proportionate share of the costs for each working interest participant for which the application is being made, (

e) a detailed description of the total costs incurred in the provision of reasonable care and measures to prevent impairment or damage or in the work of suspension, abandonment, remediation or reclamation, supported by receipts for the costs incurred and for salvage revenue, if any, (

f) in the case of a determination of costs for (

i) the provision of reasonable care and measures to prevent impairment or damage, a statement that (

A) the provision of reasonable care and measures in respect of the well, facility, well site or facility site was carried out in accordance with these Rules and other requirements, and (

B) the Regulator’s recor ds have been updated to reflect the work performed, (ii) suspension or abandonment, a statement that the suspension or abandonment of the well, facility, well site or facility site has been completed, was carried out in accordance with these Rules and other requirements and that the Regulator’s records have been updated to reflect the work performed, (iii) remediation, a statement (

A) that an environmental site assessment has been completed in accordance with the applicable requirements and that the Regulator’s records have been updated to reflect the work performed, or (

B) that provides the number of the remediation certificate issued for the well site or facility site,

Section 103 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 53 o r (iv) reclamation, a statement t hat a reclamation certificate has been issued for the well site or facility site and that provides the number of the reclamation certificate issued for the well site or facility site, a n d (

g) any other information required by the Regulator.

(3) An application for a determination of costs under subsection (2)(f)(ii) or (iii) may be made only after the abandonment or remediation work is completed, unless otherwise permitted by the Regulator. Abandonment of well drilled through coal 103(1) The licensee of a well that has been drilled through coal may not abandon the well unless the licensee has obtained the approval of the Regulator under

section 14.

(2) The Regulator may approve the abandonment of the well subject to any conditions and specifications that the Regulator may direct.

(3) The licensee must abandon the well in accordance with the conditions and specifications directed by the Regulator.

(4) The licensee must notify the appropriate field centre of the Regulator of the licensee’s intention to abandon the well at least 12 hours before commencing the abandonment. AR 116/2022 s103;19/2023

Part 6 General Fees 104(1) The fees payable to the Regulator under these Rules are set out in

Schedule 1.

(2) The Regulator may vary or waive any fee in the

Schedule if, in the opinion of the Regulator, circumstances so warrant. Service of notice of garnishment 105(1) A notice of garnishment may be served on the payor under

section 23 of the Act as follows:

Section 105 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 54 (

a) if the payor is an individual, by leaving the document wit h the individual or by sending the document by registered mail addressed (

i) to the individual at the individual’s residence, or (ii) to the name and address of any business of the individual; (

b) if the payor is a partnership, on all members of the partnership (

i) by leaving the document with (

A) a person who is a partner, or (

B) a person who appears to have control or management responsibilities with respect to the partnership at the principal place of business or activity of the partnership, or (ii) by sending the document by registered mail addressed to (

A) the partnership, (

B) any person who is a partner, or (

C) any person who appears to have control or management responsibilities with respect to the partnership to the principal place of b usiness or activity of the partnership; (

c) if the payor is a corporation other than a municipality, (

i) by leaving the document with an officer or director of the corporation or person in charge of any office or place of business of the corporation, (ii) by leaving the documen t at, or by sending the document by registered mail addressed to, the registered or head office of the corporation, or (iii) where the corporation has its registered or head office outside of Alberta, by leaving the document with, or by sending the document by registered mail addressed to, its agent for service appointed under

Part 21 of the Business Corporations Act;

Section 106 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 55 (

d) on a municipal corporation, by leaving the document with, or by sending the document by registered mail addressed to, the principal office of the corporation or the chief administrative officer of the corporation; (

e) on an association, (

i) by leaving the document with an officer of the association, or (ii) by sending the document by registered mail addressed to an officer of the association at the address of the officer.

(2) A notice of garnishment is deemed to have been served on and received by a debtor under

section 23 of the Act when (

a) it is delivered by register ed mail or by courier service to the last address of the debtor known to the Regulator, (

b) it is sent electronically t o the last contact of the debtor known to the Regulator, or (

c) it is served in accordance with

section 107, if the debtor is a licensee. AR 116/2022 s105;19/2023 Forwarding garnished money or revenue 106 If the payor is required by

section 23 of the Act to forward money or revenue to the Regulator, the payor must forward the money or revenue to the Regulator together with (

a) the notice number and date of the notice of garnishment, (

b) the name of the debtor, and (

c) an expected payment

schedule setting out the following information, if known by the payor: (

i) the date or dates on wh ich the payor expects to have money or revenue owing to the debtor; (ii) the amount that is exp ected to be payable on each date referred to in subclause (i); (iii) the date or dates on wh ich the payor will forward the money or revenue referred to in subclause (

i) to the Regulator.

Section 107 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 56 Service of notices 107(1) Any notice or order that the Regulator is required or may desire to serve is deemed to have been served on a licensee (

a) on delivery of the notice or order at an address registere d under

section 20 of the Act as the address of the licensee, the address for service in Alberta of the licensee or the address of the agent of the licensee, (b) 7 days from the date of ma iling to an address referred to in clause (

a) that is in Alberta, or (

c) subject to clause (b), 14 d ays from the date of mailing to an address referred to in clause (

a) that is in Canada.

(2) In the event of non-compliance with

section 20 of the Act by a licensee, all notices or orders required to be served or that the Regulator desires to serve may be posted on the Regulator’s website and must be kept so posted for 24 hours, exclusive of Saturdays and holidays, and on the expiration of that period are deemed to have been served on the licensee. AR 116/2022 s107;158/2025 Expiry 108 For the purpose of ensuring that these Rules are reviewed for ongoing relevancy and necessity, with the option that they may be repassed in their present or an amended form following a review, these Rules expire on June 30, 2032. AR 116/2022 s108;19/2023 Coming into force 109 These Rules come into force on June 30, 2022.

Schedule 1 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 57

Schedule 1 1 Fee for application for a Regulator-directed transfer of licence $10 000 2 Fee for application for licence by an applicant who has not held a licence under these Rules $10 000 3 Fee for submission of each of the following data discrepancies that is not corrected prior to the Regulator filing deadline: (

a) facility imbalance error; (

b) facility metering difference error; (

c) well missing from a submission $100 4 Fee for filing each of the following after the filing deadline date: (

a) current month submissions; (

b) amendment required because of the change to the disposition; (

c) amendment required because of the change in a well or facility infrastructure data $500 5 Fee for follow-up when data or information related to fluid analysis or drillstem tests has not been supplied as specified under Directive 089 $1000

Schedule 2 AR 116/2022 GEOTHERMAL RESOURCE DEVELOPMENT RULES 58

Schedule 2 WHITE SYMBOL & LETTERING ON RED BACKGROUND BLACK LETTERING & SYMBO L O UTLINE O N WHITE BAC KG RO UND LARGE SIGN SMALL SIGN CATEGORY I CATEGORY II OR FACILITY IDENTIFICATIO N SIGNS LARGE SYMBOL 100mm x 100mm small symbol (Affixed) 250mm x 250mm large symbol (Affixed) 100mm or 250mm 250mm 100mm or 250mm 100mm or 250 mm 100mm or 250mm 250mm OR POISON GAS

Printed on Recycled Paper *9780779860616*