REPORT TO ALBERTANS
Our First Year of Operations

The Alberta EnergyRegulator (AER) is thesingle regulator for oil,natural gas, oil sands, andcoal development in Alberta.

Energy regulation in Alberta spans 76years and has evolved over time. Thisevolution continued in June 2013 when theAER became a new organization with anentirely new governance structure and took
over responsibilities for energy regulation
previously held by the Energy Resources
Conservation Board (ERCB).
This journey began with the Governmentof Alberta’s Regulatory Enhancement
Project, which was designed to ensure thatAlberta’s resource policy development, publicconsultations, and energy development
regulations are efficient and competitive
while supporting public safety, environmental
management, and resource conservation.
From this process the government passed
the Responsible Energy Development Act(REDA) in 2012, and on June 17, 2013, theAER was launched.
The AER immediately took on regulatory
responsibilities previously conducted by theERCB. Over the next nine months, the AER
took on new responsibilities from Alberta
Environment and Sustainable ResourceDevelopment (ESRD), including public land
and geophysical jurisdiction, as well asAll of this took place while the AER continued
to provide regulatory oversight for energy
development in Alberta, processing of energy
development applications, conducting
inspections and investigations, and ensuringthat all of our requirements were followed.
To increase transparency, the AER alsobegan publishing notices of applications
on our website, enhancing the notification
requirements already in place. Our transition
is now complete and the AER is now Alberta’s
single regulator for upstream oil, oil sands,
natural gas, and coal development.
Learn more about the AER online atwww.aer.ca.

The AER Regulates
MORE
THAN

50200OVER

A New Approach toCompliance andEnforcement

415 000OVER

9oil sands
minesWith new authority under the Environmental
Protection and Enhancement Act, the Water
Act, and the Public Lands Act, the AER has
more enforcement tools available to respond tocompanies that fail to comply with requirements.
Simply stated, companies that develop Alberta’s
oil and gas resources must follow all rules,regulations, and requirements. If they don’t,
there are serious consequences. The AER’senforcement tools include

kilometres of pipelines

7825gas processing plants

bitumenupgraders

4›› more frequent and detailed inspections,›› more stringent planning requirements,›› enforcement orders,›› shutting down operations,›› the levying of administrative penalties, and›› prosecution.

coal processing
plants

180 000

operating natural gas and oil wells&11

The AER will provide Albertans with information
about industry’s performance record, including oureasy-to-access incident reporting tool and regularposting of investigation reports and complianceactivities on our website.

producingcoal mines

29 000

21 000gas facilities

Original graphic provided by Oilweek Magazine24-HOUR EMERGENCY 1-800-222-6514

12Date:Signature:

ANDCLOSETO

oil facilities

May 1, 2014

Proofreader 116experimental
projects

thermal/enhanced
in situ projects

When companies fail to follow our rules andrequirements, the AER has the authority totake strong action, including shutting down
their facilities.

Project LeadAND

primary/enhanced
recovery projects(in situ)

OVER

Our new approach to compliance puts our focus
on higher-risk activities, such as developments near
populated or environmentally sensitive areas. In
those cases, we inspect more frequently to makesure that all of our requirements are followed.

sections of the Environmental Protection andEnhancement Act and the Water Act as they
relate to energy resource development.

MORE
THAN

The AER provides for thesafe, efficient, orderly, andenvironmentally responsible
development of energy
resources. This includes
allocating and conserving
water, managing public
lands, and protecting
the environment, while
delivering economic
benefits for all Albertans.

2014

Proofreader 2

Senior Manager

Changes NeededBecoming Best In Class – Our Plan
Regulating the world’s third-largest energy
resource comes with high expectations anddraws a lot of attention and scrutiny. Thisis fair. After all, Alberta offers some of themost majestic landscapes on the planet, ishome to four million people, and is a majorenergy producer. From the Canadian Rocky
Mountains to rivers of glacier water, Alberta
and the people who call it home areworth protecting.
So when it came time for the AER to develop
its first strategic plan, we knew we needed
one that would allow us to achieve our visionby being protective, effective, efficient, andcredible, while meeting the expectations ofAlbertans and reporting on our results.
The AER 2014–17 Strategic Plan plots aroadmap that helps us select projects andinitiatives that go beyond our day-to-day
regulatory work to improve safety, become
more effective and efficient, and build
stronger relationships with stakeholders; it’s
about making the most of our resources.

important work, and our strategic plan will
make sure we stay on track and deliver resultsfor Albertans.”
The strategic plan includes our desired
outcomes, areas of focus, and performancemeasures and targets. This allows us tomonitor our progress and report on
our results.

We’re taking the purposeful steps required
to uphold our responsibilities to Albertans,and with the new strategic plan in place, theAER continues to lead the next era of energy
regulation in Alberta.
You can learn more about the AER 2014–17
Strategic Plan at aer.ca.

Our Vision

Our Mandate

The Alberta Energy Regulator
is recognized as best inclass, ensuring the safe,
environmentally responsible
development of energy
resources for the benefitof all Albertans.

The AER’s mandate is to ensure
the safe, efficient, orderly, andenvironmentally responsible
development of hydrocarbon
resources over their entire life
cycle. This includes allocating
and conserving water resources,
managing public lands, andprotecting the environment, whileproviding economic benefits for
all Albertans.

“The AER is already a strong regulator,” saidpresident and CEO Jim Ellis, “but it’s notenough for us to simply say we’re strong. We
need to be recognized by our stakeholders
and peers as among the best there is. This is

Taking Action in Peace River
In July 2013, president and CEO Jim Elliscalled for a proceeding to examine odours
and emissions generated by heavy oil
operations in the Peace River area. The
proceeding allowed residents and industry
to express their concerns in a public forum.
The proceeding included a review of industry
practices and explored possible solutions tothis important issue.

Industry Flaring, Incinerating, and Venting.
These revisions require companies toconserve gas, regardless of the economics
of an energy operation, and give the AER
enforcement tools to address off-leasehydrocarbon odours.

within our jurisdiction,” said Carol Crowfoot,vice president of the Regulatory Operationsand Economics Branch. “This includes
strategies to reduce emergency flaring
and fugitive emissions and to increase gas
conservation in the Peace River area.”
The AER is also exploring opportunities with
the Government of Alberta to establish andexpand a regional air quality monitoring
program in the Peace River region.

The AER acted immediately to address therecommendations, accepting all those in our
jurisdiction on April 15, 2014.

In early May, the AER made further
revisions to Directive 060 and released arevised Directive 056: Energy Development
Applications and Schedules. The changeswill ensure that casing and tank-top gas areconserved in the Peace River area. Companies
that fail to meet these new requirements will
face enforcement action.

That same day, the AER released a revised
version of Directive 060: Upstream Petroleum“We are developing a strategy to meet thepanel’s remaining recommendations that are

The independent AER hearing panel released
its recommendations on March 31, 2014.

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We are working on long-term strategies toreduce flaring, venting, and incineration andto increase gas conservation in Alberta. We
will continue to find ways to improve ourapproach to addressing air emissions andprotecting the environment while ensuring
the conservation of our oil and gas resources.

Employee Community
SENSE OF COMMUNITY
The AER has close to 1200 employees
working in 15 locations across Alberta —from Medicine Hat to High Level.
Our staff serve Albertans through their daily
work, but it rarely ends there. Even in theiroff-hours, many offer their time and talents tosupport worthy causes in the rural and urban
communities they call home — below are justtwo examples.
Like other AER employees, they are ultimately
driven by their sense of community.

› Tanis Bryson
To say that Tanis Bryson, who works in theAER Strategy and Regulatory Division inEdmonton, is busy is an understatement.
By day, Tanis works on collaborative projects
between the AER and the Government ofAlberta, having recently joined the AER fromEnvironment and Sustainable Resource
Development. By night, she’s a mom to
two small kids and an active member of herwest Edmonton community. Whether it’s
helping with community league projects, herchildren’s preschool or sports, there’s notmuch down time.

We are in 15 locations across Alberta.

“I try to be involved in my community as muchas possible,” said Tanis. “I really believe there
is strong value in knowing your neighbours,
relating to those who live close to us, andmaking our community the best we can.”
These values are reflected in her work. Tanis
believes in the work the AER is doing to
make the regulatory environment moreaccessible to its stakeholders, but most ofall, to Albertans.
“I really believe that we are efficient, effective,transparent, fair, and adaptable,” said Tanis.
“We are creating a system that is easier toaccess and understand.”

Tanis Bryson› Lawrence Newby
Lawrence is passionate about making surethat oil and gas companies are following
the AER’s rules. The AER field inspector isequally passionate about ensuring that hiscommunity remains vibrant.
“I think you have to give something back,because if you don’t participate in yourcommunity — especially in a rural community— it won’t survive. You need to volunteer tohelp sustain the community,” Lawrence said.
“Plus it’s extremely rewarding.”

The AER’s air monitoring unit.

Although Lawrence works in the Wainwright
Field Centre, his roots in his home town ofViking run deep. Lawrence has volunteered
with Viking Minor Hockey for six years andgives his time to local high-school students
by teaching outdoor education programmingat Viking School.
He has also been heavily involved with his
local Lions Club since 1997. Currently serving
as the mentor for the Lions Quest youth
program, Lawrence works with young people
in Viking, teaching them the importance ofserving in their community.
“We do local service projects like a highway
clean-up and raise money for local charities,
like the food bank,” he said.
A pipeline inspection.

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Lawrence Newby

Having Your Say
Over the past year, the AER has made it easierfor Albertans to learn about the energy resource
development happening around the province.
Applications submitted to the AER are posted
online using the Public Notice of Application tool.
This includes applications for oil and gas wells,
pipelines, coal mines, oil sands developments(both mines and in situ), facilities, and many
applications submitted under the Public
Lands Act, the Environmental Protection andEnhancement Act, and the Water Act. Whena decision is made on an application, whether
it’s approved, closed, withdrawn, or denied, it’salso posted online.
If you have a concern with an application,
you may submit a statement of concern, which
may be filed by anyone who believes they may bedirectly and adversely affected by an application.
The statement must be in written form and include
the filer’s name and contact information, thecompany’s name, the type of project, the locationof the filer’s land and residence in relation to theproposed project, and a summary of concerns that
include how the filer may be directly and adverselyaffected. The AER reviews and responds to allstatements of concern.
We’ve also made it possible to stay informed about
energy resource development in Alberta from anywhereby providing live audio streaming of all AER hearings,
where logistically possible.
More information on these informative tools can be foundonline at www.aer.ca.

Govier Hall, the AER’s main hearing room, located in Calgary.

The AER On Call: Responding
to an Energy Incident

Connect With Us
www.aer.ca@aer_news
www.youtube.com/user/		ABEnergyRegulator
www.aer.ca/blog
www.linkedin.com/company/		alberta-energy-regulator

Head Office
Suite 1000, 250 – 5 Street SW
Calgary, Alberta T2P 0R4
e-mailinquiries@aer.ca
inquiries
1-855-297-8311

SFI-00507

24-HOUR EMERGENCY 1-800-222-6514

With 415 000 kilometres of pipeline, morethan 180 000 operating wells, more than
50 000 oil and gas facilities, and 9 oil sands
mines within our jurisdiction, the AERmust be able to respond to energy-relatedincidents 24 hours a day, seven days a week.
When an energy-related incident occurs,
the AER ensures that companies respond
appropriately to prevent or minimize impacts
to people, property, and the environment.
“The AER has specialized staff who are trainedin emergency response, environmentalprotection, air quality, and investigation,” said
Al Montpellier, vice president of Environment
and Operational Performance. “During anincident, the AER works with all appropriate
operators, local municipalities, and otherprovincial and federal responders to ensure atimely and effective response.”

To ensure a coordinated response, the AER’s
mobile incident command trailer is deployed
to incident sites across Alberta and serves asa base of operations for government agencies
working to respond to an emergency.
In June 2013, the AER also launched a new
online incident reporting tool. The tool, which
is updated daily, is available at www.aer.ca
and posts public notice of all incidents that
may impact the public or the environment.
“The incident reporting tool is just one
example of how Albertans will be kept
informed about the AER’s role during incidentresponse,” added Al.
To report an energy or environmental
emergency or to file a complaint (such asodour or noise) about the operation of anenergy development, contact the AER’s
24-hour emergency line at 1-800-222-6514.