2.4 (1) A person who is interested in operating a CAES project in a porous rock reservoir shall, before engaging in any activity on or in a well that is part of the project, submit to the Minister, (a)  an application for each licence under subsection 10 (1) of the Act that the person requires to drill, operate, deepen alter or enter any wells, or to engage in any other activity on or in any wells, that will be, (i)  used to prepare the porous rock reservoir for use as part of the CAES project by producing any remaining oil, gas and formation water from the reservoir, before any compressed air is injected into the porous rock reservoir, or (ii)  used in association with the CAES project, once the porous rock reservoir has been prepared for use as part of the CAES project in accordance with subclause (i); and (b)  an application for one or more permits under section 11 of the Act that the person requires to inject compressed air into the porous rock reservoir through the wells referred to in clause (a). O. Reg. 151/22, s. 2. (2) Clause (1) (a) applies with respect to any well that will be used in association with a CAES project in a porous rock reservoir, including, (a)  any existing well that was previously used for another purpose under the Act or a predecessor of the Act and that will be used in association with the CAES project; and (b)  any new well that will be drilled and used in association with the CAES project. O. Reg. 151/22, s. 2. (3) The operator of a CAES project in a porous rock reservoir may, at any time in the course of carrying on the project, submit to the Minister, (a)  an application for a licence under subsection 10 (1) of the Act to drill, operate, deepen alter or enter one or more additional wells, or to engage in any other activity on or in one or more additional wells that are required in association with the CAES project; and (b)  an application for a one or more permits under section 11 of the Act to inject compressed air into the porous rock reservoir through one or more of the wells referred to in clause (a). O. Reg. 151/22, s. 2. (4) An application for a licence under clause (1) (a) or (3) (a) may include an application for a licence for a well that will be used to conduct geological evaluations or testing of the porous rock reservoir after one or more other well licences have been granted with respect the CAES project in a porous rock reservoir. O. Reg. 151/22, s. 2. (5) An application for a licence or permit submitted under subsection (1) or (3) shall be accompanied by, (a)  if the applicant is a corporation, a corporation profile report that must include, (i)  the current status of the corporation, (ii)  the corporation’s legal name, corporation number and registered address, and (iii)  a list of the names of the corporation’s current officers and directors; (b)  confirmation from the applicant that all necessary surface and subsurface rights have been acquired by the applicant, including the surface, mineral, oil, gas and compressed air storage rights, whether through ownership or lease, for all lands on or under which the CAES works will be located and all lands that are proposed to be included within the surface area of the CAES project; and (c)  a report that is prepared by an independent party with expertise in insurance matters related to environmental and other risks associated with subsurface geological storage operations in Ontario and that, (i)  recommends the types and amount of insurance coverage necessary for the proposed CAES project, including but not limited to liability and pollution coverage, and (ii)  identifies the information that was relied on to develop the recommendation described in subclause (i). O. Reg. 151/22, s. 2. (6) An application for a licence or permit submitted under subsection (1) or (3) shall contain the following information: 1.  The applicant’s name and contact information. 2.  A detailed description of the CAES project in a porous rock reservoir that includes the information required under subsection (7). 3.  Plans and technical reports and analyses relating to the CAES project in a porous rock reservoir that are described in subsections (8) to (15) and that demonstrate the following: i.  The CAES project has been designed for the site-specific geologic environment of the porous rock reservoir to which the project relates. ii.  All works have been designed with consideration of the expected operating conditions including temperatures, pressures and gas compositions. iii.  The CAES project will be designed, constructed, operated, maintained, decommissioned and abandoned in a manner that, A.  permanently isolates and protects all potable water formations from potential contamination, B.  protects existing and potential hydrocarbon-bearing formations that are not included in the porous rock reservoir from cross-contamination, C.  prevents the migration of fluids between permeable zones, D.  promotes the conservation and efficient recovery of hydrocarbons that are contained in the porous rock reservoir with minimal use of flaring, E.  ensures that compressed air will be contained within the porous rock reservoir and other associated works during operation, F.  ensures containment of fluids after plugging, abandonment and decommissioning, G.  addresses any potential corrosion issues with respect to the wells and other associated works, H.  ensures that all necessary measures to prevent explosions are taken, including managing gas composition so as to minimize, or eliminate where possible, potential explosive mixtures and potential sources of ignition, I.  ensures that the plugging, abandonment and decommissioning of wells, the reservoir and other associated works, will leave them in a stable state that permanently protects the public and the environment, and J.  ensures all necessary measures are taken to ensure public safety and protection of the natural environment. iv.  The suitability of the porous rock reservoir for the purposes of the proposed CAES project with respect to, A.  its porosity, permeability and other key parameters necessary for a CAES operation, B.  the quality and geo-mechanical integrity of its seal and caprock, and C.  its geochemistry and its compatibility with compressed air. O. Reg. 151/22, s. 2. (7) The following information shall be included in a description of the CAES project in a porous rock reservoir in respect of which an application is submitted under subsection (1) or (3): 1.  An overview of the CAES project and its purpose. 2.  A description of the location of the CAES project, including any local and upper tier municipality or geographic township parts of which are located within the surface area of the CAES project, the lot and concession numbers, and any applicable civic address. 3.  A description of the CAES project, including the wells, the porous rock reservoir and other works and activities that are the subject of the licence or permit application. 4.  A description of any other federal, provincial and municipal approvals that will be required for the CAES project. 5.  A list of all documents and information that are being submitted in support of the application and, for each document listed, i.  the title of the document, ii.  its general subject matter, iii.  the date the document was prepared, and iv.  the author’s name and qualifications. 6.  One or more maps showing the following: i.  The general location of the lands that are the subject to the application. ii.  The proposed surface area of the CAES project in a porous rock reservoir. iii.  The locations of all existing and proposed wells and other works that will be used for the CAES project, and the setback distances between the wells and other works, on the one hand, and the proposed surface area, on the other hand. iv.  Existing surface uses, significant natural and human-made features, populated areas, and relevant land uses that have the potential to impact or to be impacted by the CAES project and are located inside or within 1 kilometre of the proposed surface area of the CAES project in a porous rock reservoir, as well as any other significant surface uses or features identified in the applicant’s technical reports or analyses. v.  Existing subsurface uses that have the potential to impact or to be impacted by the CAES project, including, A.  existing wells or abandoned wells located inside or within 1 kilometre of the proposed surface area of the CAES project in a porous rock reservoir, B.  currently or previously active subsurface operations located inside or within 5 km of the proposed surface area of the CAES project in a porous rock reservoir, and C.  any other subsurface activity identified in the applicant’s technical reports or analyses. vi.  A North arrow. vii.  A scale. viii.  A legend. O. Reg. 151/22, s. 2. (8) In order to address the full lifecycle of the CAES project, including the design, construction, operation, maintenance, monitoring, abandonment and decommissioning and the safety of the wells, reservoir and other associated works used during the lifecycle of the CAES project, an application for a licence or permit submitted under subsection (1) or (3) shall include plans that address the following: 1.  The design, drilling and completion of the wells. 2.  The conversion programs for all pre-existing wells that the applicant is proposing to use in the CAES project. 3.  The design of the wells and other associated works to minimize and control corrosion, including details of the corrosion control program and corrosion monitoring of wells and works. 4.  The development of the porous rock reservoir, from the initial production of remaining hydrocarbons and formation fluids through to the use of the reservoir for CAES. 5.  The operational plans to verify the inventory of compressed air in the porous rock reservoir, including leak detection and resolving discrepancies. 6.  The operation and maintenance of the wells, the porous rock reservoir and other associated works. 7.  The integrity of the wells and porous rock reservoir, including details of mechanical integrity testing and preventative maintenance for all wells that penetrate the reservoir and for the reservoir. 8.  The plugging and abandonment, or other remedial actions or measures, for all wells or other drilled conduits as needed to protect the integrity of the porous rock reservoir. 9.  The location and type of surface works, including storage tanks, heaters, treaters, separators, compressors, flares and pipelines, and a brief description of the technical specifications of each such work. 10.  The plugging, abandonment and decommissioning of all wells, the porous rock reservoir and other associated works, the site rehabilitation and the monitoring programs related to any of these activities. 11.  Emergency management and response. 12.  Spill response. 13.  The details of the CAES project schedule. O. Reg. 151/22, s. 2. (9) The plans referred to in paragraph 1 of subsection (8) shall include well location plans that meet all the requirements described in Part I of the Provincial Standards for Oil Gas and Salt Resources. O. Reg. 151/22, s. 2. (10) For the purposes of determining the amount of security to be provided under section 16.1, the plans relating to plugging, abandonment, decommissioning and site rehabilitation, as well as monitoring programs, referred to in paragraph 10 of subsection (8) shall include a detailed schedule for these activities and an estimate made by the applicant of the costs of carrying out these activities, including an itemized list of the costs of, (a)  plugging and abandonment of all wells that are part of the CAES project and decommissioning of the porous rock reservoir; (b)  decommissioning of all works, other than those referred to in clause (a), that are part of the CAES project; (c)  carrying out all necessary site rehabilitation work; and (d)  ongoing maintenance or monitoring work that is required after plugging, abandonment, decommissioning and site rehabilitation have been completed. O. Reg. 151/22, s. 2. (11) All plans referred to in subsection (8) shall, (a)  identify any standards or specifications that will be used or relied on during all stages of the CAES project; (b)  identify all materials that will be used in the design or construction of wells; (c)  describe any proposed departures from the operating standards of the Provincial Standards for Oil, Gas and Salt Resources with which the operator of the CAES project in a porous rock reservoir is required to comply under section 6.2, along with, (i)  the rationale for the proposed departure, (ii)  written certification from a qualified person that, (A)  it is reasonable to depart from the standard or standards in the circumstances, and (B)  measures to prevent or limit damage that provide an equal or higher standard of protection are being proposed, and (iii)  the name and qualifications of the qualified person who certified the proposed departure; and (d)  describe any monitoring, recordkeeping, and reporting requirements related to the CAES project; O. Reg. 151/22, s. 2. (12) The qualified person referred to in subclause (11) (c) (ii) shall hold a licence or temporary licence in good standing under the Professional Engineers Act
or possess such other qualifications as may be permitted under the Provincial Standards for Oil Gas and Salt Resources. O. Reg. 151/22, s. 2. (13) The following technical reports and assessments shall be included in an application for a licence or permit submitted under subsection (1) or (3): 1.  An assessment of the potential impacts that the CAES project in a porous rock reservoir may have on surface features, activities and uses that are not part of the CAES project and are located within the proposed surface area of the CAES project or within one kilometre of the proposed surface area. 2.  An assessment of the potential impacts that the neighbouring surface features, activities and uses referred to in paragraph 1 may have on the CAES project in a porous rock reservoir. 3.  An assessment of the potential impacts that the CAES project in a porous rock reservoir may have on subsurface features, activities and uses that are not part of the CAES project and are located either within the proposed surface area of the CAES project or, i.  in the case of an existing or abandoned well or other drilled or dug conduit, within one kilometre of the proposed surface area, and ii.  in the case of any other subsurface operations, within five kilometres of the proposed surface area. 4.  An assessment of the potential impacts that any of the subsurface features, activities and uses referred to in paragraph 3 may have on the CAES project in a porous rock reservoir. 5.  With respect to all wells or other drilled or dug conduits that may impact the CAES project in a porous rock reservoir, an assessment of their age, history, and condition, and any remedial actions or measures needed to confirm that they will not affect the integrity of the porous rock reservoir or of any wells used in association with the project. 6.  One or more risk assessments that consider the full lifecycle of the CAES project in a porous rock reservoir, including all recommendations and plans to be implemented to prevent or mitigate risks. 7.  A complete description of the geological, geophysical and other data used to interpret the geometry and geographical limits of the porous rock reservoir. 8.  Detailed geological and geochemical evaluations clearly identifying porous rock reservoir spill points, rock and fluid properties, stratigraphy, and the quality of the reservoir and seal. 9.  A geochemical evaluation of the compatibility of the proposed injection fluids with formation fluids and the lithology of the porous rock reservoir. 10.  A geo-mechanical analysis of the porous rock reservoir that, i.  considers all operating conditions including maximum and minimum storage pressures, flow conditions, temperature changes, cyclic stresses, and delta-pressuring, and ii.  is supported by numerical modelling, sufficient rock cores and sufficient laboratory testing including cap-rock testing. 11.  Reservoir modelling and analysis that, i.  considers all flow, pressure, fluid and rock compositions and other operating conditions, ii.  considers the potential formation of explosive mixtures and how to ensure they are not formed, iii.  considers potential sources of ignition, iv.  considers geochemical characterization of rocks and fluids, and v.  provides suitable inputs for geo-mechanical numerical modelling. 12.  An analysis of the corrosion program, including its design and efficiency in preventing corrosion, the monitoring of corrosion rates, the efficacy of any corrective measures throughout the lifecycle of the CAES project. 13.  A detailed analysis and technical justification for, i.  the proposed plans for the testing of the mechanical integrity of wells that penetrate the porous rock reservoir, and ii.  the proposed plans to ensure the integrity of the porous rock reservoir throughout the lifecycle of the CAES project. O. Reg. 151/22, s. 2. (14) The subsurface features, activities or uses referred to in paragraph 3 or 4 of subsection (13) include geological features, any storage, mining or other similar operations, plugged or unplugged wells, oil, gas and salt resources, and any geological evaluation wells, geothermal wells, and water wells. O. Reg. 151/22, s. 2. (15) All plans referred to in subsection (8) and technical reports and analyses referred to in subsection (13) shall, (a)  clearly set out any measures or actions that are to be carried out as part of the CAES project in order to prevent or mitigate any possible adverse effects that the CAES project in a porous rock reservoir may have; (b)  identify the individuals who prepared each plan, report or analysis, their qualifications and relevant experience; (c)  be signed by the individuals who prepared the plan, report or analysis and include, where appropriate, their seal or stamp; and (d)  include the date the plan, report or analysis was completed. O. Reg. 151/22, s. 2. (16) Plans and technical reports and analyses that are submitted in support of an application for a licence or permit necessary for a well used in association with a CAES project in a porous rock reservoir may be used in support of another application for a licence or permit for another well used in association with the same CAES project that is submitted, (a)  at the same time as the first-mentioned application is submitted; or (b)  after the first-mentioned application is submitted, so long as the information in the plans or technical reports or analyses remains accurate and relevant to the application. O. Reg. 151/22, s. 2.