Alberta Experiments With "Play-Based" Regulation

The Alberta Energy Regulator ("AER") will pilot a "play-based" regulatory framework for unconventional oil and gas development in part of the Duvernay shale play in west-central Alberta this fall.

The Duvernay shale play is a large, developing shale play covering much of western and northern Alberta and eastern British Columbia. It is particularly rich in light oil and petroleum liquids such as propane and butane. Hydraulic fracturing has been key in developing the vast underground rock formation that covers an area the size of South Korea.

"Play-based" regulation involves implementing a single application and decision-making process for multiple wells, pipelines and facilities under different pieces of legislation. It will require all of the operators in the pilot area to collaborate and jointly bring a single application for a single regulatory approval which will be used for regulating all of their unconventional oil and gas activities in the pilot area.