ERCB Releases Discussion Paper And Draft Elective Relating To Unconventional Resource Development

The Energy Resource Conservation Board ("ERCB") is seeking public input on new rules designed to address growing development of unconventional resources in the province of Alberta. Regulating Unconventional Oil and Gas in Alberta – a Discussion Paper outlines a new approach by the ERCB to regulate horizontal drilling and hydraulic fracturing in unconventional oil and gas production in the province. According to the ERCB, the technology used to develop unconventional resources, mainly horizontal drilling and hydraulic fracturing, are not new in Alberta. However, the scale of the development of unconventional resources has increased significantly. To address the associated challenges with large scale developments, the discussion paper suggests a new regulatory approach that includes moving from well-by-well regulation to regulation focused on development within a defined area. This "play-focused" regulation is intended to be performance-based to achieve specific outcomes