Alberta issues guidance on geothermal resource lease application

The government of Alberta, Canada has issued Mineral Rights Information Bulletin 2022-02 that provides guidance on the process of obtaining a geothermal resource lease. It also states that the Alberta Energy Regulator (AER) is now accepting applications from companies interested in exploring for and developing geothermal resources.

In December 2021, the government of Alberta released proclaimed into law the Geothermal Resource Development Act (GRDA) which established AER as the entity responsible for regulating the responsible development of geothermal resources and related facilities in Alberta. The recently released bulletin represents the next step in Alberta’s plan to facilitate geothermal development in the region.

The bulletin also states that the Electronic Transfer System (ETS) for the submission of applications for geothermal leases is still under development. The agency will publish a separate bulletin once the ETS is ready, along with a tutorial on how to use the system.

Application procedure and requirements

Applications for geothermal lease will be handled on a first-in, first-out basis. These applications will be required for any stand-alone geothermal applications what would occur below the base of groundwater protection. Crown geothermal resource rights may be requested for any of the following:

• surface to basement
• surface to a specified zone
• from a specified zone to basement, or
• for a specific zone/s

The bulletin states that the geothermal lease will only apply to the resources below the base of groundwater protection. This means that a proponent will need to secure the landowner’s written content for surface access to put up pipelines and other facilities. This has to be obtained before the AER makes any decision regarding the lease application.

Other details will be required for each geothermal lease application, including an overview of the proposed project and the type of technology that will be used. A non-refundable $625 fee will be charged for each application.

Scenarios where there are overlapping rights between standalone geothermal operations and mineral agreement  holders will be assessed on a case-by-case basis.

Lease timeline

The bulletin identifies distinct terms within the lifecycle of a geothermal lease. Each term comes with specific deliverables should the proponent wish for the lease to be extended.

• Initial term

The Initial term will be for a period of five years. During this term, the proponent must create a Geothermal Assessment Report that details the efforts undertaken to demonstrate the technical viability of the resource for producing geothermal energy.

These activities can include drilling a well, re-completing an existing well, or putting up surface infrastructure. Desktop studies are re-interpretation of existing technical studies are NOT considered acceptable activities for application of an Intermediate term.

If the continuation application is successful, the geothermal lease can advance to the Intermediate term.

• Intermediate term

The Intermediate will also be for a period of five years. During this period, more advanced technical data or evidence will be expected. Examples include fluid temperatures, results of technical tests and surveys, or record of heat or energy generation.

Should Alberta Energy deem the Intermediate term to be productive, the geothermal lease can advance to the Continued term.

• Continued term

If the geothermal resources is considered productive, then geothermal lease can be continued indefinitely. At any time, Alberta Energy may request for information from the proponent such as the results of any study or assessment done on the geothermal resource.

Source: Alberta Government