From its establishment in January 2008, until it was disbanded in 2013, the
Edmonton,
Alberta-based
Energy Resources Conservation Board (ERCB)—an independent, quasi-judicial agency of the
Government of Alberta—regulated Alberta's
energy resource industry, which included oils sands tailings ponds. Board members included
engineers,
geologists,
technicians,
economists, and other professionals. The ERCB was created to replace the Alberta Energy and Utilities Board (EUB) and the Alberta Utilities Commission. The ERCB's first major publication was the December 2008,
Directive 073: Requirements for Inspection and Compliance of Oil Sands Mining and Processing Plant Operations in the Oil Sands Mining Area, which was based
Oil Sands Conservation Act (OSCA),
Oil Sands Conservation Regulation (OSCR), Informational Letter (IL) 96-07:
EUB/AEP Memorandum of Understanding on the Regulation of Oil Sands Development, IL 94-19:
Dam Safety Accord, Agreement Between Alberta Employment, Immigration and Industry and the Alberta Energy and Utilities Board Respecting the Coordination of Services for Coal and Oil Sands Mine Projects (EII/EUB MOU), requirements set out in approval conditions for each oil sands mining and processing plant scheme, operator's ERCB-approved S-23 production accounting manual, Interim Directive (ID) 2001-07:
Operating Criteria: Resource Recovery Requirements for Oil Sands Mine and Processing Plants, ID 2001-03:
Sulphur Recovery Guidelines for the Province of Alberta, and
Directive 019: ERCB Compliance Assurance—Enforcement. In 2009, the ERCB published an industry wide directive—
Directive 074—which was the first of its kind. Directive 074 set out the "industry-wide requirements for tailings management," requiring "operators to commit resources to research, develop, and implement fluid tailings reduction technologies and to commit to tailings management and progressive reclamation as operational priorities that are integrated with mine planning and bitumen production activities." In 2012, the Government of Alberta set up a Tailings Management Framework (TMF) to complement and expand Directive 074's policies to "ensure that fluid fine tailings are reclaimed as quickly as possible and that current inventories are reduced." The ERCB's 2013 "Tailings Management Framework for Mineable Oil Sands" "challenged a "key plank" of the Conservative provincial government, under Premier
Alison Redford, who served from October 2011 until her resignation on 23 March 2014. During the tenure of the
Redford cabinet, the province was promoting "Alberta as a responsible energy producer." The government had pledged that the "turbid tailings ponds containing the byproducts of bitumen production will soon be a thing of the past." In March 2015, in response to the ERCB's "Tailings Management Framework for Mineable Oil Sands", AER suspended Directive 074: Tailings Performance Criteria and Requirements for Oil Sands Mining Schemes. In May 2016, the
Court of Queen's Bench of Alberta (ABQB) in
2016 ABQB 278, "confirmed that the federal
Bankruptcy and Insolvency Act supersedes the provincial requirements that companies must clean up wells." "[B]ankrupt companies can avoid their liabilities and leave them as a public obligation." Directive 85 was issued on 14 July 2016, by the Alberta Energy Regulator, following consultations with "consultations with First Nations, local communities, environmental groups and industry itself". Directive 85 with new guidelines and a phased-in approach on oil sands producers' management of their tailings ponds. In July 2019, the AER announced their
Decision 2019 ABAER 006: Syncrude Canada Ltd. Mildred Lake Extension Project and Mildred Lake Tailings Management Plan, with a 289-page report. Syncrude's had submitted their request regarding the Mineral Surface Lease MSL352 in 30 June 2017. The AER decision allows Syncrude to use more public lands to develop oil sands on oil sands leases 17 and 22, under section 20 of the Public Lands Act, with a number of conditions, related to relevant laws, including the
Oil Sands Conservation Act (OSCA), the
Environmental Protection and Enhancement Act (EPEA), the
Water Act, and the
Public Lands Act.
AER on cost of clean-up of tailings ponds In an AER presentation in February 2018, the AER's "vice-president of closure and liability" said that "based on "a hypothetical worst-case scenario", the cleanup cost would be $260-billion based on "internal AER calculations". The oil industry's "accumulated environmental liability" estimate of $58.65 billion was the amount that the AER had publicly reported. On 15 February 2018 the
Supreme Court of Canada held a hearing centering on Alberta's lower courts' findings in favour of Redwater Energy's creditors, to determine if Canada's bankruptcy laws are in conflict with Alberta's regulatory regime – and if those federal laws are paramount to the province's environmental rules". By February, 2018, there were 1,800 abandoned or
orphan wells—sites that had been licensed by AER with combined liabilities of over $110 million. From 2014 to 2018 the industry-led organization's Orphan Well Association's (OWA) inventory, increased from 1,200 to over 3,700. In late February 2018,
CBC News and CP reported that
Sequoia Resources Ltd, an oil firm that had purchased "licences for 2,300 wells" in 2016 from Perpetual Energy Inc., had notified AER that it was ceasing operations "imminently" and were unable to maintain "almost 200 facilities and nearly 700 pipeline segments". On 7 August 2018
PricewaterhouseCoopers, the trustee for Chinese investors who purchased
Sequoia Resources Ltd in 2016, launched a lawsuit against Perpetual Energy Inc. in an "unprecedented bid to void" the 2016 sale of Perpetual Energy Inc.'s subsidiary called Perpetual Energy Operating Corp. (PEOC) now known as Sequoia Resources Ltd to Chinese investors. An article in
The Globe and Mail said that this appears to be the "first attempt by a bankruptcy trustee in Alberta to have a previous oil and gas transaction unwound." It could "introduce major new risks to the [oil and gas] industry's ability to buy and sell assets and could also deliver a severe blow to Perpetual." The lawsuit alleges that Perpetual and its CEO Susan Riddell Rose "knew the deal would sink the buyer". In a public statement released on 8 August 2018, AER CEO Jim Ellis, who had been CEO since AER's creation in 2013, took the "unusual step" On 1 November 2018 AER CEO Jim Ellis apologized for failing to report "that cleaning up after the province's oil and gas industry would cost $260 billion". On 2 November he announced his retirement as CE0. At Canadian federal government level, in May 2023, passing of Bill S-5 to update the Canadian Environmental Protection Act was reported as having slowed because of Liberal Party support for an amendment proposed by the New Democratic Party. The amendment stipulated that "... the federal government has the power to compel the production of information about tailings ponds". == Reduction and reclamation ==