O. Reg. 425/23: SPECIAL PROJECTS

Français

Oil, Gas and Salt Resources Act

ONTARIO REGULATION 425/23

SPECIAL PROJECTS

Consolidation Period: From March 25, 2024 to the e-Laws currency date.

Last amendment: 126/24.

Legislative History: 126/24.

This is the English version of a bilingual regulation.

CONTENTS

 

Interpretation

Definitions

1. (1) In this Regulation,

“carbon storage special project” means a project that,

(a)  uses one or more wells and other associated works for the purpose of testing, assessing, piloting or demonstrating the permanent storage of carbon dioxide in an underground geological formation, and

(b)  does not involve,

(i)  carbon dioxide injection and storage in unmineable coal beds, basalt formations, shales and salt caverns,

(ii)  underground storage in materials involving the use of any form of containers, or

(iii)  the disposal of acid gas; (“travaux particuliers de stockage de carbone”)

“CSA Z741 Standard” means the most current edition of the Canadian Standards Association Standard Z741, Geological Storage of Carbon Dioxide; (“norme CSA Z741”)

“project area” means the area on the surface that,

(a)  includes all wells and other associated surface works to be used for the purposes of the special project, and

(b)  corresponds to the furthest lateral extent of the area within the subsurface that will be used for the special project; (“secteur des travaux”)

“project assessment area” means, in relation to a special project, the geographical area designated by the applicant for assessment of the extent to which the project could adversely affect, through physical and chemical effects,

(a)  people,

(b)  the environment,

(c)  the development of other resources, and

(d)  infrastructure; (“zone d’évaluation”)

“Provincial Standards for Oil, Gas and Salt Resources” means the standards set out in the document entitled “Oil, Gas and Salt Resources of Ontario, Provincial Operating Standards”, published by the Ministry and available on a website of the Government of Ontario, as that document is amended from time to time; (“normes provinciales sur les ressources en pétrole, en gaz et en sel”)

“recognized standards” has the same meaning as in the Modernizing Ontario for People and Businesses Act, 2020; (“normes reconnues”)

“special project” means a project that has been designated as a special project by the Minister under section 11.1 of the Act, as described in the designation; (“travaux particuliers”)

“surface area”, with respect to a special project, means the surface area for a special project to test, assess, pilot or demonstrate the permanent storage of carbon dioxide, or that involves the temporary storage of one or more substances in an underground geological formation, set out on a map in accordance with subsection 20 (4) of Ontario Regulation 245/97, and that includes,

(a)  the project area, and

(b)  any additional areas adjacent to the project area that are reasonably necessary to protect the wells, caverns, and reservoirs that are a part of the special project from drilling and subsurface activities; (“secteur de surface”)

“Technological Readiness level” means, with respect to a technology, method or activity, the relevant technological readiness level described by Innovation, Science and Economic Development Canada on a website maintained by the Government of Canada. (“niveau de maturité technologique”) O. Reg. 425/23, s. 1 (1); O. Reg. 126/24, s. 1.

(2) A special project includes,

(a)  all wells, caverns, reservoirs and other associated works that were previously drilled and used for other purposes under the Act or a predecessor of the Act and that will be used in association with the special project; and

(b)  all new wells, caverns, reservoirs and other associated works that may be drilled or used in association with the special project. O. Reg. 425/23, s. 1 (2).

(3) Any pipelines, equipment or surface structures that are used in association with a well that is part of a carbon storage special project and that, upon leaving the well, are located beyond the emergency shutdown valves or, if there is no emergency shutdown valve, beyond the first isolation valve, do not form part of the carbon storage special project and are exempted from the definition of “work” in subsection 1 (1) of the Act. O. Reg. 425/23, s. 1 (3).

(4) Despite subsection (3), the pipelines, equipment or surface structures described in that subsection do form part of a carbon storage special project and are a “work” within the meaning of the definition of that term in subsection 1 (1) of the Act when they are being used in association with the drilling, completion, maintenance, servicing, overhauling, working over, plugging, abandonment or decommissioning of a well or reservoir. O. Reg. 425/23, s. 1 (4).

(5) For the purposes of clause 11.6 (b) of the Act, any work, other than a well, used in association with a special project continues to be a “work” for the purposes of the Act and the regulations made under the Act after the term for a special project designation ends if the work has not been,

(a)  decommissioned in accordance with all requirements in the operator’s licence or permit, the Act, a regulation made under the Act and any order of the Board or Tribunal; and

(b)  removed from the project area. O. Reg. 425/23, s. 1 (5).

(6) A copy of the map referred to in the definition of “surface area” in subsection (1) shall be made available to the public by the Ministry by posting it on a website maintained by the government of Ontario once a licence or permit with respect to a well that is part of the special project is granted. O. Reg. 425/23, s. 1 (6).

Special Project Designation

Request for designation

2. (1) A person who is interested in making a request to be issued a designation by the Minister designating a project as a special project under section 11.1 of the Act shall make a written request in accordance with the requirements set out in this Regulation.

(2) A person may not make a written request under subsection (1) if the project would use wells to permanently dispose of any substance in an underground geological formation.

(3) Subsection (2) does not apply to the disposal of oil field fluid or to projects for the purpose of assessing, testing, piloting or demonstrating carbon storage.

Contents of request

3. A request made under subsection 2 (1) must contain, in addition to the information required under section 11.3 of the Act,

(a)  the requestor’s name and contact information;

(b)  if the requestor is a corporation, a corporation profile report that includes,

(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;

(c)  a description of the requestor’s operational history, experience and expertise with similar projects in Ontario and other jurisdictions, including,

(i)  a description of relevant projects and activities, including their location, purpose and current status,

(ii)  a description of the requestor’s role in the projects and activities referred to in subclause (i), and

(iii)  any other information relevant to the requestor’s capability, qualifications and experience in designing and carrying out projects that involve new or innovative technologies, methods or activities involving the use of wells to access underground geological formations;

(d)  a description of the requestor’s compliance history under the Act, including all information necessary to enable the Minister to consider, in accordance with section 13.1 of the Act, convictions and failures to comply with the Act or the regulations or any orders made under the Act;

(e)  a description of the technology, method or activity that the special project seeks to advance, including,

(i)  the technology, method or activity’s Technological Readiness Level including supporting information and references, and

(ii)  identification of relevant recent research, studies, testing, development and projects regarding the technology, method or activity in Ontario or other jurisdictions;

(f)  information about the lands where the surface and subsurface would be used in the special project, including,

(i)  every local and upper-tier municipality and geographic township in which the lands are located, the lot and concession numbers and any applicable civic addresses,

(ii)  the current land uses, and

(iii)  the status of any landowner agreements or leases that would be necessary to carry out the special project;

(g)  identification of any pipelines, structures or other equipment proposed to be exempted from the definition of “work” under the Act, along with rationale for the proposed exemption;

(h)  identification of any exemptions from the Act or the regulations that are being requested including, where applicable, any proposed substitutions for the requirements for which exemptions are requested, and for each exemption proposed,

(i)  an explanation of why the requirement is not suitable or why another requirement should apply, and

(ii)  an analysis of the potential risks to public safety and the environment that may result from the exemption or substitution, along with any available mitigation measures;

(i)  a description of any other federal, provincial and municipal approvals that will be required for the special project;

(j)  details of any local or Indigenous community engagement or consultation undertaken to date, information that has been provided and feedback that has been received;

(k)  identification of the key hazards and risks known to be associated with the technology, method or activity that the proposed project would test, assess, pilot or demonstrate, along with potential mitigation measures and approaches that may address the key hazards and risks;

(l)  identification of any recognized standards that the requestor intends to follow with respect to the special project;

  (m)  a description of project benefits and the requestor’s plans, if any, for information sharing, including,

(i)  how the special project may benefit Ontarians, and

(ii)  how and when details of the special project and the findings stemming from the testing, assessing, piloting or demonstrations would be made available within the industry, to stakeholders and to the general public;

(n)  if the proposed special project is not a carbon storage special project, a proposed custom application plan that describes,

(i)  the consultation and notification activities that the applicant will carry out in addition to the procedures required by sections 13 and 14, and

(ii)  any plans, technical reports, analyses and other documentation that the requestor will prepare and submit in addition to, or instead of, the requirements set out in subsections 10 (7) and (13). O. Reg. 425/23, s. 3; O. Reg. 126/24, s. 2.

Minister’s options on receiving custom application plan

4. (1) Upon receipt of a custom application plan required under clause 3 (n), the Minister may,

(a)  approve the plan;

(b)  approve the plan with such modifications as the Minister considers necessary in order to be satisfied that the special project can be carried out in a manner that protects public safety and the environment; or

(c)  require that the requestor prepare another plan.

(2) Where the Minister requires a requestor to prepare another custom application plan under clause (1) (c), further consideration of the request for designation may be refused until the required plan is submitted.

Request not considered until required information received

5. A request for a special project designation shall not be considered by the Ministry until all of the information required under the Act and this Regulation for the purpose of seeking a designation has been received by the Ministry.

Contents of designation

6. (1) A special project designation shall include,

(a)  the name of the person who holds the designation; and

(b)  a description of the project being designated, including,

(i)  the project’s location,

(ii)  an identification of the wells, caverns, reservoirs and other associated works to be used, and

(iii)  the purpose of the project.

(2) A special project designation may include,

(a)  a termination date for the designation;

(b)  the exemption of any pipeline, other structure or equipment to be used in a project from the definition of “work” in subsection 1 (1) of the Act;

(c)  subject to section 11.4 of the Act,

(i)  one or more exemptions from complying with a provision or requirement of the Act or any regulations made under the Act, including any standards incorporated by reference, or

(ii)  one or more substitute requirements in place of a requirement under the Act or any regulations made under the Act, including any standards incorporated by reference; and

(d)  if a custom application plan has been approved for the special project, the name and date of the plan that was approved by the Minister.

Expiry of designation

7. A special project designation remains in effect until the earlier of the following dates:

1.  The termination date set out in the special project designation.

2.  The date on which all of the following have been carried out in accordance with the Act, this Regulation and any order of the Board or Tribunal:

i.  All wells, caverns, reservoirs and other works associated with the project have been plugged, abandoned and decommissioned.

ii.  All site rehabilitation work has been completed.

iii.  Any ongoing maintenance or monitoring work that is required after plugging, abandonment, decommissioning and site rehabilitation has been completed.

Additional information

8. (1) If, while considering a request for a special project designation under section 2 or an application for one or more licences or permits for a special project under section 10, the Minister forms the opinion that additional information is required, the Ministry shall notify the requestor or applicant, as the case may be, of the information required.

(2) The requestor or applicant, as the case may be, shall submit the information required under subsection (1) to the Ministry.

(3) The Minister may refuse further consideration of the request or application until the information required under subsection (1) is received.

(4) If the additional information is being required in relation to an application for one or more licences or permits for a special project under section 10 and the Minister believes the information requires expert review, the Ministry shall advise the applicant that the information is subject to expert review when providing the notification under subsection (1).

(5) Subsections 11 (3), (4) and (5) apply with necessary modifications to the selection of the expert to conduct an expert review of the information required under subsection (1) of this section, the preparation and submission of the expert report and the payment of the associated costs.

Application for licences and permits to authorize special project

9. If a special project designation is granted by the Minister, the person holding the special project designation may apply for one or more licences and permits under the Act to authorize the special project.

Application

Application — submission to Ministry

10. (1) A person holding a special project designation shall, before engaging in any activity on or in a well that is part of the project, submit to the Ministry,

(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 used in association with the project; and

(b)  an application for one or more permits under section 11 of the Act that the person requires to inject a substance into an underground geological formation through the wells referred to in clause (a). O. Reg. 425/23, s. 10 (1).

(2) The holder of a licence related to a special project may, at any time in the course of carrying on the project, submit to the Ministry,

(a)  an application for a licence under subsection 10 (1) of the Act that the person requires 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 will be used in association with the project; and

(b)  an application for one or more permits under section 11 of the Act that the person requires to inject a substance into an underground geological formation through one or more of the additional wells referred to in clause (a) of this subsection. O. Reg. 425/23, s. 10 (2); O. Reg. 126/24, s. 3 (1).

(3) An application for a licence or permit for a special project must be consistent with,

(a)  the information submitted to the Ministry in support of the request to designate the project as a special project;

(b)  the special project designation, including any term under subsection 11.1 (2) or (3) of the Act and any exemption under section 11.4 of the Act; and

(c)  any custom application plan approved by the Minister for the special project at the time the special project was designated. O. Reg. 425/23, s. 10 (3).

(4) An application for a licence or permit submitted under subsection (1) or (2) shall be accompanied by,

(a)  if the applicant is a corporation, confirmation that the corporation profile report submitted as a part of the request for a special project designation is still current, or if any of the information has changed since the designation was made, a current corporation profile report that includes,

(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 surface and subsurface rights needed to carry out the special project have been acquired by the applicant, whether through ownership or lease, for all lands within the project area or, if the special project is for temporary or permanent storage, the proposed surface area;

(c)  confirmation from the applicant that all persons from whom rights or interests have been acquired for the special project have been made aware of the proposed project and the applications being made for the project; and

(d)  a report that is prepared by an independent party with expertise in insurance matters related to environmental and other risks associated with subsurface geological exploration, development and storage operations in Ontario and that,

(i)  recommends the types and amount of insurance coverage necessary for the proposed special 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. 425/23, s. 10 (4); O. Reg. 126/24, s. 3 (2).

(5) An application for a licence or permit submitted under subsection (1) or (2) shall contain the following information:

1.  The applicant’s name and contact information.

2.  A description of the special project that includes the information required under subsection (6).

3.  Plans, technical reports, analyses and other documentation relating to the special project that demonstrate the following:

i.  All works have been designed with consideration of the expected operating conditions including temperatures, pressures and fluid compositions.

ii.  The suitability of the proposed special project with respect to the site-specific surface conditions and the site-specific subsurface conditions.

iii.  Suitable integrity testing and preventative maintenance programs and procedures for any wells, caverns, reservoirs or other associated works will be established and followed throughout the life of the project.

iv.  Remedial actions or measures will be taken to address any existing wells and other drilled or dug conduits, that may impact, or be impacted by, the special project, whether those wells or conduits are known prior to the commencement of the project or are identified in the future.

v.  The special 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 from cross-contamination,

C.  prevents the migration of fluids between permeable zones,

D.  promotes, where applicable, the conservation and efficient recovery of hydrocarbons with minimal use of flaring,

E.  ensures containment of fluids after plugging, abandonment and decommissioning,

F.  ensures that the plugging, abandonment and decommissioning of wells, caverns, reservoirs and other associated works will leave them in a stable state that permanently protects the public and the environment,

G.  ensures all necessary measures are taken to ensure public safety and protection of the environment, and

H.  if the special project is a carbon storage special project, is in accordance with the CSA Z741 Standard. O. Reg. 425/23, s. 10 (5).

(6) An application for a licence or permit submitted under subsection (1) or (2) shall include a description of the special project that includes the following information:

1.  An overview of the special project and its purpose.

2.  A description of the location of the special project, including any local and upper-tier municipality and geographic township in which the lands where the surface and subsurface would be used in the special project are located, the lot and concession numbers and any applicable civic addresses.

3.  A description of the special project, including the wells, caverns, reservoirs and other associated 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 special 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 subject to the application.

ii.  The project area and, if applicable, proposed surface area of the special project.

iii.  The project assessment area for the special project.

iv.  The locations of all existing and proposed wells, caverns, reservoirs and other associated works that will be used for the special project, and the setback distances between the wells and other works, on the one hand, and the project area or, where applicable, the proposed surface area, on the other hand.

v.  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 special project and are located within the project assessment area for the project, as well as any other significant surface uses or features identified in the applicant’s plans, technical reports, analyses and other documentation submitted as part of the application.

vi.  Existing subsurface uses that have the potential to impact or to be impacted by the special project, including,

A.  existing wells or abandoned wells located within the project assessment area for the project,

B.  currently or previously active subsurface operations located within the project assessment area for the project, and

C.  any other subsurface activity identified in the applicant’s plans, technical reports, analyses and other documentation submitted as part of the application.

vii.  A North arrow.

viii.  A scale.

ix.  A legend. O. Reg. 425/23, s. 10 (6); O. Reg. 126/24, s. 3 (3).

(7) Subject to any requirements in a custom application plan approved by the Minister at the time the special project was designated under section 11.1 of the Act, an application for a licence or permit submitted under subsection (1) or (2) of this section shall include plans that address the full lifecycle of the special project, including the design, construction, operation, maintenance, monitoring, plugging, abandonment, decommissioning and safety of the wells, caverns, reservoirs and other associated works used during the lifecycle of the project. O. Reg. 425/23, s. 10 (7).

(8) For greater clarity, the plans referred to in subsection (7) shall include plans for emergency management and response and plans for spill response. O. Reg. 425/23, s. 10 (8).

(9) The plans referred to in subsection (7) 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. 425/23, s. 10 (9).

(10) For the purposes of determining the amount of security to be provided under section 24, the plans relating to plugging, abandonment, decommissioning and site rehabilitation referred to in subsection (7) of this section 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, abandonment and decommissioning of all wells, caverns, reservoirs and other associated works that are part of the special project;

(b)  carrying out all necessary site rehabilitation work; and

(c)  any ongoing maintenance or monitoring work that is required after plugging, abandonment, decommissioning and site rehabilitation have been completed. O. Reg. 425/23, s. 10 (10).

(11) All plans referred to in subsection (7) shall,

(a)  identify any standards or specifications that will be used or relied on during all stages of the special project;

(b)  identify all materials that will be used in the design or construction of wells;

(c)  describe any proposed departures from the Provincial Standards for Oil, Gas and Salt Resources or the CSA Z741 Standard with which the operator of the special project is required to comply under sections 20 and 21, 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 special project. O. Reg. 425/23, s. 10 (11).

(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. 425/23, s. 10 (12).

(13) Subject to any requirements in a custom application plan approved by the Minister at the time the special project was designated under section 11.1 of the Act, the following technical reports, analyses and other documentation shall be included in an application for a licence or permit submitted under subsection (1) or (2) of this section:

1.  An assessment of the potential impacts that the special project may have on surface features, activities and uses that are not part of the project and are located within the project assessment area.

2.  An assessment of the potential impacts that the surface features, activities and uses referred to in paragraph 1 may have on the special project.

3.  An assessment of the potential impacts that the special project may have on subsurface features, activities and uses that are not part of the project and are located within the project assessment 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 special project.

5.  With respect to all wells or other drilled or dug conduits that may impact the special project, 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 any wells, caverns or reservoirs used in association with the project.

6.  One or more risk assessments that consider the full lifecycle of the special project, including recommendations and plans to be implemented to prevent or mitigate risks.

7.  Any additional technical reports, analyses and other documentation required to demonstrate that a carbon storage special project will be designed, constructed, operated, maintained, abandoned and decommissioned in accordance with the CSA Z741 Standard. O. Reg. 425/23, s. 10 (13).

(14) The subsurface features, activities and uses referred to in paragraph 3 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. 425/23, s. 10 (14); O. Reg. 126/24, s. 3 (4).

(15) All plans referred to in subsection (7) and technical reports, analyses and other documentation referred to in subsection (13) shall,

(a)  clearly set out any measures or actions that are to be carried out as part of the special project in order to prevent or mitigate any possible adverse effects that the project may have;

(b)  identify the individuals who prepared each plan, technical report, analysis or other document, including their qualifications and relevant experience;

(c)  be signed by the individuals who prepared the plan, technical report, analysis or other document and include, where appropriate, their seal or stamp; and

(d)  include the date the plan, technical report, analysis or other document was completed. O. Reg. 425/23, s. 10 (15); O. Reg. 126/24, s. 3 (5, 6).

(16) Plans, technical reports, analyses and other documentation submitted in support of an application for a licence or permit necessary for a well used in association with a special project may be used in support of another application for a licence or permit for another well used in association with the same special 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, technical reports, analyses and other documentation remains accurate and relevant to the application. O. Reg. 425/23, s. 10 (16).

(17) In the case of an application for a licence or permit for a special project that is subject to a custom application plan, an application submitted under subsection (1) or (2) shall include any additional plans, technical reports, analyses and other documentation required by the approved custom plan in addition to any requirements set out in subsections (4) to (15). O. Reg. 425/23, s. 10 (17).

(18) For greater certainty, an application under this section must be submitted by the person who holds a special project designation. O. Reg. 425/23, s. 10 (18).

Application — preliminary assessment

11. (1) An applicant who intends to apply for a licence or permit with respect to a special project shall, before submitting the application to the Ministry under subsection 10 (1) or (2), provide a copy of the application to the Ministry so that the Ministry may conduct a preliminary assessment of the application for the purpose of identifying and notifying the applicant of the following:

1.  The plans, technical reports, analyses and other documentation included in the application that the Minister believes require expert review, if any.

2.  The Indigenous communities and organizations that are to be notified of the special project under section 13.

3.  The ministries of the provincial or federal government or agencies that are to be notified of the special project under section 13.

(2) The copy of the application submitted to the Ministry for preliminary assessment under subsection (1) must meet all requirements under section 10.

(3) If an applicant is notified by the Ministry that certain plans, technical reports, analyses or other documentation included in the application require expert review, the applicant and the Ministry shall together select one or more experts to undertake a review of the documents and prepare an expert report.

(4) All costs associated with an expert review shall be paid by the applicant.

(5) An expert selected to review documents under subsection (3) shall prepare an expert report at the end of the review and shall submit the report to the Ministry and send a copy of it to the applicant.

(6) If, after a preliminary assessment under this section, the Ministry notifies an applicant for a licence or permit with respect to a special project that one or more of the plans, technical reports, analyses or other documentation included in the application require expert review, and the applicant subsequently submits the application to the Ministry under subsection 10 (1) or (2), the submitted application is not considered to be complete, for the purposes of subsection 13 (1), until,

(a)  all expert reports required as a result of the preliminary assessment have been submitted to the Ministry under subsection (5) of this section; and

(b)  the applicant gives written notice to the Ministry indicating whether or not the applicant intends to make any alterations to the plans, technical reports, analyses or other documentation included in the application to address the recommendations or comments made in the expert reports.

(7) Despite subsection (6), if the applicant indicates to the Ministry in the written notice referred to in clause (6) (b) that the applicant intends to make alterations to such plans, technical reports, analyses or other documentation as are specified in the written notice, the application for the licence or permit submitted under subsection 10 (1) or (2) shall not be considered to be complete, for the purpose subsection 13 (1), until the day the applicant submits the altered plans, technical reports, analyses or other documentation to the Ministry.

Application — sensitive information

12. (1) In this section,

“information of a sensitive nature” means information related to a trade secret or scientific, technical, commercial or financial information supplied in confidence to the Ministry, the release of which could reasonably be expected to,

(a)  prejudice significantly the competitive position of the applicant or interfere significantly with the contractual negotiations of the applicant, or

(b)  result in undue loss or gain to the applicant or another person. O. Reg. 425/23, s. 12 (1).

(2) If an applicant for a licence or permit with respect to a special project wishes information of a sensitive nature that is included in the application to be removed or concealed for purposes of the notices and consultations carried out under sections 13 and 14, the applicant may, upon providing the application to the Ministry for a preliminary assessment under subsection 11 (1),

(a)  request the Minister’s permission to remove or conceal the documents or portions of the documents containing information of a sensitive nature from the documents being shared for the purposes of the notices and consultations carried out under sections 13 or 14; and

(b)  clearly identify for the Ministry the documents or portions of the documents that contain information of a sensitive nature. O. Reg. 425/23, s. 12 (2).

(3) If, after receiving a copy of an expert report under subsection 11 (5), an applicant for a licence or permit with respect to a special project determines that the report contains information of a sensitive nature and wishes the report or information to be removed or concealed for purposes of the notices and consultations carried out under sections 13 and 14, the applicant may,

(a)  request the Minister’s permission to remove or conceal the identified reports or portions of the reports containing information of a sensitive nature from the documents being shared for the purposes of the notices and consultations carried out under sections 13 and 14; and

(b)  clearly identify for the Ministry the reports or portions of the reports that contain information of a sensitive nature. O. Reg. 425/23, s. 12 (3).

(4) The Minister shall grant permission for information of a sensitive nature to be removed or concealed from documents being shared by means of the notices and consultations carried out under sections 13 and 14 if, in the Minister’s opinion, the information is information of a sensitive nature. O. Reg. 425/23, s. 12 (4).

(5) Despite subsection (4), the Minister may refuse to grant permission under that subsection if,

(a)  there is a compelling public interest in the disclosure of the information that clearly outweighs the removal of information from the documents; or

(b)  the documents are to be shared with a ministry of the government of Ontario or an agency, board, commission, corporation or other body designated as an “institution” in a regulation made under the Freedom of Information and Protection of Privacy Act. O. Reg. 425/23, s. 12 (5); O. Reg. 126/24, s. 4.

Notification, consultation re special projects

13. (1) After an application under subsection 10 (1) or (2) for a licence or permit with respect to a well that is part of a special project is completed, the applicant shall give notice of the application to the following persons and entities:

1.  An Indigenous community or organization identified in a notice given by the Ministry to the applicant under subsection 11 (1).

2.  Any ministry of the provincial or federal government or any agency identified in a notice given by the Ministry to the applicant under subsection 11 (1).

3.  Any person who owns land within the project area and, where applicable, the proposed surface area.

4.  Any person who owns land within the project assessment area for the special project.

5.  Any person from whom the applicant has acquired any surface or subsurface rights relating to the special project.

6.  Any local or upper-tier municipality a part of which is located within the project assessment area.

7.  Any source protection authority for a source protection area a part of which is located within the project assessment area.

8.  Any person who holds a well licence under the Act, if the well is located within the project assessment area.

9.  Any person who owns land on which a water well, geothermal well or a well as defined under the Act is situated if,

i.  that well is located within the project assessment area, and

ii.  public records exist in relation to the well or the well has been identified in the application submissions for the special project.

10.  Any person who operates a natural gas storage area designated under the Ontario Energy Board Act, 1998 if the boundary of that designated natural gas storage area is within the project assessment area or within 1.6 kilometres of any well to be used in the special project.

11.  Any person who owns, or is responsible for the operation of, a subsurface operation that was identified by the applicant in the application under paragraph 3 or 4 of subsection 10 (13).

12.  Any person who owns, or is responsible for the operation of, a railway, high voltage transmission power line, transmission or distribution pipeline or other occupied easement or utility right of way within the project assessment area for the special project.

13.  Any other party the applicant has identified as potentially being impacted by the proposed special project in the assessment required by paragraphs 1 and 3 of subsection 10 (13). O. Reg. 425/23, s. 13 (1).

(2) A notice under subsection (1) shall be in a form approved by the Minister and shall be given by mail or by email or delivered in person. O. Reg. 425/23, s. 13 (2).

(3) A notice under subsection (1) shall advise the recipient of the applicant’s intention to engage in a special project and shall include,

(a)  the applicant’s name and contact information, including a mailing address and email address;

(b)  a copy of the description of the special project that was included in the application under subsection 10 (6);

(c)  a statement advising the recipient of the opportunity to submit comments to the applicant, and to send a copy of the comments to the Ministry, within 60 days from the date of receipt of the notice or within the period specified by the applicant in the notice if that period is greater than 60 days after the date of receipt of the notice;

(d)  the contact information for the Ministry for the purpose of submitting the comments referred to in clause (c); and

(e)  a statement advising the recipient of the opportunity to request additional information under subsection (4). O. Reg. 425/23, s. 13 (3).

(4) Any recipient of a notice under subsection (1) may request that the applicant provide the recipient with the following and, subject to section 12, the applicant shall do so as soon as is reasonably practicable:

1.  A digital copy of any or all the plans, technical reports, analyses or other documentation that was included with the application submitted to the Ministry.

2.  Any additional information requested by the Ministry under section 8.

3.  A digital copy of any expert report submitted to the Ministry in accordance with subsections 8 (5), 11 (5) and 16 (5), section 19 and subsection 26 (2). O. Reg. 425/23, s. 13 (4); O. Reg. 126/24, s. 5.

(5) Any notice given under this section shall be deemed to have been received,

(a)  if the notice is sent by mail, on the fifth day after the notice was mailed; or

(b)  if the notice is sent by email or delivered in person, on the day the notice is emailed or delivered. O. Reg. 425/23, s. 13 (5).

Submission of comments to applicant

14. (1) A person or entity who receives notice of an application for a licence or permit with respect to a special project may submit comments in writing to the applicant on or before the later of,

(a)  the date specified by the applicant in the notice; or

(b)  the day that is 60 days after the day the notice is deemed to have been received under subsection 13 (5).

(2) The person or entity who provides written comments to an applicant under subsection (1) shall provide a copy of the comments to the Ministry.

(3) Comments submitted to an applicant under subsection (1) are deemed to have been submitted,

(a)  in the case of comments that are mailed, on the fifth day after the day the comments are mailed; or

(b)  in the case of comments that are emailed or delivered personally, on the day the comments are emailed or delivered.

Application subject to custom application plan

15. In the case of an application for a licence or permit for a special project that is subject to a custom application plan, the applicant shall comply with any additional notification and consultation activities and procedures within the time period set out in the plan and shall notify the Ministry when all the requirements of the plan have been met.

Retention and availability of comments

16. (1) An applicant for a licence or permit for the purposes of a special project shall, until such time as the Ministry has made a decision with respect to the application,

(a)  keep a copy of every written comment submitted under section 14;

(b)  keep any comments received from Indigenous communities or organizations separate from those received from other persons or entities and organized so that each Indigenous community’s comments and each Indigenous organization’s comments are clearly identifiable; and

(c)  make the comments kept under clauses (a) and (b) available to the Ministry upon request. O. Reg. 425/23, s. 16 (1).

(2) After the period permitted under section 14 for submission of comments has elapsed, the applicant shall,

(a)  review any comments received and determine whether or not to make changes to the application based on the comments;

(b)  make such changes to the application as the applicant considers appropriate, including making any changes to the plans, technical reports, analyses or other documentation that was included in the application, adding information to the application or changing the information included in the application;

(c)  prepare in accordance with subsection (3) a document summarizing the comments received and detailing the changes made in accordance with clause (b) of this subsection; and

(d)  submit the document referred to in clause (c) to the Ministry along with any amendments to the application. O. Reg. 425/23, s. 16 (2).

(3) The document referred to in clause (2) (c) shall include,

(a)  a description of all persons or entities who were notified of the application for a licence or permit under section 13;

(b)  a list of the persons or entities referred to in clause (a) who submitted comments on the application under section 14 and of any other persons or entities who have submitted comments in writing to the applicant;

(c)  a summary of the comments received under section 14 and of any written comments that may have otherwise been received;

(d)  descriptions of,

(i)  any comments that resulted in changes being made to the application,

(ii)  any comments that did not require any change be made to the application because they were already addressed in the application, and

(iii)  any comments that the applicant did not address in the application and an explanation of the reason for not addressing the comments; and

(e)  a detailed description of any changes that were made as a result of comments received with respect to the application. O. Reg. 425/23, s. 16 (3); O. Reg. 126/24, s. 6.

(4) If an applicant makes changes under clause (2) (b) to a plan, technical report, analysis or other document that was the subject of an expert report under section 11 and the Minister believes that the changes should be reviewed by an expert, the Ministry shall give written notice to the applicant that an expert review is required of the amended plan, technical report, analysis or other document. O. Reg. 425/23, s. 16 (4).

(5) Subsections 11 (3), (4) and (5) apply with necessary modifications to the selection of the expert to conduct an expert review under subsection (4) of this section, the preparation and submission of the expert report and the payment of associated costs. O. Reg. 425/23, s. 16 (5).

Changes to surface area

17. If, after considering an application for a licence or a permit with respect to a well that will be used in association with a carbon storage special project or a special project involving the temporary storage of another substance in an underground geological formation, the Minister determines that the licence or permit should be issued subject to certain adjustments to the proposed surface area, the Minister shall not issue the licence or the permit until the applicant has satisfied the Minister that all necessary surface and subsurface rights have been acquired by the applicant whether through ownership or lease, for all lands that are to be included within the adjusted surface area.

Protection of personal information

18. An applicant for a licence or permit under the Act who gives notice of the application and carries out consultation with respect to the application for a special project, shall take all reasonable steps to ensure that any personal information collected during the consultations is retained, transferred and disposed of in a secure manner so as to protect the information against theft, loss or unauthorized use or disclosure.

Expert review of submissions during the life of the special project

19. Where a condition of a licence or permit requires that certain technical information is to be submitted to the Ministry during the lifecycle of the special project and stipulates the information being submitted is subject to expert review, subsections 11 (3), (4) and (5) apply with necessary modifications to the selection of the expert to conduct an expert review, the preparation and submission of the expert report and the payment of the associated costs.

Operating Standards for Works

Operating standards for works

20. (1) The operator of a special project shall comply with the operating standards in Parts 3 to 13 of the Provincial Standards for Oil, Gas and Salt Resources. O. Reg. 425/23, s. 20 (1).

(2) In addition to the annual examination required under section 5.14.1 of the Provincial Standards for Oil, Gas and Salt Resources, the operator shall provide for a Class VI examiner to examine all surface works located on land once every 12 months to certify that the works associated with the special project comply with any other recognized standard that the project is required to comply with under the Act, any regulation made under the Act or conditions of licences or permits associated with the project. O. Reg. 425/23, s. 20 (2); O. Reg. 126/24, s. 7.

(3) The operator of a well that is part of a special project shall conduct and submit well bore surveys to the Ministry in accordance with the operating standard set out in section 1.9.3 of the Provincial Standards for Oil, Gas and Salt Resources. O. Reg. 425/23, s. 20 (3).

(4) Despite subsection (1), the operator of a special project may depart from the operating standards referred to in that subsection if,

(a)  it is reasonable to do so in the circumstances;

(b)  the operator takes measures to prevent or limit damage that provide a standard of protection that is equal to or higher than the standard established in the Provincial Standards for Oil, Gas and Salt Resources;

(c)  a qualified person has certified in writing that the criteria for the departure set out in clauses (a) and (b) are satisfied and the certification is provided to the Ministry; and

(d)  the operator obtains prior written approval from the Minister of the details and circumstances of the proposed departure. O. Reg. 425/23, s. 20 (4).

(5) The qualified person referred to in clause (4) (c) 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. 425/23, s. 20 (5).

Adherence to CSA Z741 Standard

21. (1) Any work used in association with a carbon storage special project shall be designed, constructed, operated, maintained, plugged, abandoned and decommissioned in accordance with the CSA Z741 Standard.

(2) In the event of a conflict between the Provincial Standards for Oil, Gas and Salt Resources and the CSA Z741 Standard, the standard that provides a higher level of protection to public safety and the environment takes precedence.

(3) Despite subsection (1), the operator of a carbon storage special project may depart from the CSA Z741 Standard if,

(a)  it is reasonable to do so in the circumstances;

(b)  the operator takes measures to prevent or limit damage that provide a standard of protection that is equal to or higher than the standard established in the CSA Z741 Standard;

(c)  a qualified person has certified in writing that the criteria for the departure set out in clauses (a) and (b) are satisfied and the certification is provided to the Ministry; and

(d)  the operator obtains prior written approval from the Minister of the details and circumstances of the proposed departure.

(4) The qualified person referred to in clause (3) (c) shall hold a licence or temporary licence in good standing under the Professional Engineers Act.

Posting copy of well licence

22. The operator of a well used in association with a special project shall post a copy of the well licence at the well site during all well drilling, workover or service operations involving a drilling or service rig.

Registration of Works

Registration of works

23. (1) The operator of a well associated with a special project shall notify the Ministry within 15 days after any change in the following:

1.  The name, address or telephone number of the operator, operator’s agent, if any, or any emergency contact persons.

2.  The status of the well.

3.  Where the operator is a corporation,

i.  the current status of the corporation,

ii.  the corporation’s legal name, corporation number and registered address, or

iii.  the corporation’s current officers and directors.

(2) Subject to subsection (3), the operator of a special project facility shall submit to the Ministry, within 30 days after completion of the special project facility,

(a)  the name, address and telephone number of the operator, operator’s agent, if any, and emergency contact persons;

(b)  a scaled drawing or map showing the location of each work in the special project facility; and

(c)  a list of the type, quantity and operating status of each work in the special project facility and a brief description of the technical specifications of each such work.

(3) Subsection (2) does not apply to the operator of a special project facility if,

(a)  the information referred to in clauses (2) (b) and (c) was submitted to the Ministry as part of the project plans included in the application for a licence or permit in respect of works that are part of the special project and the special project facility was completed in accordance with those project plans; and

(b)  the operator of the special project facility submits the information referred to in clause (2) (a) to the Ministry within 30 days after completion of the special project facility.

(4) The operator of a special project facility shall notify or submit revised information, as the case may be, to the Ministry no later than 15 days after any further change in the information described in subsection (1) or (2), whether that information was submitted to the Ministry in accordance with subsection (2) or in the manner described in subsection (3).

(5) In this section,

“special project facility” means any work used in association with a well to carry out the special project.

Security

Security

24. (1) Despite anything else in this section, if security has been established under Ontario Regulation 245/97 (Exploring, Drilling and Production) made under the Act for any wells, caverns, reservoirs or other associated works that are proposed to be used as a part of a special project, the security shall be maintained in accordance with that Regulation until security is established for the special project under this section.

(2) The operator of one or more wells that are part of a special project shall establish security as financial assurance that, at the end of the project’s lifecycle or before that time, where required, the operator will comply with all requirements in the operator’s licence or permit, the Act, this Regulation and any order of the Board or Tribunal with respect to,

(a)  the plugging, abandonment and decommissioning of all wells and associated works, including any reservoirs or caverns, that are a part of the project;

(b)  any necessary site rehabilitation work; and

(c)  any ongoing maintenance or monitoring work that is required after plugging, abandonment, decommissioning and site rehabilitation have been completed.

(3) The security established under subsection (2) shall be in the form of,

(a)  an irrevocable letter of credit from a bank named in Schedule I or II of the Bank Act (Canada); or

(b)  a trust fund administered in accordance with the Trustee Act.

(4) If the security established under this section is in the form of a trust fund,

(a)  the trustee of the fund must meet the requirements set out in subsections 16 (1.1) and (1.2) of Ontario Regulation 245/97; and

(b)  the operator of the special project shall ensure that the trustee of the fund,

(i)  does not make any payments out of the trust fund without the written consent of the Minister, and

(ii)  follows the directions of the Minister with respect to payment out of the trust fund.

(5) If the security established under subsection (2) is in the form of an irrevocable letter of credit, the form and terms of the letter of credit shall be approved by the Minister.

(6) If the bank that establishes the letter of credit as security under subsection (2) with respect to the special project gives the Ministry notice that the bank intends to allow the letter of credit to expire, the Ministry shall promptly forward the notice to the operator of the special project.

(7) The operator of a special project who receives notice of the expiration of a bank’s irrevocable letter of credit under subsection (6) must, at least 30 days before the expiration date,

(a)  obtain an irrevocable letter of credit from the same bank or from another bank named in Schedule I or II of the Bank Act (Canada) in the same amount as the letter of credit that is about to expire; or

(b)  establish security in the form of a trust fund in the same amount as the letter of credit that is about to expire and with a trustee that meets the requirements in subsections 16 (1.1) and (1.2) of Ontario Regulation 245/97.

(8) The security established by the operator of a special project shall be in an amount equal to the following costs, as estimated by the operator in the application for a licence submitted under subsections 10 (1) and (2) of this Regulation:

1.  The costs of plugging, abandoning and decommissioning all wells, caverns, reservoirs and other associated works that are part of the special project.

2.  The cost of carrying out necessary site rehabilitation work.

3.  The cost of any ongoing maintenance or monitoring work that is required after plugging, abandonment, decommissioning and site rehabilitation have been completed.

(9) Despite subsection (8), upon reviewing a licence application, the Minister may determine that the amount of security estimated by the operator in the licence application is insufficient and should be increased to an amount that the Minister believes is a more accurate estimate of the costs described in subsection (8), based on one or both of the following factors:

1.  An expert review of the applicant’s estimate, referred to in subsection 10 (10), conducted as part of the application process for the operator’s well licence.

2.  Any records or information the Ministry has relating to the cost of abandoning or decommissioning similar wells, caverns, reservoirs and other associated works in Ontario or other jurisdictions.

(10) If the Minister determines that the amount of security should be increased, the Minister shall, before making a decision with respect to the issuing of a licence or permit required for a special project, give the applicant for the licence or permit notice of the amount of security that is required and the applicant shall provide the amount of security required in the notice.

(11) The operator of one or more wells that are part of a special project shall establish the security in the amount required under subsection (8) or (9) before commencing any site preparations for the wells or other associated works or any activity on or in the wells.

(12) The operator shall not adjust the security without the Minister’s consent.

(13) The Minister may give directions to the trustee of a trust fund established as security under this section to make payments out of the trust fund, or may draw on the letter of credit established as security under this section, as the case may be, in order to remedy a situation where,

(a)  a work represents a hazard to the public or environment; or

(b)  the operator of a well that is associated with a special project does not comply with the requirements set out in subsection (2).

(14) The operator of one or more wells that are part of a special project may apply to the Ministry for a reduction in the amount of the security required under this section if,

(a)  the operator has completed a portion of the work described in subsection (2); or

(b)  one or more wells, caverns, reservoirs or other associated works is being converted to another use and the required security has been established for the wells, caverns, reservoirs or other associated works under section 16.1.1 of Ontario Regulation 245/97.

(15) The Minister may consent to the reduction of the amount of security required under this section if the Minister is satisfied that,

(a)  the amount of security sought to be reduced corresponds to the estimate for the cost of carrying out work described in subsection (8) upon which the amount of the security was based; and

(b)  the amount of security remaining after the reduction will be sufficient to carry out the remaining work described in subsection (8) that is required for the special project.

(16) For greater certainty, if the costs incurred by the operator in carrying out a portion of the work described in subsection (8) exceed the estimate of those costs based on which the security was provided under this section, the excess amount incurred for the work shall not be reflected in the reduction of the amount of security under subsection (15).

(17) The operator of wells, caverns, reservoirs and other works associated with a special project shall maintain the prescribed security at all times.

(18) All well licences associated with a special project are not valid if the well security falls below the prescribed level.

(19) Security held under this section is held on behalf of the Crown.

Amendments

Amendments

25. (1) This section applies to applications made by the person who holds a special project designation for,

(a)  an amendment to the contents of a special project designation; or

(b)  an amendment under subsection 13 (2) of the Act to a licence or permit associated with a special project. O. Reg. 425/23, s. 25 (1).

(2) A person holding a special project designation may seek approval from the Minister for an amendment described in subsection (1) by submitting an application to the Ministry that includes,

(a)  the type of amendment described in subsection (1) that is being applied for;

(b)  the reasons for the requested amendment;

(c)  identification of any other federal, provincial and municipal approvals required in relation to the requested amendment;

(d)  identification of whether the amendment being applied for would result in a change to the project area or, if the special project is for temporary or permanent storage, the surface area and, if so,

(i)  a description of the lands that would be added to or removed from the project area or surface area if the requested amendment is approved, including any local and upper-tier municipality and geographic township in which the lands where the surface and subsurface would be used in the special project are located, the lot and concession numbers and any applicable civic addresses,

(ii)  confirmation from the applicant that all necessary surface and subsurface rights needed to carry out the activities that would be authorized by the amendment have been acquired by the applicant, whether through ownership or lease, for all lands described in subclause (i),

(iii)  confirmation from the applicant that all persons from whom rights or interests have been acquired for the special project have been made aware of the amendment application, and

(iv)  if the requested amendment would result in a change to the surface area, a map showing the revised surface area;

(e)  if the requested amendment would result in changes to a plan and also in changes to a term, condition, duty or liability of a licence or permit associated with a special project,

(i)  a list of each plan that would be changed,

(ii)  a brief description of the changes that would be made to each plan,

(iii)  a revised version of the plan showing the requested changes, and

(iv)  a description of the change to the term, condition, duty or liability of an associated licence or permit;

(f)  if the requested amendment would result in changes to the plans relating to plugging, abandonment, decommissioning and site rehabilitation, including ongoing monitoring programs,

(i)  a revised detailed schedule for these activities, and

(ii)  a revised estimate made by the applicant of the costs of carrying out these activities, including an itemized list of the costs of,

A.  plugging, abandonment and decommissioning of all wells, caverns, reservoirs and other associated works that are part of the special project,

B.  carrying out all necessary site rehabilitation work, and

C.  any ongoing maintenance or monitoring work that is required after plugging, abandonment, decommissioning and site rehabilitation have been completed;

(g)  if the requested amendment involves changes to a requirement that was previously supported by one or more technical reports, analyses or other documentation at the time the licence or permit was initially applied for or as a part of a previous amendment,

(i)  a list of each affected technical report, analysis or other document, and

(ii)  revised versions of, or addendums to, the affected technical reports, analyses or other documentation that address the changes that would be made if the requested amendment is approved; and

(h)  any other information requested by the Minister to support consideration of the amendment. O. Reg. 425/23, s. 25 (2); O. Reg. 126/24, s. 8.

Expert review

26. (1) If the Minister believes that one or more of the items submitted as a part of the application under subsection 25 (2) should be reviewed by an expert, the Ministry shall give written notice to the applicant that an expert review is required of the amended plan, technical report, analysis or other document.

(2) Subsections 11 (3), (4) and (5) apply with necessary modifications to the selection of the expert to conduct an expert review under subsection (1) of this section and to the preparation and submission of the expert report and the payment of associated costs.

Notification re s. 25 amendment

27. (1) If an amendment applied for under section 25 represents a change respecting how the project would be designed, operated, constructed, maintained, plugged, abandoned or decommissioned that, in the Minister’s opinion, is significant, the Ministry may,

(a)  notify the applicant that notification and consultation will be required of parties beyond those who have been made aware of the request under subclause 25 (2) (d) (iii); and

(b)  specify one or more persons or entities identified in subsection 13 (1) that must be notified and provided with an opportunity to comment on the requested amendment. O. Reg. 425/23, s. 27 (1).

(2) Where notification and consultation are required under clause (1) (a), the following rules apply:

1.  Sections 13, 14, 16 and 18 apply with necessary modifications.

2.  A description of the amendment application shall be provided in the notification in lieu of the project description in clause 13 (3) (b) including,

i.  the information submitted under clauses 25 (2) (a) to (c), subclauses 25 (2) (d) (i) and (iv), 25 (2) (e) (i), (ii) and (iv), clause 25 (2) (f) and subclause 25 (2) (g) (i), if applicable, and

ii.  a list of any information required to be submitted under clause 25 (2) (h). O. Reg. 425/23, s. 27 (2); O. Reg. 126/24, s. 9.

(3) If the requested amendment would result in changes to the plans relating to plugging, abandonment, decommissioning and site rehabilitation, including ongoing monitoring programs described in clause 25 (2) (f), the Minister shall, before making any decision with respect to granting approval for the amendment, give the applicant written notice of the amount of security that is required. O. Reg. 425/23, s. 27 (3).

(4) The amount of security required by the notice in subsection (3) shall be the greater of,

(a)  an amount equal to the revised estimate made by the applicant in subclause 25 (2) (f) (ii); or

(b)  an increased amount that the Minister believes is a more accurate estimate of the costs described in subclause 25 (2) (f) (ii), based on any records or information the Ministry has relating to the cost of plugging, abandoning or decommissioning similar wells, caverns, reservoirs and other associated works in Ontario or other jurisdictions. O. Reg. 425/23, s. 27 (4).

(5) Any security required under subsection (3) shall be established before an approval is granted by the Minister with respect to the amendment. O. Reg. 425/23, s. 27 (5).

Transfers

Transfers

28. (1) This section applies to applications for the transfer of,

(a)  the designation of a special project; and

(b)  the licences or permits relating to a special project. O. Reg. 425/23, s. 28 (1).

(2) Where one or more licences or permits have been issued with respect to a special project, any approval of a transfer of the special project designation or the licences or permits must happen at the same time such that the holder of the designation and the holder of the licences and the permits are always the same person. O. Reg. 425/23, s. 28 (2).

(3) An application under this section must be initiated by the person who holds a special project designation. O. Reg. 425/23, s. 28 (3).

(4) A person holding a special project designation who wishes to apply for a transfer described in subsection (1) shall submit to the Ministry,

(a)  a written request to transfer the designation for the special project and all licences and permits issued for the special project, identifying each licence and permit number;

(b)  written confirmation from the person holding the special project designation that all information pertaining to the special project has been disclosed to the proposed transferee including,

(i)  information related to the design, construction, operation, maintenance, monitoring, plugging, abandonment, decommissioning and safety of the wells, caverns, reservoirs and other associated works used during the lifecycle of the project, and

(ii)  any known or potential occurrences of non-compliance with the Act, any regulation made under the Act, or any term, condition, duty or liability of a licence or permit issued for the special project, whether or not these have been disclosed to, or discovered by, the Ministry; and

(c)  written confirmation that all plans and requirements that the current holder of the special project designation, licences and permits is required to comply with under the Act are up to date and have been provided to the proposed transferee. O. Reg. 425/23, s. 28 (4); O. Reg. 126/24, s. 10 (1).

(5) The proposed transferee who wishes to receive the transfer of the special project designation and the licences and permits relating to the project, if any, shall, concurrently with the application submitted under this section by the person holding the special project designation, submit to the Ministry, in writing,

(a)  a request to have the designation for the special project and all licences and permits relating to the special project transferred;

(b)  each licence and permit number to be transferred;

(c)  the proposed transferee’s name and contact information;

(d)  if the proposed transferee 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;

(e)  a description of the proposed transferee’s,

(i)  operational history, experience and expertise with similar projects in Ontario and other jurisdictions, and

(ii)  compliance history under the Act, including all information necessary to enable the Minister to consider, in accordance with section 13.1 of the Act, convictions and failures to comply with the Act, the regulations or any orders made under the Act, if applicable, and, in the case of a transferee that is a corporation, the compliance history of its officers and directors; and

(f)  confirmation that, as the person receiving the transfer of the special project designation and all licences and permits in association with the special project, the proposed transferee has,

(i)  acquired all necessary surface and subsurface rights needed to carry out the special project, whether through ownership or lease, for all lands within the project area or, if the special project is for temporary or permanent storage, the surface area,

(ii)  notified the holders of all rights described in subclause (i) of their plans to request the transfer of the special project designation and licences and permits,

(iii)  taken all necessary steps to be advised of, and make themselves familiar with, all of the requirements and obligations associated with the special project under the Act, any regulation made under the Act, or any term, condition, duty or liability of a licence or permit issued in association with the special project,

(iv)  conducted their own review of the special project, and are satisfied that they are aware of any potential occurrences of non-compliance with the Act, any regulation made under the Act or any term, condition, duty or liability of a licence or permit issued in association with the special project, and

(v)  an understanding of, and acknowledges their responsibilities with respect to, remedying any pre-existing non-compliance should the transfer be approved. O. Reg. 425/23, s. 28 (5); O. Reg. 126/24, s. 10 (2).

(6) An application for a transfer made under this section shall not be approved until the proposed transferee demonstrates to the Minister’s satisfaction that the financial security required under section 24 has been established by it. O. Reg. 425/23, s. 28 (6).

(7) The Minister shall not consent to the release of the financial security held by the transferor until such a time as the Minister is satisfied that the proposed transferee has demonstrated that financial security under subsection (6) has been established. O. Reg. 425/23, s. 28 (7).

(8) Security held under this section is held on behalf of the Crown. O. Reg. 425/23, s. 28 (8).

29. Omitted (provides for coming into force of provisions of this Regulation).

 

Français