Geothermal Resource Tenure Regulation

(no amdt) alberta regulation 251/2021 Mines and Minerals Act GEOTHERMAL RESOURCE TENURE REGULATION Table of Contents 1 Definitions Geothermal Leases 2 Rules re applications 3 Rights conveyed 4 Maximum area of location 5 Initial and intermediate term Continuation of Leases 6 Application for continuation 7 Notice respecting non‑productivity 8 Minister’s authority 9 Request for information Coming into Force 10 Coming into force Definitions 1 In this Regulation, (a) “geothermal assessment report” means administrative and technical documents, writings, materials and data in the form and containing the information required by the Minister under section 5(3); (b) “lease” means an agreement issued in the form of a lease that grants rights in respect of geothermal resources; (c) “lessee” means the holder of a lease according to the records of the Department; (d) “location”, in relation to a lease, means (i) the subsurface underlying the surface area described in the lease as its location, or (ii) where the lease grants rights to geothermal resources in some but not all of the subsurface, the subsurface area or areas underlying the surface area described in the lease as its location and in respect of which the rights are granted; (e) “potentially productive”, in relation to a lease, means capable, in the opinion of the Minister, of producing geothermal resources from the lease; (f) “prescribed”, in relation to a fee or rental, means prescribed by the Mines and Minerals Administration Regulation (AR 262/97); (g) “productive”, in relation to a lease, means, in the opinion of the Minister, geothermal resources are being produced from the lease. Geothermal Leases Rules re applications 2 (1) A person may apply to the Minister for a lease under section 16 of the Act. (2) The Minister may issue a lease under section 20 of the Act to an applicant if the Minister receives from the applicant (a) an application in a form that is satisfactory to the Minister, (b) the application fee prescribed for the lease, and (c) the annual rental prescribed for the first year of the term of the lease. Rights conveyed 3 (1) Subject to subsection (2) and any terms, conditions or exceptions contained in the lease, the lease conveys the non-exclusive right to explore for, develop and recover geothermal resources in the location of the lease. (2) A lease referred to in subsection (1) does not grant the right to any mineral as defined in the Act. Maximum area of location 4 The maximum area of the location of a lease is 9 sections, but the boundaries of the area are at the discretion of the Minister. Initial and intermediate term 5 (1) A lease shall be issued for an initial term of 5 years. (2) If a geothermal assessment report is submitted to the Minister before the expiration of the initial term of the lease that in the opinion of the Minister proves the lease is potentially productive, the lease is extended for an intermediate term of an additional 5 years. (3) The geothermal assessment report referred to in subsection (2) must be made in the form and contain the information required by the Minister. Continuation of Leases Application for continuation 6 (1) A lessee may apply to the Minister for the continuation of a lease (a) within the last year of the intermediate term of the lease, (b) with the consent of the Minister, at any time before the last year of the intermediate term of the lease, (c) in accordance with section 7(2), or (d) if the lease is extended under section 8(1)(h) of the Act, before the lease expires. (2) An application made under subsection (1) must contain the location or parts of the location of the lease that the lessee wishes to continue. (3) A lease qualifies for continuation under this section as to the whole location or part of its location that is productive. (4) On receipt of an application under subsection (1), the Minister shall determine whether the lease qualifies for continuation as to the whole location or part of the location of the lease in respect of which the continuation application is made. (5) If the Minister determines under subsection (4) that all parts of the location of the lease included in the application qualify for continuation, the Minister shall give written notice to the lessee that the lease is continued in accordance with the application. (6) If the Minister determines under subsection (4) that any part of the location of the lease included in the application does not qualify for continuation, the Minister shall give written notice to the lessee (a) indicating those parts of the location of the lease that qualify for continuation, if any, (b) indicating those parts of the location of the lease that do not qualify for continuation, and (c) specifying the deadline by which the lessee may respond to the notice, who may indicate whether the lease should be continued only as to those parts that qualify for continuation. (7) If notice is given under subsection (6), the Minister shall not make a final decision in respect of an application made under subsection (1) until after the Minister receives a response to the notice or, if no response is received, after the deadline specified in the notice. (8) On making a final decision under subsection (7), the Minister shall give written notice of the decision to the lessee. (9) Subject to section 7, any part of a lease that is continued under this section is continued indefinitely. Notice respecting non-productivity 7 (1) If the Minister considers a lease continued under section 6 to be no longer productive in the whole or part of its location, the Minister may give a lessee written notice stating that the lease, in the whole or part of its location, will expire one year from the date on which notice is given. (2) The lessee may apply for continuation of the lease under section 6 as to the whole or part of the location of the lease that is set to expire before that part of the lease expires in accordance with the notice given under subsection (1). Minister’s authority 8 Despite sections 6 and 7, the Minister may extend (a) the initial term of a lease, (b) the intermediate term of a lease, or (c) the one-year period referred to in a notice given under section 7(1) under section 8(1)(h) of the Act. Request for information 9 The Minister may request at any time from a lessee results of any study, investigation, reconnaissance or survey undertaken, including any work, sampling or assessments undertaken as part of the exploration, development or recovery of geothermal resources in order to (a) establish the geology of a given location of a lease, (b) ascertain or evaluate the characterization, nature, quality or extent of geothermal resources in a location under a lease, or (c) aid the Minister in determining whether a lease is potentially productive, productive or no longer productive. Coming into Force Coming into force 10 This Regulation comes into force on January 1, 2022.