Alberta Energy Regulator Administration Fees Rules

(Consolidated up to 62/2026) ALBERTA REGULATION 70/2019 Responsible Energy Development Act ALBERTA ENERGY REGULATOR ADMINISTRATION FEES RULES Table of Contents 1 Definitions 2 Rate payable by operator 3 Wells 4 Coal mines 5 Oil sands projects 5.1 Gas plants 5.2 Processing plants 5.3 Pipelines 6 Notice 7 Penalty 8 Appeal 9 Recovery of fees 10 Liability for payment 11 Expiry Definitions 1 In these Rules, (a) “administration fee production” means, (i) in the case of an oil well, the annual base year production from the well in cubic metres, and (ii) in the case of a gas well, the annual base year production from the well in thousand cubic metres adjusted by the conversion factor set out in section 3(5) to make it comparable to oil; (b) “base year” means the calendar year immediately preceding the fiscal year during which the administration fee is imposed; (b.1) “facility” means a facility as defined in the Oil and Gas Conservation Act except that it includes (i) a processing plant as defined in the Oil Sands Conservation Act , and (ii) a pipeline as defined in the Pipeline Act that is licensed by the Regulator and over which the Regulator has jurisdiction; (c) “fiscal year” means the fiscal year of the Regulator; (d) “gas well” means a well licensed and designated by the Regulator as a gas well; (d.1) “inactive well” means a well licensed by the Regulator that has no reported production, injection or disposal during the base year; (e) “oil well” means a well licensed and designated by the Regulator as an oil well; (f) “service well” means a well licensed and classified by the Regulator as one of injection, disposal or storage well. AR 70/2019 s1;164/2021;56/2022 Rate payable by operator 2 (1) In each fiscal year, every person who, on the prescribed date, was the operator of a well, coal mine, oil sands project or facility shall pay an administration fee in accordance with these Rules. (2) For the purposes of these Rules, the prescribed date for the 2026‑2027 fiscal year is December 31, 2025. AR 70/2019 s2;164/2020;72/2021;56/2022;69/2023;52/2024; 52/2025;62/2026 Wells 3 (1) An operator of a well shall pay an administration fee calculated as follows with respect to each individual well within each class of well, multiplied by the annual adjustment factor set out in subsection (2): (a) Class 0 ‑ $42 per well; (b) Class 1 ‑ $50 per well; (c) Class 2 ‑ $42 per well; (d) Class 3 ‑ $102 per well; (e) Class 4 ‑ $240 per well; (f) Class 5 ‑ $460 per well; (g) Class 6 ‑ $1040 per well; (h) Class 7 ‑ $1740 per well; (i) Class 8 ‑ $2560 per well; (j) Class 9 ‑ $3500 per well; (k) Class 10 ‑ $3800 per well. (2) For the 2026‑2027 fiscal year, the annual adjustment factor is 4.359006. (3) For the purposes of this section, wells subject to an administration fee are classed as follows: (a) Class 0 ‑ inactive wells; (a.1) Class 1 ‑ service wells; (b) Class 2 ‑ wells having administration fee production volumes during the base year that are greater than 0.00 cubic metres and less than or equal to 300.00 cubic metres; (c) Class 3 ‑ wells having administration fee production volumes during the base year that are greater than 300.00 cubic metres and less than or equal to 600.00 cubic metres; (d) Class 4 ‑ wells having administration fee production volumes during the base year that are greater than 600.00 cubic metres and less than or equal to 1200.00 cubic metres; (e) Class 5 ‑ wells having administration fee production volumes during the base year that are greater than 1200.00 cubic metres and less than or equal to 2000.00 cubic metres; (f) Class 6 ‑ wells having administration fee production volumes during the base year that are greater than 2000.00 cubic metres and less than or equal to 4000.00 cubic metres; (g) Class 7 ‑ wells having administration fee production volumes during the base year that are greater than 4000.00 cubic metres and less than or equal to 6000.00 cubic metres; (h) Class 8 ‑ wells having administration fee production volumes during the base year that are greater than 6000.00 cubic metres and less than or equal to 8000.00 cubic metres. (i) Class 9 ‑ wells having administration fee production volumes during the base year that are greater than 8000.00 cubic metres and less than or equal to 10 000.00 cubic metres; (j) Class 10 ‑ wells having administration fee production volumes during the base year that are greater than 10 000.00 cubic metres. (4) The following wells are exempt from payment of an administration fee: (a) all wells, except inactive wells, categorized by the Regulator as abandoned as of December 31 of the base year; (b) all wells, except inactive wells, categorized by the Regulator as farm gas or farm water wells as of December 31 of the base year; (c) all inactive wells categorized by the Regulator as farm gas or farm water wells as of January 31 of the year following the base year; (d) all inactive wells categorized by the Regulator as abandoned, re‑entered, reclamation certified, reclamation exempt, observation, training or cavern scheme wells as of January 31 of the year following the base year; (e) all inactive wells that use the natural heat from the earth that is above or below the base of groundwater protection for the purpose of the exploration for or development of geothermal resources; (f) all inactive wells that are categorized by the Regulator as an in situ scheme type as of January 31 of the year following the base year; (g) all inactive wells designated by the Regulator as orphan wells as of January 31 of the year following the base year; (h) all wells, except inactive wells, categorized by the Regulator as commingled as of December 31 of the base year. (5) For greater clarity, the conversion factor for the purpose of section 1(a)(ii) is 1.00. AR 70/2019 s3;163/2019;164/2020;72/2021;164/2021; 56/2022;69/2023;52/2024;52/2025;62/2026 Coal mines 4 (1) In this section, “coal production” means the total tonnes of coal produced by an operator of an Alberta coal mine in the base year, including (a) coal produced from a sub‑bituminous mine, and (b) coal produced from a bituminous mine, including (i) clean coal from a coal processing plant, and (ii) raw coal for sale. (2) An operator of a coal mine shall pay an administration fee with respect to a coal mine calculated as follows: administration fee = coal production x $1.163746 for each tonne of coal AR 70/2019 s4;163/2019;164/2020;72/2021;164/2021; 56/2022;69/2023;52/2024;52/2025;62/2026 Oil sands projects 5 (1) For the purposes of this section, oil sands projects subject to an administration fee are classed as follows: (a) Class 1 ‑ primary oil sands projects, consisting of projects producing bitumen volumes by cold flow method in the base year; (b) Class 2 ‑ thermal on‑going oil sands projects, consisting of projects producing bitumen volumes by enhanced recovery method (including projects that are experimental schemes within the meaning of the Oil Sands Conservation Act ) in the base year; (c) Class 3 ‑ thermal growth oil sands projects, consisting of projects where (i) the maximum amount of bitumen volumes that may be produced by enhanced recovery method is set out in the approval, and (ii) the approval was issued or was last amended to change the maximum amount within the 5‑year period ending on December 31 of the base year; (d) Class 4 ‑ mining on‑going oil sands projects, consisting of projects producing bitumen volumes by mining in the base year; (e) Class 5 ‑ mining growth oil sands projects, consisting of projects where (i) the maximum amount of bitumen volumes that may be produced by mining is set out in the approval or in the application for the approval or for an amendment to the approval, and (ii) the approval was issued or last amended to change the maximum amount or the most recent application for an amendment to change the maximum amount was made, as the case may be, within the 7‑year period ending on December 31 of the base year. (2) An operator of one or more approved oil sands projects shall pay an administration fee calculated in accordance with subsections (4) to (8). (3) An operator of a portion of an oil sands project shall pay an administration fee calculated in accordance with subsections (4) to (8) that is proportionate to that operator’s portion of the oil sands project. (4) The administration fee payable by an operator of one or more Class 1 approved oil sands projects is the amount calculated in accordance with the following formula: Fee for Class 1 = [(A x $5000) + B + (C x total bitumen volumes produced in the base year by the operator’s Class 1 oil sands projects)] x 2.375795 where A is the number of Class 1 oil sands projects approvals held by the operator; B is the fixed amount selected from Table A which corresponds to the applicable production range from Table A that contains the total bitumen volumes produced in the base year by the operator’s Class 1 oil sands projects; C is the variable rate selected from Table A which corresponds to the applicable production range from Table A that contains the total bitumen volumes produced in the base year by the operator’s Class 1 oil sands projects. (4.1) Repealed AR 164/2020 s5. (5) The administration fee payable by an operator of one or more Class 2 approved oil sands projects is the amount calculated in accordance with the following formula: Fee for Class 2 = [(A x $5000) + B + (C x total bitumen volumes produced in the base year by the operator’s Class 2 oil sands projects)] x 2.947350 where A is the number of Class 2 oil sands projects approvals held by the operator; B is the fixed amount selected from Table A which corresponds to the applicable production range from Table A that contains the total bitumen volumes produced in the base year by the operator’s Class 2 oil sands projects; C is the variable rate selected from Table A which corresponds to the applicable production range from Table A that contains the total bitumen volumes produced in the base year by the operator’s Class 2 oil sands projects. (5.1) Repealed AR 164/2020 s5. (6) The administration fee payable by an operator of one or more Class 3 approved oil sands projects is the amount, in respect of each project, calculated in accordance with the following formula: Fee for Class 3 project = [$5000 + A + (B x C)] x 11.393078 where A is the fixed amount selected from Table A which corresponds to the applicable production range from Table A that contains the amount that is determined by dividing the difference between the maximum amount of bitumen volumes that may be produced by the project in the base year under the approval and the volumes that were actually produced by the age of the approval or the most recent amended approval, calculated from the date of issuance to December 31 of the base year and rounded up to a full year (but if the bitumen volumes produced exceed the maximum amount that may be produced, A is $5000); B is the variable rate selected from Table A which corresponds to the applicable production range from Table A that contains the amount that is determined by dividing the difference between the maximum amount of bitumen volumes that may be produced by the project in the base year under the approval and the volumes that were actually produced by the age of the approval or the most recent amended approval, calculated from the date of issuance to December 31 of the base year and rounded up to a full year (but if the project did not produce any bitumen in the base year or if the bitumen volumes produced exceed the maximum amount that may be produced, B is 0); C is the amount determined by dividing the difference between the maximum amount of bitumen volumes that may be produced by the project in the base year under the approval and the volumes that were actually produced by the age of the approval or the most recent amended approval, calculated from the date of issuance to December 31 of the base year and rounded up to a full year. (6.1) Repealed AR 164/2020 s5. (7) The administration fee payable by an operator of one or more Class 4 approved oil sands projects is the amount calculated in accordance with the following formula: Fee for Class 4 = [(A x $10 000) + B + (C x total bitumen volumes produced in the base year by the operator’s Class 4 oil sands projects)] x 3.669570 where A is the number of Class 4 oil sands project approvals held by the operator; B is the fixed amount selected from Table B which corresponds to the applicable production range from Table B that contains the total bitumen volumes produced in the base year by the operator’s Class 4 oil sands projects; C is the variable rate selected from Table B which corresponds to the applicable production range from Table B that contains the total bitumen volumes produced in the base year by the operator’s Class 4 oil sands projects. (7.1) Repealed AR 164/2020 s5. (8) The administration fee payable by an operator of one or more Class 5 approved oil sands projects is the amount, in respect of each project, calculated in accordance with the following formula: Fee for Class 5 project = [$10 000 + A + (B x C)] x 6.803443 where A is the fixed amount selected from Table B which corresponds to the applicable production range from Table B that contains the amount that is determined by dividing the difference between the maximum amount of bitumen volumes that may be produced by the project in the base year under the application or approval and the volumes that were actually produced by the age of the approval, the most recent amended approval or the most recent application for an amendment to the approval, calculated from the date of issuance to December 31 of the base year and rounded up to a full year (but if the bitumen volumes produced exceed the maximum amount that may be produced, A is $2500); B is the variable rate selected from Table B which corresponds to the applicable production range from Table B that contains the amount that is determined by dividing the difference between the maximum amount of bitumen volumes that may be produced in the base year under the application or approval and the volumes that were actually produced by the age of the approval, the most recent amended approval or the most recent application for an amendment to the approval, calculated from the date of issuance to December 31 of the base year and rounded up to a full year (but if the project did not produce any bitumen in the base year or if the bitumen volumes produced exceed the maximum amount that may be produced, B is 0); C is the amount determined by dividing the difference between the maximum amount of bitumen volumes that may be produced by the project in the base year under the application or approval and the volumes that were actually produced by the age of the approval, the most recent amended approval or the most recent application for an amendment to the approval, calculated from the date of issuance to December 31 of the base year and rounded up to a full year. (8.1) Repealed AR 164/2020 s5. AR 70/2019 s5;163/2019 ;164/2020;72/2021;164/2021; 56/2022;69/2023;52/2024;52/2025;62/2026 Gas plants 5.1 (1) An operator of a facility licensed under the Oil and Gas Conservation Act shall pay an administrative fee with respect to the facility if the facility (a) is categorized by the Regulator as a gas plant with an active, new or unknown activity status, and (b) has an inlet rate greater than or equal to 10 000.00 thousand cubic metres per day as of December 31 of the base year. (2) The administrative fee shall be calculated as follows: administration fee = individual facility inlet rate (thousand cubic metres) x $9.090309 for each thousand cubic metres per day AR 56/2022 s7;69/2023;52/2024;52/2025;62/2026 Processing plants 5.2 (0.1) In this section, “approved capacity” means the maximum processing volume of a processing plant, as set out by an operator in an application approved under section 11 or 13 of the Oil Sands Conservation Act , as approved as of December 31 of the base year. (1) Subject to subsection (4), an operator of a processing plant approved under the Oil Sands Conservation Act shall pay an administrative fee with respect to the processing plant if the associated approval under section 11 or 13 of the Oil Sands Conservation Act is categorized by the Regulator as having an operating status as of December 31 of the base year. (2) The administration fee shall be calculated as follows: administration fee = approved capacity (expressed in cubic metres) x $5.742721 for each cubic metre per day (3) For greater clarity, for the purposes of calculating the administration fee in subsection (2), if a processing plant processes gas, its approved capacity in thousand cubic metres is to be adjusted by a conversion factor of 1.00. (4) This section does not apply to processing plants approved under the Oil Sands Conservation Act (a) that are subject to an administration fee under section 5, or (b) for which approvals have been issued under the Environmental Protection and Enhancement Act and the Water Act by Alberta Environment and Protected Areas. AR 56/2022 s7;69/2023;52/2024;52/2025;62/2026 Pipelines 5.3 (1) In this section, “franchise area”, “franchise area approval”, “rural gas co‑operative association”, “rural gas utility” and “rural municipal authority” have the same meaning as in the Gas Distribution Act . (1.1) For the purposes of this section, a “satellite” means an arrangement of equipment, not including oil storage tanks, located at a point between a group of wells and a battery that (a) separates and measures the components of each oil well’s production, and (b) recombines the production for transport to a battery for further processing or storage. (2) Subject to subsection (5), an operator of a pipeline licensed under the Pipeline Act shall pay an administration fee calculated as follows with respect to the segments of a pipeline within each class, multiplied by the annual adjustment factor set out in subsection (3): (a) Class A ‑ $50 per kilometre; (b) Class A (Discontinued) ‑ $25 per kilometre; (c) Class B ‑ $60 per kilometre; (d) Class B (Discontinued) ‑ $30 per kilometre; (e) Class C ‑ $200 per kilometre; (f) Class C (Discontinued) ‑ $100 per kilometre. (3) For the 2026‑2027 fiscal year, the annual adjustment factor is 2.770804. (4) For the purposes of this section, pipelines subject to an administration fee are classed as follows: (a) Class A ‑ pipelines that have a diameter of less than 168.3 millimetres; (b) Class A (Discontinued) ‑ Class A pipelines that are categorized by the Regulator as discontinued as of December 31 of the base year; (c) Class B ‑ pipelines that have a diameter of greater than or equal to 168.3 millimetres and less than 609.6 millimetres; (d) Class B (Discontinued) ‑ class B pipelines that are categorized by the Regulator as discontinued as of December 31 of the base year; (e) Class C ‑ pipelines that have a diameter of greater than or equal to 609.6 millimetres; (f) Class C (Discontinued) ‑ class C pipelines that are categorized by the Regulator as discontinued as of December 31 of the base year. (5) The following are exempt from payment of an administration fee: (a) all segments of a pipeline categorized by the Regulator as abandoned as of December 31 of the base year; (b) when a pipeline licence contains a segment that connects to and from a well, all segments of the pipeline within the licence; (c) when a pipeline licence contains a segment that connects to and from a satellite, all segments of the pipeline within the licence. (d) when a pipeline is part of a rural gas utility, all segments of the pipeline (i) operated by a rural gas co‑operative association or a rural municipal authority that is a member of the Federation of Alberta Gas Co‑operatives Ltd., and (ii) located within a franchise area described in a franchise area approval that was granted to the rural gas co‑operative association or the rural municipal authority in respect of the rural gas utility. AR 56/2022 s7;69/2023;52/2024;52/2025;62/2026 Notice 6 (1) A notice of an administration fee determined under these Rules must be given to each person who was, according to the records of the Regulator, an operator on the prescribed date of one or more wells, one or more coal mines, one or more oil sands projects or one or more facilities. (2) A notice under this section must (a) contain or be accompanied with a copy of these Rules, (b) set out, in respect of each class of wells, coal mines, oil sands projects and facilities, a brief description of the wells, coal mines, oil sands projects and facilities of which the person to whom the notice is given was the operator on the prescribed date according to the records of the Regulator, (c) set out the amount of the administration fee in respect of each well, coal mine, oil sands project and facility described in the notice, and (d) contain a demand for the payment of the total amount of the administration fees. (3) A notice under this section is sufficiently given to a person referred to in subsection (1) if it is (a) sent by mail to the person at that person’s address in Alberta according to the records of the Regulator at the time of mailing, (b) sent by email to the person at that person’s email address according to the records of the Regulator at the time of sending, or (c) provided to the person through an electronic medium selected by the Regulator that is accessible by that person. (4) If a notice is given in accordance with subsections (1) to (3) but it is later determined in an appeal under section 8 or in an action under section 9 that the person to whom the notice was given was not the operator on the prescribed date of a well, coal mine, oil sands project or facility described in the notice, the Regulator may give a notice that complies with subsection (2) to the person, if any, who was determined in the appeal or in the action to have been the operator of the well, coal mine, oil sands project or facility on the prescribed date. (5) If the Regulator determines, otherwise than as a result of an appeal under section 8, that a notice has been given under subsection (1) or (4) to any person in error or that the amount of the administration fee set out in the notice is incorrect, the Regulator may withdraw the notice and issue a corrected notice in its place. AR 70/2019 s6;164/2021;56/2022 Penalty 7 (1) The administration fee set out in the notice must be paid by the operator within 30 days of the mailing date shown on the notice or the date otherwise prescribed by the Regulator. (2) Any administration fee or part of the fee not paid within 30 days of the mailing date shown on the notice is subject to the addition of a penalty of 20% of the unpaid administration fee unless the Regulator otherwise orders. (3) Where an operator appeals, in accordance with section 8, the penalty set out in subsection (2) must be calculated on the basis of the amount for which the operator is found liable on appeal and the administration fee and penalty is payable immediately on the disposition of the appeal. AR 70/2019 s7;163/2019;56/2022 Appeal 8 (1) A person to whom a notice is given under section 6 may appeal to the Regulator by serving on the Regulator a Notice of Appeal within 30 days of the mailing date shown on the notice on any one or more of the following grounds: (a) that the person was not the operator on the prescribed date of any of the wells, coal mines, oil sands projects or facilities described in the notice or of any particular wells, oil sands projects or facilities described in the notice; (b) that the administration fee set out in the notice for one or more of the wells, coal mines, oil sands projects or facilities is incorrect; (c) on any other grounds that the Regulator considers proper. (2) The Regulator shall hear an appeal on grounds set out in subsection (1)(a) or (b) and may hear an appeal on any other grounds the Regulator considers proper. (3) The Notice of Appeal must be signed by the appellant and must set out the name of the appellant, the name of the agent, if any, of the appellant, the grounds and particulars of the appeal and the address to which all further correspondence concerning the appeal must be mailed. (4) The Notice of Appeal must be served on the Regulator at the Regulator’s Calgary office no later than 4:00 p.m. on the last day for receipt of appeals, and appeals received after that time may be heard by the Regulator in its discretion. (5) Within 60 days from the day for receipt of appeals, the Regulator shall send to the appellant a Notice of Hearing. (6) On the date set out in the Notice of Hearing, the Regulator shall hear the appeal and may decide the appeal at that time or defer its decision. (7) The Regulator may conduct the hearing orally, including by telephone, or in writing. AR 70/2019 s8;56/2022 Recovery of fees 9 (1) Any administration fees and penalties owing to the Regulator under these Rules may be recovered by the Regulator in an action in debt against the person liable to pay it. (2) If a notice is given in accordance with section 6 and, in respect of any well, coal mine, oil sands project or facility described in the notice, (a) no appeal is taken to the Regulator under these Rules by the person to whom the notice is given within the time prescribed, or (b) the appeal is not prosecuted with reasonable speed or is later discontinued or abandoned or is dismissed by the Regulator, that person is, subject to subsection (3), estopped from denying that the person was the operator of the well, coal mine, oil sands project or facility on the prescribed date in an action by the Regulator under this section for the recovery of the administration fee imposed in respect of that well, coal mine, oil sands project or facility. (3) If the defendant in an action under this section had previously appealed to the Regulator under these Rules or any predecessor of these Rules on the ground that the defendant was not, on the prescribed date, the operator of the well, coal mine, oil sands project or facility concerned and the Regulator after hearing evidence relating to that ground made a finding that the defendant was the operator on the prescribed date, subsection (2) does not apply, but the burden is on the defendant to prove that the defendant was not the operator of the well, coal mine, oil sands project or facility concerned on the prescribed date. (4) The defendant in an action under subsection (1) may join as a co‑defendant any person the defendant claims was the operator on the prescribed date of the well, coal mine, oil sands project or facility concerned and, in that event, the court may, if it upholds the claim, give judgment against that co‑defendant for the amount of the administration fees and penalties owing by that co‑defendant. AR 70/2019 s9;56/2022 Liability for payment 10 If the operator who is liable for an administration fee (a) was not the operator on the prescribed date of any of the wells, coal mines, oil sands projects or facilities described in the notice or of any particular wells, coal mines, oil sands projects or facilities, or (b) is no longer in Alberta, has become bankrupt or insolvent, is no longer carrying on business in Alberta, refuses to pay or does not pay, the liability for the payment of the administration fee is on the person who was the licensee of the well, coal mine or facility or holder of the approval under the Oil Sands Conservation Act for the project or facility, as the case may be, on the prescribed date. AR 70/2019 s10;56/2022 Expiry 11 For the purpose of ensuring that these Rules are reviewed for ongoing relevancy and necessity, with the option that they may be repassed in their present or an amended form following a review, these Rules expire on March 31, 2027. AR 70/2019 s11;163/2019;72/2021;56/2022;69/2023; 52/2024;52/2025;62/2026 Table A Production Range (m3) Minimum Maximum Fixed Amount ($) Variable rate 0 4999 5000 0 5000 19 999 5000 0.5000 20 000 49 999 9000 0.3000 50 000 349 999 15 000 0.1800 350 000 2 499 999 50 000 0.0800 2 500 000 4 999 999 100 000 0.0600 5 000 000 9 999 999 200 000 0.0400 10 000 000 19 999 999 380 000 0.0220 20 000 000 29 999 999 570 000 0.0125 30 000 000 700 000 0.0100 Table B Production Range (m3) Minimum Maximum Fixed Amount ($) Variable rate 0 4999 2500 0 5000 19 999 2500 0.4000 20 000 49 999 6250 0.2125 50 000 349 999 10 000 0.1375 350 000 2 499 999 25 000 0.0946 2 500 000 4 999 999 65 000 0.0786 5 000 000 9 999 999 125 000 0.0666 10 000 000 19 999 999 200 000 0.0591 20 000 000 29 999 999 325 000 0.0529 30 000 000 500 000 0.0471