If you and the company agree on the location of any well, facility, pipeline route, and access road, the company applies to the EUB for a licence to proceed with the development. If the application meets all legal and technical requirements, the EUB grants the licence.
Note that a well licence alone does not give the company the right to enter your land. In this instance, the company must first obtain a well licence from the EUB. It can then apply to the SRB for a right-of-entry order. The order allows representatives of the company to enter your land to perform the tasks approved by the EUB. The SRB will then conduct a hearing to determine the compensation to be paid.
What if an agreement on a site can't be reached?
If you and the company cannot agree on the location for a well, facility, pipeline, or access road, either party may ask the EUB for its involvement.
The EUB is responding to heightened public concern and to landowner and stakeholder issues in new ways, including strengthening its practice of making staff available to facilitate discussions between landowners and companies early in the application process. This is called field facilitation. The goal is to identify and promote resolution of concerns before they intensify.
The EUB will normally require documentation from the company on the progress of previous negotiations and an explanation of why an agreement could not be reached and will ask you to explain how you will be affected. The EUB may also be asked to facilitate earlier in the process if the parties have difficulty getting started.
The EUB might suggest these options:
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The two parties should attempt negotiations again.
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The EUB should become involved as a facilitator.
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The parties could use a neutral third party to mediate.
If these methods fail to produce an agreement, either party may request an EUB hearing.
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What is Appropriate Dispute Resolution?
In January 2001, the EUB implemented the Appropriate Dispute Resolution (ADR) program. The program was developed in response to requests by both the public and industry to be more directly involved and to have more control in resolving disputes involving wells, pipelines, production facilities, electrical substations, transmission lines, and other facilities in the industries regulated by the EUB. While it may not be the answer to every dispute, the ADR process has often been successful in reducing the number of issues needing to be addressed and, in some cases, eliminating the need for a formal hearing.
What is the purpose of an EUB hearing?
An EUB hearing is a formal, court-like proceeding that provides the opportunity for affected parties to express their points of view and provide supporting evidence. If a hearing is to take place, notice is sent directly to landowners and residents who may be directly and adversely affected by the proposed project. Newspaper advertising is also generally used.
At a hearing there is an opportunity for you, as an intervener, to explain your position and give evidence to the EUB regarding the proposed project. This formal process ensures that all relevant arguments both for and against the application are heard. Further details are available in EnerFAQs No. 2 : Having Your Say at an EUB Hearing.
Who officiates at a hearing and when is a decision made?
Normally, a panel of three EUB decision-makers hears evidence from the applicant and interveners who may or may not wish to be represented by a lawyer. The panel considers the evidence and arguments presented and issues a written report giving the decision and the reasons for it, usually within 90 days after the close of a hearing. The report is then made public and given to all participants.
The panel will decide to
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approve the project unconditionally,
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approve the project subject to certain conditions, or
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deny approval of the project
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Who pays for an EUB hearing?
The company applying to develop the project is required to pay the reasonable costs associated with the hearing. The EUB determines whether a participant is eligible to recover costs incurred for the preparation and presentation of its intervention. The EUB will only require the company to pay those costs that it determines to be reasonable and directly and necessarily related to the proceeding. (For more information, s ee Directive 031A: Guidelines for Energy Cost Claims. )
How much more development will occur if drilling is successful?
If successful drilling leads to production, a wellhead or pump will be required on oil wells and a heater may be necessary for gas wells. Other equipment, such as pressure vessels and tanks, may be placed on the well site where it causes the least interference with farming operations (e.g., between the well and a nearby fence line).
Production facilities such as separators, heaters, and tanks make up what is called a battery. The company must discuss the location and details of production facilities with you and any other land occupants. You have the right to ask questions about these production facilities and to voice concerns about the construction of production facilities, even if a well site exists..
Will it cost me anything to reclaim the site if the well is unsuccessful?
No. If a well turns out to be a dry hole, the company will likely abandon it and must reclaim the site. Before the company gives up the surface lease, it must obtain a reclamation certificate from Alberta Environment (AENV). The Reclamation Certificate is issued only after AENV is satisfied that the site has been properly reclaimed.
How do I get more involved?
In many communities, neighbours meet with EUB representatives and area oil and gas companies to resolve local issues together. The EUB calls these synergy groups. The public is strongly encouraged to participate in these local groups. Synergy groups exist in communities all over the province, and each is structured to meet the unique needs of the community and local operators. There is no cookie-cutter approach. Members of such groups have found that they are stronger and better informed together than they may be as individuals. If you would like to join or form a synergy group, contact your nearest EUB Field Centre (see last page), as the EUB participates in nearly all the synergy groups in Alberta.
Remember, you have the right to ask questions at any point in the development process about drilling, pipeline, and production operations that affect you and your neighbours.
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Possible Questions for Discussion Between You and the Company
(Note that not all questions apply to every proposed project)
1 Proposed Energy Development Details
1.1 Is there a community-based group dealing with energy issues in my area?
1.2 What kind of development is being proposed?
1.3 How was the surface location selected?
1.4 How will drilling activities and production affect my land/farming operations?
1.5 What is the company's plan to handle drilling waste?
1.6 When will reclamation occur, and how long will it take?
1.7 Why do you want to put a pipeline on my land, and what will it transport?
1.8 What are the emergency, safety, and shutdown requirements to be used on this pipeline?
1.9 Have alternative pipeline routes been considered; why was this one chosen?
1.10 How will the company handle the topsoil? What are the plans to mitigate and handle subsidence?
1.11 To what state will the land be restored after the pipeline is constructed?
2 Sour Gas and Emergency Response Planning
2.1 Will the well encounter hydrogen sulphide (H 2 S), or will the pipeline transport H 2 S?
2.2 What is the company doing to protect public safety?
2.3 What are the details of the emergency response plan?
2.4 Will I be compensated for any damage done during an emergency situation?
3 Setbacks
3.1 What is the setback for the proposed development?
3.2 May I develop my land if it falls within a setback?
4 Flaring, Incinerating, and Venting
4.1 Will the proposed project involve any flaring or incineration of waste gas?
4.2 If so, when and under what circumstances will flaring or incineration occur?
4.3 What steps has the company taken to eliminate or reduce flaring, incineration, and venting?
4.4 Will the company notify me when servicing work results in flaring or venting?
5 Odours, Noise, and Traffic
5.1 What can cause odours during drilling and production operations?
5.2 What are the plans to minimize noise levels?
5.3 What type and volume of traffic might I expect at various stages of development?
5.4 How will the company respond to issues or concerns that may arise in day-to-day operations of the facility, and whom may I contact?
6 Environmental Issues: Soil, Water, and Visual
6.1 What steps will be taken to ensure protection and the least amount of impact to the environment?
6.2 How will the soil quality be protected?
6.3 What are the water needs of the company?
6.4 How will the company protect the supply and quality of aquifers and water wells at all stages of exploration and during ongoing operations?
6.5 How will companies reduce potential visual impacts associated with facilities?
7 Animal Health
7.1 Will my livestock and pets be evacuated if there is an emergency? If not, who will feed and water them?
7.2 Who will monitor the health of my livestock after an emergency, and for how long?
