By: Nigel Bankes
Decision Commented On: Obsidian Energy Ltd. Appeal of Environmental Protection Order March 7, 2025, 2025 ABAER 002
PDF Version: The AER Panel Dismisses Appeal in Induced Seismicity Case But Reinforces the Case For a Regional Approach
In this decision, an appeal panel of the Alberta Energy Regulator (AER) confirmed that the Compliance Liability Management (CLM) Branch had sufficient warrant to issue a remedial Environmental Protection Order against Obsidian on the basis that CLM could reasonably form the opinion that Obsidian’s disposal activities were responsible for induced seismicity events. The decision reveals the complexity of determining cause and effect in cases such as this where there are multiple disposal injectors in the same area. As a result, the decision also supports the need for a proactive regional approach to the use of pore space for disposal (and perhaps other) purposes.