Timeline
Our estimated processing time for appeal requests regarding an AER classification is 30 business days and 10 business days for confidential status.
See our timeline spreadsheet for updates.
Purpose of the Application
An AER classification is assigned to each well before it is drilled based on drilling risk and the company’s expected production. The AER classification must be accurate as it determines drill-cutting requirements. Alberta Energy and Minerals also use it for royalty-based programs.
A confidentiality status is assigned to keep well information confidential from the public and protect the licensee’s investment.
Process Checklist
Before Applying
Companies are responsible for selecting a correct AER classification and confidential status in the well licence application. We have review and approval processes in place for
- submitting an appeal for the AER classification or confidential status, or both; and
- amending a well AER classification or confidential status.
For wells with a confidential status, we will assign a confidentiality release date that is one year from the finished drilling date. We can review a well’s confidential status at any time.
If a company’s well meets the conditions for release of information under section 12.150 of the Oil and Gas Conservation Rules (OGCR), section 15 of the Oil Sands Conservation Rules, section 95 of the Geothermal Resource Development Rules, or section 103 of the Brine-Hosted Mineral Resource Development Rules, we will revise the confidential status and will not notify the company. The company should regularly review its confidential status during the first year to ensure classification accuracy. We may revisit and reassess a well’s confidentiality at any time during its first year.
We share updated amendments to the AER classification and confidential status on Petrinex. For user support, please email petrinexsupport@petrinex.ca.
AER Review Process
- After we issue a well licence, we review each well’s AER classification and confidentiality status to ensure they are technically accurate.
AER Classification Considerations
An AER classification is a pre-spud assignment. We look at the well's geological complexities and the existence of known hydrocarbon pools in the area where the well will be drilled. We also consider the following:
- the risk of geological failure
- all zones to be penetrated by the well
- all pre-existing pools, regardless of whether they have been exploited or officially designated
- step-out distances, which vary depending on the size and trend of the pools previously encountered in the region
We cannot accept an AER classification revision after the well has been drilled and has results (except where the AER classification is revised to a less exploratory classification).
Confidentiality Considerations
Wells are assigned a status of confidential, confidential below, or nonconfidential. The status may change at any time during the well’s first year, providing it meets specified criteria. There is no minimum confidentiality period, although confidential status may be granted for a one-year maximum from the well’s finished drilling date. When assigning the confidentiality status, we consider the following:
- Are all zones penetrated by the well designated in a nonconfidential AER order?
- Is the well within a designated nonconfidential AER order. If it does not, the well is deemed “confidential.”?
- Is the well within a designated nonconfidential AER order, but its total depth exceeds the depth identified in the order? If so, the well is deemed “confidential below.”
- Is the well within a designated nonconfidential AER order at total depth? If so, the well is deemed “nonconfidential.”
- If the well meets our confidentiality requirements, but the licensee has chosen it to be nonconfidential (intentionally or in error), we will not propose a greater confidential level. There are some exceptions if the well is licensed under section 2.030 of the OGCR.
- If the AER classification and confidential selections made by the licensee meet our classification requirements, no further action is required.
- If the AER classification and confidential selections made by the licensee do not meet our requirements, we will propose a revised classification and send a letter to the licensee. The letter will include the original selection and our proposed revision.
- The licensee has 30 days from the date on the letter to respond to the proposed revision. If we do not receive a response in 30 days, our proposed changes will be applied.
- If the licensee disagrees with our revision, they must email an appeal package to Geoconfteam@aer.ca within 30 days.
AER Classification and Confidentiality Appeal Process (Checklist)
Every appeal package must include:
- the licensee name,
- a cover letter stating the views of the licensee and any pre-spud information (e.g., maps, seismic, cross-sections) in support of keeping the original classification or confidential status selection,
- the unique well identifier bottomhole location,
- the licence number, and
- the current AER classification and confidential status.
Submit the package to GeoConfTeam@aer.ca within 30 days of the date of the AER’s letter proposing an alternative AER classification or confidential status.
We will review the appeal package for technical completeness. We cannot accept technical information submitted after spudding. In some cases, we may request supporting pre-spud information.
For appeals that do not align with sections 7.7.7 and 7.7.8 in Directive 056: Energy Development Applications and Schedules, an alternative AER classification or confidential status could be agreed on. We will review the appeal and decide before sending a disposition letter to the licensee.
Operator AER classification and Confidentiality Amendment Process
A licensee can submit requests for amendments to the AER classification or confidential status at any time. We will review each amendment request using the AER classification and confidentiality considerations mentioned above. We will send a disposition letter to the licensee after our review is complete.
Use the checklist above to ensure the amendment package is complete.
Submit amendments to the AER classification or confidentiality status to GeoConfTeam@aer.ca.
