Class II Fluid Disposal

Timeline

Our estimated processing time for this application is 35 business days. See Disposal Scheme on our timeline spreadsheet for updates.

Purpose of the Application

We classify disposal wells based on their injection fluid type. Our classification system is described in Directive 051: Injection and Disposal Wells – Well Classifications, Completions, Logging, and Testing Requirements.

Companies must apply to use an approved Class II disposal well (disposal scheme). Class II fluids include

  • produced water, and
  • saline water.

With our approval, companies can dispose of Class II fluids in underground formations or depleted hydrocarbon pools for reasons other than enhanced recovery or gas storage. There must be no impact to public safety and no adverse effects on the environment or hydrocarbon recovery in the surrounding area.

Process Checklist

Before Applying 

To be approved, applications must meet our technical and safety requirements in the following documents:

Wells used for fluid disposal do not have to be drilled before submitting a Class II fluid disposal application. If the fluid disposal well has not yet been drilled, an optional two-step application process may be used in which the fluid disposal application under Directive 065 must be accompanied with an application for a well licence under Directive 056, either by submitting the applications at the same time or by submitting the Directive 065 application after the Directive 056 application has been submitted or approved. 

In the first step of the optional process, we will review the Directive 056 application, if not already approved, and the Directive 065 application to confirm that they meet our requirements. If the applications meet our requirements and we issue a well licence, we will issue a provisional Directive 065 approval for the disposal project that is subject to certain conditions. One of the conditions will require the operator to submit penetration data for the candidate fluid disposal well under a separate Directive 065 application. In the second step of the process, we will review the well penetration data to confirm the geological interpretation of the target formation and its suitability for fluid disposal. Once we have confirmed the formation’s suitability, we will issue the final Directive 065 approval. If this process is not used, the regular fluid disposal application process under Directive 065 must be used, which requires the candidate fluid disposal well to be drilled before application.

Submit an Application

Companies must submit Class II fluid disposal applications through our Digital Data Submission (DDS) system. Our detailed checklist document can be referenced to ensure that applications are complete. We will register each application and assign it a reference number.

By submitting an application, the company accepts that all materials related to the application are no longer confidential.


Review Process

  1. We share all applications on our Public Notice of Application page to notify the public of applications that have been filed with the AER.
  2. Anyone who believes that they may be directly and adversely affected by an application can file a statement of concern (SOC). If we receive an SOC, it may take us longer to process the application.
  3. We will assign the application to a subject matter expert for initial review. If information is missing (i.e., the application is not complete), we will close the application. Otherwise, we will proceed with a full technical review. In our review, we look at our requirements, including
    • whether the applied-for well or facility site falls within an area covered by the Lower Athabasca Regional Plan or the South Saskatchewan Regional Plan. If so, our review will be more stringent;
    • whether the proposed disposal fluids contain acid gases or H2S (to comply with Directive 071);
    • whether offset wellbores have been reviewed for potential high-risk hydraulic isolation deficiencies;
    • whether the proposed maximum wellhead injection pressure is appropriate for the operation. The safety factor on the estimate of the formation fracture propagation pressure must be applied at the sand face (bottom hole) for all disposal wells;
    • whether the Crown has been sent a letter of indemnification as it pertains to the proposed disposal activities, if on Freehold lands;
    • whether depleted hydrocarbon pools or their associated aquifers are the disposal zone. If so, it could cause over-pressurization. Disposal will be limited by a maximum operating pressure equal to the initial reservoir pressure. If the maximum operation pressure is reached, disposal will be stopped; and
    • whether the application has fulfilled notification requirements in Directive 065, specifically that licensees of all wells (including abandoned wells) within a 1.6 km radius have been notified. This is a minimum requirement and could expand depending on the estimated fluid and pressure plume areas of influence.
  4. We may request additional information (through a supplemental information request) to complete our technical review.
  5. We will decide to approve, close, or deny the application. If we close it, the applicant may reapply without prejudice.
  6. We will provide the applicant with a link to the letter with our decision, which is accessible through the Integrated Application Registry. We will also share our decision on our Publication of Decision page.

Related Information