Compliance and Enforcement Tools

We will issue an order to a company when we require the company to correct one or more noncompliances and take action by a deadline. We can issue various orders, including environmental protection orders, suspension orders, and enforcement orders. Orders are effective because they

• ensure that no company benefits from not complying;
• deter noncompliance by other regulated parties; and
• ensure that companies respond quickly to prevent or stop actual or potential impacts on the environment, public safety, or orderly development of resources.

See section 6.4 of Manual 013 for more information.

Administrative sanctions are more commonly imposed on companies with poor compliance history. Administrative sanctions vary; we can restrict certain activities, suspend an entire operation, or even cancel our approval. See section 6.5 of Manual 013 for more information.

Some noncompliances will result in us issuing a fee to the company. For instance, we will charge fees if a company

• files information late
• has data discrepancies in its submissions that need to be corrected.

The fees cover the administrative costs associated with these issues. Our fee schedule is listed in Part 17 of the Oil and Gas Conservation Rules. If the company continues to submit late or incorrect information, we will apply additional compliance and enforcement tools. See section 6.6 of Manual 013 for more information.

An administrative penalty is a monetary fine. We will impose a penalty if a company fails to comply with regulations, acts, or rules or the terms of their approval under the following circumstances:

• A warning does not adequately reflect the severity of the noncompliance and would not be an effective deterrent.
• An administrative sanction is not a sufficient response based on the evidence and circumstances.
• Mitigating or aggravating circumstances exist that should be considered.

See section 6.7 of Manual 013 for more information.

Under section 106 of the Oil and Gas Conservation Act, section 51 of the Pipeline Act, or section 25 of the Geothermal Resource Development Act, we might issue a declaration naming persons in control of a company that failed to comply with an AER order or that has an outstanding debt to the AER or the orphan fund. A declaration can prevent a person or company that continues to breach requirements from owning or operating an energy company in Alberta. See section 6.9 of Manual 013 for more information.