Explaining AER Setbacks - EnerFAQ

A setback is a minimum distance that must be maintained between an energy facility (e.g., well, pipeline, gas plant, or geothermal facility) and a dwelling, rural housing development, urban centre, or public facility. Setbacks vary according to the type of development and whether the well, facility, or pipeline contains sour gas.

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The Alberta Energy Regulator (AER) examines each situation to decide if something is considered a public facility. When establishing setback distances, the AER does not automatically consider every facility used by the public as a public facility. A facility must be frequently used by many people to be considered a public facility. We also consider the evacuation options that apply to that particular facility. For example, a large year-round campground with many individual campsites may be designated a public facility under the AER’s definition, whereas a small, seldom-used campground may not.

Unrestricted country development refers to any collection of permanent dwellings outside an urban centre that number more than eight per quarter section.

Setbacks prevent populated areas from developing too close to energy facilities and energy facilities from getting too close to people. Setbacks provide a buffer zone between the public and the facility if there is a problem. Setbacks may also be used to separate an energy facility and a landscape feature, such as a lake or river.

To better understand the principle behind a setback, let’s compare it to a 30-kilometre-per-hour speed limit near a school playground. Although the speed limit is not a “guarantee” of safety, statistically, it is much safer to have a speed limit than not to have one. The average driver can stop quickly at this speed if faced with an emergency, such as a child suddenly running into the street. The child’s safety isn’t guaranteed, but the odds are strongly in the child’s favour with the low speed limit in place. In a sense, setback distances function as the energy industry’s “speed limits.”

Setback distances have existed in various forms for energy resource developments since early production days (pipeline rights-of-way are a good example).

In 1976, new sour gas setback distances were established and immediately used by the energy industry. In 1979, provincial planning authorities formally adopted the same setback distances. The energy industry and all Alberta municipalities use these same setback guidelines when proposing and approving developments of any kind.

The AER categorizes sour gas facilities into four hazard levels based on well release rates, pipeline release volumes, and hydrogen sulphide (H₂S) content. There are predetermined setback distances for each level of sour gas facility. Once the appropriate level has been established for a facility, AER staff then examine the types of developments nearby and how people typically use the general area. For example, AER staff would check to see if there are houses, schools, or hospitals nearby. If necessary, a setback distance may increase due to these developments.

The concentration of H₂S and how fast it is coming out of the ground are the variables that determine the release rate.

Release volumes are specific to pipelines. A fixed amount (volume) of gas can be released from a pipeline once the valves are closed—this is called the release volume. Pipelines are built with emergency shutdown valves installed at preset points along the pipeline. When the valves detect pressure drops in the pipeline, they close automatically, stopping the gas flow through the pipeline and trapping the gas between the two valves closest to the rupture. That’s all the gas that can escape, and the amount of escaping gas can be quickly calculated.

The higher the concentration of H₂S in the gas and the rate at which the gas is released will affect the risk. The H₂S content of the gas and the release rate are critical factors in determining setback distances.

Setback distances can reflect site-specific considerations. Setback distances are greater for towns and major campgrounds to enable evacuation if necessary. It is easier to evacuate a single-family residence than a large number of people or an entire community.

AER setback distances are designed to reduce the risk to people from sour gas facilities to the lowest level possible.

The energy industry is required to maintain safe operations at its facilities. With pipelines, for example, the industry has developed many important safety practices, such as specially designed block valves and various kinds of pipeline monitoring systems. In the case of drilling wells, industry must comply with strict blowout prevention measures.

These situations are rare. Industry and municipal planning authorities have followed the same setback guidelines since 1979. If you believe this applies to you, contact the facility operator or the nearest AER field centre.

Municipal authorities oversee land development and do not permit development where people will be living within the setback. However, lands affected by the setback for a pipeline, for instance, could be landscaped and used as green space. Municipal authorities have setback restrictions for developments other than sour gas, such as road allowance restrictions. This question and others like it should be directed to your local municipal authority. AER advice is available to these authorities about specific projects.

Setback  distances may change when either the rate or volume of the energy facility changes or when the type of development in the setback area changes. Release rates and release volumes may change over time due to dropping production from a well or the H₂S content changing.

An example of altering land use is a landowner converting a large year-round campground designated as a public facility back to farmland and then building a family home. Whereas the campground required a large setback by the planning authority because of the potential number of people in the camp, a single farm residence would usually require a smaller setback because it would be easier to notify and evacuate one family.

Setbacks may restrict a community’s development to a greater extent than an individual dwelling. For example, if your town wanted to expand through annexation, a 500-metre setback distance from any level 2 sour gas facility would be recommended, rather than the 100-metre setback distance for an individual residence.

A setback is the amount of land serving as a buffer zone between people and energy facilities. An emergency planning zone (EPZ) is the distance outward from a facility where people and the environment could be affected by a potential worst-case incident for which the operator must prepare emergency response plans.

The AER requires that companies follow section 5.4, “Category Type and Minimum Consultation and Notification Requirements,” of Directive 056: Energy Development Applications and Schedules when dealing with landowners and occupants. The company must provide affected landowners and occupants with factual information regarding the facility and explain the potential land-use restrictions that may occur because of the development.

For some types of applications, the applicant must indicate in its application whether any landowners contacted have concerns about the application. The AER may direct the applicant to contact these landowners again to explore ways to resolve any concerns. Also, anyone who believes they may be directly and adversely affected by an energy resource application can file a statement of concern. See EnerFAQs Expressing Your Concerns – How to File a Statement of Concern About an Energy Resource Project.

Decisions regarding compensation for placing energy facilities on your land do not fall under the AER’s jurisdiction and are the responsibility of the Land and Property Rights Tribunal when the Surface Rights Act applies. The Surface Rights Act does not apply to geothermal resource development. The Land and Property Rights Tribunal may be reached at 780-427-2444.

For more information on the AER and its processes or if you wish to speak to your local field centre or have questions about energy resource development in Alberta, contact the AER’s Customer Contact Centre: Monday to Friday (8:00 a.m. to 4:30 p.m.) at 1-855-297-8311 (toll free).

This document is part of the EnerFAQs series, which explains the AER’s regulations and processes relating to specific energy issues.

Each year the AER collects, compiles, and publishes a large amount of technical data and information about Alberta’s energy development and resources for use by industry and the public. This includes raw data, statistics, hearing materials, and information on regulations, policies, and decisions.

Publications may be downloaded free of charge from the AER website or made available through the Products and Services Catalogue by contacting Data & Information Services (email: InformationRequest@aer.ca).