ontario regulation 12/26

made under the

Geologic Carbon Storage Act, 2025

Made: January 27, 2026
Filed: January 28, 2026
Published on e-Laws: January 28, 2026
Published in The Ontario Gazette: February 14, 2026

General Matters Under the Authority of the Minister

CONTENTS

 

Interpretation

Interpretation

1. (1) In this Regulation,

“approved plan” means any plan with which the permit holder is required to comply under the terms and conditions of their permit; (“plan approuvé”)

“carbon storage protection area” means, with respect to a carbon storage site, the area identified as such on a map attached to the permit issued with respect to the carbon storage site; (“zone de protection du stockage de carbone”)

“CSA TS-226” means the most recent version of CSA TS-226 published by the CSA Group and entitled “Geological storage of carbon dioxide — Measurement, monitoring, and verification plans”; (“norme CSA TS-226”)

“CSA Z741” means the most recent version of CSA Z741 published by the CSA Group and entitled “Geological storage of carbon dioxide”; (“norme CSA Z741”)

“licence” means a research and evaluation licence or a storage licence; (“licence”)

“Ministry” means the Ministry of the Minister; (“ministère”)

“permit” means a research and evaluation permit or a storage permit; (“permis”)

“project” means a project involving the performance of research and evaluation activities or carbon storage activities, or both, for the purposes of a carbon storage site; (“travaux”)

“protected groundwater” means groundwater that,

(a)  may discharge to surface water bodies, or

(b)  is used or could reasonably be used for water supply purposes, including for drinking water or for an agricultural, commercial or industrial purpose; (“eaux souterraines protégées”)

“Provincial Standards” means the most recent version of the standards published by the Ministry entitled “Oil, Gas and Salt Resources of Ontario, Provincial Operating Standards” and available on a website of the Government of Ontario; (“normes provinciales”)

“unacceptable risk” means an unacceptable risk to public safety, the environment, or other land and resource uses. (“risque inacceptable”)

(2) Any reference in this Regulation to the construction or drilling of a well also includes reference to the deepening and sidetracking of a well.

(3) For the purposes of this Regulation, CSA Z741 shall be read as if the term “protected groundwater” were defined in the standard in the same way as the term is defined in subsection (1).

Exemptions to Prohibition on Performing Activities without a Permit

Exempt activities, s. 4 (3) (b) of the Act

2. Research and evaluation activities described in paragraph 3 of subsection 3 (1) of the Act that do not involve the construction or use of a well or the performance of any activities on or in a well are prescribed for the purposes of clause 4 (3) (b) of the Act.

Exempt circumstances, s. 4 (3) (c) of the Act

3. The following circumstance is prescribed for the purposes of clause 4 (3) (c) of the Act:

1.  Research and evaluation activities or carbon storage activities being performed in compliance with any of the following orders where the order specifies that the research and evaluation activities or carbon storage activities may be performed without a permit:

i.  An order of the Minister under section 24 of the Act.

ii.  An order of the Tribunal under subsection 33 (1) of the Act in respect of a proposal referred to in clause 30 (1) (g) of the Act.

iii.  An order of an inspector under section 42, 43 or 44 of the Act.

iv.  An order of a court under subsection 56 (6) of the Act.

Licence Applications

Applications for licences

4. (1) A person may only apply to the Minister for a licence if the person has received a written invitation to do so from the Minister detailing the type of application for a licence that the Minister is willing to entertain and the deadline for applying for a licence.

(2) When applying for a licence, a person who has received an invitation from the Minister under subsection (1) shall ensure that the application is consistent with the terms of the invitation and shall comply with any conditions set out in the invitation.

(3) An application under section 11 of the Act for a licence shall be accompanied by any applicable application fee and include, along with any other information required by the regulations, the following:

1.  The legal name of and contact information for the applicant and, if applicable, the name of and contact information for the applicant’s representative.

2.  A description of the purpose, scope and components of any carbon storage site for which the licence is sought and the research and evaluation activities or carbon storage activities to be performed within the proposed area to be covered by the licence.

3.  Details of the method used and technical basis on which the proposed area to be covered by the licence was established.

4.  A general description of the proposed area to be covered by the licence along with property descriptions of all lands included in the proposed area, including the name of the owner and type of ownership, and any existing rights or leases granted with respect to the lands.

5.  An assessment of the compatibility of the activities proposed to be carried out in association with the proposed project with existing or planned land and resource uses, significant natural and human-made features and populated areas in or in proximity to the proposed carbon storage site.

6.  An indication of any other federal, provincial or municipal approvals that are anticipated to be required for the proposed project.

7.  A description of any engagement or consultation that has been undertaken with local communities, Indigenous communities or Indigenous organizations.

8.  A site screening and site selection assessment that addresses the criteria required to be considered as well as the criteria recommended to be considered as part of those processes under CSA Z741.

Requirements for Issuance of Permit

Municipal endorsement

5. For the purposes of clause 12 (1) (c) of the Act,

(a)  the municipal endorsement of a local municipality is required if any wells or ancillary works forming part of the carbon storage site in relation to which the permit is sought would be located within the municipality; and

(b)  the municipal endorsement shall be in the form of a resolution of the council of the municipality.

Issuance of permits, additional requirements

6. It is an additional requirement for the purposes of clause 12 (3) (f) of the Act that the application demonstrate that,

(a)  suitable integrity testing and preventative maintenance plans, programs or procedures for any wells, storage repositories and ancillary works will be established and followed throughout the lifecycle of the project;

(b)  remedial actions or measures will be taken to address any existing wells and other drilled or dug conduits that may impact or be impacted by the project, whether those wells or conduits are known before the commencement of the project or are subsequently identified; and

(c)  the project and associated activities will be carried out in a manner that prevents the migration of fluids between permeable zones.

Permit Applications and Application Process

Definitions

7. In sections 8 to 26,

“area of review” means,

(a)  in relation to an application for a permit, the geographical area or areas that the applicant for the permit has designated for assessment in accordance with section 8 for the purposes of the application, or

(b)  in relation to an application for an amendment to a permit, the geographical area or areas that an applicant for the amendment has designated for assessment for the purposes of the application; (“zone à évaluer”)

“personal information” has the same meaning as in the Freedom of Information and Protection of Privacy Act; (“renseignements personnels”)

“submission” means,

(a)  in relation to an application for a permit, a document required to be included in the application under section 10 or 11, or

(b)  in relation to an application for an amendment to a permit, a document submitted as part of an application for an amendment that relates to the same subject-matter as a document referred to in clause (a). (“observations”)

Area of review

8. (1) An applicant shall identify in an application for a permit the geographical area or areas that have been designated and assessed for the purposes of the application.

(2) In determining the area or areas to be designated for assessment, the applicant shall consider the potential for adverse effects, whether physical or chemical, on life and human health, the environment and the competitive development of other resources or infrastructure that may result from the surface and subsurface activities to be performed in association with the project for which the permit is sought.

(3) At a minimum, the geographical area or areas to be designated for assessment must include,

(a)  the area on or in which the carbon storage site is proposed to be situated;

(b)  if the permit being sought would authorize the storage of carbon dioxide or other substances in a storage repository, the area proposed by the applicant as the carbon storage protection area; and

(c)  if the permit being sought would authorize the injection of carbon dioxide or other substances into a storage repository,

(i)  the area representing the projected extent of the plume of carbon dioxide or other substances to be injected, and

(ii)  the area representing the projected extent of the elevated pressure zone.

Application for permit, general information

9. An application for a permit shall be accompanied by any applicable fee and include, along with any other information required by the regulations, the following:

1.  The legal name of and contact information for the applicant and, if applicable, the name of and contact information for the applicant’s representative.

2.  If the applicant is a corporation,

i.  a copy of the corporation’s corporation profile report filed under the Corporations Information Act, or

ii.  in the case of a corporation to which the Corporations Information Act does not apply, proof of incorporation from the jurisdiction in which the applicant is incorporated that is satisfactory to the Minister.

3.  If the applicant is a corporation, a list of the applicant’s current directors and officers, if the information is not included or only partially included in the report or other documents provided under paragraph 2.

4.  A description of the proposed project, which must contain the following information:

i.  An overview of the project’s scope and purpose and the activities to be performed as part of the project.

ii.  A description of the proposed carbon storage site, which must include the following:

A.  The proposed carbon storage site’s geographical location.

B.  An indication of the wells, storage repositories and ancillary works forming part of the carbon storage site, as well as their proposed locations and associated legal descriptions of the properties on which they would be located.

5.  A proposed timeline for the project showing all phases of the project throughout the lifecycle of the project.

6.  If carbon dioxide is to be stored as part of the project, a description of the anticipated sources of the carbon dioxide.

7.  One or more maps or aerial photos showing the following:

i.  The general location of the carbon storage site.

ii.  The geographical boundaries of the proposed carbon storage site as projected on the surface.

iii.  The location of all existing and proposed wells, storage repositories and ancillary works forming part of the carbon storage site and their proximity to adjacent property boundaries.

iv.  The type of ownership applicable to the lands proposed to be used for the proposed carbon storage site and how those lands are currently being used.

v.  The area of review.

vi.  The proposed carbon storage protection area, if the permit sought would authorize the storage of carbon dioxide or other substances in a storage repository.

8.  A description of any other federal, provincial or municipal approvals that will be required for the project.

9.  A description of any engagement or consultation that has been undertaken with local communities, Indigenous communities or Indigenous organizations.

10.  The identification of all surface and subsurface rights or interests, including rights to pore space, that must be obtained in order for the proposed activities associated with the project to be performed.

11.  The identification of all persons from whom rights or interests identified in paragraph 10 have been obtained or would need to be obtained, and the status of each agreement or lease with each rights or interests holder to obtain such rights or interests.

12.  A list of all submissions and any other documents or information that form part of the application that identifies the subject matter of each submission or document and its version date.

Application for permit, technical information

10. (1) An application for a permit shall also include the following:

1.  A report prepared by an independent party with expertise in insurance matters relating to environmental and other risks associated with subsurface geological exploration, development and storage operations in Ontario that,

i.  recommends the type and amount of insurance coverage necessary for the proposed project, including liability and pollution coverage, and

ii.  identifies the information about the proposed project that was used to develop the recommendations referred to in subparagraph i.

2.  A determination of the geological stratum or strata within the area of review that contain protected groundwater.

3.  A rationale for the method and technical basis used to identify the geological stratum or strata referred to in paragraph 2.

4.  One or more impact assessments examining the potential impacts of the proposed project within the area of review, including the potential impacts referred to in clause 12 (3) (d) of the Act.

5.  An assessment of seismic hazards, including the potential for induced seismicity, in the case of an application for a permit that would authorize the performance of research and evaluation activities referred to in sub-subparagraph 1 iii B of subsection 3 (1) of the Act or carbon storage activities referred to in subparagraph 1 i of subsection 3 (2) of the Act.

6.  Information and assessments demonstrating that the following requirements and recommendations set out in CSA Z741 have been met:

i.  The requirements and recommendations for site screening and site selection, in the case of an application for a research and evaluation permit or a storage permit that would not authorize the performance of the carbon storage activities referred to in subparagraph 1 i of subsection 3 (2) of the Act.

ii.  The requirements and recommendations for site characterization, in the case of an application for a storage permit that would authorize the performance of the carbon storage activities referred to in subparagraph 1 i of subsection 3 (2) of the Act.

7.  A risk assessment demonstrating that the requirements and recommendations for risk assessment set out in CSA Z741 have been met.

8.  Any additional supporting information required to demonstrate that the activities associated with the carbon storage site will be carried out in accordance with the operational standards set out in section 38.

9.  A rationale for the method and technical basis used to establish the boundary of the area of review and, if applicable, the boundary of the proposed carbon storage protection area.

(2) Any risk assessment submitted as part of an application for a storage permit must be reviewed by an expert. However, this review may occur either before or after the application is submitted to the Ministry under section 14.

Application for permit, plans

11. (1) An application for a permit shall also include plans that address how the activities associated with the carbon storage site will be carried out throughout the lifecycle of the project.

(2) The plans referred to in subsection (1) must include,

(a)  plans for the design, construction, operation, maintenance, decommissioning, remediation, restoration and closure of the carbon storage site, which must include the plans and documents referred to in subsection (5);

(b)  plans for managing risk;

(c)  plans for monitoring, measuring and verifying project performance and risks; and

(d)  plans for managing and responding to emergencies.

(3) An application for a permit shall also include any additional supporting information in respect of the plans referred to in subsection (2) that is required to demonstrate that,

(a)  the requirements and recommendations set out in CSA Z741 for risk management have been and will continue to be complied with; and

(b)  subject to any departures under subsection 38 (4),

(i)  the requirements and recommendations set out in CSA Z741 for well infrastructure and closure will be complied with, and

(ii)  monitoring, measurement and verification will be carried out in accordance with the requirements and recommendations set out in CSA Z741and CSA TS-226.

(4) If a departure under subsection 38 (4) is proposed in a plan that is submitted as a part of an application for a permit, the report referenced in paragraph 2 of subsection 38 (4) must be submitted with the proposed plan.

(5) The plans and documents mentioned in clause (2) (a) are,

(a)  plans for the location of all wells that indicate,

(i)  the surface and bottomhole location of each well,

(ii)  the ground elevation of the surface location of each well above mean sea level,

(iii)  all dwellings and agricultural, commercial or industrial buildings, schools, churches, places of public assembly, high voltage power lines, road allowances, transmission pipelines or other occupied utility rights of way as well as rivers, streams and shorelines that are located within 100 metres of the surface location of each well and the proximity of each of them to the well, and

(iv)  for each horizontal or deviated well,

(A)  the proposed well bore trace, bottomhole location and location at which the well bore enters the target formation, and

(B)  a cross-sectional plan showing the target geological formation as anticipated by the geological prognosis, the direction of the deviated or horizontal well bore and the kick-off point of the well bore;

(b)  a schedule outlining the anticipated timeline for completing the project;

(c)  a schedule outlining the anticipated timeline for and the estimated costs, including an itemized list of each of those costs, of,

(i)  decommissioning all wells, storage repositories and ancillary works that form part of the carbon storage site,

(ii)  carrying out all necessary site remediation and restoration activities, and

(iii)  any maintenance, monitoring, measurement or verification activities required both during the performance of the activities referred to in subclauses (i) and (ii) as well as after their completion and before the end of the applicable closure period under section 77; and

(d)  if the applicant proposes to establish the security required under this Regulation in phases, a plan setting out,

(i)  the proposed phases for which security would be established, which must be aligned with the proposed plans for construction,

(ii)  clear milestones that identify the beginning and end of each phase,

(iii)  an indication of the wells, storage repositories and ancillary works that would form part of the carbon storage site during each phase and the costs referred to in clause (c) associated with each of them during each phase, and

(iv)  the security amount for each phase, which must equal the total of the costs referred to in clause (c) associated with the wells, storage repositories and ancillary works that would form part of the carbon storage site during the phase or has formed part of the carbon storage site during a previous phase.

(6) The measurements used to prepare the well location plans referred to in clause (5) (a) must,

(a)  be presented in the International System of Units;

(b)  use Universal Transverse Mercator coordinates based on the North American Datum 83, measured and reported to the nearest tenth of a metre;

(c)  be accurate to the nearest tenth of a metre for linear measurements;

(d)  be accurate to the nearest degree or minute for angular measurements where applicable, such as when describing wellbore trajectory; and

(e)  be surveyed from a vertical benchmark referenced to Geodetic Surveys of Canada based on North American Datum 83 for ground elevation measurements and be accurate to the nearest tenth of a metre.

(7) For the purposes of clause (5) (d), the costs associated with any wells or ancillary works that would form part of the carbon storage site and that already exist when the application is submitted must be included as part of the first proposed phase under that clause, even if the well or ancillary work would only form part of the carbon storage site during a subsequent phase.

(8) Any plans for managing risk and any plans for monitoring, measuring and verifying project performance and risks submitted as part of an application for a storage permit must be reviewed by an expert. However, this review may occur either before or after the application is submitted to the Ministry under section 14.

(9) Plans for site remediation and restoration that aim to return the site to its natural or original condition must include a detailed description of the site’s existing baseline condition before the performance of any research and evaluation activities or carbon storage activities.

(10) Plans that propose the use of materials for which the CSA Z741 does not reference an applicable standard or specification for the intended use, must be accompanied by an engineering assessment that,

(a)  includes an evaluation of technical data or any applicable material standard or specification not referenced in CSA Z741 for that intended use; and

(b)  demonstrates that the materials are safe for the conditions to which they will be subjected.

Requirements for application documents

12. (1) Any submission included as part of an application shall,

(a)  refer to any standards, specifications or industry recommended practices or other best practices that have been used in developing the content of the submission or will be used in carrying out the activities described in the submission;

(b)  identify the persons who prepared it and their qualifications and relevant experience, be signed by those persons and, if applicable, bear their seal or stamp;

(c)  include the date it was completed;

(d)  identify any proposed departures under subsection 38 (4) that relate to the subject matter of the submission; and

(e)  subject to any proposed departures identified under clause (d), be consistent with the requirements and recommendations of CSA Z741 and the requirements of sections 41, 42, 44 to 50, 52 and 53 of this Regulation.

(2) The application for a permit shall identify any information in a submission or document that the applicant is proposing to withhold or redact under section 19 and the reasons for which the information may be withheld or redacted under that section.

(3) The application for a permit shall also include a summary of the recommendations made in any submission under section 10 that identifies all of the recommendations and indicates, for each recommendation, either,

(a)  the plan under section 11 into which the recommendation was incorporated, any modifications made to the recommendation and, if applicable, the rationale for the modifications; or

(b)  the fact that the recommendation was not incorporated into a plan under section 11 and the rationale for not doing so.

Expert review

13. (1) If a submission to be included in an application for a permit is required under this Regulation to be reviewed by an expert, the applicant shall ensure that the submission is reviewed by one or more experts selected by the applicant in accordance with this section.

(2) If the submission was prepared by an expert, the applicant shall select a different expert to review the submission unless the submission is required to be reviewed by an expert as a result of changes made to the submission on the basis of comments received during the notice and consultation process.

(3) An expert or the experts selected by the applicant shall conduct a review of the submission, prepare an expert report upon completion of the review and submit the report to the Ministry and a copy of the report to the applicant.

(4) The costs of having one or more experts review a submission and prepare an expert report shall be borne by the applicant.

Ministry review of application

14. (1) Upon submission to the Ministry of an application for a permit that complies with the requirements of sections 8 to 12, Ministry personnel shall review the application and may do either or both of the following:

1.  Require that submissions, or portions of submissions, included in the application be reviewed by an expert in order to assist the Ministry in evaluating whether any of the activities proposed to be carried out under the authority of the permit would pose an unacceptable risk.

2.  Identify Indigenous communities or organizations or ministries or agencies of the provincial or federal government or of neighbouring provinces or states that must be notified of the application in accordance with section 15.

(2) An applicant shall not begin giving notice of the application under section 15 until all of the following has occurred:

1.  All required expert reports have been submitted to the Ministry.

2.  The applicant has,

i.  submitted to the Ministry, in respect of each expert report,

A.  in the case that no changes will be made as a result of the expert report or the expert report did not make recommendations, a notice indicating such, and if the expert report made recommendations, an explanation as to why the recommendations will not be followed, or

B.  in the case that changes will be made as a result of the expert report, a revised version of the submission, and if not all the recommendations will be followed, an explanation as to why such recommendations will not be followed, and

ii.  identified any information in any document that the applicant is proposing to withhold or redact under section 19 and the reasons for which the information may be withheld or redacted under that section or indicated that no information is proposed to be withheld or redacted.

3.  If applicable, the Ministry has communicated to the applicant, in writing, the Minister’s decision as to whether to approve the withholding or redaction of information.

4.  If applicable, the applicant has submitted versions of documents forming part of the application to the Ministry with information withheld or redacted as approved by the Minister.

5.  The Ministry has given written notice to the applicant that the applicant may begin giving notice in accordance with section 15.

Requirements to give notice and conduct consultation activities

15. (1) For the purposes of clause 12 (1) (b) of the Act, an applicant for a permit is required to,

(a)  invite comments on the application by giving a notice that meets the requirements of section 16 to the persons and entities referred to in section 17 either by,

(i)  mail, email, in-person delivery or some combination of those means of delivery, or

(ii)  giving the notice in accordance with an alternative process approved by the Minister under subsection (3); and

(b)  take the steps to consider the comments as outlined in section 20.

(2) An applicant for a permit may request the Minister’s approval of an alternative process for notifying the persons and entities referred to in section 17 by submitting to the Minister a proposed notification plan outlining the approach for notifying those persons and entities and a rationale as to why the alternative process is appropriate in the circumstances.

(3) The Minister may approve the alternative process for giving notice, with or without modifications, if, in the opinion of the Minister based on the information provided during the application process, the alternative process will result in those persons and entities referred to in section 17 who are expected to potentially be impacted by the application receiving notice of it.

(4) The applicant shall take reasonable steps to ensure that any personal information that is collected or received by the applicant while carrying out the activities referred to in subsection (1), including any personal information contained in the comments received by the applicant, are stored, retained, transferred and disposed of in a secure manner so as to protect the personal information against theft, loss or unauthorized use or disclosure.

Content of notice

16. (1) The notice referred to in clause 15 (1) (a) shall advise the intended recipient of the application that has been received by the Ministry and of the applicant’s intention to perform research and evaluation activities or carbon storage activities and shall include,

(a)  the name, including the legal name, of the applicant;

(b)  contact information for the applicant or, if applicable, the name of and contact information for the applicant’s representative, including a mailing and an e-mail address;

(c)  a copy of the information and documents referred to in paragraphs 4 to 12 of section 9 with any personal information contained in the information and documents redacted;

(d)  identification of any expert reports that have been submitted as part of the application as well as of any additional information provided during the application process by the applicant to the Ministry, including as required under clause 16 (1) (b) or subsection 16 (3) of the Act;

(e)  a statement advising the recipient of the notice of the opportunity to submit comments to the applicant by the deadline specified in the notice;

(f)  a statement advising the recipient of the notice of the opportunity to request information about the application under section 18 or a statement indicating that information about the application may be found on a website and identifying that website; and

(g)  a notice of collection of personal information as provided by the Ministry.

(2) For the purposes of clause (1) (e),

(a)  if notice is given by mail, e-mail or in-person delivery, or some combination of those means of delivery, the deadline specified in the notice must be no earlier than,

(i)  in the case of an application for a research and evaluation permit, 60 days after the date on which the notice is given, or

(ii)  in the case of an application for a storage permit, 90 days after the date on which the notice is given; or

(b)  if notice is given in accordance with an approved alternative process, the deadline specified in the notice must be no earlier than the date calculated in accordance with the approved alternative process, which must provide for at least 60 days’ notice in the case of a research and evaluation permit or 90 days’ notice in the case of a storage permit.

Persons and entities to be notified

17. (1) The persons and entities mentioned in clause 15 (1) (a) are the following:

1.  Any Indigenous community or organization that has been identified by Ministry personnel under section 14.

2.  Any ministries or agencies of the provincial or federal government or of neighbouring provinces or states that have been identified by Ministry personnel under section 14.

3.  Any person who owns land that is proposed to be used for the proposed carbon storage site.

4.  Any person from whom the applicant has obtained the rights to use land or to pore space that are necessary to perform the activities associated with the project.

5.  Any local or upper-tier municipality a part of which is located within the area of review.

6.  Any source protection authority for a source protection area a part of which is located within the area of review. For the purposes of this paragraph, “source protection authority” and “source protection area” have the same meanings as in the Clean Water Act, 2006.

7.  Any person authorized to carry out activities on or in a well under section 10 of the Oil, Gas and Salt Resources Act, if the well is located within the area of review.

8.  Any person who owns land on which a well as defined in subsection 1 (1) of the Act, a well as defined in subsection 1 (1) of the Oil, Gas and Salt Resources Act, a well as defined in subsection 1 (1) of the Ontario Water Resources Act or a geothermal well is situated if,

i.  the well is located within the area of review, and

ii.  the well has been identified in the application or public records exist identifying the well.

9.  Any person who is authorized under section 38 of the Ontario Energy Board Act, 1998 to perform activities in relation to a gas storage area designated under section 36.1 of that Act if the boundary of that area is within the area of review or within 1.6 kilometres of any well proposed to be used for the injection of carbon dioxide or any other substance as part of the performance of research and evaluation activities or carbon storage activities.

10.  The owner of a subsurface geologic storage operation, a mining operation or any other similar operation that has been identified by the applicant in an impact assessment submitted as part of the application.

11.  The owner of a railway, high voltage transmission power line or transmission or distribution pipeline that is situated in the area of review.

12.  Any person who has a utility right of way over land within the area of review.

13.  Any person responsible for the management and operation of a nuclear generation facility in Ontario, or, in the case of a planned nuclear generation facility, the person responsible for the planning and development of the facility.

14.  Any other party the applicant has identified in the submissions included with the application as potentially being impacted by the proposed project.

(2) For the purposes of paragraphs 10 and 11, the applicant may opt to notify the person responsible for the day to day management of the operation in question or the day to day operation of the infrastructure in question instead of the owner.

Obligation to provide documents and information

18. (1) Upon the request of any person, an applicant for a permit who has begun giving notice of the application shall, as soon as possible in the circumstances after having received the request, provide the person with an electronic copy of any or all of the following:

1.  The submissions, documents and information that were included with the application submitted to the Ministry.

2.  Additional information provided during the application process by the applicant to the Ministry, including as required under clause 16 (1) (b) or subsection 16 (3) of the Act.

3.  The expert reports submitted to the Ministry including, if applicable, an explanation as to why any recommendations made in an expert report will not be followed.

(2) For greater certainty, the submissions, documents and information referred to in paragraph 1 of subsection (1) include the information required to be included in the application under subsection 7 (6) of Ontario Regulation 311/25 (General Matters under the Authority of the Lieutenant Governor in Council) made under the Act.

(3) Despite subsection (1), if the applicant has made the documents and information referred to in that subsection publicly available on a website, the applicant is deemed to have provided the person with an electronic copy of those documents and information if the applicant provides the person who made the request with the address of the website.

(4) If the applicant responds to a request under subsection (1) by providing the person who made the request with the address of the website referred to in subsection (3) or if the address of the website was identified in the notice under section 16, the applicant shall ensure that the website remains accessible to the public until the Minister has made a decision on the application and communicated that decision to the applicant in writing.

(5) The applicant shall ensure that any personal information has been redacted from the documents and information referred to in subsection (1) before providing them under that subsection or making them publicly available on a website.

Redaction of sensitive information

19. (1) An applicant for a permit is permitted to withhold or redact information when providing notice under section 15, when responding to requests under subsection 18 (1) or when making information publicly available on a website if,

(a)  the information is related to a trade secret or is scientific, technical, commercial or financial information and the information is supplied in confidence to the Ministry;

(b)  the disclosure of the information could reasonably be expected to,

(i)  prejudice significantly the competitive position of the applicant or interfere significantly with contractual negotiations of the applicant, or

(ii)  result in undue loss or gain to the applicant or to another person; and

(c)  the applicant has obtained the approval of the Minister to withhold or redact the information before beginning to give notice in accordance with section 15.

(2) If an applicant withholds or redacts information as permitted under subsection (1), the applicant shall, when responding to a request under subsection 18 (1) or when making information publicly available on a website under subsection 18 (3), identify which information has been withheld or redacted and the reasons for which it was withheld or redacted.

(3) Subject to subsection (4), the Minister shall approve the withholding or redacting of information if the Minister is satisfied that the information meets the conditions set out in clauses (1) (a) and (b).

(4) The Minister may refuse to approve the withholding or redacting of information if the Minister is satisfied that,

(a)  there is a compelling public interest in the disclosure of the information that clearly outweighs the withholding or redaction of the information; or

(b)  the information is only to be shared with institutions within the meaning of the Freedom of Information and Protection of Privacy Act.

Review of comments by applicant

20. (1) Once the deadline specified in the notice given in accordance with section 15 has expired, the applicant shall,

(a)  review comments received in writing from any person on or before that deadline;

(b)  make such changes to the application as the applicant considers appropriate;

(c)  prepare a summary document that meets the requirements of subsection (2); and

(d)  submit the summary document and, if the applicant decides to amend the application, an amended application to the Ministry.

(2) The summary document referred to in clause (1) (c) must contain,

(a)  a list of all persons or entities that were given notice of the application for a permit;

(b)  a list of all persons or entities that submitted written comments received by the applicant on or before the deadline specified in the notice, which must identify those persons or entities that were the intended recipients of the notice and those that were not;

(c)  a summary of the comments received, which must be organized in such a way that the comments received from each Indigenous community or organization are clearly identifiable;

(d)  an indication of the comments that resulted in changes being made to the application and details of the changes that were made;

(e)  an indication of the comments that did not result in any changes being made to the application because, in the opinion of the applicant, the issues raised by the comments were already addressed in the application; and

(f)  an indication of the comments that did not result in any changes being made to the application for a reason other than the reason specified in clause (e), along with the rationale for not making any changes in response to those comments.

(3) The Ministry shall give written notice to the applicant requiring the applicant to have a revised submission reviewed by an expert if,

(a)  the submission had been reviewed by an expert and the applicant made changes to the submission on the basis of comments received; and

(b)  the Minister is of the opinion that,

(i)  the changes could alter the expert’s original assessment of the submission, or

(ii)  the expert’s review is required to support the Minister in determining if the changes made could pose an unacceptable risk.

(4) Until the Minister makes a decision on the application, the applicant shall,

(a)  keep a copy of every written comment received on or before the deadline specified in the notice;

(b)  keep any comments received from Indigenous communities or organizations separate from those received from other persons or entities and organized in such a way that each Indigenous community’s comments and each Indigenous organization’s comments are clearly identifiable; and

(c)  provide Ministry personnel with any comments that they may request.

Complete application, confirmation of rights and interests

21. An application for a permit is not considered to be complete for the purposes of section 16 of the Act until the applicant has provided the Ministry with confirmation that the applicant has obtained all surface and subsurface rights or interests, including rights to pore space, necessary to perform the activities associated with the project for which the permit is sought.

Carbon storage protection area

22. (1) If the Minister issues a permit that authorizes the storage of carbon dioxide or other substances in a storage repository, the Minister shall attach to the permit a map that identifies a carbon storage protection area.

(2) The carbon storage protection area must consist of,

(a)  the area to be occupied by the carbon storage site in respect of which the permit has been issued, as projected on the surface; and

(b)  any additional areas adjacent to the carbon storage site that are necessary as a buffer zone to protect the storage repositories that form part of the carbon storage site from activities involving the use of a well that are subject to the Oil, Gas and Salt Resources Act.

(3) The Minister shall ensure that a copy of any map identifying a carbon storage protection area is made available to the public on a website of the Government of Ontario.

Amendments to Authorizations

Content of application to amend an authorization

23. (1) An application for an amendment to an authorization shall be submitted to the Ministry, shall be accompanied by any applicable application fee and shall include, along with any other information required by the regulations,

(a)  a description of the amendment being requested, including the identification and description of any proposed amendments to,

(i)  the terms and conditions of the authorization, including, in the case of a permit, a description of any proposed changes to the activities authorized by the permit,

(ii)  in the case of a licence, the area covered by the licence, or

(iii)  in the case of a permit, an approved plan or the current area authorized to be used as a carbon storage site;

(b)  identification of any other federal, provincial or municipal approvals required in relation to the amendment being requested;

(c)  if the amendment being requested is to change the area covered by a licence or the area used as a carbon storage site,

(i)  property description of all lands that are proposed to be added to or removed from the area, along with details of their ownership and any existing rights or leases granted with respect to those lands,

(ii)  confirmation from the applicant that all surface and subsurface rights or interests, including rights to pore space, needed to perform the activities that would be authorized by the amendment have been obtained by the applicant for any additional lands within that area,

(iii)  confirmation from the applicant that all persons from whom rights or interests have been obtained for the carbon storage site have been notified of the amendment application, and

(iv)  a map showing that area as it exists and the area as it would exist with the proposed changes;

(d)  if the amendment being requested involves changes to an aspect of the authorization that was informed by any prior submissions or documents,

(i)  an indication of each affected submission or document, and

(ii)  a revised version of, or an addendum to, each affected submission or document that addresses the changes;

(e)  if the amendment being requested involves changes to the timeline for completing the project, a revised schedule outlining the anticipated timeline for completing it;

(f)  if the amendment being requested involves changes to an approved plan, a revised version of each affected plan that clearly shows the proposed changes and, if the change involves a departure under subsection 38 (4), the report referenced in paragraph 2 of that subsection;

(g)  a revised cost estimate, including an itemized list of the costs of the activities referred to in clause 11 (5) (c), if the amendment being requested involves,

(i)  any changes to the wells, storage repositories or ancillary works forming part of the carbon storage site, including any additions or removals,

(ii)  changes to activities related to the decommissioning of wells, storage repositories and ancillary works or activities related to site remediation or restoration, or

(iii)  changes to the maintenance, monitoring, measurement or verification activities required during the performance of the activities referred to in subclause (ii) as well as after the decommissioning of wells, storage repositories and ancillary works is completed and until the end of the applicable closure period under section 77;

(h)  if the approved plans include a plan to establish security in phases referred to in clause 11 (5) (d) and if the amendment being requested involves any changes to construction plans or any changes referred to in clause (g), a revised version of the plan; and

(i)  if the amendment being requested would have had an impact on the geographical areas that were designated and assessed under subsection 8 (3) for the purposes of the application for the authorization,

(i)  a map identifying the revised area of review that was designated for the purposes of assessing the impacts of the amendment, which must include, at a minimum, the geographical area or areas required to be included under subsection 8 (3) in relation to the authorization as proposed to be amended,

(ii)  a rationale for the method and technical basis used to establish the boundary of the revised area of review, and

(iii)  if applicable, a map identifying any changes to the carbon storage protection area and a rationale for the method and technical basis used to establish the boundary of the proposed carbon storage protection area.

(2) Section 12 applies with necessary modifications to any submission included in an application for an amendment to a permit.

(3) Despite subsection (1), an application for an amendment to an authorization relating to changes to an approved plan respecting the drilling or plugging of a well may be submitted without certain information or documents required by this section if the Minister authorizes the omission of that information or those documents from the application.

(4) The Minister may only authorize the omission of information or documents from an application under subsection (3) if the Minister is satisfied that,

(a)  the application for the amendment results from unanticipated circumstances and there is an immediate need to consider the application;

(b)  if approved, the amendment would not result in an unacceptable risk; and

(c)  the permit holder has confirmed that the rights and interests required to implement the change to the drilling or plugging plan have already been obtained.

(5) If the Minister authorizes, under subsection (3), the omission of information or documents from an application and the application for the amendment is granted by the Minister, the permit holder who made the application shall, if required by the Minister and within the timeframes specified by the Minister, provide any of the omitted information or documents to the Ministry and notify any parties identified by the Minister that the amendment has been granted.

Notification of application to amend an authorization

24. (1) If the Minister is of the opinion that additional persons or entities beyond those referred to in subclause 23 (1) (c) (iii) should be notified of an application for an amendment to ensure that any consequences of the amendment can be fully evaluated to assess whether they may result in an unacceptable risk, Ministry personnel shall,

(a)  notify the applicant that the applicant is required to notify additional persons or entities of the application;

(b)  identify one or more persons or entities listed in subsection 17 (1) that must be notified and provided with an opportunity to comment on the amendment being requested and provide how those persons or entities are to be notified and the time period for comments to be submitted to the applicant; and

(c)  identify the information and documents included in the amendment application that must be shared with each of the persons or entities identified under clause (b), subject to any redactions under section 19, as it applies by application of subsection (2), and subject to any redactions of personal information.

(2) If additional consultation is required under subsection (1), sections 15 to 20 apply with necessary modifications, except that a description of the amendment application, including the information set out in clauses 23 (1) (a) to (c) and subclause 23 (1) (d) (i) and the maps referred to in subclauses 23 (1) (i) (i) and (iii), shall be included in the notice.

Expert review, application to amend a permit

25. (1) Upon submission to the Minister of an application for the amendment of a permit, Ministry personnel may require submissions, or portions of submissions, included in the application under clauses 23 (1) (d), (f), (g) and (i) to be reviewed by an expert in order to assist the Ministry in evaluating whether any consequences of the amendment would result in an unacceptable risk by giving written notice to the applicant that expert review is required.

(2) Subsections 13 (2) to (4) apply with necessary modifications where Ministry personnel identify, under subsection (1), submissions, or portions of submissions, requiring expert review.

Applications for Permits and Amendments to Permits, Information from MPAC

Landowner contact information from MPAC

26. (1) The Municipal Property Assessment Corporation shall disclose to an applicant for a permit or for an amendment to a permit the names and addresses of any person described in paragraphs 3 and 8 of subsection 17 (1) that the applicant requires in order to comply with the notification requirements under section 15 or 24 if the applicant has,

(a)  made a written request to the corporation for the information that includes,

(i)  an indication of the land described in paragraphs 3 and 8 of subsection 17 (1) for which the addresses’ and owners’ names are being requested,

(ii)  a copy of maps or aerial photos that are to be shared as part of the notification process showing the carbon storage site or area of review relevant to identifying the persons referred to in subclause (i), and

(iii)  a copy of the Ministry’s notice under paragraph 5 of subsection 14 (2), in the case of an application for a permit, or under subsection 24 (1), in the case of an application for an amendment to a permit;

(b)  agreed to any licensing terms imposed by the corporation with respect to the information; and

(c)  paid any fees required by the corporation for the information.

(2) The applicant shall only use the information disclosed under subsection (1) for the purposes of complying with the notification requirements under section 15 or 24.

(3) The applicant shall immediately dispose of any personal information disclosed under subsection (1) in the form in which the information was provided to the applicant by the corporation once the notification requirements under section 15 or 24 have been complied with.

Security

Definitions, sections 28 to 31

27. In sections 28 to 31,

“bank” means a bank named in Schedule I or II to the Bank Act (Canada); (“banque”)

“qualified insurer” means an insurer licensed under the Insurance Act to write surety and fidelity insurance. (“assureur qualifié”)

Requirement to establish security

28. (1) The Minister may, on the basis of any of the documents and information referred to in subsection (2), determine that the costs included in the estimate referred to in clause 11 (5) (c) included in an application for a permit are understated and determine an amount that, in the opinion of the Minister, accurately reflects the amount of the costs referred to in the estimate, in which case the Minister shall, before making a decision with respect to the issuance of the permit, notify the applicant of the determination and the amount.

(2) The documents and information mentioned in subsection (1) are the following:

1.  Any expert report regarding the applicant’s estimate prepared as part of the application process for the permit.

2.  Any records held by or information known to the Ministry relating to the cost of carrying out the activities described in clause 11 (5) (c).

(3) If the application includes a plan referred to in clause 11 (5) (d) to establish security in a phased manner and the Minister provides notice to the applicant under subsection (1), the Minister shall include in the notice the phase or phases for which the Minister has determined a revised amount.

(4) Before commencing any site preparations for wells or other ancillary works or any activity on or in wells, a permit holder shall,

(a)  establish security in the amount estimated by the permit holder in the application for the permit unless the Minister determined a higher amount under subsection (1), in which case, establish security in that higher amount; or

(b)  if the approved plans include a plan referred to in clause 11 (5) (d) to establish security in a phased manner, establish security in the amount required under the permit for the first phase.

(5) A permit holder that establishes security in phases shall not commence any activities in respect of a subsequent phase of the project unless the permit holder has established security in the amount required under the permit for that phase.

(6) Despite subsections (4) and (5), security in respect of any wells or ancillary works that will form part of a carbon storage site and that exist on the day on which the permit is to be issued must be established on or before that day.

(7) A permit holder shall only establish security in the form of,

(a)  a trust fund administered in accordance with the Trustee Act;

(b)  an irrevocable letter of credit from a bank; or

(c)  a bond of a qualified insurer.

(8) The form and terms of any security shall be approved by the Minister.

(9) For the purposes of paragraph 2 of subsection 48 (10) of the Act and of subsection (10), the Minister may apply security established by a permit holder to costs by,

(a)  if security is in the form of a trust fund, directing the trustee of the trust fund to make payments out of the trust fund;

(b)  if security is in the form of an irrevocable letter of credit from a bank, drawing on the letter of credit; or

(c)  if security is in the form of a bond of a qualified insurer, make a demand for payment under the bond to the qualified insurer.

(10) In addition to the authority to apply security established by a permit holder to costs under paragraph 2 of subsection 48 (10) of the Act, the Minister may apply security established by a permit holder to any costs incurred in performing any activity described in clause 11 (5) (c) in order to remedy a situation in which,

(a)  one or more wells or ancillary works forming part of the carbon storage site for which the permit holder’s permit was issued represent a hazard to the public or the environment; or

(b)  the permit holder contravenes a requirement imposed under the Act, including by the regulations or by an order, authorization or approval to close issued under the Act, that relates to the activities described in clause 11 (5) (c).

(11) Security established under this section and sections 29 to 31 is held on behalf of the Crown.

Revised security amount, amendments to permits

29. (1) If a permit holder applies for an amendment to the permit and a revised cost estimate referred to in clause 23 (1) (g) is submitted as part of the application, the Minister may, on the basis of the documents and information referred to in subsection (2), determine that the costs included in the revised cost estimate are understated and determine an amount that, in the opinion of the Minister, accurately reflects the amount of the revised costs, in which case the Minister shall, before making a decision with respect to the amendment to the permit, notify the applicant of the determination and the amount.

(2) The documents and information mentioned in subsection (1) are the following:

1.  Any expert report regarding the applicant’s estimate prepared as part of the application process for the amendment to the permit.

2.  Any records held by or information known to the Ministry relating to the cost of carrying out the activities described in clause 11 (5) (c).

(3) If the approved plans include a plan referred to in clause 11 (5) (d) to establish security in a phased manner and the Minister provides notice to the applicant under subsection (1), the Minister shall include in the notice the phase or phases for which the Minister has determined a revised amount.

(4) If a revised cost estimate under clause 23 (1) (g) was submitted as part of the application for the amendment to the permit, the Minister shall not grant the amendment to the permit until the applicant has established security in the amount of the revised cost estimate unless the Minister has determined a higher amount under subsection (1), in which case in that amount.

(5) Despite subsection (4), if the approved plans include, or would include, a plan referred to in clause 11 (5) (d) to establish security in a phased manner, the Minister shall not grant the amendment to the permit until the applicant has established security in the amount that will be required for the current phase of the project once the amendment is granted.

Duty to maintain security and changes to security

30. (1) After establishing security in the required amount under section 28 or 29, a permit holder shall maintain security in that amount.

(2) If the approved plans include a plan to establish security in a phased manner, the permit holder shall maintain security in the amount required for the current phase of the project.

(3) Once established, the permit holder shall not reduce the amount of security without the Minister’s written consent.

(4) The Minister shall only consent to a reduction in the amount of security required to be maintained by a permit holder if, based on the estimate or determination upon which the amount of security was established, the amount of security remaining after the reduction would be sufficient to cover the costs of the activities referred to in clause 11 (5) (c) that have yet to be performed or, if security is being established in phases, the costs of those activities that have yet to be performed in respect of the wells, storage repositories and ancillary works that form part of the carbon storage site during that phase or that formed part of the carbon storage site during any previous phase.

(5) The fact that the actual cost of any activities referred to in clause 11 (5) (c) that have already been performed exceeded any estimate or determination upon which the amount of security was established is not a relevant consideration for the purposes of subsection (4).

Rules respecting different forms of security

31. (1) If the security is in the form of a trust fund, the trustee of the trust fund must not be the permit holder and must be one of the following:

1.  An insurance company, or a fraternal benefit society, to which the Insurance Companies Act (Canada) applies.

2.  A trust, loan or insurance corporation incorporated by or under an Act of Ontario.

3.  A brokerage firm incorporated or formed by or under an Act of Canada or of Ontario that is primarily engaged in dealing in securities, including portfolio management and investment counselling.

4.  An accountant licensed under the Public Accounting Act, 2004 who carries at least $2,000,000 of professional liability insurance.

5.  A lawyer qualified to practise in Ontario who carries at least $2,000,000 of professional liability insurance.

(2) A permit holder who receives notice, from the Ministry, a bank or qualified insurer, of the expiration of a bank’s irrevocable letter of credit or notice of the expiration or termination of a bond from the qualified insurer shall, at least 30 days before the expiration or termination date,

(a)  obtain an irrevocable letter of credit from a bank or a bond of a qualified insurer in the same amount as the letter of credit or bond that is due to expire or be terminated; or

(b)  establish security in the form of a trust fund in the same amount as the letter of credit or bond that is due to expire or be terminated.

(3) If a permit holder contravenes subsection (2), the Minister may, in an amount up to the full amount of security required under section 28 or 29,

(a)  draw on the irrevocable letter of credit; or

(b)  require payment under the bond.

Period of Validity of Authorizations and Renewals

Period of validity and renewal, research and evaluation licences

32. (1) A research and evaluation licence is valid for the period determined by the Minister and set out in the licence, but that period must not exceed 10 years.

(2) The Minister may renew a research and evaluation licence for successive periods not exceeding two years if the licence holder has applied for the renewal and paid any applicable fee.

Period of validity and renewal, storage licences

33. (1) A storage licence is valid for the period determined by the Minister and set out in the licence, but that period must not exceed 30 years.

(2) The anniversary date of a storage licence is deemed to be January 1 in each year.

(3) The Minister may renew a storage licence for successive periods not exceeding 30 years if the licence holder has applied for the renewal and paid any applicable fee.

(4) The Minister shall renew a storage licence if,

(a)  the renewal,

(i)  has the effect of aligning the period of validity of the licence with the period of validity of a storage permit that relates to the same carbon storage site as the licence, or

(ii)  is occurring at the same time as such a storage permit is being renewed and the licence and the permit will subsequently have the same period of validity;

(b)  the licence holder has applied for the renewal at least one year before the expiry of the licence;

(c)  the licence holder is in compliance with the Act, including with the regulations and any order, authorization or approval to close issued under the Act; and

(d)  the Minister is satisfied that the licence holder would, if the licence were renewed, perform any resulting obligations or exercise any resulting powers in accordance with the Act, including with the regulations and any order, authorization or approval to close issued under the Act, and in a manner that does not pose an unacceptable risk.

Factors for consideration, licences

34. In determining the period of validity of a research and evaluation licence or a storage licence, the Minister shall consider the following:

1.  The nature, scale and proposed timing of the project for which the licence is sought.

2.  Any other competing interests with respect to the use of the area covered by or to be covered by the licence.

3.  The time needed to obtain a permit or other federal, provincial or municipal approvals that are anticipated to be required for the project.

4.  Any other factors that, in the Minister’s opinion, are relevant to the determination of the period of validity.

Period of validity, permits

35. (1) Upon its issuance, a permit is valid for the period determined by the Minister and set out in the permit, but that period must not exceed,

(a)  10 years, in the case of a research and evaluation permit; or

(b)  30 years, in the case of a storage permit.

(2) In determining the period of validity under subsection (1), the Minister shall consider the nature, scale and proposed timing of the project for which the permit is sought.

(3) A permit may be renewed for,

(a)  in the case of a research and evaluation permit, successive periods not exceeding two years; or

(b)  in the case of a storage permit, successive periods not exceeding 30 years.

(4) The Minister may renew a permit if the permit holder has applied for the renewal and paid any applicable fee.

(5) The Minister shall renew a storage permit for the amount of time the Minister considers appropriate, not exceeding 30 years, if the holder of the storage permit has applied for the renewal and paid any applicable fee, and if,

(a)  research and evaluation activities or carbon storage activities are continuing to be performed at the carbon storage site or the renewal is needed to extend the permit to cover the applicable closure period;

(b)  the permit holder is in compliance with the Act, including with the regulations and any order, authorization or approval to close issued under the Act;

(c)  the permit holder has applied for the renewal at least one year before the expiry of the storage permit; and

(d)  the Minister is satisfied that the permit holder would, if the permit were renewed, perform any resulting obligations or exercise any resulting powers in accordance with the Act, including with the regulations and any order, authorization or approval to close issued under the Act, in a manner that does not pose an unacceptable risk.

Transfer and Surrender of Authorizations

Transfers

36. (1) The following are the requirements mentioned in subsection 18 (2) of the Act:

1.  All authorizations that relate to a carbon storage site must be transferred on the same day to the same transferee.

2.  The current authorization holder must submit a written request to the Ministry for the transfer of the authorization and the request must meet the requirements of subsection (2).

3.  The proposed transferee must submit a written request to the Ministry setting out the information referred to in subsection (3).

4.  The written requests mentioned in paragraphs 2 and 3 must be submitted to the Ministry concurrently.

5.  The proposed transferee must demonstrate, to the satisfaction of the Minister, that the proposed transferee has, as required by the Act and the regulations, established security and secured insurance coverage.

6.  The proposed transferee must provide the Ministry with versions of the approved plans that have been updated to reflect the change to the authorization holder.

(2) The written request from the current authorization holder referred to in paragraph 2 of subsection (1) shall,

(a)  relate to all authorizations associated with a carbon storage site and identify each authorization;

(b)  include confirmation from the authorization holder that all relevant information pertaining to the project has been disclosed to the proposed transferee, including,

(i)  information related to the management, construction, operation, maintenance, decommissioning and safety of the wells, storage repositories and ancillary works that form part of the carbon storage site,

(ii)  information about relationships with local or Indigenous communities, consultations with those communities and any related agreements entered into or commitments made by the authorization holder,

(iii)  any known or potential instances of non-compliance with the Act, including with the regulations or any authorization, order, or approval to close issued in relation to the carbon storage site, whether or not known to the Ministry, and

(iv)  any other information known to the authorization holder that may be relevant to the current or future management of the carbon storage site; and

(c)  a description of the arrangements between the authorization holder and the proposed transferee regarding the responsibility for reporting requirements and for paying any applicable fees, rents or other payments for the year in which the transfer is proposed to occur.

(3) The written request from the proposed transferee referred to in paragraph 3 of subsection (1) shall,

(a)  relate to all authorizations associated with a carbon storage site and identify each authorization;

(b)  set out the legal name of and contact information for the transferee and, if applicable, the name of and contact information for the transferee’s representative;

(c)  if the transferee is a corporation,

(i)  include a copy of the corporation’s corporation profile report filed under the Corporations Information Act, or

(ii)  in the case of a corporation to which the Corporations Information Act does not apply, include proof of incorporation from the jurisdiction in which the applicant is incorporated that is satisfactory to the Minister;

(d)  if the applicant is a corporation, include a list of the applicant’s current directors and officers, if the information is not included or only partially included in the report or other documents provided under clause (c);

(e)  include the information required under subsection 7 (6) of Ontario Regulation 311/25 (General Matters under the Authority of the Lieutenant Governor in Council) made under the Act;

(f)  identify whether the proposed transferee has obtained all surface and subsurface rights, including rights to pore space, necessary to perform the activities associated with the project; and

(g)  confirm that the proposed transferee,

(i)  has notified the holders of all surface and subsurface rights or interests, including rights to pore space, necessary to perform the activities associated with the project, of the request to transfer the authorization,

(ii)  has taken all necessary steps to fully understand all of the applicable requirements and obligations under the Act, including the requirements and obligations imposed by the regulations or any authorization, order or approval to close issued in relation to the carbon storage site,

(iii)  has reviewed the project and is satisfied that they are aware of any potential instances of non-compliance with the Act, including with the regulations or any authorization, order, or approval to close issued in relation to the carbon storage site, and

(iv)  has an understanding of, and acknowledges their responsibilities with respect to remedying, any pre-existing non-compliance should the transfer be approved.

(4) If an authorization is transferred under subsection 18 (2) or 19 (2) of the Act, the former holder of the authorization shall continue to maintain the security that they had established in accordance with this Regulation until the Minister notifies the former holder of the authorization, in writing, that the Minister is satisfied that the transferee has established the required security.

Surrender of authorizations

37. (1) If an authorization holder intends to surrender the authorization to the Minister, the surrender takes effect once the Minister has, upon the request of the authorization holder, consented in writing to the surrender.

(2) Despite subsection (1), if neither research and evaluation activities nor carbon storage activities have been performed at the carbon storage site for which the authorization was issued, the surrender takes effect once the following conditions are met:

1.  The Minister has been given written notice of the authorization holder’s intent to surrender it and at least 120 days have elapsed since the notice was given.

2.  Any applicable fees, rents or other payments required under the Act or the regulations have been paid.

3.  If the authorization is a licence, any permit issued to the licence holder that applies to the same carbon storage site as the licence has also been surrendered.

4.  If the authorization is a permit, any licence issued to the permit holder that applies to the same carbon storage site as the permit has also been surrendered.

(3) The Minister shall consent to the surrender of an authorization if the Minister is satisfied that,

(a)  the authorization holder is in compliance with the Act, including with the regulations or any order, authorization or approval to close issued in respect of the carbon storage site;

(b)  the Minister has been given notice of the authorization holder’s intent to surrender the authorization and at least 120 days, in the case of a licence, or 180 days, in the case of a permit, have elapsed since the notice was given;

(c)  any applicable fees, rent or other payments required under the Act or the regulations have been paid;

(d)  in the case of a licence, any permit issued in respect of the carbon storage site has been surrendered or has expired;

(e)  in the case of a permit, the permit holder has closed the carbon storage site in accordance with section 25 of the Act and the applicable closure period under section 77 has elapsed;

(f)  in the case of a storage permit, a closure certificate has been issued;

(g)  the authorization holder has provided the Ministry with any information requested by Ministry personnel necessary for the surrender request to be fully considered; and

(h)  the surrender will not result in an unacceptable risk.

(4) A surrender may be partial by applying to only some of the area to which the authorization applies, in which case the Minister shall, once the surrender takes effect in accordance with this section, reissue the authorization to reflect the partial surrender.

Operational Requirements

Adherence to standards

38. (1) Subject to subsections (2), (3) and (4), a permit holder shall comply with the requirements and recommendations of CSA Z741.

(2) A permit holder is only required to comply with those requirements and recommendations of CSA Z741 relating to management systems that relate to information management and to knowledge and information management systems.

(3) In the event of a conflict between the provisions of this Regulation and the requirements and recommendations of CSA Z741, the permit holder shall comply with the provisions, requirements or recommendations that afford greater protection to public safety and the environment.

(4) A permit holder may depart from the requirements of sections 50 and 52 or the requirements or recommendations of CSA Z741 if authorized to do so in an approved plan or, if the departure is not addressed by an approved plan, if the following conditions are met:

1.  The departure involves the permit holder taking measures to protect the public and the environment that provide a level of protection that is equal to or greater than that provided by the requirement or recommendation being departed from.

2.  Before implementing the departure, the permit holder has provided the Ministry with a report that meets the requirements of subsection (5).

(5) For the purposes of paragraph 2 of subsection (4), the report must include a detailed rationale describing how the departure satisfies the condition set out in paragraph 1 of that subsection and must,

(a)  if analysing the consequences of the departure requires knowledge of the field of engineering, be prepared by a professional engineer within the meaning of the Professional Engineers Act and certify that the departure satisfies the condition set out in paragraph 1 of subsection (4);

(b)  if analysing the consequences of the departure requires knowledge of the field of geoscience, be prepared by a person who is permitted to practice professional geoscience under section 3 of the Professional Geoscientists Act, 2000 and certify that the departure satisfies the condition set out in paragraph 1 of subsection (4); or

(c)  if analysing the consequences of the departure does not require knowledge of the field of engineering or geoscience, set out a description of the knowledge, experience or qualifications of the person who conducted the analysis and how they are relevant to assessing the potential consequences of the proposed departure and determining that the departure satisfies the condition set out in paragraph 1 of subsection (4).

MMV plan reviews and reporting

39. (1) A permit holder shall, at a minimum, review their plan for monitoring, measuring and verifying project performance and risks and submit to the Ministry a report on the review,

(a)  if the permit is a storage permit, at least once every three years as well as within 12 months prior to requesting a closure certificate under section 26 of the Act; and

(b)  if the permit is a research and evaluation permit or a storage permit, as requested by the Minister on the basis of,

(i)  an event of which the Ministry is notified under section 67,

(ii)  information or science of which the Minister becomes aware that is relevant to the specific carbon storage site or the methods or technologies used in the project or approved plans and that, in the opinion of the Minister, requires a review of, or updates to, the plan for monitoring, measuring and verifying project performance and risks, or

(iii)  the failure of an annual report submitted by the permit holder to, in the opinion of the Minister, identify changes required to the plan for monitoring, measuring and verifying project performance and risks.

(2) If any changes to the plans for monitoring, measuring and verifying project performance and risks are identified as being necessary under subsection (1), the permit holder shall, within 60 days after submitting the report to the Ministry, apply for an amendment to their permit in accordance with section 23 in order to implement the updated plan.

Drilling timeframes

40. (1) If a permit authorizes the drilling of a well, the permit holder shall ensure that the drilling of the well is completed by the date specified in the permit, including in any approved plan, or, if no such date is specified in the permit, by the first anniversary of the date of the permit’s issuance.

(2) Drilling of the well is no longer authorized by the permit beginning on the earlier of,

(a)  the day on which the well reaches the maximum depth allowed by the permit; and

(b)  the applicable date under subsection (1).

(3) If a permit is amended to authorize the drilling of a well, subsections (1) and (2) apply with necessary modifications and, for that purpose, the date on which the amendment is granted is deemed to be the date of the permit’s issuance.

Pre-injection seismic monitoring

41. If a permit authorizes the injection of carbon dioxide into a storage repository for the purposes of carbon storage, the permit holder shall ensure that carbon dioxide is not injected into a storage repository unless there has been a minimum of 12 months of passive seismic monitoring.

Minimum depth of injection

42. (1) A permit holder shall ensure that carbon dioxide is only injected into a storage repository forming part of the carbon storage site at a depth of at least 800 metres below the ground surface if the injection of the carbon dioxide is for the purpose of carbon storage.

(2) For greater certainty, subsection (1) does not only apply to the research and evaluation activities referred to in subparagraph 1 iii of subsection 3 (1) of the Act.

Well bore surveys

43. (1) If a permit authorizes the drilling of a well, the permit holder shall ensure that deviation and directional surveys are conducted during drilling on all new deviated, horizontal and lateral wells.

(2) The surveys under subsection (1) must,

(a)  be conducted at deviation test intervals not exceeding 30 metres from the surface casing flange top to the total depth of the well during drilling; and

(b)  be accurate to plus or minus 1 per cent of the well depth.

(3) Within 60 days after a well described in subsection (1) has been drilled and completed in accordance with the approved plans, the permit holder shall submit to the Ministry the results of the survey completed in accordance with that subsection with respect to the well, which must include an indication of the bottomhole location of the well bore and a final cross-section plan and plan view of the well bore, as described in clause 11 (5) (a), and the actual survey data.

Suspension of wells

44. (1) A permit holder shall ensure that a well that forms part of a carbon storage site is not inactive for more than six consecutive months unless it has been suspended and the requirements of sections 5.15, 5.15.1, 5.15.2 and 5.15.3 of the Provincial Standards were complied with before the suspension.

(2) If a well is suspended in accordance with subsection (1), the permit holder shall ensure that,

(a)  the well’s wellhead and wellhead valves are inspected for leaks at least once every 12 months; and

(b)  the well’s wellhead valves are lubricated and serviced at least once every 12 months or at any shorter interval required by the manufacturer’s specifications.

Allowable period of inactivity, decommissioning

45. (1) Subject to subsection (2), if a well that forms part of a carbon storage site has been inactive for a period of 60 consecutive months, the permit holder shall ensure that the well is fully decommissioned in accordance with the approved closure plan within six months after the last day of the 60-month period of inactivity.

(2) Subsection (1) does not apply to a well that is only used for the purposes of monitoring, measurement and verification activities, provided that the well is used in accordance with the approved plans for monitoring, measuring and verifying project performance and risks and approved plans for decommissioning, site remediation and restoration and closure.

Annual pressure testing

46. A permit holder shall ensure that a pressure test is performed on the innermost casing of all wells forming part of a carbon storage site, including injection, storage or monitoring wells, at least once every 12 months to verify well integrity.

Integrity testing

47. (1) A permit holder shall ensure that full integrity testing is conducted on all wells forming part of a carbon storage site at least once every five years.

(2) The integrity testing under subsection (1) must include,

(a)  verification of the integrity of the wellhead, valves and above-ground piping;

(b)  pressure testing of casing and tubing; and

(c)  running diagnostic logs, including casing inspection logs, to confirm casing integrity.

Workover

48. (1) A permit holder shall ensure that a workover is conducted on all wells forming part of a carbon storage site at least once every 10 years.

(2) The workover under subsection (1) must include,

(a)  a full inspection and maintenance of downhole components;

(b)  replacement of seals and gaskets; and

(c)  additional diagnostic logging, including casing inspection logs and corrosion evaluation, where initial results indicate potential integrity concerns.

Decommissioning, requirement for cement bond log

49. A permit holder shall ensure that a cement bond log is completed during the decommissioning of a well forming part of a carbon storage site.

Restricted drilling areas

50. Subject to a departure under subsection 38 (4), a permit holder shall ensure that no well is drilled if the surface location of the well would be,

(a)  within 50 metres of any high voltage power line, road allowance, railway, transmission pipeline or other utility right of way;

(b)  within 75 metres of any dwelling, agricultural, commercial or industrial building, school, church or place of public assembly;

(c)  if on land not covered by water, within 100 metres of the water’s edge of any of the Great Lakes including the interconnecting waterways and within 30 metres from any other lake, river, stream or municipal drain; and

(d)  in the water-covered areas of the Great Lakes,

(i)  within 800 metres of the water’s edge, and

(ii)  within 800 metres of the international boundary between Canada and the United States of America.

Well identification, on land

51. A permit holder shall ensure that each well forming part of a carbon storage site that is located on land not covered by water is marked with a prominent sign located in a conspicuous place showing the unique identification number associated with the well.

Location, ancillary works

52. (1) Subject to any departure under subsection 38 (4), a permit holder shall ensure that the location of any ancillary works meets or exceeds the setback requirements set out in section 5.5 of the Provincial Standards.

(2) A permit holder shall ensure any ancillary works used in association with the maintenance or decommissioning of a well that forms part of a carbon storage site are spaced in accordance with the distances specified in sections 5.5.4.1 and 5.5.4.2 and in Figure 2 of the Provincial Standards.

Drilling in land covered by water

53. (1) Where a well is being drilled for the purposes of a carbon storage site in an area covered by water, the permit holder shall ensure that,

(a)  all casings are cemented to the lake bed;

(b)  there is continuous monitoring for the occurrence of oil and other liquid hydrocarbons; and

(c)  any wells that encounter oil or other liquid hydrocarbons in the target storage repository are decommissioned.

(2) When a well forming part of a carbon storage site and located in an area covered by water is decommissioned, the permit holder shall ensure that any casings left in the well are cut off at or below the bed of the body of water.

Drill Cutting, Core and Fluid Samples

Application of sections 56 and 57

54. Sections 56 and 57 only apply with respect to wells or portions of wells that are drilled within Paleozoic age sedimentary rock.

Definitions, sections 56 to 58

55. In sections 56 to 58,

“library” means the Oil, Gas and Salt Resources Library; (“bibliothèque”)

“trustee” means the trustee of the Oil, Gas and Salt Resources Trust established under subsection 16 (1) of the Oil, Gas and Salt Resources Act. (“fiduciaire”)

Samples

56. (1) Subject to section 58, during the drilling of a well for the purposes of a carbon storage site, the permit holder shall ensure that drill cutting samples are collected and prepared in accordance with section 3.18 of the Provincial Standards and, if requested by the Ministry, that fluid samples are collected and prepared.

(2) Drill sample bags and vials provided by the library shall be used when preparing samples under subsection (1).

(3) Where core samples are taken during the drilling of a well for the purposes of a carbon storage site, the permit holder shall ensure that,

(a)  the cores are packed in accurately labelled, numbered boxes that indicate the unique identification number associated with the well, the permit holder’s permit number and the corresponding depth interval;

(b)  the boxes are protected from damage; and

(c)  the depth intervals of the core samples are reported to the Ministry in the report under section 64.

(4) A core sample taken during drilling as described in subsection (3) must be conserved by the permit holder and may only be disposed of by providing it to the library or if necessary for the purposes of analysis.

(5) A permit holder shall submit to the Ministry a copy of any analysis of a core sample referred to in subsection (4) that is conducted by or for the permit holder within 30 days after the completion of the analysis.

Delivery of samples

57. (1) Subject to subsection (4) and to section 58, a permit holder shall deliver to the library,

(a)  the minimum number of required drill cutting samples required by section 3.18 of the Provincial Standards and any required fluid samples collected and prepared in accordance with subsection 56 (1), within 60 days after the drilling of the well from which the samples were collected is completed; and

(b)  any core samples collected under subsection 56 (3), within one year after the drilling of the well from which the cores were collected is completed.

(2) The cost of delivering the samples under subsection (1) and any associated processing fee charged by the trustee shall be paid by the permit holder.

(3) Despite subsection (1), a permit holder is not required to comply with clause (1) (b) in respect of certain core samples if,

(a)  the Minister has notified the permit holder in writing that, in the Minister’s opinion, representative samples of the core already exist in the library; or

(b)  the Minister has notified the permit holder in writing that the Minister has been advised by the trustee that there is insufficient space in the library to store the core samples.

(4) The trustee shall provide the Minister, upon request, information about the drill cutting or core sample processing fees charged and collected for the purposes of subsection (2), including any costs incurred by the trustee associated with processing those samples.

Samples, cost exceedance

58. If the Minister is of the opinion that the fees being charged by the trustee for the processing of samples is in excess of the amount required to recover the costs of processing those samples, the Minister may notify a permit holder in writing that the permit holder is not required to collect or deliver samples under sections 56 or 57.

Record-keeping and Reporting

Expert review

59. Ministry personnel may require that any information submitted to the Ministry by a permit holder respecting a carbon storage site pursuant to a requirement under the Act, including a requirement imposed by the regulations or any authorization or approval to close issued under the Act, be reviewed by an expert if Ministry personnel are of the view that it is necessary to prevent an unacceptable risk, in which case subsections 13 (2) to (4) apply to the conduct of the expert review as if the information in question were a submission.

Test and measurements, observable data

60. (1) A permit holder shall submit to the Ministry observed data from any test required to be conducted under the Act, including as required by the regulations or any order or authorization issued under the Act, or any measurement required to be taken under the Act, including as required by the regulations or any order or authorization or approval to close issued under the Act, in relation to a well, storage repository or ancillary work that forms part of a carbon storage site within 30 days after conducting the test or taking the measurement.

(2) If another requirement of this Regulation requires a permit holder to submit to the Ministry observed data from any test required to be conducted or any measurement required to be taken within a specified timeframe, the permit holder shall do so in accordance with that requirement instead of in accordance with subsection (1).

Changes to pore space agreements

61. A permit holder shall notify the Ministry in writing of any change to an agreement, including any applicable unitization agreement, that relates to the permit holder’s right to the use of land or to pore space necessary to perform the activities associated with the project within 10 days after the day on which the change is made to the agreement.

Carbon storage site information record

62. (1) A permit holder shall maintain an up-to-date record of all wells, storage repositories and ancillary works forming part of a carbon storage site.

(2) The record under subsection (1) must,

(a)  identify all wells and ancillary works and provide their location, purpose and status;

(b)  provide a geological description of any storage repositories as well as their location as they would be projected on the surface;

(c)  include manufacturer’s specifications for any ancillary works, if available;

(d)  identify any substances being stored at the carbon storage site, whether on the surface of the lands or within storage repositories, including the type of substance and its quantity; and

(e)  include the legal name of and contact information for the permit holder and the name of and contact information for an emergency contact person, as well as, if applicable, the permit holder’s representative.

(3) A permit holder shall, upon request, immediately provide the Ministry or any emergency planning or response authority with a copy of the current record under subsection (1).

Activity notices

63. (1) A permit holder shall notify the Ministry, in writing, of an event referred to in Column 1 of the following Table and shall do so no later than the deadline set out opposite the event in Column 2.

Table

Item	Column 1 Description of event	Column 2 Deadline for notifying the Ministry
1.	Commencement of well drilling	48 hours before the start of drilling
2.	The suspension of a drilling program where the drilling is not planned to resume for a period of more than 7 days	48 hours after the moment drilling was suspended
3.	The completion of a well	48 hours after the well’s completion
4.	Any planned workover of a well	48 hours before the start of the workover
5.	The cessation of all activity in a well	120 days after the occurrence of the last activity in the well
6.	Completion of the requirements of sections 5.15, 5.15.1, 5.15.2 and 5.15.3 of the Provincial Standards in respect of a well to be suspended	30 days after the day on which all of the requirements have been completed
7.	The decommissioning of a well	48 hours before decommissioning operations begin

 

(2) When notifying the Ministry of the suspension of a drilling program, the permit holder shall include in the notice,

(a)  an indication of the date on which the drilling program was suspended;

(b)  the well’s depth at the time at which the drilling program was suspended; and

(c)  a description of the condition of the well at the time the drilling program was suspended, including a description of the casing and cement and wellhead equipment as of that time.

Reporting on well activities

64. (1) A permit holder shall submit a report to the Ministry on any of the following activities associated with a well that forms part of a carbon storage site operated by the permit holder within 60 days after the completion of the activities:

1.  Drilling a well.

2.  Working over a well.

3.  Stimulating a well.

4.  Testing a well.

5.  Re-entering a well.

6.  Plugging back a well.

7.  Re-casing a well.

8.  Decommissioning a well.

(2) If the activity that is the subject of the report involves cementing operations, including cement squeezes or remedial cementing, the report must be accompanied by an additional report, prepared by a professional engineer within the meaning of the Professional Engineers Act, identifying any requirements of this Regulation or an approved plan applicable to those cementing operations and confirming that the cementing operations were performed in compliance with the applicable requirements.

Well logs and surveys

65. A permit holder shall submit to the Ministry a final copy of any log or survey taken in a well within 30 days after the log or survey is made.

Daily record and tour sheet requirements

66. (1) A permit holder shall maintain daily records of drilling, completion, workover and decommissioning operations on a well from the start of the operation to rig release that include, at a minimum, the documents and information set out in subsection (5).

(2) A permit holder shall ensure that a tour sheet is prepared for each shift of a drilling crew or of other related operations from the start of the operation to rig release.

(3) All tour sheets must be submitted to the Ministry by the permit holder within 30 days after rig release.

(4) Any information set out in a daily record that is not contained in a tour sheet or in the report under section 64 must be provided to the Ministry by the permit holder within 60 days after rig release.

(5) Daily records under subsection (1) must include the following:

1.  The following identification information for the well:

i.  The unique well identification number.

ii.  Well location.

iii.  Rig number.

iv.  Kelly bushing elevation.

v.  Surveyed ground elevation.

2.  A record of operations in chronological order, including start and end times for each tour.

3.  The name of each contractor working on the well and any ancillary works during each tour or shift and the activities each contractor was responsible for performing.

4.  The following details regarding drilling, including drilling when deepening and sidetracking:

i.  Spud date.

ii.  Depth at start and end of each tour.

iii.  Deviation surveys and whipstock depths.

iv.  Total depth of the well at termination of drilling.

v.  Diameter of the hole.

5.  The following details regarding casing and liners:

i.  Size, type, grade and weight.

ii.  Specifications, name of manufacturer and casing tally.

iii.  Setting depth.

iv.  Installation history, including details of any issues encountered during casing or liner installation.

v.  Float equipment and casing attachments used.

6.  Completion information including packers, perforations, acidizing, squeeze jobs and fracture stages.

7.  Wellhead pressures if observed at the start and end of each tour.

8.  Depth at the start and end of each tour.

9.  Geological observations, including gas, oil or water shows or flows.

10.  Fishing operations.

11.  Total depth of the well.

12.  Bottomhole assembly specification.

13.  Rig release date.

14.  Details of any pressure tests used to verify the seal and structural integrity of temporary or permanent barriers installed in a wellbore.

15.  Any operational issues or changes to the drilling, completion, workover or decommissioning programs.

16.  The following cementing details:

i.  Cement blends used, including cement type and additives.

ii.  Source of mix water.

iii.  Type and volume of any preflush.

iv.  Volumes of cement pumped.

v.  Cement slurry density.

vi.  Actual and final displacement volumes and pressure.

vii.  Observation of cement returns, including an estimation of the volume of cement returns.

viii.  Results of every pressure test after cementing.

ix.  Cement tops and how they were identified, such as by logging.

17.  Information about circulation losses outlining the depth and interval of loss, mud density and volume lost, and the materials used for remediation.

18.  Kick control information outlining the depth of the kick, shut-in and circulating pressures and influx volume and control procedures.

19.  The following information about geological formation testing:

i.  Drill stem tests conducted, including test number, interval, valve times, flow rates, recovered volumes and pressure data.

ii.  Wireline tests conducted, including test number, depth, duration and recovery pressure data.

iii.  Flow tests conducted, including flow rates, depths, recoveries and fluid analysis.

iv.  Fluid geochemical analyses.

v.  Swab tests conducted, including depths, recoveries and fluid levels.

vi.  Core samples collected, including interval, size, lithology and recovery.

20.  Formation evaluation logs and any cased-hole cement bond logs, including details of all logs and their depth intervals, together with associated interpretive and engineering reports.

21.  Decommissioning information, including plugging and plug details and surface abandonment method.

22.  The following safety and environmental information:

i.  Blowout preventer and choke manifold pressure tests conducted.

ii.  Air shut-off tests conducted.

iii.  Blowout preventer drills conducted.

iv.  Spill notifications and actions taken.

Emergency notification

67. (1) A permit holder shall notify the Ministry of any of the following events immediately after the event occurs:

1.  A well flowing uncontrolled.

2.  A spill or a leak at a carbon storage site.

3.  A well blowout.

4.  A fire or explosion involving wells or ancillary works.

(2) The permit holder shall provide the Ministry with any additional information about an event referred to in subsection (1) that is requested by Ministry personnel and shall do so within the timeframe set out in the request.

Annual operations report

68. (1) A permit holder shall, on or before March 31 in a given year, submit an annual report to the Ministry detailing the operations of the carbon storage site and the activities performed in association with that site during the previous calendar year.

(2) In addition to any other information that the permit holder considers appropriate to include in the annual report, the report shall include,

(a)  a summary of the project activities, including injection volumes, operational status and any changes to approved plans or the wells, storage repositories and ancillary works that form part of the carbon storage site;

(b)  a detailed description of injection activities that took place during the year, including volumes, daily injection rates, composition of injected substances and average daily injection pressures;

(c)  if carbon dioxide has been injected for carbon storage, quantification of net carbon dioxide stored;

(d)  a description of site operations, maintenance activities and any events of which the Ministry was notified under section 67;

(e)  results and analysis from monitoring, measurement and verification activities conducted during the year, including,

(i)  technologies and methods used,

(ii)  data collected and interpreted,

(iii)  assessment of containment, injectivity and performance, and

(iv)  any anomalies or exceedances or corrective actions taken to address any exceedances;

(f)  identification of any changes to the plan for monitoring, measuring and verifying project performance and risks, including rationale and supporting data, that the permit holder considers necessary;

(g)  identification of any research and evaluation activities referred to in paragraph 3 of subsection 3 (1) of the Act involving geophysical or geochemical exploration activities that were performed and the location at which those activities were performed;

(h)  a summary of any compliance review under section 71 of this Regulation or section 36 of the Act conducted during the period covered by the annual report, including the date on which it was completed, any instances of non-compliance identified and corrective actions completed, or planned but not yet completed, to address the non-compliance; and

(i)  any other information required by the permit holder’s permit, including in an approved plan, to be included in the annual report.

(3) If any changes to the plans for monitoring, measuring and verifying project performance and risks are identified under clause (2) (f), the permit holder shall, within 60 days after submitting the report to the Ministry, apply for an amendment under section 23.

(4) A permit holder is not required to submit an annual report on or before March 31 of a given year if the permit holder’s permit was first issued before that date in that same year.

Records retention

69. (1) A permit holder shall establish the records that are required by CSA Z741 as well as those recommended by that standard and shall retain those records until the end of the applicable period under subsection (4), which begins to run once the closure obligations set out in subsection 25 (5) of the Act have been completed.

(2) The permit holder must retain the following records until the end of the applicable period under subsection (4), which begins to run once the closure obligations set out in subsection 25 (5) of the Act have been completed:

1.  Any record required to be kept by this Regulation.

2.  Any record the subject matter of which relates to geoscience or engineering and that relates to the carbon storage site or the performance of research and evaluation activities or carbon storage activities at the carbon storage site.

3.  Any record relating to the servicing of a well that forms part of a carbon storage site.

4.  Any record respecting a carbon storage site or the performance of research and evaluation activities or carbon storage activities at the carbon storage site that relates to compliance with the Act, including with the regulations or any authorization, order or approval to close issued under the Act, and that is prepared by or for the permit holder.

5.  Any record received by the permit holder in relation to the performance of research and evaluation activities or carbon storage activities at the carbon storage site.

(3) The requirements under subsections (1) and (2),

(a)  continue to apply even after the permit holder’s permit is surrendered or expires;

(b)  cease to apply to a former permit holder whose permit is transferred to another person under section 18 or subsection 19 (2) of the Act in respect of records transferred to that person; and

(c)  apply to a person to whom a permit is transferred under section 18 or subsection 19 (2) of the Act in respect of records transferred to that person by the former holder of the permit as if the records were prepared by or for or received by the person to whom the permit is transferred.

(4) The applicable period mentioned in subsections (1) and (2) is,

(a)  10 years, if the record relates to activities conducted under the authority of a research and evaluation permit; or

(b)  20 years, if the record relates to activities conducted under the authority of a storage permit.

(5) Subsections (1) and (2) do not apply with respect to,

(a)  a record that has been transferred to the Ministry in accordance with a request from the Ministry; and

(b)  records related to activities conducted under the authority of a permit once a closure certificate has been issued under section 26 of the Act for the carbon storage site to which the permit relates.

Access to authorizations, records

70. (1) An authorization holder shall ensure that any person performing activities contemplated by the Act in relation to a carbon storage site has immediate access to,

(a)  a copy of any authorization issued in relation to the carbon storage site; and

(b)  a copy of any approved plan, specification, standard or other requirement with which compliance is required under the Act, including by the regulations, or an order, authorization or approval to close issued under the Act, and that is relevant to the activity being performed.

(2) If requested by Ministry personnel, a person referred to in subsection (1) must demonstrate that the person has access to the documents referred to in that subsection.

Compliance Reviews

Regular compliance reviews

71. (1) A permit holder shall, in accordance with this section, carry out reviews of their compliance with the requirements imposed by the Act, including by the regulations and any order, authorization or approval to close issued under the Act, with respect to the carbon storage site to which the permit relates.

(2) A review referred to in subsection (1) must be conducted at least once in any 12-month period and must cover,

(a)  in the case of the first review, the period since the day on which the permit was issued; and

(b)  in the case of any subsequent review, the period since the completion of the last review.

(3) Within 10 days after completing a review referred to in subsection (1), the permit holder shall notify the Ministry that a review was completed and of the day or days on which it was conducted and shall provide to the Ministry,

(a)  if the review did not reveal any instances of non-compliance during the period covered by the review, confirmation of compliance with the Act, including with the regulations and with any order, authorization or approval to close issued under the Act, during that period; or

(b)  if the review did reveal instances of non-compliance during the period covered by the review,

(i)  a description of the non-compliance and any corrective actions taken to address the non-compliance, and

(ii)  a description of any corrective actions planned, but not yet completed, to address the non-compliance, including a schedule outlining a deadline for completing each such corrective action.

(4) If corrective actions referred to in subclause (3) (b) (ii) were identified, the permit holder shall notify the Ministry once those corrective actions have been completed.

Third party reviews

72. (1) The Minister shall not approve an independent third party under subsection 36 (1) of the Act unless the Minister is satisfied that the third party and the authorization holder are sufficiently independent on the basis of affidavits provided by the third party and the authorization holder.

(2) An authorization holder that is subject to a review under section 36 of the Act shall,

(a)  promptly provide the third party with any information that the third party may require; and

(b)  provide the third party with access to the carbon storage site as may be necessary to conduct the review.

Orders to Cease Carbon Injection and Closure of Carbon Storage Sites

Orders to cease carbon injection, additional circumstances

73. (1) The following circumstances are prescribed for the purposes of clause 24 (1) (e) of the Act:

1.  An authorization holder is deemed incapable of acting within the meaning of subsection 1 (4) of the Act.

2.  An authorization holder having failed to apply for renewal of the authorization before the applicable deadline set out in subsection (2) while also not having, before that deadline, completed the closure obligations set out in subsection 25 (5) of the Act in respect of the carbon storage site to which the authorization relates.

(2) The deadlines mentioned in paragraph 2 of subsection (1) are,

(a)  for a research and evaluation licence or a research and evaluation permit, at least 120 days prior to the expiry of the licence or permit; or

(b)  for a storage licence or a storage permit, at least one year prior to the expiry of the licence or permit.

Closure of carbon storage site, with and without approval

74. (1) For the purposes of subsection 25 (1) of the Act, it is a prescribed condition for storage permit holders that,

(a)  the permit holder must have reviewed their closure plan within three years before requesting approval to close the carbon storage site; and

(b)  if changes were identified during the review,

(i)  the permit holder must have applied for an amendment to the permit in accordance with section 23 to implement those changes to the plan, and

(ii)  the Minister must have made a decision on the amendment application.

(2) For the purposes of subsection 25 (2) of the Act, the holder of a research and evaluation permit may close a carbon storage site, without the written approval of the Minister, if the site is closed in accordance with an approved plan, provided that,

(a)  there are no orders or annual reports requiring changes to the closure plan; and

(b)  the permit holder is in compliance with the Act, including with the regulations and any order or authorization issued under the Act.

Review of closure plans

75. (1) A storage permit holder shall ensure that the closure plan for a carbon storage site is reviewed and updated in accordance with this section at least once every 10 years.

(2) The review of the closure plan must include a review of the most recent schedule setting out the estimates for the itemized cost of performing the activities referred to in clause 11 (5) (c).

(3) The storage permit holder shall, upon completing the review, provide to the Ministry, a report that includes,

(a)  an explanation of the review process; and

(b)  an explanation of any changes to the closure plan that have been identified as being needed and why those changes are needed, or an indication that no changes to the closure plan have been identified as being needed  and an explanation as to why no changes were needed.

(4) If changes to the closure plan were identified as being needed, the permit holder shall, within 60 days after submitting the report to the Minister, apply for an amendment in accordance with section 23 to implement those changes to the closure plan.

Closure order, time period without injection

76. For the purposes of clauses 24 (1) (d) and 24 (3) (c) of the Act, the prescribed time period is 24 months.

Closure period

77. (1) In this section,

“applicable closure period” means the time period for which a permit holder is required to continue to manage the carbon storage site in relation to which the permit was issued for the purposes of clause 25 (5) (c) of the Act.

(2) The applicable closure period for a research and evaluation permit holder is the period ending on the fifth anniversary of the day on which all decommissioning, site remediation and restoration activities described in clauses 25 (5) (a) and (b) of the Act have been completed.

(3) The applicable closure period for a storage permit holder is the period ending on the later of,

(a)  the tenth anniversary of the day on which the storage permit holder last injected carbon dioxide or other substances into the storage repository; and

(b)  the fifth anniversary of the day on which all decommissioning, site remediation and restoration activities described in clauses 25 (5) (a) and (b) of the Act have been completed.

Rights and Obligations of Former Authorization Holders

Expired permits

78. (1) If a permit expires, the former holder of the permit may continue to exercise any rights conferred by order under section 23 of the Act but only as necessary to comply with a Minister’s order issued under section 24 of the Act, an inspector’s order issued under section 42, 43 or 44 of the Act or a court order issued under subsection 56 (6) of the Act.

(2) If a permit expires, the former holder of the permit shall continue to do the following as if the permit had not expired:

1.  Comply with any applicable unitization order issued by the Tribunal under section 13 of the Act.

2.  Comply with the closure obligations under subsection 25 (5) of the Act and maintain the required security until all those closure obligations are completed to the satisfaction of the Minister, as confirmed in writing by the Minister.

3.  Comply with any applicable reporting or record-keeping requirements under the Act, including with any such requirements of the regulations or any order, authorization or approval to close issued under the Act.

4.  Pay any applicable fees, rents or other payments required under the Act or the regulations.

Revoked permits

79. If a permit is revoked, the former holder of the permit shall maintain the required security until the closure obligations under subsection 25 (5) of the Act are completed to the Minister’s satisfaction, as confirmed in writing by the Minister.

Expired or revoked permits

80. If a permit is revoked or expires, the former holder of the permit shall maintain the insurance coverage required under section 19 of Ontario Regulation 311/25 (General Matters under the Authority of the Lieutenant Governor in Council) made under the Act until the Minister determines that ceasing to maintain the insurance coverage required under that section would not pose an unacceptable risk and provides written notice of the determination to the former holder.

Miscellaneous

Notification of certain changes

81. An authorization holder shall notify the Ministry within 15 days after any of the following occurs:

1.  The authorization holder’s legal name changes or there is a change to the authorization holder’s contact information or to the name or contact information of their representative.

2.  If the authorization holder is a corporation,

i.  the corporation’s corporate status changes or there is a change to the officers and directors of the corporation, or

ii.  the corporation becomes deemed incapable of acting within the meaning of subsection 1 (4) of the Act.

Deemed receipt

82. (1) Subject to subsection (2), any document that is required or permitted to be issued, given, submitted or otherwise provided under the Act, including under the regulations or any order, authorization or approval to close issued under the Act, is deemed to have been received by the intended recipient,

(a)  if sent by fax or email, on the day the document is sent by fax or email; or

(b)  if sent by regular or registered mail or by courier, on the earlier of,

(i)  the fifth day after the day on which the document was mailed or received by the courier, and

(ii)  the day on which a person signs for the document on behalf of the intended recipient.

(2) Subsection (1) does not apply if the intended recipient of the document establishes that they did not receive the document for reasons outside of their control and that they were at all times acting in good faith.

Amendments to this Regulation

Amendments to this Regulation

83. (1) The definition of “unacceptable risk” in subsection 1 (1) of this Regulation is amended by striking out “or other land and resource uses” at the end and substituting “other land and resource uses or the Carbon Storage Stewardship Fund”.

(2) Section 79 of this Regulation is revoked and the following substituted:

Revoked permits

79. If a permit is revoked, the former holder of the permit shall maintain the required security until either of the following occurs:

1.  The closure obligations of subsection 25 (5) of the Act are completed to the Minister’s satisfaction, as confirmed in writing by the Minister.

2.  The security is transferred to the Carbon Storage Stewardship Fund at the direction of the Minister.

Commencement

Commencement

84. (1) Except as otherwise provided in this section, this Regulation comes into force on the later of February 1, 2026 and the day this Regulation is filed.

(2) Section 83 comes into force on the later of the day subsection 59 (1) of Schedule 2 (Geologic Carbon Storage Act, 2025) to the Resource Management and Safety Act, 2025 comes into force and the day this Regulation is filed.

Made by:
Pris par :

Le ministre des Richesses naturelles,

Mike Harris

Minister of Natural Resources

 

Date made: January 27, 2026
Pris le : 27 janvier 2026