Regulatory framework

The Petroleum and Natural Gas Act (PNGA) provides the authority to the Ministry of Energy, Mines and Low Carbon Innovation (EMLI) to issue carbon storage rights to subsurface storage in the form of a storage reservoir exploration licence or a storage reservoir licence. Some carbon storage can also be undertaken under the authority of a petroleum and natural gas (PNG) lease. A carbon storage licence or PNG lease is required before operators can develop a storage reservoir for the purpose of advancing a CCUS project.

Guide to Aquire Storage Reservoir Exploration Licences and Storage Reservoir Licences explains how proponents can pursue storage through a licence. The Ministry has also posted an information letter about the amendments to the Petroleum and Natural Gas Storage Reservoir Regulation made in 2023. These amendments include the removing of restrictions on who can apply for a storage reservoir licence.

Successful approval orders and information on past storage and disposal approvals under PNG leases can be found on the BCER Approvals page.

The Ministry’s page on Storage Reservoir lists current storage reservoir licences applications and their status.

Under the Energy Resource Activities Act (ERAA), permits or orders are required for storage reservoir activities. The British Columbia Energy Regulator (BCER) regulates and issues these permits or orders. The BCER performs the role of a single regulator for projects. The BCER’s Carbon Dioxide Storage Application Guide provides further information about the application process for these permits and orders.

Engagement process for CCUS projects

Licences

Proponents pursing rights to the subsurface for carbon storage under a storage reservoir exploration licence or storage reservoir licence submit an application for a licence to EMLI’s staff. If the request has passed the Ministry’s internal review, information on the licence is sent out as a referral to gather information from potentially impacted First Nations, Provincial agencies and local governments and discuss any concerns raised. At the end of the referral period, all comments are assessed and inform the decision regarding the storage reservoir. The Consulting with First Nations webpage has more detailed information about the engagement process for natural resource stewardship.

PNG leases

Tenure for subsurface rights follow a specific engagement process involving pre-tenure review when information from provincial agencies, local governments and First nations are gathered. Information on the tenure process for PNG leases can be found on the Ministry’s website for Petroleum & Natural Gas Tenure.

Activities

Once a project proponent is granted tenure, the proponent must seek approval for any activities related to the storage reservoir through the BCER. Before entering the permitting process, project proponents are required to engage with local First Nations, landowners, municipalities and local governments about the proposal. Engagement continues throughout the activity permitting process and project proposal. How We Regulate | BC Energy Regulator (BCER) (bc-er.ca) shares more information about the engagement process for permitting of projects.