The legislation, named”The Carbon Sequestration Tenure Regulation” allows companies to apply for evaluating potential CO₂ storage sites. The tenure process will follow the same model that is applied for evaluating natural gas and oil fields, the government of Alberta says in an official statement.

This legislative action provides a blueprint for evaluating potential CO₂ storage sites. First companies must obtain surface rights, then a well license, and lastly the additional approval for commercial scale storage.

The main features of the new act are:

– Establishing a five-year evaluation permit to determine storage site suitability

– Establishing a 15-year sequestration lease for longer term commercial needs

– Requiring permit and lease holders to submit monitoring, measurement and verification plans which must be approved by the Minister and updated every three years

– Outlining the requirements for closure plans and requiring lease holders to submit closure plans which must be approved by the Minister and updated every three years

– Setting annual rental rates of one dollar per hectare and application fees of C$625 for both permits and leases

– Setting the minimum carbon dioxide injection depth at one kilometer

– Setting the maximum area for permits and leases at 73,728 hectares (eight townships).