Alberta's Mature Asset Strategy (MAS)
Alberta Municipalities collaborated with the Rural Municipalities of Alberta (RMA), representatives from the energy industry, landowners, Indigenous organizations and the provincial government to provide input to the provincial government’s Mature Asset Strategy (MAS).
The Government of Alberta has published a report containing a number of recommendations that can be found on its website.
The MAS is a comprehensive initiative aimed at addressing the challenges and opportunities associated with Alberta's aging oil and gas infrastructure. This strategy is particularly relevant to municipalities, as it outlines key recommendations and actions that will directly affect municipalities across Alberta, as well as opportunities for local governments to collaborate with the energy industry and the provincial government to find innovative solutions.
One of the primary concerns highlighted in the MAS is the issue of municipal taxes and rising costs for energy producers. The strategy proposes a collaborative approach to establish a rapid and transparent process for addressing late or non-payment of municipal taxes. This involves municipalities notifying Municipal Affairs of non-payment cases, which are then verified and communicated to the Alberta Energy Regulator (AER). The AER will promptly contact the non-paying licensee, ensuring that the issue is quickly addressed.
The MAS also recommends reconstituting the Surface Rights Board (SRB) within the Land and Property Rights Tribunal (LPRT) to enhance service delivery, educate landowners on their rights, and simplify engagement processes. It also explores economic opportunities for municipalities, particularly in regions where oil and gas production have declined in recent years, but significant assets remain in operation.
One key recommendation is to form a working group to review and scope the potential for repurposing central and southeastern Alberta's gas transmission infrastructure. This initiative aims to add value to natural gas and repurpose wellbores for alternative energy applications, such as geothermal heat and lithium extraction. Furthermore, the strategy encourages collaboration between industry, municipalities, and Municipal Affairs to investigate or develop economic growth opportunities based on rural energy projects.
Alberta Municipalities was pleased to contribute to discussions around the development of the MAS. The strategy provides a road map to transform Alberta's approach to mature asset management by fostering collaboration, adopting innovative financial and policy solutions, and pursuing economic opportunities, so that Alberta can address its closure liabilities while positioning itself as a global leader in responsible resource development.
Further discussions between the provincial government, municipalities and industry are needed to ensure that the impacts of hosting oil and gas infrastructure in municipalities are clearly understood. For more information on the MAS, check out the online report.
