Carbon Capture and Storage in Alberta: Learning from the Acid Gas Disposal Analogy

Abstract

There is a growing interest both globally and in western Canada in the capture and geological storage of carbon dioxide as a possible mechanism to help parties meet the stabilization objective of the Framework Convention on Climate Change and the quantified emission limitations of the Kyoto Protocol. Carbon capture and storage (CCS) envisages that CO2 will be captured from large final emitters (LFEs) and injected into a target formation. The widespread adoption of CCS will require the resolution of uncertainties in the areas of property, regulatory and liability. This paper uses acid gas disposal (AGD) as an analogy to explore the uncertainties in implementing CCS. The article begins by describing AGD and then moves to consider each of the property, regulatory and liability issues associated with this activity. It concludes with some preliminary reflections on Alberta’s AGD overall regulatory scheme and its adequacy.