Prohibition in Ontario on Using Carbon Dioxide for Enhanced Oil and Gas Recovery

  • February 11, 2015
  • Gray Taylor

CO2 Injection Prohibition

An unusual provision in ‎Ontario's Oil, Gas and Salt Resources Act (OGSRA) is Section 11, which, in Subsection 11(1.1), introduces a prohibition on the injection of carbon dioxide (CO2) in connection with certain projects (the "CO2 Injection Prohibition"). Section 11 reads as follows:

Permit Required for Injection Project

11.  (1)  No person shall, unless the person is the holder of a permit for the purpose, inject oil, gas, water or another substance into an area, including a geological formation, in connection with a project for,

(a) enhancing the recovery of oil, gas, formation water or another substance;
(b) injecting, storing or withdrawing oil, gas or another approved substance; or
(c) disposing of oil field fluid. 2010, c.16, Sched.10, s.3 (4).

Prohibition Re Carbon Dioxide

(1.1)  Despite subsection (1), no person shall inject carbon dioxide for the purposes of carbon sequestration into an area, including a geological formation, in connection with a project described in that subsection. 2010, c. 16, Sched. 10, s. 3 (4).