Energy infrastructure runs deep in Alberta, and so do the rules that govern it. Alberta’s Pipeline Act (the Act) and Pipeline Rules (the Rules) set out who can build a pipeline, how it must operate, and what happens when it eventually comes out of service. Getting them wrong can cost several thousands of dollars for a corporation or an individual.
What do Alberta’s Pipeline Rules cover?
The Pipeline Rules came into force on November 15, 2023 and were most recently amended by Alberta Regulation 8/2026. This regulation covers the licensing, design, construction, operation, and maintenance of energy industry pipelines, as well as discontinuance, abandonment, removal, and resumption of operations.
The Alberta Energy Regulator (AER) enforces the Rules, along with other several laws and regulations.
What the Pipeline Rules do
In sum, the Rules address the following:
- licensing and eligibility: applicants must meet AER Directive 067 requirements and hold a valid identification code under the Oil and Gas Conservation Act (s.6, Pipeline Rules; s.22, Pipeline Act)
- design and materials: minimum standards for design, materials, construction, and commissioning are set by CSA Z662, as published by the Canadian Standards Association (s.18, Pipeline Rules)
- pressure testing: before entering service, every new or modified pipeline must pass a pressure test, where the minimum is 700 kilopascals (kPa); for gas pipelines carrying more than 10 moles of hydrogen sulphide per kilomole of natural gas, the minimum rises to 1.4 times the maximum operating pressure (s.38, Pipeline Rules)
- warning signs: these are required at all highways, roads, railways, and waterway crossings, and at regular intervals in urban areas for pipelines carrying high vapour pressure (HVP) products, carbon dioxide, or hydrogen (s.53, Pipeline Rules)
- emergency response: since 2026, every licensee must develop and submit a corporate Emergency Response Plan (ERP) to the AER; if required by Directive 071, an operation-specific ERP must also be submitted for approval (ss.11.1, 11.2, Pipeline Rules)
Not all pipelines are covered
Some pipelines fall outside the Rules entirely. Exemptions include:
- pipelines wholly within a facility surface lease (regardless of length)
- natural gas pipelines at 700 kPa or less supplying oil and gas or oil sands facilities from a distribution company
- temporary surface pipelines used only for water conveyance
The Rules expire on January 31, 2031, at which point the AER must review and, if appropriate, repass them.
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Who regulates pipelines in Alberta?
The AER is the primary authority for most Alberta pipelines under the Pipeline Act. Its mandate covers the economic and orderly development of pipeline facilities, safe construction and operation practices, and environmental protection (s.4, Pipeline Act).
However, jurisdiction over pipelines in Alberta is not the AER’s alone:
- Alberta Utilities Commission (AUC) holds authority over gas utility pipelines, exercising all the powers and duties that would otherwise sit with the AER for those pipelines (s.3.1, Pipeline Act)
- pipelines that cross provincial or national boundaries fall outside the Pipeline Act entirely; federal jurisdiction under the Canada Energy Regulator Act applies to these kinds of pipelines
What the AER can do
Under the Pipeline Act, the AER can:
- grant, amend, suspend, cancel, or regrant a pipeline licence
- prescribe the exact route of a pipeline
- direct a licensee to alter or relocate a pipeline in the public interest
- order discontinuation or abandonment
- register its cost orders as judgments of the Court of King’s Bench of Alberta for enforcement
The “no-appeal rule” of the AER
One notable rule that AER follows is provided by s. 15 of the Pipeline Act, otherwise known as the “no-appeal rule.” It states that the AER’s decisions on licence applications, cancellations, and suspensions are “final and there is no appeal from that decision.”
Learn more about the AER and how it regulates Alberta’s pipeline network with this video:
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What are the rules for ground disturbance in Alberta?
The Pipeline Act defines ground disturbance broadly, covering excavating, digging, trenching, plowing, drilling, tunnelling, blasting, and grading. Cultivation less than 45 centimetres below the surface is excluded from the definition (s.1(1)(j), Pipeline Act).
Rules on before ground disturbance begins
Before any ground disturbance starts, the person undertaking it must (s.32, Pipeline Act; ss.44, 45, Pipeline Rules):
- confirm whether a pipeline exists within the proposed area and within 30 metres of its perimeter
- identify the licensee of any pipeline in that area
- notify Utility Safety Partners (formerly Alberta One Call) at least 3 days and no more than 10 days before starting, excluding Saturdays, Sundays, and holidays
- contact the licensee directly if Utility Safety Partners cannot reach them
The 5-metre hand excavation rule on disturbances
When a ground disturbance approaches within 5 metres of a pipeline, all mechanical equipment must stop. The pipeline must then be exposed using hand excavation only, until it is positively identified and its position confirmed (s.51, Pipeline Rules). Hand excavation includes:
- manual tools,
- water or air jets with vacuum equipment, and
- any AER-approved alternatives
Once the pipeline is exposed, no mechanical equipment may operate within 0.6 metres of it or beneath it without direct supervision from a certified licensee representative.
Vehicles and backfilling
At least 24 hours’ notice must be given to the licensee before any exposed pipeline is backfilled (s.52, Pipeline Rules), and the licensee must inspect the section first.
Not all vehicles need the licensee’s consent to cross a pipeline outside a highway or public road. Notably, s.49 of the Rules exempts the following from this rule:
- agricultural vehicles
- vehicles designed to minimize ground pressure
- off-highway vehicles, as defined in the Traffic Safety Act
- commercial or private passenger vehicles with a nominal chassis rating of no more than 2 tonnes
When must an Alberta pipeline be abandoned?
The Pipeline Rules distinguish between discontinuation (temporary deactivation) and abandonment (permanent deactivation). Under s.71, any pipeline not in active flowing service for 24 months must be discontinued, abandoned, or returned to service, unless the AER authorizes otherwise.
What counts as active flowing service
As defined by the Rules, active flowing service covers:
- pipelines in continuous operation
- pipelines operating intermittently at regular, predictable intervals
- pipelines used periodically based on an established operational need
However, temporarily conveying substances for short periods outside regular operations does not qualify as active flowing service.
When abandonment of pipeline is compulsory
Certain events trigger mandatory abandonment under s.79 of the Rules. A licensee must abandon a pipeline when:
- its licence is suspended or cancelled for a contravention of the Act, the Rules, or an AER order
- the AER notifies the licensee that the pipeline may pose an environmental or safety hazard
- the licensee is not resident in Alberta, has no appointed agent, and holds no exemption
- the licensee, as a corporation, has been dissolved, struck, or declared inactive
- the associated well or facility has been abandoned and the pipeline serves no other purpose
- the licensee has disposed of its interest in the pipeline without an eligible transfer
- liability survives abandonment
As stated in s. 25 of the Pipeline Act, abandonment does not end a licensee’s responsibility for further work that later proves necessary. Unpaid AER cost determinations carry a 25 per cent penalty, and can be filed and enforced as court judgments.
Alberta’s Pipeline Rules: the rules run deep, too
Alberta’s Pipeline Rules reach further than the pipeline itself. They apply before construction starts, throughout a pipeline’s operational life, and long after it is permanently shut down. The obligations run deep, and so does the exposure for those who overlook them. For licensees, landowners, and counsel advising either, the Act and the Rules are the starting point for every pipeline compliance question in Alberta.
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