TransAlta sues Alberta government to prevent oilpatch fracking near hydro dam

Calgary-based electricity producer TransAlta Corp. is suing the Alberta government and the Alberta Energy Regulator to prevent oil and gas companies from fracking near its largest hydroelectric dam in the province because the technique can cause earthquakes.

The court action, which was filed in September in the Court of King's Bench of Alberta, takes place as two oil and gas companies have applied to frack within five kilometres of the dam.

TransAlta is concerned about possible seismic activity causing damage to the Brazeau power plant, near Drayton Valley in central Alberta, as well as the loss of wildlife, habitat and human life.

The company points to an agreement from the 1960s, when the Brazeau Hydroelectric Dam was built, which states that TransAlta should "peacefully enjoy and possess the premises" without any "interruption or disturbance from the province, or any other person."

TransAlta also refers to a section of the Brazeau Agreement, which states that the provincial government had agreed not to allow oilpatch activity that will restrict or interfere with the power plant.

In court documents, the company said the province "has not developed, implemented or enacted any clear policy directives that will protect the Brazeau Storage and Power Development from "unacceptable" risks posed by hydraulic fracturing in close proximity."

The case highlights a growing debate in the scientific community about the risk of earthquakes posed by fracking.

Fracking is a common technique in the oilpatch. When drilling an oil or natural gas well, a high-pressure mixture of water, sand and chemicals are injected into an underground rock formation to create cracks and access the hydrocarbons. The injection of those fluids has the potential to cause earthquakes.

There have been thousands of documented cases of fracking activity causing earthquakes in North America, including in Alberta and British Columbia.

The Brazeau power plant is located about 200 kilometres southwest of Edmonton.

Fracking activity is currently not permitted within three kilometres of the power plant. However, the Alberta Energy Regulator (AER) does allow fracking between three and five kilometres in certain instances based on several factors, such as a review of the risk, the potential for seismic events and mitigation measures.

Westbrick Energy Ltd. and Ridgeback Resources Inc. both want to frack in the three-to-five-kilometre zone. A 10-day hearing is scheduled for the first half of 2023.

A 2016 technical report by a government committee stated that there was "unacceptable risk associated with hydro-fracture induced seismicity to the ... Brazeau infrastructure within the five-kilometre buffer zone."

However, a followup report in 2021 stated that "an action to reduce the risk is clearly necessary if the risk is unacceptable, which appears not to be the case."