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Background high-quality geothermal resources is very different from low-medium geothermal resources that use other technologies. The economics of a project are affected by the drilling depth in order access the geothermal heat. The risk of geothermal projects can be reduced over time with improvements in technology. While technology is well-established for accessing high-quality geothermal resources, recent advances in technology are creating more opportunities for heat and power production from resources with low temperatures or limited water flow. 2.4 Overview of regulatory framework in the NWT Although the legislative framework exists for energy and natural resource management in the NWT, there is currently no geothermal-specific legislative framework. The regulatory requirements would depend on whether a geothermal energy project is located on Crown lands, municipal lands or privately owned lands (including Aboriginal land), as well as the nature of project activities. Government policies and regulations are required for a number of stages of energy development. These stages are described in Table 1 with examples of the policies needed for each stage. Table 1. Stages of development of energy development and associated government policies and regulations Stage of development Example of policy/ regulation Regional planning Disposition of subsurface resources Permitting for exploration and drilling Development, operations and royalties 2.4.1 Regional planning Energy strategy/policy, land use planning, strategic environmental assessment Tenure issuance/bidding process Exploration/ drilling permit, water permit Environmental impact assessment, development permit, royalty fees In NWT, regional planning is completed by land use planning boards, as mandated by the Mackenzie Valley Resource Management Act. These boards develop land use plans that designate areas for protection, special management (where some development is allowed with conditions), and general zones where development is allowed. In addition, land may be nominated for protection under the Protected Area Strategy. There is an approved land use plan in the Gwich’in Settlement Area and planning processes are underway in the other regions.25 25 Northwest Territories Environment and Natural Resources, “Protected Areas & Land Use Plans,” State of the Environment Report 2010 (2010). The Pembina Institute 16 Building a regulatory framework for geothermal development in the NWTPDF Image | geothermal energy development in the NWT
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