| HISTORY/BIOGRAPHICAL SKETCH: | Dates of Founding and/or Dissolution:
The Department of Energy was established by the Department of Energy Act (S.A. 1986, chapter D-18.1), which received assent September 12, 1986. This Act was repealed and superseded by the Government Organization Act, 1994 (S.A. 1994, chapter G-8.5).
Functional Responsibility:
The Department of Energy is responsible for managing Alberta's energy and mineral resources. These resources include oil, gas, oil sands, hydrogen, coal, mineral resources, and beginning in 1990, electricity. The Department of Energy encourages the development of these resources, while aiming to obtain a fair return of revenue for the province.
The Department of Energy is responsible for numerous activities which include: the disposition of mineral rights and the administration of mineral agreements, providing policy recommendations and advice on energy matters, administering revenue systems for energy resources, and administering energy-related research, development and conservation programs.
When established, the Department of Energy was divided into two main sectors, Energy Resources and Finance and Administration, each of which was divided into five divisions. Energy Resources consisted of Policy Analysis and Planning, Mineral Resources, Scientific and Engineering Services, Petroleum Incentive Programs and Legal Services; Finance and Administration consisted of Automated Information Systems, Mineral Revenues, Human Resources, Finance and General Services and Internal Audit. The Finance and Administration sector also served the Department of Forestry, Lands and Wildlife. In its second year, this organization underwent some minor divisional changes.
Reorganization in the spring of 1988 resulted in six divisions within the Department of Energy: Projects and Supply Development, Policy Analysis and Planning, Mineral Resources, Mineral Revenues, Scientific and Engineering Services and Research, and Finance and Administration. The following year, activities were further streamlined into four key divisions: Mineral Resources and Mineral Revenues remained, two new divisions were Sustainable Energy Development and Markets, Supply and Industry Analysis. Finance and Administration continued to be shared by the Department of Energy and the Department of Forestry, Lands and Wildlife. During the late 1980s, the environmental effects of energy production and use became an increasing concern, which resulted in the establishment of the Environmental Affairs Branch to review and develop energy-related environmental policy.
In January 1990, the responsibility for electricity policy was transferred to the Department of Energy from the Department of Transportation and Utilities. Included in this transfer was the reporting agency the Alberta Electric Energy Marketing Agency, operational since 1982, which was responsible for the Electric Energy Marketing Act, aimed at alleviating the cost differentials of electric energy in the northern and southern halves of the province. Responsibility for the Act was transferred from the Agency to the Department of Energy in July 1991, whereby the Department became responsible for the administration of Agency operations. Also in 1990, the administration of the Public Utilities Board Act and the Gas Utilities Act was transferred from the Attorney General to the Minister of Energy.
In February 1994, the Department of Energy underwent a major restructuring. Five new divisions were established: an Oil Sands and Research Division, incorporating the activities of the Alberta Oil Sands Technology and Research Authority and the Alberta Oil Sands Equity, a Policy Division, an Operations and Support Division, a Strategic Resources Division and an External Relations and Communications Division. Also at this time, the Energy Resources Conservation Board and the Public Utilities Board were amalgamated into the Alberta Energy and Utilities Board, a quasi-judicial regulatory authority. On March 1, 1995, the Alberta Geological Survey became part of the department; this was transferred to the Alberta Energy and Utilities Board the following year. The regulatory and analysis functions of the Alberta Petroleum Marketing Commission were absorbed into the Department of Energy. Responsibilities related to crude oil marketing remained with the Commission but were privatized in 1996. The Divisions were further altered during the 1995/1996 year, which resulted in four main divisions: Mineral Operations, Policy, Research and External Relations, and Corporate Services. In July 1998, the Department had three divisions, Corporate Services, Mineral Operations and Planning Development, and a number branches which reported to the Deputy Minister; these included Electricity, Communication, Internal Audit and Legal Services.
In 1998, the responsibility for Rural Utilities was transferred to the Department of Energy from the Department of Transportation and Utilities. These were transferred to the Department of Agriculture, Food and Rural Development in 2003.
The Northern Alberta Development Council was transferred to the Department of Energy from the Executive Council in May of 1999; the Council was subsequently transferred to the Department of Aboriginal Affairs and Northern Development in 2001. Government-wide reorganization in 1999 also resulted in the transfer to the Department of Energy of the Forest Industry Development Branch from the Department of Economic Development. As a result, the name of the Department was changed to the Department of Resources Development to better reflect its new responsibility. However, Forest Industry Development became part of the Department of Sustainable Resource Development in 2001, and the Department of Resource Development became the Department of Energy once again.
Most recently, the Department has been organized along commodity lines: Forest and Mineral Development, Gas and Alberta Markets, Oil Development, for 2001, but by 2002, the divisions had become Mineral Development Division, Gas and Electricity Division, and Oil Development Division, along with Policy, Planning and External Relations and a Communications Branch.
The focus of the Department has nevertheless remained for the most part consistent. As described in the Department of Energy's 2001-04 Business Plan, they are responsible for securing Alberta's share and benefits from energy and mineral resource development, ensuring the competitiveness of Alberta's energy and mineral resources, developing and communicating related policies, and ensuring a choice of reliable and affordable energy.
The Department of Energy inherited from the Department of Energy and Natural Resources the Alberta Petroleum Marketing Commission, the Alberta Oil Sands Research and Technology Authority, and the Alberta Oil Sands Equity, an unincorporated agency that oversaw the government's investment in the Syncrude Project, as its reporting agencies. The Alberta Oil Sands Research and Technology Authority and the Alberta Oil Sands Equity became part of the Oil Sands and Research Division in 1994. The Alberta Oil Sands Technology and Research Authority resumed its agency status shortly thereafter and in February 1999 was transferred to the Department of Science, Research and Information Technology (which later became the Department of Innovation and Science). The Petroleum Marketing Commission continues to exist, though some functions were transferred to the Department of Energy and others privatized.
In January of 2008 the Ministry described five core businesses: Securing Benefits for Albertans; Resource Development; Energy for Albertans; Regulation of Energy Development by the Energy Resources Conservation Board; Regulation of Utility Development by the Alberta Utilities Commission. Also in January of 2008, the Alberta Energy and Utilities Board was split into the Energy Resources Conservation Board and the Alberta Utilities Commission, 2 quasi-judicial regulatory authorities.
Predecessor and Successor Bodies:
The Department of Energy's immediate predecessor was the Department of Energy and Natural Resources. This department was created in 1975 and split in1986 to form the Department of Energy and the Department of Forestry, Lands and Wildlife. Prior to that, the first provincial department to administer energy resources was the Department of Lands and Mines, formed in 1930, and split in 1949 into the Department of Lands and Forests and the Department of Mines and Minerals. These two departments merged in 1975 to form the Department of Energy and Natural Resources. On March 19, 2001, some functions of the Department of Energy were transferred to the newly established Department of Sustainable Resource Development.
Administrative Relationships:
The Department of Energy reports to the Minister of Energy. The Minister of Energy is a member of the Executive Council of the Alberta Government.
Administrative Structure:
The structure of the Department of Energy is hierarchical. The Department was initially divided into two sectors: Energy Resources and Finance and Administration. These were soon divided into divisions; soon the divisions became the main organizing factor of the Department. The divisions were then divided into branches. These divisions and branches have been continually reorganized throughout the existence of the Department. The divisions have been divided along commodity lines and core functions.
Names of the Corporate bodies:
On May 26, 1999 Department of Energy became known as the Department of Resource Development, to better reflect its responsibilities when forestry industry development was added to the Department. However, on March 15, 2001 the name reverted to the Department of Energy. The Department of Energy and the Department of Resource Development were also referred to as Alberta Energy and Alberta Resource Development.
Names of Chief Officers:
Ministers of Energy:
John B. Zaozirny (1986)
Neil Webber (1986-1989)
Rick Orman (1989-1992)
Patricia L. Black (1992-1997)
Stephen C. West (1997-1999)
Ministers of Resource Development:
Stephen C. West (1999-2000)
Mike Cardinal (2000-2001)
Ministers of Energy:
Murray D. Smith (2001-2004)
Greg Melchin (2005-2006)
Mel Knight (2007-)
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