Beaver County bitcoin mining permit upheld by land tribunal after noise concerns

A bitcoin mining operation has been allowed to keep its development permit after concerns were raised about noise pollution.

The Beaver County project by Calgary-based MAGA Energy proposes two sea can containers of computers powered by four generators drawing from a natural gas well on site. The computers would operate 24 hours a day, seven days a week, running data algorithms to create cryptocurrency.

The facility would be located on a rural property 55 kilometres southeast of Edmonton.

The Beaver County Development Authority approved a development permit for the project. Notifications from MAGA were sent to property owners within 1,500 metres and nine adjacent owners by the development authority but no concerns were raised as a result.

However, a property owner beyond the notification area appealed the approval. Noise from an existing similar development 600 metres from the owner was creating a nuisance and they were concerned the proposed development would cause similar problems.

The Alberta Utilities Commission sets out permissible sound levels depending on population density and proximity to transportation, ranging from 40 to 60 decibels. The appellant argued the permissible sound level of 40 dB is excessive in a rural area and a lower limit should be used.

A Dec. 20 decision from the Alberta Land and Property Rights Tribunal upheld the permit approval.

“The predicted noise level of the generators is substantially below the threshold set by the AUC. No evidence was presented to suggest otherwise,” it reads.

“The generators incorporate some noise reduction features in their design, and additional mitigation features can be added if required.”

According to submissions from MAGA, the theoretical noise levels for eight residents ranged from around 19 to 25 dB.

The permit approval included a number of conditions, including around monitoring and potential sound mitigation. The project is also subject to Beaver County noise control bylaw.

During the appeal, the development authority reconsidered its position and was concerned about potential inaccuracies in noise calculations. It submitted revised conditions for consideration, including a new condition for the permit to be temporary for 18 months.

The well is projected to support natural gas to the generators for two to three years.

The tribunal added one condition: a five-year time limit.

The tribunal found that the five-year time limit would allow MAGA to “exhaust the resource in their estimated time frame,” and would enable the development authority to look at the operation’s impact.

The tribunal noted MAGA is still responsible for all other applicable permits and approvals required for the project from the appropriate authorities.