By: Drew Yewchuk
PDF Version: The AER Announces Some Details of the Mandatory Closure Spend Targets
Legislation Commented On: AER Bulletin 2021-22 ‘Invitation for Feedback on Proposed New Licensee Life-Cycle Management Directive’; AER Bulletin 2021-23 ‘Mandatory Closure Spend Targets’
This is another post on the changes the Alberta Energy Regulator (AER) is making to the Liability Management Framework for conventional oil and gas assets. The earlier post I co-authored with Shaun Fluker on the problems with the liability management framework and the changes being made to it (and specifically the changes to the Eligibility Requirements for Acquiring and Holding Energy Licences and Approvals) is here. The AER is now seeking comments on Draft Directive XXX: Licensee Life-Cycle Management (the Draft Directive) until July 25, 2021. The Draft Directive will replace the current Directive 006 once finalized. This post discusses the Draft Directive and the details of the inventory reduction program first announced a year ago.