Category: Oil & Gas Page 2 of 54

Matter Commented On: Minister of Energy and Minerals, Ministerial Order 096/2024, Direction on Municipal Tax Requirements for Approving Licences

PDF Version: The Replacement Ministerial Directive on Well Transfers and Outstanding Municipal Taxes

On August 26, 2024, Minister of Energy and Minerals Brian Jean signed Ministerial Order 096/2024 (M.O. 096/2024), a direction to the Alberta Energy Regulator (AER) pursuant to section 67 of the Responsible Energy Development Act, SA 2012, c R-17.3 (REDA). M.O. 096/2024 replaces a previous ministerial order from March 2023, with the most significant change being that the AER is now enabled to approve transfers of oil and gas licenses out of the inventories of bankrupt companies so long as the transferee owes less than $20,000 in municipal taxes.

The Liabilities Go Up and the Security Stays the Same: The Oilsands Mine Financial Security Program in 2024

By Drew Yewchuk

On October 4, 2024

In Energy, Oil & Gas

By: Drew Yewchuk and Martin Olszynski

Documents Commented on: Mine Financial Security Program – Security and Liability (2024); Annual Mine Financial Security Program Submissions 2024 Submissions for 2023 Reporting Year

PDF Version: The Liabilities Go Up and the Security Stays the Same: The Oilsands Mine Financial Security Program in 2024

This is our annual update post in response to the Alberta Energy Regulator (AER) posting the annual submissions for the Mine Financial Security Program (MFSP). The MFSP is ostensibly Alberta’s system for obtaining financial security for the closure of oilsands and coal mines. See last year’s post here, and a lengthy discussion of the problems with the MFSP in our 2023 paper coauthored with Andrew Leach, “Not Fit for Purpose: Oil Sands Mines and Alberta’s Mine Financial Security Program”.

Administrative Penalties at the Alberta Energy Regulator: Regulatory Penalties for the Kearl Oilsands Leak

By Drew Yewchuk

On September 4, 2024

In Administrative Law, Energy, Oil & Gas

By: Drew Yewchuk

Decisions Commented On: AER Notice of Administrative Penalty 202408-009, AER Administrative Sanction 202408-010, and AER News Release 2024-08-22

PDF Version: Administrative Penalties at the Alberta Energy Regulator: Regulatory Penalties for the Kearl Oilsands Leak

On August 22, 2024, the Alberta Energy Regulator (AER) issued notice of administrative penalty 202408-009 (penalty decision) and administrative sanction 202408-010 (administrative sanction) (together, the ‘enforcement decisions’) imposing terms and conditions to Imperial Oil Resources Limited (Imperial Oil). The AER also issued a news release about these two enforcement actions. This post assesses the AER’s enforcement decisions and the justifications provided for them.

The Alberta Energy Regulator’s Planned Timelines for Orphan, Inactive, and Decommissioned Oil and Gas Infrastructure

By Drew Yewchuk

On August 16, 2024

In Energy, Oil & Gas

By: Drew Yewchuk

Regulatory Memo Commented On: Orphan Well Association Annual Report 2023/2024 and AER Bulletin 2024-19, Industry-Wide Closure Spend Requirement for 2025

PDF Version: The Alberta Energy Regulator’s Planned Timelines for Orphan, Inactive, and Decommissioned Oil and Gas Infrastructure

In the past few weeks, the Orphan Well Association (OWA) released their 2023/2024 annual report and the Alberta Energy Regulator (AER) announced the 2025 closure spend requirement. This post assesses the OWA’s plan for the closure of the orphan inventory and the AER’s plan for closure of inactive and decommissioned infrastructure. When does the AER plan for the OWA to complete the closure of the orphan inventory and when does the AER plan for industry to finish decommissioning and reclaiming (or posting security for) Alberta’s inactive and decommissioned oil and gas infrastructure? Target closure dates can be determined by extrapolating from the current orphan fund levy and the closure spend requirement and the estimated total costs of closure.

The Problem with Industry Control of the OWA, and OWA Control of Oil and Gas Insolvency

By Drew Yewchuk

On July 9, 2024

In Oil & Gas

By: Drew Yewchuk & Shaun Fluker

Regulatory Memo Commented On: Internal Alberta Energy Regulator Memorandum, Unintended Consequences of Ministerial Order 043/2023 in Insolvency April 11, 2024

PDF Version: The Problem with Industry Control of the OWA, and OWA Control of Oil and Gas Insolvency

The focus of this post is an internal memorandum written by the Alberta Energy Regulator (AER) Orphaning and Insolvency team: the AER Memorandum on Unintended Consequences of Ministerial Order 043/2023 in Insolvency (the Unintended Consequences Memo). We describe a regulatory problem with potentially serious consequences for municipalities and the public that has not been disclosed to the public by the AER. The Unintended Consequences Memo was obtained in records obtained by the Faculty’s Public Interest Law Clinic in its ongoing closure liabilities access-to-information project under the Freedom of Information and Protection of Privacy Act, RSA 2000, c F-25 (FOIP).