OIL AND GAS CONSERVATION RULES (ORPHAN FUND LEVY) AMENDMENT REGULATION
Oil and Gas Conservation Act
July 29, 2021
161/2021
For information only: Made by the Alberta Energy Regulator on June 22, 2021 pursuant to section 73 of the Oil and Gas Conservation Act. 1 The Oil and Gas Conservation Rules (AR 151/71) are amended by this Regulation. 2 The following is added after section 16.520: 16.521 All large facilities constitute one class for the purpose of determining the orphan fund levy for large facilities under this Part. 3 The following is added after section 16.530: 16.531(1) For the 2021-2022 fiscal year of the Regulator, the orphan fund levy for large facilities payable by a licensee of a large facility is calculated in accordance with the following formula: Licensee's share of levy = A x $3 500 000 B where A is the sum of the licensee's deemed liability on September 4, 2021 for all of its large facilities within the Large Facility Liability Management Program, and B is the deemed liability on September 4, 2021 for all the large facilities within the Large Facility Liability Management Program less the liability of any large facilities licensed to a defunct licensee referred to in Directive 024. (2) For the purposes of subsection (1), "deemed liability" means the current cost estimate to suspend, abandon, remediate and reclaim based on the most recent site-specific liability assessment accepted by the Regulator. (3) The Regulator shall give a notice to the licensee of a large facility to pay the orphan fund levy and the licensee shall pay the amount not later than the 30th day following the mailing date shown on the notice. (4) Unless the Regulator directs otherwise, a licensee of a large facility who fails to pay the orphan fund levy by the date referred to in subsection (3) must pay to the Regulator a penalty in an amount equal to 20% of the levy, which is payable on the day following the 30-day period referred to in subsection (3). 4 The following is added after section 16.541: 16.542(1) An application under the Act for payment from the orphan fund for large facilities of a defaulting licensee's share, and a defaulting licensee's proportionate share of any subsequently defaulting working interest participant's share, if applicable, of the costs in providing reasonable care and measures to prevent impairment or damage, suspension costs, abandonment costs, remediation costs or reclamation costs for a large facility or large facility site incurred by the working interest participant who carried out the work must be made in accordance with this section. (2) The application referred to in subsection (1) must include (a) the applicant's full legal name, business address, telephone number, email address and the name of a contact person for the applicant, (b) the legal description and licence number of (i) the large facility that has been provided with reasonable care and measures to prevent impairment or damage, (ii) the large facility site that has been suspended or abandoned, or (iii) the large facility site that has been remediated or reclaimed, (c) a complete list, totalling 100 per cent of the working interest, of the working interest participants in the large facility at the time the costs were incurred, (d) each working interest participant's full legal name, last known business address, telephone number and email address, the name of a contact person for each working interest participant and the proportionate share of the costs for each working interest participant, including the licensee of the large facility, for which the application is made, (e) a detailed description of the total costs incurred in the provision of reasonable care and measures to prevent impairment or damage or in the work of suspension, abandonment, remediation or reclamation, supported by receipts for the costs incurred and for salvage revenue, if any, (f) in the case of a determination of costs for (i) the provision of reasonable care and measures to prevent impairment or damage, a statement that (A) the provision of reasonable care and measures in respect of the large facility site was carried out in accordance with the Regulator's rules and other requirements, and (B) the Regulator's records have been updated to reflect the work performed, (ii) suspension or abandonment, a statement that the suspension or abandonment of the large facility or large facility site has been completed and was carried out in accordance with the Regulator's rules and other requirements and that the Regulator's records have been updated to reflect the work performed, (iii) remediation, a statement (A) that an environmental site assessment has been completed in accordance with the applicable requirements and that the Regulator's records have been updated to reflect the work performed, or (B) that provides the number of the remediation certificate issued for the large facility site, or (iv) reclamation, a statement that a reclamation certificate has been issued for the large facility site and that provides the number of the reclamation certificate issued for the large facility site, (g) a request that the Regulator deem a licensee of a large facility to be a defaulting licensee in accordance with section 70(2)(b.1) of the Act, (h) a request that the Regulator deem a working interest participant of a large facility with a defaulting licensee to be a defaulting working interest participant in accordance with section 70(2)(b) of the Act, if applicable, (i) a summary of the steps taken to collect the costs from the defaulting licensee and any defaulting working interest participant, and (j) any other information required by the Regulator.