OIL AND GAS CONSERVATION RULES (ORPHAN FUND LEVY) AMENDMENT REGULATION
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.