OIL AND GAS CONSERVATION RULES AMENDMENT REGULATION
For information only: Made by the Alberta Energy Regulator on June 18, 2020
pursuant to section 10 of the Oil and Gas Conservation Act.
1 The Oil and Gas Conservation Rules (AR 151/71) are
amended by this Regulation.
2 Section 3.071(1) and (2) are repealed and the following is
substituted:
Application for Determination of Costs
3.071(1) An application under section 30(2) of the Act
(a) for a determination of the costs of providing reasonable care
and measures to prevent impairment or damage, suspension
costs, abandonment costs, remediation costs or reclamation
costs for a well, facility, well site or facility site, and
(b) for the allocation of the costs in clause (a) to each working
interest participant in accordance with its proportionate share
in the well or facility
made by a person who conducted the work where ordered or directed
by the Regulator must be made in accordance with this section.
(2) Unless otherwise directed by the Regulator, an 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 well, facility, well site or facility site that has been
provided with reasonable care and measures to prevent
impairment or damage,
(ii) the well, facility, well site or facility site that has been
suspended or abandoned, or
(iii) the well site or 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 well or 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 for which the
application is being 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 well, facility, well site or 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 well, facility, well
site or 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 well site or facility site,
or
(iv) reclamation, a statement that a reclamation certificate
has been issued for the well site or facility site and that
provides the number of the reclamation certificate
issued for the well site or facility site,
and
(g) any other information required by the Regulator.
(3) An application for a determination of costs under subsection
(2)(f)(i) or (iii) may be made only after the abandonment or
remediation work is completed, unless otherwise permitted by the
Regulator.
3 Section 16.541(1) and (2) are repealed and the following
is substituted:
Application for Payment
from Orphan Fund
16.541(1) An application under section 70(1) of the Act for payment
from the orphan fund of a defaulting working interest participant's
share 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 well, facility, well site or
facility site incurred by the working interest participant who carried
out the work must be made in accordance with this section.
(2) An 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 well, facility, well site or facility site that has been
provided with reasonable care and measures to prevent
impairment or damage,
(ii) the well, facility, well site or facility site that has been
suspended or abandoned, or
(iii) the well site or 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 well or 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 for which the
application is being 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 well, facility, well site or 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 well, facility, well
site or 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 well site or facility site,
or
(iv) reclamation, a statement that a reclamation certificate
has been issued for the well site or facility site and that
provides the number of the reclamation certificate
issued for the well site or facility site,
(g) a request that the Regulator deem a working interest
participant to be a defaulting working interest participant in
accordance with section 70(2)(b)(iii) of the Act,
(h) a summary of the steps taken to collect the costs from the
defaulting working interest participant, and
(i) any other information required by the Regulator.
(3) An application for payment under subsection (2)(f)(i) or (iii) may
be made only after the abandonment or remediation work is completed,
unless otherwise permitted by the Regulator.