In this Bulletin, the AER announced that it is prescribing an orphan fund levy in the amount of $15 million.

The Orphan Well Association (“OWA”), Canadian Association of Petroleum Producers (“CAPP”), and Explorers and Producers Association of Canada (“EPAC”) approved a $30 million orphan fund levy to fund the OWA’s budget for fiscal year 2017/18. This total levy is to be collected through two separate levies. The AER will collect the initial levy of $15 million in March 2017 and the second levy of $15 million in September 2017.

The AER explained that it will allocate the year’s first orphan fund levy among licensees and approval holders included within the Licensee Liability Rating (“LLR”) and Oilfield Waste Liability (“OWL”) Programs based on the February 2017 monthly assessment.

Levy Formula

Each licensee or approval holder included within the LLR and OWL Programs will be invoiced for its proportionate share of the orphan fund levy in accordance with the following formula:

Each licensee’s or approval holder’s required orphan fund levy is based on its licensed and approved properties, according to AER records, as of February 4, 2017. Facilities included under the Large Facility Liability Management Program are excluded.