The AER requested feedback on a proposed new directive regarding licensee life-cycle management. The directive supports the Government of Alberta’s new Liability Management Framework. The AER noted that the proposed directive and comment form are available on the AER website. Feedback will be accepted through Sunday, July 25.
Directive XXX: Licensee Life-Cycle Management
Every energy resource development project has a life-cycle consisting of four stages: initiate, construct, operate, and close; liabilities need to be managed throughout. The AER announced that this directive:
introduces a holistic assessment of a licensee’s capabilities and performance across the energy development life-cycle, which will be supported by the licensee capability assessment (“LCA”) system;
introduces the Licensee Management Program, which outlines how licensee management will occur across the energy development life-cycle;
introduces the Inventory Reduction Program, which sets mandatory closure spend targets for closure activities and spends by licensees;
updates application requirements related to the licence transfer process; and
describes security collection under the directive.
Directive 006 Changes
Changes would be made to Directive 006 in phases while the AER transitions to the programs outlined in the new directive. In this first phase, requirements around licence transfer applications will be moved from Directive 006 to the new directive once finalized. Subsequent phases will include additional changes to Directive 006 and other AER directives related to liability management to align with the new Liability Management Framework.