Oil and Gas – Orphan Wells
In accordance with Part 11 of the Oil and Gas Conservation Act and Directive 024: Large Facility Liability Management Program (LFP), the AER is prescribing an LFP orphan fund levy of $3.5 million for the 2021/22 fiscal year, to be issued in September of 2021. The levy will be allocated proportionately among licensees with facilities based on the facility-specific liability assessment. It will support the closure costs for large facilities in the LFP with licenses held by defunct licensees. Funds collected by the LFP orphan fund levy will go solely to cleaning up LFP facilities of defunct licensees.
LFP orphan fund levy invoices will be emailed by September 16, 2021, and must be paid in full by the licensee and received by the AER by October 15, 2021.
