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 $6 million for the 2022/23 fiscal year to be issued in April of 2022. 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 toward cleaning up LFP facilities of defunct licensees.
