Oil and Gas – Rates
With this bulletin, and in accordance with Part 11 of the Oil and Gas Conservation Act (“OGCA”), the AER prescribed an Orphan Fund Levy in the amount of $135 million.
The Government of Alberta approved this levy to fund the Orphan Well Association’s operating budget for the 2023/24 fiscal year. The AER will allocate the levy among licensees and approval holders included within the Licensee Liability Rating and Oilfield Waste Liability programs (collectively, the “levy payee(s)”). Allocation will be based on the levy payee’s April 1, 2023, liability management rating assessment.
If no invoice is received by April 4, 2023, the levy payee must contact the AER to request a copy. Failure to pay the full invoiced amount by May 4, 2023, will result in a penalty of 20 percent of the original invoiced amount. Additional compliance measures may also be applied, such as the issuance of a corporate-wide closure order. The information regarding non-payment of debt may be used in a licensee capability assessment. An appeal may be filed pursuant to s. 76 of the OGCA. However, even if an appeal is filed, payment in full of the original invoiced amount is required, and the AER will refund any overpayment resulting from a successful appeal.
