Oil and Gas – Abandonment
The Government of Alberta approved a levy of $135 million to fund the Orphan Well Association’s (“OWA”) operating budget for the fiscal year 2024/25. As a result, the AER prescribed an orphan fund levy of $135 million. The AER will allocate the orphan fund levy among licensees and approval holders included within the Licensee Liability Rating (“LLR”) and Oilfield Waste Liability (“OWL”) programs based on the April 2024 liability management rating assessment.
All orphan fund levy invoices must be paid in full by the licensee or approval holder and received by the AER by May 10, 2024. Failure to pay the full invoiced amount by May 10, 2024, will result in a penalty of 20 per cent of the original invoiced amount assessed to the licensee or approval holder. The notice of payment may be appealed, however, even if an appeal is filed, payment in full of the original invoiced amount is required by May 10, 2024, subject to a refund if the appeal is successful.
