Crude Oil – Crude Bitumen
On December 2, 2018, the Government of Alberta (“GoA”) announced short-term reductions in crude oil and crude bitumen production effective January 1, 2019.
On December 3, 2018, the GoA released Curtailment Rules, regulations made under the Oil and Gas Conservation Act, Oil Sands Conservation Act and the Responsible Energy Development Act, setting out the framework for how these reductions would be made. The Curtailment Rules enable the limiting of crude oil and crude bitumen production in Alberta according to the prescribed formula.
The AER contacted operators subject to curtailment requirements on December 6, 2018. Companies that did not receive a ministerial order are not required to limit production at this time.
The AER stated that it would be establishing a panel to hear stakeholder concerns related to these curtailment measures and was working with the GoA to finalize panel details.
