Regulatory Law Chambers logo

New Requirements for Licensees with Unpaid Municipal Property Taxes, AER Bulletin 2023-22

Link to Bulletin Summarized

Wells – Application

As of May 1, 2023, under Ministerial Order 043/2023, the AER requires evidence that licensees have resolved unpaid property taxes exceeding a threshold amount before a new well or well licence transfer application will be approved. These requirements apply to new well licence applications (Directive 056: Energy Development Applications and Schedules, Directive 089: Geothermal Resource Development, Directive 090: Brine-Hosted Mineral Development) and well licence transfer applications (Directive 088: Licensee Life-Cycle Management).

The AER has set the initial threshold for the municipal tax arrears at $20 000. The list of licensees that exceed this threshold will be provided by the Ministry of Municipal Affairs.

If the applicant or transferee is listed, the applicant, transferor, or transferee must provide satisfactory evidence to the AER that arrears exceeding the threshold have been paid or they have a repayment arrangement in good standing with the municipality or municipalities to which the arrears are owed. Additionally, for well transfer applications, if the transferor is listed, the applicant must provide evidence that payment of owed municipal taxes exceeding the threshold is a condition of the purchase and sale agreement with the transferee. If the required evidence is not provided, the AER will close the new application and return it to the applicant as incomplete in accordance with s 3(4)(b) of the Alberta Energy Regulator Rules of Practice and Ministerial Order 043/2023.

Related Posts

Judd v Alberta Energy Regulator, 2024 ABCA 154

Judd v Alberta Energy Regulator, 2024 ABCA 154

Link to Decision Summarized Download Summary in PDF Appeal – Production of Records Application Michael Judd ("Appellant") appealed a decision by the Alberta Energy Regulator (“AER”) that denied his...