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Reclamation Liability Reduction Program Being Developed, AER Bulletin 2023-37

Link to Decision Summarized

Oil and Gas – Facilities

The AER is implementing a reclamation liability reduction program (the “Program”), with an anticipated release in the spring of 2024. The Program is intended to allow licensees to request a temporary reduction of the liability values used in the AER’s liability management programs.

The reduction may be requested once all abandonment, remediation and reclamation work has been completed but before a reclamation certificate is issued under the Environmental Protection and Enhancement Act (“EPEA”) since it may take several years before vegetation is fully established and the site becomes eligible for a reclamation certificate. As such, the site may be eligible for a reduction in liability value in the meantime.

The Program will apply to wells and facilities licensed under Directive 056: Energy Development Applications and Schedules and the liability value reduction will be valid for five years or until a reclamation certificate is obtained, whichever occurs first.

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