The Alberta Energy Regulator's (AER) final phase of changes to the Licensee Liability Rating Program (the "LLR Program") came into effect on August 1, 2015. The purpose of the LLR Program and licence transfer process as set out in this directive is to prevent the costs to suspend, abandon, remediate, and reclaim a well, facility, or pipeline in the LLR Program from being borne by the public of Alberta should a licensee become defunct. The Program minimizes the risk to the Orphan Fund posed by the unfunded liability of licences in the program. The LLR Program requirements continue to pose significant challenges to Alberta's oil and gas industry particularly in the present economic environment. In the case of insolvent energy companies, the LLR Program poses unique challenges and possible exposure to multiple stakeholders, including the principals of the insolvent company, insolvency professionals, lenders, and the public at large.
On April 20, 2016, BLG presented a seminar, Licensee Liability Ratings and Stakeholder Exposure in Insolvency, that focused on identifying these challenges and exposure, and discussed possible risk management and policy solutions. The full presentation is now available online.
Stay tuned for the announcement and invitation for part two of the seminar!
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