Alberta’s New Liability Management Framework And A Backgrounder On The Evolving Site Rehabilitation Program – Gowling WLG

Alberta’s New Liability Management Framework And A Backgrounder On The Evolving Site Rehabilitation Program – Gowling WLG

by ahnationtalk on August 18, 2020207 Views

17 August 2020

In an effort to address the growing number of inactive and abandoned oil and gas wells and sites requiring reclamation, the Government of Alberta recently announced a new framework to manage oil and gas liabilities. The long awaited Liability Management Framework is the latest step in reforming the management, funding, and approach to long term liability associated with Alberta’s more than 90,000 inactive oil and gas wells across the province.

Government of Alberta’s New Liability Management Framework

According to the Government of Alberta, Alberta currently has an estimated: 162,500 active wells, 97,000 inactive wells, and 71,000 abandoned wells. [1] As of August 1, 2020, the Orphan Well Association counted among its orphan inventory 2,959 wells and 3,681 pipeline segments for abandonment, and 3,212 sites for reclamation.[2] The significant task of managing liability for oil and gas sites has been intensified by current economic conditions along with the onset of the COVID-19 pandemic. The Framework announced on July 30, 2020 aligns with the objectives and operational aspects of the evolving Site Rehabilitation Program first launched in May 2020 as part of the Government response to the economic impact of COVID-19.

Read More: https://gowlingwlg.com/en/insights-resources/articles/2020/alberta-s-new-liability-management-framework/

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