May Regulatory Newsletter

May 2022

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AB: 2022/23 AER Administration Fees (Industry Levy)

Invoices to operators detailing the fee calculations for their share of the AER Administration Fees were emailed on April 11, 2022, with payment due by May 11, 2022. If you have not already done so, forward your preferred corporate email address to AdminLevyReview@aer.ca.

The late-payment penalty is 20 per cent on any portion of the fee that remains unpaid after the due date.

Additional information can be found here: Bulletin 2022-09

AB: 2022/23 Orphan Fund Levy - LLR and OWL Programs

Invoices for licensee or approval holder for their share of the Orphan Fund Levy was sent out April 11, 2022. If you did not receive your orphan fund levy invoice contact the OrphanLevy@aer.ca to request a copy.

All orphan fund levy invoices must be paid in full by the licensee or approval holder and received by the AER by May 11, 2022.

Failure to pay will result in a penalty of 20 per cent of the original invoiced amount.

Additional information can be found here: Bulletin 2022-10

AB: 2022/23 Orphan Fund Levy for Large Facilities

The Alberta Energy Regulator (AER) approved an LFP (Directive 024: Large Facility Liability Management Program) orphan fund levy of $6 million for the 2022/23 fiscal year. The LFP orphan fund levy does not apply to all operators and was sent out to affected licensees and approval holders on April 11, 2022. Funds collected by the LFP orphan fund levy will go solely to cleaning up LFP facilities of defunct licensees.

All LFP orphan fund levy invoices must be paid in full by the licensee and received by the AER by May 11, 2022.

Failure to pay will result in a penalty of 20 per cent of the original invoiced amount.

Additional information can be found here: Bulletin 2022-11

AB: Phishing Scam

The AER is aware of a phishing scam claiming to be from the Alberta Energy Regulator. The SMS message suggests that the recipient will receive financial compensation from the AER by clicking the provided link. If you receive this message, do not click the link. Do not give out personal, banking, or credit information.

Additional information can be found HERE

AB: Public information session on Minerals

The AER invites you to a virtual public information session on May 11, 2022, to discuss the future regulation of brine-hosted minerals as part of a phased engagement approach.

Brine-hosted minerals are typically found in underground saltwater and are mostly extracted through well infrastructure. Brine-hosted minerals will be the focus of this session.

Additional information can be found HERE

AB: Cryptocurrency Mining Information Request

The AER is aware of cryptocurrency mining operations running alongside AER-regulated activities, and is looking to better understand the situation and work with regulated parties to manage potential risks and ensure compliance and overall safety of AER-regulated operations.

The AER asks that ALL (regardless of the status) regulated parties provide information related to current or future cryptocurrency mining operations associated with their sites by May 20, 2022 using the form available here.

Additional information can be found here: Bulletin 2022-12

AB: New Edition of Directive 020

On April 25, 2022, the AER released a new edition of Directive 020: Well Abandonment. Appendices 2 and 3 have been removed. Licensees can see appendices 2 and 3 of Directive 087: Well Integrity Management for suggested procedures for testing gas migration and surface casing vent flow.

Additional information can be found here: Bulletin 2022-14

SK: Orphan Levy

On April 22, 2022, the Ministry of Energy and Resources (ER) announced that the 2022 Orphan levy has been set for $8,500,000 and invoices will be issued/available on May 2, 2022 through IRIS.

Please refer to the Orphan Fund Levy webpage for further information.

SK: Notice of Proposed Directive Amendments Directive PNG017: Measurement Requirements for Oil and Gas Operations

The Ministry of Energy and Resources (ER) is consulting the oil and gas industry on proposed amendments to Directive PNG017: Measurement Requirements for Oil and Gas Operations. The key proposed changes will clarify timeframes for gas-oil ratio (GOR) testing for new non-heavy oil wells and will introduce GOR testing exception criteria.

ER is launching industry consultations on the amended Directive from April 18, 2022 to May 27, 2022. The amended is anticipated to come into effect in the first half of 2022.

Additional information can be found here.

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