The BC Energy Regulator (Regulator) is enhancing the Liability Management Rating (LMR) Program to more closely track and respond to oil and gas liabilities, evaluate financial risk, and ensure there is appropriate funding to mitigate liability risk as outlined in the Regulator’s Comprehensive Liability Management Plan.
DATE ISSUED: Jan. 13, 2020
EFFECTIVE DATE: Immediately
The BC Energy Regulator (Regulator) is enhancing the Liability Management Rating (LMR) Program to more closely track and respond to oil and gas liabilities, evaluate financial risk, and ensure there is appropriate funding to mitigate liability risk as outlined in the Regulator’s Comprehensive Liability Management Plan.
The Regulator has developed an updated method of estimating liability depending on the site and activity. The updated liability model will be integrated into the LMR Program on March 1, 2020. In the interim, the Regulator is providing permit holders with an opportunity to review their liabilities and to ensure that documentation for their permits is up-to-date.
Permit holders may access their liability information by visiting Online Services and selecting the Liability Management well or facility report on the right-hand side.
If you would like to receive detailed background on the liability model changes or to report any issues with the updated liability information, please contact Liability.Management@bcogc.ca.
If any permit transfers are required, please contact AssetManagement@bcogc.ca.
The Regulator currently uses the LMR program to evaluate each company’s ability to pay for site restoration. The deemed liability of a well or facility is the estimated cost to decommission and restore the site. The LMR is the ratio of estimated operational assets (deemed assets) and security deposit to estimated decommissioning and restoration liabilities (deemed liabilities) for permit holders. For more information on the LMR Program please visit the LMR Program webpage.
If you have any questions regarding this Industry Bulletin, please contact:
Wade Abbott
Manager, Financial Risk and Liability
BC Energy Regulator
Wade.Abbott@bcogc.ca
250-419-4355