DATE ISSUED: Feb. 16, 2022
EFFECTIVE DATE: April 1, 2022
The BC Energy Regulator (Regulator) is taking steps to ensure permit holders operating in B.C. meet their regulatory and liability obligations throughout the energy development lifecycle. By implementing the Permittee Capability Assessment (PCA) as a replacement to the Liability Management Rating (LMR) program on April 1, 2022, the Regulator will be able to make a more holistic assessment of the capabilities of permit holders.
The PCA will assess each permit holder’s corporate health against the liability associated with their Dormant, Inactive, and Marginal sites (referred to as DIM Liability) to determine corrective action requirements. These may include additional security requirements under Section 30 of the Oil and Gas Activities Act (OGAA) or closure work on sites that have reached the end of their productive potential.
The Regulator launched an eSubmission portal in February 2021 for permit holders to submit Corporate Financial and Reserves Information for evaluations under the PCA program. Thank you to those that have submitted their information. Going forward, the Regulator requests financial and reserve information be uploaded through the eSubmission portal annually within five months of the company’s year-end, and quarterly within three months of quarter-end (where available). The Regulator will be communicating directly with permit holders identified as moderate to high risk under the PCA to outline corrective action requirements.
The Regulator has prepared an updated version of the Corporate Financial and Reserves eSubmission Portal Guidance which outlines how to calculate and enter each section of the form.
Permit holders are encouraged to reach out with any questions or to receive further information on how this change may impact them by contacting: Liability.Management@BCOGC.ca.
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