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ARTICLE · 15 APRIL 2016

AER Reminds Licensees Of Certain Obligations When Ceasing Operations

Borden Ladner Gervais LLP
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Set forth below is a summary of the key observations and analysis made in the Bulletin, as well as an explanation of certain of the enforcement mechanisms referenced therein.

CanadaEnergy and Natural Resources

The Alberta Energy Regulator (the "AER") has published Bulletin 2016-10 – Obligations of Licensees When in Insolvency or When Otherwise Ceasing Operations (the "Bulletin") to remind oil and natural gas well licensees and their directors and officers of certain statutory obligations in insolvency and other situations that result in the cessation of that licensee's operations.

Regardless of the reason for a cessation of operations, the Bulletin reminds licensees of their ongoing responsibility for continuing care of licensed properties, responding to incidents or complaints, maintaining all required records, and obtaining AER approval for any transfer of AER licenses, approvals and permits. As such, the Bulletin states the following AER position on enforcement of these obligations:

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