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ARTICLE · 20 JULY 2016

Alberta Energy Regulator Reiterates Position On Interim Measures Post-Redwater But Indicates Some Flexibility On 2.0 LMR Requirement

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Such commitment may contribute to increased abandoned wells and less value realization in insolvencies.

CanadaEnergy and Natural Resources
Matti Lemmens
Matti Lemmens
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On July 8, 2016, the Alberta Energy Regulator (the "AER") issued Bulletin 2016-21 Revision and Clarification on Alberta Energy Regulator's Measures to Limit Environmental Impacts Pending Regulatory Change to Address the Redwater Decision ("Bulletin 2016-21"). Bulletin 2016-21 was issued in order to clarify and revise the interim rules outlined in the AER's Bulletin 2016-16 [discussed previously by BLG in The Alberta Energy Regulatory Reacts to the Redwater Decision – Who Suffers?] where the AER took drastic measures in response to the Alberta Court of Queen's Bench's decision in Redwater Energy Corporation (Re), 2016 ABQB 278 ("Redwater").

Bulletin 2016-21 does not significantly alter the AER's interim measures and, pending the outcome of an appeal or a likely overhaul of the licencee liability rating program, it seems clear that the AER is committed to its interim rules, notwithstanding the strong criticism across industry of their implementation.

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