New Oil And Gas Liability Management Frameworks: Alberta vs Saskatchewan

Following the Redwater decision (Orphan Well Association v Grant Thornton Ltd., 2019 SCC 5), and the steadily increasing number of orphaned oil and gas sites, governments have been evaluating opportunities to modify their approaches to liability management and address growing inactive well inventories. Notwithstanding that Alberta and Saskatchewan have historically adopted similar regulatory regimes, the two jurisdictions are diverging in their approach to liability management.

Proposed Approaches

Alberta

Following the amendments to the Oil and Gas Conservation Act and Pipeline Act in April 2020, which increased the authority of the Orphan Well Association, there were subsequent amendments in December 2020 to further introduce regulatory changes to the liability management of oil and gas wells and facilities. For our earlier commentary on Alberta's new Liability Management Framework, see Alberta Announces New Liability Management Framework and Advancing