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ARTICLE · 15 NOVEMBER 2016

Regulatory Updates - November 2016

On August 19, 2016, the Saskatchewan Ministry of Economy ("ECON") released a notice to all operators advising them of certain changes to its LLR program.

CanadaEnergy and Natural Resources
Burnet, Duckworth & Palmer LLP
Burnet, Duckworth & Palmer LLP
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Amendments to Saskatchewan's Licensee Liability Rating (LLR) Program and Management

On August 19, 2016, the Saskatchewan Ministry of Economy ("ECON") released a notice to all operators advising them of certain changes to its LLR program. This action was taken in response to Alberta's Redwater Energy Corporation (Re)1 ("Redwater") decision, and in turn, the changes the Alberta Energy Regulator ("AER") made to its own liability management rating program. ECON has implemented the following measures to deal with the risk of a similar court decision in Saskatchewan:

  • The Ministry of Justice has been requested to challenge any attempt by a receiver in Saskatchewan to renounce uneconomic oil and gas assets which are subject to the LLR program.

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