The ERCB announced on March 12 that it was revising Directive 6 and Directive 11 (the Licensee Liability Rating
program) to increase the amount of security required to be posted
by operators of oil and gas wells, facilities and pipelines.
The purpose of the revisions is to reduce the risk to the orphan
well fund and to the province generally, and arises out of concerns
that the existing LLR program underestimated the amount of
abandonment and reclamation liability associated with existing
The revisions primarily involve changes to the formulae used to
estimate future abandonment and reclamation liabilities,
including adjusting factors for salvage value, and increasing the
estimated well and facility reclamation costs.
The ERCB estimates that it currently holds $13 million in
security deposits from 88 licensees. After the changes are
fully implemented, it estimates that it will hold $297 million in
security from 248 licensees.
The changes come into force on May 1.
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On April 5, 2017, Environment and Climate Change Canada released the report of an external Expert Panel that was established in August 2016 to review the scope and process of federal environmental assessments under the Canadian Environmental Assessment Act, 2012.
40 to 60 years may be too old when determining whether to extend a limitation period for a negligence-based environmental contamination claim, the court recently ruled in Brookfield Residential (Alberta) LP (Carma Developers LP) v Imperial Oil Limited, 2017 ABQB 218 [Brookfield].
Over the past week, the Project Law Blog has been discussing the recommendations set out by the Expert Panel in its report entitled Building Common Ground – A New Vision for Impact Assessment in Canada, The Final Report of the Expert Panel for the Review of Environmental Assessment Processes.
It is relatively common knowledge that the government has a "duty to consult" aboriginal groups when undertaking actions or making decisions that could adversely affect aboriginal rights, aboriginal title and treaty rights.
The Expert Panel mandated by the Minister of Environment and Climate Change to review federal environmental assessment processes has now delivered its report, Building Common Ground: A New Vision for Impact Assessment in Canada (Report).
On April 5, 2017 the Federal Minister of Environment and Climate Change received her report from an expert panel of four, comprised of three lawyers with significant environmental and aboriginal law experience as well as a retired senior executive of a resource company.
Last week we summarized the recommendations set out by the Expert Panel established by the Minister of Environment and Climate Change in its report entitled Building Common Ground – A New Vision for Impact Assessment in Canada, The Final Report of the Expert Panel for the Review of Environmental Assessment Processes.
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