A new course has been developed to help operators understand the mandatory liability, closure and reclamation requirements set out in Alberta’s Directive 88.

Instructors and regulatory experts Alanda Allum, Rob Cruickshank and Mark Taylor have refreshed the material to reflect recent changes, incorporating real-life scenarios and case studies. Taylor said this course on Directive 88 promises to be the most hands-on and interactive yet, featuring numerous practical case studies.

“We will focus on more recent transfer applications processed or dispositioned by the Alberta Energy Regulator (AER), and some of the learnings that can be seen from those,” said Allum, who has reviewed an estimated 300 recent transfer applications. A reoccurring challenge has been during the process for large transactions where companies often miss one or two sites.

“Sometimes a site or two may be missed and with these new processes,” said Allum. “While the deal may have been struck a year or two years ago, it's not as simple as just moving over on more asset. Companies have been having challenges transferring (licences) over to the new owner. They are still fully responsible for that license and some in some cases some of the deposit requests have been essentially up to 100 per cent of the estimated liability of that site.”

The instructors will share insight on where the AER is headed, especially with the anticipated changes to the security framework and transfer process.

They will walk through security deposits and the steps to take to receive your security deposit back.

“The lower your estimated liability is, the greater the chances that you can get security back,” said Taylor. “We’re giving companies tips on what they can look for in some of their sites that would help to reduce some of that estimated liability.

Cruickshank emphasized their goal is to help companies minimize fees during the transfer process.

Allum said the security deposits are foremost, but companies need to pay close attention to the potential conditions imposed by the AER, which can be costly.  

“We'll cover over some of those additional conditions that the AER has requested from certain companies and the reasons behind the request,” said Allum. “Our aim is to help you anticipate the type of conditions the AER may request and present information to tell a story that there is minimal or no risk.”

At the end of the day, the AER can request anything they deem appropriate based on certain circumstances including audited statements after a publicly traded company’s year-end, she added.

Taylor said it is not a requirement for private companies, but it is now a condition of a transfer approval.

“That surprises a lot of private companies,” they said. “That can be a shock because doing formal fight audited financials is quite more time consuming and costly than it is just submitting and your financial setter signed off by management.”

The trio will review likely conditions the AER may impose on a company during a transfer process. This regulatory course is offered in a blended format with seven on-demand modules and a live instructor-led session via ZOOM on Tuesday, January 21, 2025. Register here.  Sign up today to receive one hour of free consulting with one of the three instructors before or after the live event.