Reducing the amount of money oil and gas companies need to set aside as security deposits, while ensuring they get the maximum refund possible, is the focus of a new regulatory course on June 5.

Regulatory experts Alanda Allum, Rob Cruickshank, and Mark Taylor have refreshed Alberta Directive 88: Minimize Your Liability and Maximize Your Security Deposit Refund to reflect the latest proposed changes to the directive and Manual 23.

Allum said this course provides guidance on what triggers a Holistic Licensee Assessment and how the Security Collection Framework determines security. It will also weigh heavily into the recently announced changes proposed by the Alberta Energy Regulator (AER).

These significant changes include the inclusion of oilfield waste management facilities, said Allum. Financial and reserves information provided to the AER will be kept confidential for a specified period. However, some of the findings or results from the AER assessment will be made publicly available through liability management reporting and compliance and enforcement responses. The AER will evaluate if the current security amount is sufficient under the new framework.

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, 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.”

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.”

Register here.

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