The Issue Risks Associated Recommended Desired Results Solutions Historically, not all documents are Government Regulators required have accepted Alberta will allow a registered transfers of licensee transfer of ownership to wells after wells up to (See attached for Q&A with abandonment, or reclamation, if the AER supporting document companies have not well has an which details the ensured proper well abandoned status expectations when there is transfers were with the AER, the a working interest completed new licensee must participant ownership have an active change) Y Regulators are surface lease unaware of current assuming reclamation ownership and liability historical owner Alberta is the only may be responsible province which for future well records working liabilities interest participants from license to Y Ensure all well reclamation, however licences are their electronic transferred with the records can only be appropriate updated for working Regulator when this interest participants is possible: by the well licensee Saskatchewan of record at one of will allow the four points of the licensee transfers well’s life cycle – of wells up to license issuance, reclamation license transfer, suspension and Manitoba will abandonment allow licensee transfers of wells Y By ensuring wells up to reclamation, as are properly transferred through long as all mineral rights and surface the appropriate leases are Government assigned Regulator, industry can feel more British Columbia confident that the will allow a correct ownership and licensee transfer ultimately liability is of wells up to recorded properly on reclamation, record status of well will dictate which
The Issue Risks Associated Recommended Solutions Desired Results Historically, not all Government Regulators have accepted registered transfers of ownership to wells after abandonment, or companies have not ensured proper well transfers were completed Y Regulators are unaware of current ownership and historical owner may be responsible for future well liabilities Y Ensure all well licences are transferred with the appropriate Regulator when this is possible: Saskatchewan will allow licensee transfers of wells up to reclamation Manitoba will allow licensee transfers of wells up to reclamation, as long as all mineral rights and surface leases are assigned British Columbia will allow a licensee transfer of wells up to reclamation, status of well will dictate which documents are required Alberta will allow a licensee transfer of wells up to reclamation, if the well has an abandoned status with the AER, the new licensee must have an active surface lease assuming reclamation liability Alberta is the only province which records working interest participants from license to reclamation, however their electronic records can only be updated for working interest participants by the well licensee of record at one of the four points of the well’s life cycle – license issuance, license transfer, suspension and abandonment Y By ensuring wells are properly transferred through the appropriate Government Regulator, industry can feel more confident that the correct ownership and ultimately liability is recorded properly on record (See attached for Q&A with AER supporting document which details the expectations when there is a working interest participant ownership change)
ABANDONED-WELL-OBLIGATIONS-June-2017-8.docx