Sites at Risk
Before a site is designated an orphan, and even before an insolvency process begins, the AER and OWA can become involved, if necessary.
Reasonable Care and Measures
When the AER believes a licensee is no longer meeting regulatory requirements, they may issue an order for the company to take all reasonable care and measures (RCAM) to protect public safety and the environment. If they do not perform these activities, the AER will require the OWA to provide that care. In these situations, the OWA may safely shut-in operations or operate the site for an interim period.
Current OWA RCAM Orders
The following AER RCAM Orders are being actively managed by the OWA. The OWA is only involved to ensure protection of public safety and the environment. The licensees remain viable entities, and so all enquiries should be directed to them, including vendor and surface rent payments and third-party requests for crossing and proximity agreements.
Insolvency Process
When it is clear that a licensee does not have the resources to care for and safely operate its sites, it may enter a court-approved insolvency process. These processes may be funded by the OWA, if necessary. Through the insolvency process, sites may be sold to other operators, pending AER approval, or the company may resolve their issues. Licenses may be designated as orphan by the AER after the insolvency process.
Oil and gas companies currently in an insolvency process in Alberta
Oil and gas companies currently in an insolvency process in Alberta
Who closes a defunct site?
