Take an Orphan License
Although the OWA closes orphan wells, facilities and pipelines, licenses stay in the name of the defunct licensee. This means the OWA does not have the ability to sell or transfer orphan assets. If an operator wants to take an orphan asset, they must apply to the AER to transfer the license in a process called a Regulator Directed Transfer or RDT.
Initiating an RDT
Email the OWA at RDT@orphanwell.ca with the licenses you wish to acquire. The OWA will then notify the AER and place our planned closure work on hold for up to six months while the RDT application process is underway. If the RDT application has not been submitted in six months, the license(s) will be returned to the decommissioning queue without further notice to the applicant.
The AER will follow up with the applicant with the required RDT application documents.
FAQs
What is an RDT?
An RDT is a Regulator Directed Transfer. It happens when the Alberta Energy AER transfers a license from a defunct licensee to an eligible licensee.
What role does the OWA play in transferring an asset to an operator?
The OWA does not own the asset but rather has the obligation to undertake the decommissioning and reclamation work. The OWA’s role in the RDT process is to place decommissioning/reclamation work on hold for assets we’ve been notified as potential RDT candidates and to remove assets from our inventory when they are successfully RDT’d by the AER to a new owner. The application to RDT an orphaned asset is made through the AER.
Can I review all the files associated with a site?
In some cases, but not all, the OWA has files with technical information that can be shared. Under no circumstance will the OWA share information with an applicant related to the surface owner, such as the previous surface lease.
Please contact info@orphanwell.ca to determine what files the OWA has available
Are the mineral and surface leases attached to an orphan asset/license?
No, mineral and surface leases associated with the license are not transferred to the OWA. Proponents must obtain both a mineral and surface lease prior to any RDT application.
How do I obtain a mineral or surface lease?
For public lands, the RDT applicant must obtain the surface disposition (MSL, LOC, PLA) via a One-Party Assignment. The applicant can email AER.ETSAssign@aer.ca for the One-Party Assignment application.
For surface leases on private lands, the landowner and company must come to an agreement on the use and access to the land. These agreements are between parties and are outside of the AER or OWA’s jurisdiction. More information about surface rights can be found at the Alberta Land and Property Rights Tribunal (https://www.alberta.ca/surface-rights-board.aspx).
For crown minerals, the RDT applicant needs to obtain the rights through Alberta Energy. Visit https://www.alberta.ca/tenure-overview.aspx#toc-4 for more information.
For freehold minerals, leases are negotiated bilaterally between the owner and the company. For more information, visit https://www.alberta.ca/freehold-minerals-in-alberta.aspx.
To find out who owns minerals and surface rights for a particular well, visit https://www.alberta.ca/mineral-ownership.aspx.
Is there a fee attached to RDT?
There is an RDT fee of up to $10,000 for each well that the AER may apply at its discretion. One factor in determining this fee is the OWA’s incurred costs on the asset before the RDT application was made.