We work collaboratively with government and companies to develop and implement liability management programs for all energy sectors, which help to protect Albertans from significant potential environmental issues and costs associated with the closure of energy projects.
We use a liability management rating (LMR) to help us assess a company’s ability to address its abandonment, remediation, and reclamation obligations. The LMR is calculated as a ratio of a company’s deemed assets (production) to its deemed liabilities (abandonment and reclamation costs). The LMR is used to assess liability in three of our liability management programs:
- Licensee Liability Rating Program – described in Directive 006: Licensee Liability Rating (LLR) Program
- Large Facility Liability Management Program – described in Directive 024: Large Facility Liability Management Program
- Oilfield Waste Liability Program – described in Directive 075: Oilfield Waste Liability (OWL) Program
Our holistic assessment will replace the use of the liability management rating (LMR) over time. While we know that LMR is not an accurate measure of whether a company will be able to address its regulatory and liability obligations, it currently plays an important role in calculating the deemed liability in the oil and gas sector. The LMR is also integrated in several of our directives, as well as the Oil and Gas Conservation Rules, and cannot be easily or quickly removed without careful thought and consideration to impacts it could cause in other areas. As our first step towards removing LMR, the holistic assessment has replaced the use of the LMR for licence transfers and security collection for licence transfers.
A company can view a full breakdown of its LMR through our Digital Data Submission (DDS) system.
We share security-adjusted LMRs and debts owed in our LMR reports below.
Disclaimer: This information is provided without warranty of any kind, and, while it is believed to be accurate, the AER, comprising its agents, employees, and contractors, hereby disclaims any liability for losses or damages that might result or arise from the use of or reliance on the information provided on this site.