News Release
FOR IMMEDIATE RELEASE
EUB PROTECTS TAXPAYERS FROM OIL AND GAS LIABILITIES
Calgary, Alberta (September 22, 2005) As part of the Alberta Energy and Utilities Board's (EUB) environmental stewardship and public interest and safety mandate, the Board has implemented the Large Facility Liability Management Program (LFP).
The LFP adds to the existing EUB Licensee Liability Rating (LLR) Program that protects taxpayers from the costs to suspend, abandon, remediate and reclaim any 'orphaned' upstream oil and gas facility.
Facilities included in the LFP are sulphur recovery gas plants, stand-alone straddle plants and in-situ oil sands processing plants with an approved design capacity of approximately 31,000 barrels per day. There are currently 91 facilities and sites that would be a part of the Program.
The LFP, just as the existing LLR program, assesses the liability of a licensee to address its suspension, abandonment, remediation and reclamation liabilities based on a comparison of its deemed assets to its deemed liabilities. A company's deemed liability is the estimated cost to suspend, abandon, remediate and reclaim a large facility for which it holds the license. This value will be based on site specific assessments.
In 2004, the EUB issued 12 closure orders related to LLR non-compliance.
The EUB's LLR and LFP programs are part of a continuum of programs, including the Orphan Well Association, that protect taxpayers from liabilities related to oil and gas facilities.
The EUB LFP Bulletin and associated documents can be viewed at:
EUB LFP Bulletin
The EUB ensures that the discovery, development, and delivery of Alberta's resources take place in a manner that is fair, responsible, and in the public interest.
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For more information, please contact:Darin Barter
EUB Communications
Phone: 403-297-4116
Cell : 403-651-9487
Email:
darin.barter@gov.ab.ca
NR2005-027
