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General Bulletin GB 2000-28

December 18, 2000

CLARIFICATION: ENERGY DEVELOPMENT LICENCE TRANSFER REQUIREMENTS AND MONTHLY CORPORATE LICENSEE LIABILITY ID 2000-11 AND GUIDE 69

On October 24, 2000, the Alberta Energy and Utilities Board (EUB) issued Interim Directive (ID) 2000-11 Energy Development Licence Transfer Requirements and Monthly Corporate Licensee Liability Rating with Guide 69: Energy Development Licence Transfer .

Since the release of these documents the EUB has received numerous questions and expressions of concern regarding the implementation, application, and impact of these programs. The EUB wishes to make it very clear that the criteria related to the new screening and deposit processes have not been firmly established and that the EUB will be consulting with industry to develop appropriate criteria for these Orphan Fund protection processes.

As stated in ID 2000-11 , the EUB does not propose to implement monthly corporate Licensee Liability Ratings (LLRs) or LLR security deposit requirements until the results of the Retrospective Facility Licensing Program are available, sometime after February 21, 2001, and until LLR risk range criteria are established following further detailed consultation with industry. The EUB is working closely with the Fund Advisory Committee (FAC), the Canadian Association of Petroleum Producers (CAPP), and the Small Explorers and Producers Association of Canada (SEPAC) to address these issues.

The EUB recognizes that there are a number of small oil and gas companies that are not represented by either CAPP or SEPAC. The EUB wants to hear from as broad a spectrum of the oil and gas industry as possible before it finalizes the requirements of these new screening mechanisms. The EUB encourages these interested and affected parties to provide their feedback in writing by February 15, 2001. Please direct correspondence to the undersigned or contact the Corporate Compliance Group of the Compliance and Operations Branch at (403) 297-8167.

<signed by>

John Nichol, P.Eng.
Executive Manager
Compliance and Operations Branch