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September 17, 2010

Revised Edition of Directive 068: ERCB Security Deposits

This bulletin announces the revised edition of Directive 068: ERCB Security Deposits, which replaces the May 2008 edition and is effective October 18, 2010, and addresses required changes to existing letters of credit (LOCs).

Changes to ERCB Address on LOCs

The Energy Resources Conservation Board (ERCB) will be relocating its Calgary head office to a new downtown location. As of October 18, 2010, the new address for the Calgary head office will be

Energy Resources Conservation Board
Suite 1000, 250 – 5 Street SW
Calgary, Alberta T2P 0R4

Directive 068 provides information and direction regarding the forms of security that the ERCB will accept to satisfy the Liability Management Program requirements. The form of LOC acceptable to the ERCB has been revised in Appendix 1 of the September 2010 edition of Directive 068 to reflect the ERCB’s new address.

As beneficiary under the LOC, the ERCB is not able to amend an LOC. The licensee that provided the LOC to the ERCB must take action to have the LOC amended by the financial institution that issued it.

All licensees that use LOCs to meet ERCB security deposit requirements must ensure that their LOCs show the correct name of the ERCB and the new ERCB address. All LOCs must be updated in this manner and received by the ERCB by October 18, 2010. Any licensees providing new LOCs to meet security deposit requirements must name the ERCB and use the new ERCB address. All amended and new LOCs are sent to the current ERCB address until October 18, 2010.

The ERCB will reimburse licensees for direct out-of-pocket costs charged by the financial institution to amend their LOC to reflect the ERCB’s correct name and address. (The offer for reimbursement does not include legal fees or other costs.) Licensees need to send their reimbursement request, along with receipt of payment from the financial institution, to the Liability Management Group.
If a licensee fails to submit an amended LOC (showing the correct ERCB name and address) by October 18, 2010, the ERCB will proceed to convert the LOC into cash in order to ensure that that licensee’s security deposit requirements are met.

Inquiries regarding this bulletin should be directed by e-mail to LiabilityManagement@ercb.ca or to the Liability Management Group’s Help Line at 403-297-3113.

Directive 068 is available from ERCB Information Services, 640 – 5 Avenue SW, main floor; telephone: 403-297-8311; fax: 403-297-7040; e-mail: infoservices@ercb.ca; and on the ERCB Web site www.ercb.ca.

<original signed by>

Dwayne Waisman
Executive Manager
Field Surveillance and Operations Branch