This bulletin describes improvements to the working interest cost claim (WICC) process that are now in effect. The updates to the WICC process provide clear expectations to industry and help ensure fair and cost-efficient use of the Orphan Fund for WICC reimbursements. The changes to the WICC process are described below.
A WICC is submitted to the AER for a defaulting working interest participant’s (WIP’s) share of incurred costs as per section 70(1) of the Oil and Gas Conservation Act. Incurred costs include suspension, abandonment, remediation, reclamation, and costs for reasonable care and measures, which are eligible for reimbursement from the Orphan Fund based on the defaulting WIP’s working interest percentage.
Authorization for Expenditure
We strongly recommend that claimants submit an authorization for expenditure (AFE) to the Orphan Well Association (OWA) before submitting a WICC. Submitting an AFE in advance will reduce the risk to the claimant of not receiving reimbursement as requested and streamline the review by the OWA working interest cost claims review (OWA WICCR) task group when considering whether the WICC constitutes reasonable costs.
Submission Timelines
We strongly encourage WICC applicants to review their historical records and submit any previously unclaimed WICCs by December 10, 2026. Effective December 10, 2025, applicants should submit new WICCs within two calendar years of the confirmation of acceptance of closure activity by the applicable AER system.
Claims Exceeding Reasonable Costs
In cases where an AFE was not previously approved, and the WICC applicant and the OWA disagree on the reimbursement amount, the OWA will request volunteers from the Canadian Association of Petroleum Producers and the Explorers and Producers Association of Canada to assist in the claim assessment. The task group will provide a recommendation to the OWA on an appropriate reimbursement amount, with the AER making the final decision on reimbursement based on the recommendation.
Proof of Payment
In accordance with section 16.541 2(e) of the Oil and Gas Conservation Rules, WICC applicants must provide receipts or proof of payment for work completed with their WICC submission.
One Submission per Activity Type
WICC applicants are encouraged to submit one claim for each activity type, enabling an efficient review and processing. Each claim should cover the defaulting WIPs.
For more information on the revised WICC process, see our WICC webpage or the OWA website. For questions about the WICC process or this bulletin, contact cost.claims@aer.ca or the AER’s Customer Contact Centre by phone at 403-297-8311 (1-855-297-8311 toll-free) or by email at inquiries@aer.ca.
