Today, we published a revised edition of Directive 068: Security Deposits.
We made the following revisions to the directive:
- Added guidance regarding security deposits for new or amended oilfield waste management facility applications (section 3.1.3).
- Revised the notice period for nonrenewal and cancellation of letters of credit from 60 days to 90 days (section 4.2).
- Added demand forfeiture bonds (DFBs) to the list of acceptable forms of security (section 4.3). We will now accept surety bonds in the form of an AER-approved DFB from licensees of oil, gas, geothermal, and brine-hosted mineral developments.
- Revised how interest accrued from a cash security deposit is refunded (section 7).
- Removed references to monthly bank statements.
The AER-approved DFB is the only form of surety bond accepted by the AER. The DFB will be available on our liability management forms webpage. We will only accept it without alteration.
We will only accept surety from providers with active operations in Canada and an A rating (or equivalent) from a credit-rating agency acceptable to the AER.
The revised edition of Directive 068 is available on the directive landing page.
Direct any questions regarding security deposits to Directive068@aer.ca. All other questions can be directed to our Customer Contact Centre by phone at 403-297-8311 (1-855-297-8311 toll free) or by email at inquiries@aer.ca.
