Lexin agrees to cooperate with receivership, director pays $175 000
Alberta - June 11, 2017Alberta Energy Regulator (AER) efforts to resolve legal challenges with Lexin Resources Ltd. have led to the company agreeing to voluntarily include four related corporate entities in a previously ordered receivership process.
Including these other entities will better enable the receiver to proceed with the timely and effective sale of Lexin-licensed assets, the AER said.
“I am optimistic that this cooperation will get us out of the courtroom and allow us to focus on reducing the burden placed on the Orphan Well Association, minimizing environmental risk, and getting the most economic benefit for Albertans,” said Jim Ellis, AER president and CEO.
Furthermore, Michael J. Smith, the director of Lexin, has accepted responsibility for Lexin’s noncompliances and agreed to pay $175 000 to the AER, and he will no longer control any licensee or approval holder in Alberta.
In February, the AER issued a corporate closure order suspending over 1600 licences for all Lexin wells, facilities, and pipelines. Information on the noncompliances that led to the closure order and receivership order is available on the AER’s Compliance Dashboard and in the statement of facts.
Resource Editor