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Directive 011: Licensee Liability Rating (LLR) Program: Updated Industry Parameters and Liability Costs

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Release Date: June 26, 2024

Effective Date: June 26, 2024
Replaces the previous edition released on March 31, 2015.
Released with AER Bulletin 2024-16.

Purpose of this Directive

This directive provides updated industry parameters and regional abandonment and reclamation costs used in calculating liability under the Licensee Liability Program, as provided for in Directive 006: Licensee Liability Rating (LLR) Program and Licence Transfer ProcessIt contains updated well abandonment closure costs that will be used to estimate liability under the Liability Management Framework .

This directive is expected to be updated on a regular cadence moving forward using reported industry closure spend, where available.

- History of Estimating Liability in Alberta [PDF]
- Presentation on the June 2024 Directive 011 well abandonment cost update [Video]

Form 025: Licensee Liability Rating Program Well Declaration [DOC]
- Well Declaration Submission Instructions [DOC]
- Well Declaration Submission [XLSX]