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LMR Replacement: Four updated directives

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Release Date: October 08, 2024
Feedback Deadline Date

We are seeking feedback on proposed changes as part of the liability management rating (LMR) replacement. This affects four directives: 

In addition, these changes will enable us to rescind three directives:

The following additional information is provided to contextualize the proposed changes and their drivers:

To provide feedback on the proposed revisions, complete the public comment form on our website. Feedback will be accepted through Friday, November 8, 2024. Questions can be directed to @email.

For more information, see Bulletin 2024-25.

Directive 001: Requirements for Site-Specific Liability Assessments

We are seeking feedback on proposed changes to Directive 001: Requirements for Site-Specific Liability Assessments, and the associated forms that require updating. 

Directive 001 sets out the requirements for site-specific liability assessments (SSLA), particularly how to complete an SSLA and submit it to the AER. More general requirements that used to be in Directive 001 have been moved to Directive 011

Directive 011: Estimated Liability

We are seeking feedback on proposed changes to Directive 011: Estimated Liability and the associated form

Directive 011 sets out what is estimated liability, how it is determined, and how it is used. The proposed changes include the following:

  • Defining and calculating liability: Provides information on calculating estimated liability for different licence types and the specific methodology to be used (regional estimates as published by AER or site-specific estimates provided by licensees).
  • Orphan fund calculation clarity: Provides information related to licences and approvals protected by the orphan fund and included in the calculation of the orphan fund levy.
  • Conditional Adjustment to Reclamation Liability (CARL): Provides information and details on the CARL program. This content used to be in Directive 088.
  • SSLA Requirements: Provides requirements to when an SSLA is required and when it needs to be updated.
  • Regional abandonment and reclamation cost maps: Includes costs maps that are used when calculating regional estimated liability. 
  • Availability of Information: Provides details on what information the AER may make available to the public and industry. 

Directive 068: Security Deposits

We are seeking feedback on proposed changes to Directive 068: Security Deposits and the associated form

Directive 068 sets out requirements related to security. The proposed changes include the following:

  • The following information being moved into Directive 068 from various other locations:
    • security in lieu of closure quotas and security collected for compliance
    • security collected as a condition of an approval of a transfer application
    • security information for oilfield waste management approvals
    • security for landfills
  • The availability of information: Provides details on what information the AER may make available to the public and industry. 

Directive 088: Licensee Life-Cycle Management

We are seeking feedback on proposed changes to Directive 088: Licensee Life-Cycle Management

Directive 088 sets out requirements related to the new liability management framework. The proposed changes include the following:

  • Some requirements have been moved to other directives:
    • security in lieu of closure quotas and security collected for compliance (now in Directive 068)
    • security collected as a condition of an approval of a transfer application (now in Directive 068)
    • information and details about the CARL program (now in Directive 011)
  • The availability of information: Provides details on what information the AER may make available to the public and industry.