By September 19, 2017 0 Comments Read More →

AER creates public registry spotlighting companies owing money

AER

Abandoned oil well AER State Impact PA photo.

AER says Debtor Registry will  drive industry to improve their performance

The Alberta Energy Regulator(AER) recently announced they have created a Debtor Registry for Alberta companies owing them money, according to a press release.

A debtor is any person, AER-regulated company indebted to the AER for any costs, levy, fee, penalty, or other amount. It also includes amounts owed to the orphan fund levy. According to the release, in the future the registry will be expanded to include all debts owning.

They claim it’s to provide more transparency about energy development activities and hold regulated companies more accountable for their actions.

AER

Brian Herald, VP Western Canadian Operations for Canadian Association of Petroleum Producers doesn’t think it will have much impact on his members.  “I don’t think it would be a big issue for CAPP members. It’s a transparency step by the AER. I believe this is linked to the Redwater decision which said(to the AER) you’re just like any other creditor. So what they’re doing while in appeal, is to use the tools they have at our disposal. This is a step, they had to take,” said Herald.

When asked whether the AER had considered any impacts the registry may have on the companies investment, employee morale etc., they replied in an email. “We will continue to take all steps necessary to ensure that Albertans and Canadians are protected against incurring the costs associated with suspension, abandonment and reclamation of AER-licensed sites.”

According to the release, the Debtor registry follows recent actions to collect on some debts by issuing a lien on licensees and operators who fail to pay the amounts owed.

“There was a fair bit of questions after the Lexin failure. Were there early warning signs? Should we have chased compliance issues earlier? Were the companies in trouble? If a company is unable to pay their levy, is that a cautionary flag?” said Herald.

AER

The Debtor Registry will be updated monthly and any company that has paid its debt since the last update will be removed from the registry.

“It’s an interim measure, while they are being treated as a creditor under the law, they are looking to secure their interests like any creditor would. These are the tools they are applying,” concluded Herald.

Posted in: Jude on Alberta

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