June 21, 2016
Alberta Energy Regulator tries to stem tide of orphan wells
It just got harder to buy oil and gas assets in Alberta
By Tracy Johnson, CBC News Posted: Jun 21, 2016 5:48 PM MT Last Updated: Jun 26, 2016 11:23 AM MT
With little fanfare, the Alberta Energy Regulator has tightened up the rules for buying oil and gas assets.
From now on, a company looking to buy oil and gas wells in Alberta will need a liability management ratio (LMR) of 2.0 or higher. That means the value of a company’s producing wells must be twice that of the cost of abandoning and reclaiming the wells at the end of their life.