North Shore has an in-depth understanding of the Alberta Energy Regulator (AER) directives related to liability management and licensing. Using this knowledge, coupled with extensive past experience and expertise, North Shore has developed several techniques to reduce deemed liabilities in the following programs:
- Licensee Liability Rating (LLR) Program
- Large Facility Program (LFP)
- Oilfield Waste Liability (OWL) Program
After reducing deemed liabilities, a company’s Liability Management Rating (LMR) is improved and their current or potential security deposit requirements with the AER are reduced. When using desktop means to reduce liabilities, costs are minimized and benefits are maximized.
Additionally, North Shore has completed numerous environmental liability due diligence projects for clients seeking to acquire oil/gas assets, as well as for clients seeking to review their existing holdings. Past projects have ranged in size from 350 to 5700 wells/facilities and in total estimated environmental liability from $11 million to $125 million. Utilizing information provided from data rooms and publicly available sources, coupled with North Shore’s extensive reclamation and remediation experience, our team has the ability to efficiently and accurately estimate environmental liabilities. Given the 2019 Supreme Court of Canada’s Redwater Decision, lenders, trustees/receivers, and companies will be better situated to assess their obligations and risk by ensuring a detailed, reliable estimate of their environmental liabilities has been completed.