AER-OWA Partnership

The OWA is a delegated authority empowered through the Orphan Fund Delegated Administration Regulation (OFDAR) under the Oil and Gas Conservation Act (OGCA). Through this legislation the AER enables the Association to perform closure activities on oil and gas infrastructure and sites throughout the Province. The AER gives OWA authorization to complete closure work on sites in its inventory.

The OWA works closely with the AER when licensees are no longer able to meet their regulatory obligations and there is no legally responsible party to look after infrastructure. The two parties work together, to ensure that sites are safely transitioned to the OWA, where needed. In addition to closure work, the two organizations collaborate to process Working Interest Claims (WIC’s) for companies that have executed closure work on behalf of a defunct company, as well as work together for Regulatory Directed Transfers (RDT’s) that see new responsible parties assume control and become licensee over orphan infrastructure.

  • Working Interest Participant Agreements (WIPAs)
    • These new legislative changes allow the OWA to work on sites where orders have been issued to Working Interest Participants (WIPs). WIPs may now enter into agreements with the OWA for the performance of this closure work. This arrangement ensures WIPs only pay their working interest percentage of any given project rather than having to execute and pay for all of the work themselves and then seek reimbursement.

  • Reasonable Care and Measures (RCaM)
    • In certain circumstances, the AER may order the OWA to provide care over sites to prevent impairment or damage where they are of the opinion that a licensee is no longer complying with regulatory requirements and risks to public safety and/or the environment could occur. In these situations, the OWA would manage and maintain these assets through safely shutting-in operations or operating the assets for an interim period. Additionally, the OWA may appoint a receiver in insolvency to transition assets to new responsible parties.

The OWA greatly values our relationship with the AER and will continue to work closely with them on the overall orphan program in the Province.

For more information, please visit the following links:

AER Liability Management

AER Compliance Dashboard