Alberta Energy Regulator announces $50 million increase to Closure Spend Requirement in 2025

/EIN News/ -- Calgary, Alberta, July 25, 2024 (GLOBE NEWSWIRE) -- The Alberta Energy Regulator’s industry-wide closure spend requirement for 2025 has been set at $750 million, a $50 million increase over last year’s requirement of $700 million. See Bulletin 2024-19 for more information.

Closure spend requirements specify the minimum amount licensees are required to spend on closure work each year.

As of June 30, 2024, the reported industry closure spend for 2023 was about $923 million, which includes the remaining funding from the Government of Alberta’s Site Rehabilitation Program. Industry-funded closure exceeded the $700 million set for 2023 by 22%. We will provide more details on 2023 closure spending, including updated industry-reported spend, in the 2023 Liability Management Performance Report for publication in late 2024.    

Each year, the AER reviews and determines the industry-wide closure spend requirement, accounting for such factors as changes in inactive oil and gas infrastructure, commodity pricing fluctuations, closure work completed in the previous year, and unforeseen exceptional circumstances.

For more information, see the closure spend quotas webpage and the 2022 Liability Management Performance Report.

About the Alberta Energy Regulator  

The AER ensures the safe, efficient, orderly, and environmentally responsible development of energy resources in Alberta through our regulatory activities. For more information visit aer.ca.  
  
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