DATE ISSUED: Dec. 9, 2019

EFFECTIVE DATE: Jan. 2, 2020

The BC Energy Regulator (Regulator) is enhancing the Liability Management Rating (LMR) Program through integration with the Application Management System (AMS). AMS Payment is the secure online portal for paying Regulator invoices using electronic funds transfer. Permit holders who are not yet registered in AMS Payment are required to register and set up security roles for a secure payment account as outlined in the Setting up an AMS Payment Account quick reference guide. For more information on AMS Payment, please visit the AMS Payment web page.

As of Jan. 2, 2020, LMR security deposit invoicing and collections will be administered through the AMS Payment system. All outstanding security deposit invoices upon transition will be reissued within AMS Payment. As previously, permit holders may provide security in the form of either cash (via AMS Payment) or letter of credit.

The Regulator currently uses the LMR program to evaluate each company’s ability to pay for site restoration. The deemed liability of a well is the estimated cost to decommission and restore the site. The LMR is the ratio of estimated operational assets (deemed assets) and security deposit to estimated decommissioning and restoration liabilities (deemed liabilities) for permit holders. For more information on the LMR Program please visit the LMR Program web page.

If you have any questions regarding this Industry Bulletin, please contact:

For LMR inquiries

Wade Abbott
Manager, Financial Risk and Liability
BC Energy Regulator

Wade.Abbott@bcogc.ca
250-419-4355

For AMS Payment inquiries

Joel Cave
Director, Finance and Administration
BC Energy Regulator

Joel.Cave@bcogc.ca
250-419-4412