DATE ISSUED: March 18, 2024

EFFECTIVE DATE: June 1, 2024

The BC Energy Regulator (BCER) implemented the Permittee Capability Assessment (PCA) program in 2022 as a new assessment method for mitigating liability risk while permit holders are financially viable. As of June 1, 2024, the PCA program will be expanded to include dormant facilities and pipelines.

The PCA assesses the financial health of each permit holder and attempts to mitigate risk through corrective actions to help reduce liability and/or collect security. The PCA program works in conjunction with the Dormancy and Shutdown Regulation (DSR), which establishes timeline requirements to restore oil and gas sites, and the PCA engages companies with escalated financial risk to do further liability reduction and/or provide security to mitigate risks to the orphan sites reclamation fund.

Risk is measured by each permit holder’s level of financial risk and magnitude of liability.

Previously, the DSR program only had timeline restoration targets for dormant wells. As of Jan. 1, 2024, the DSR included timelines to restore dormant pipelines and facilities.

As a result, the PCA will be including the liability of these dormant pipelines and facilities when calculating a permit holder’s magnitude of liability for 2024 corrective action requirements.

The BCER is committed to ensuring energy resource permit holders operating in B.C. meet their regulatory and liability obligations throughout the energy resource activity lifecycle.

If you have any questions regarding this Technical Update, please contact:

Taylor Boorman
Manager, Financial Risk and Liability
BC Energy Regulator
Taylor.Boorman@bc-er.ca
250-419-4365