The Alberta Energy Regulator released Bulletin 2025-27 on August 27, 2025, announcing several key updates and changes to Directive 088 for the remainder of 2025 through to 2027.
Industry Mandatory Closure Spend Amount
- 2026 closure spend set at $750 million under AER’s Liability Management Framework.
- Each licensee will now be assigned a proportionate share of this requirement (no more two-rate approach).
Exemptions
- Micro and junior dry gas producers with low estimated liability and in financial compliance may be exempt from 2026 spend requirements due to continued low gas prices.
Exceedance Bank (2025–2027)
- Operators who exceed closure spend by 20% in 2025 or 2026 can bank the excess and apply it in 2026 or 2027.
- No retroactive usage: Operators cannot underspend in 2025 and make it up in 2026 by overspending and retroactively applying the exceedance bank amount.
- Exempt micro/junior dry gas producers cannot bank spend.
Get in touch with 360 today to explore how these changes may affect your closure strategy and ongoing operations.
