24hr Emergency Spill Response line: 1 (855) 224-5014

Back to news & events

AER Announces Updates to Directive 011, Industry Parameters and Liability Costs

On June 26, 2024, the Alberta Energy Regulator (AER) announced updates to Directive 011, Industry Parameters and Liability Costs, following its information session on June 13. This release marks the beginning of scheduled updates to the Liability Management Framework (LMF) and the planned removal of the Liability Management Rating (LMR) and Licensee Liability Rating (LLR) in October 2024.

This initial phase of the AER’s proposed two-year update to industry liability estimates focuses on revising well abandonment costs across Alberta. The proportional adjustments in tubing and rod well abandonment costs by geographic area are detailed in the map below.

360 Engineering & Environmental Consulting has conducted a comprehensive review of the updated Directive 011 values across geographic areas and completion types. This assessment included benchmarking against 360’s proprietary data and internal Asset Retirement Obligation (ARO) methodologies. Feel free to reach out if you would like to discuss the implications of these updates.

Contact:
Graeme Hawkins
Manager of Asset Retirement Obligations
ghawkins@360eec.com

Recent News & Events

  • Planning for 2027 in Northeast BC

    Planning for 2027 in Northeast BC

    As operators in Northeast BC prepare for 2027, two questions are worth considering early: how might regulatory changes affect program priorities, and where could better coordination make fieldwork more efficient? These questions guided a recent discussion among industry peers convened by 360 Engineering & Environmental at Buchanan’s Chop House & Whiskey Bar in Calgary. The…

    Read More

  • Meet the Team: Nathan Fraser

    Nathan Fraser is 360 Engineering & Environmental’s Manager of Environment, Planning & Permitting. A Professional Agrologist, Project Management Professional and Qualified Mediator, Nathan brings more than 20 years of experience leading environmental, regulatory and infrastructure programs across Canada. At 360 EEC, Nathan helps clients understand which environmental studies, permits and approvals their projects may require…

    Read More

  • Draft Update to Directive 011: Estimated Liability

    The AER has released a draft update to Directive 011: Estimated Liability, and it changes how Alberta’s closure liability is valued. This is the output of a multi-year AER initiative, started in 2024, to modernize the liability values used across the province. The draft moves from flat per-well reclamation costs to itemized, region-specific estimates covering…

    Read More

  • Calgary Corporate Challenge 2026

    Calgary Corporate Challenge 2026

    After 15 days, 27 events and four medal finishes, Team 360 Engineering & Environmental placed fourth out of 31 companies in our division at the Calgary Corporate Challenge 2026! It was an outstanding result in our second year competing, but our main takeaway was how the team came together to make it happen. New employees…

    Read More