360’s Director of Business Operations, Mike Newton, explores the impacts of updates to the Licensee Liability Rating (LLR) deemed liability values, the timing of these changes, ways energy producers can proactively prepare, and the economical case to transition from LLR to ARO values now.
Presentation Overview:
- History of Licensee Liability Rating (LLR) values
- Timeline
- Intended vs adopted applications
- Why Change is Coming
- ARO vs LLR examples
- Potential Impacts
- ARO reporting
- Posting security on transfers
- Mandatory spends (AB vs SK)
- Expected timing of change
- What operators should do now to prepare
- ARO Assessment and disclosure to investors
- Prioritize Liability Capability Assessment (Directive 088) and disclosure parameters that could impact business/transfers – reserves, liability, finances, etc.
Thanks for reading,
-Mike
