The Evolution of Liability Management

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.

CLICK HERE to read the presentation slide deck.

CLICK HERE to watch the presentation.

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.

Recent Insights

  • Navigating the Human-Tech Partnership: Embracing Soft Skills in an Automated Era

    If my computer had arms, it would probably slap me in the face at the end of my work day.  I swear at it, give it dirty looks, and then throw it in a bag until I need it again.  However, I rely on it to perform most of my daily work routine.  Whether it’s…

    Read More

  • 2023 Year in Review

    Welcome to 360’s last insight of the year. As tradition dictates, the team has scoured the office for anyone willing to support a summary of our year of Insights and has come up empty. The pleasure now falls on me to hit the “high notes” and reflect on the year that was, while we prep…

    Read More

  • Carbon Credits & Site Closure in Canada & the USA – A Win Win Win

    The landscape of environmental site closure in North America is undergoing a dynamic transformation. In both Canada and the USA, the infusion of voluntary carbon credits into the equation is revolutionizing the way we think about site closure projects. These credits serve a purpose far beyond the simple offsetting of emissions; they are becoming a…

    Read More

  • Keep it Simple, Scientists: The Benefits of Applying Risk Principles to Simple Sites

    In the realm of environmental site assessment, it’s often the complexity of the task that can confound even the most experienced scientists. However, what’s sometimes overlooked is the potential for simplicity, and the benefits that come with applying risk-based principles to sites and their associated data. This is particularly relevant when dealing with seemingly straightforward…

    Read More