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.
About the Author
Mike Newton, Director of Corporate Development
Mike is responsible for developing strategic initiatives that support 360’s organic growth, acquisitions, and technological evolution. He also advises 360’s execution groups on ARO assessments, closure strategy, and asset transfers. Mike uses his diverse experience in economics and closure execution to derive a standardized methodology for assessing liability and risk in oil and gas. He is a graduate of the University of Alberta’s School of Business, where he earned his Bachelor of Commerce.
