WHEREAS oil companies have their licensee liability rating (manages the financial risk of the oil company) calculated by the Ministry of Energy and Resources each month;

WHEREAS each licensee with oil and gas wells and facilities, including service wells in the province are required to maintain a licensee liability ratio of greater than 1.0;

WHEREAS if an oil company goes below the 1.0 ratio, they have to pay a security deposit to the Oil and Gas Orphan Fund in order to continue operating.

BE IT RESOLVED that SARM lobby the provincial government make changes so that an oil company with a ratio of less than 1.0 cannot just pay the security deposit to the Oil and Gas Orphan Fund to continue to operate and not pay municipalities for arrears of land taxes;

BE IT FURTHER RESOLVED that oil companies also have to pay their surface lease rentals to landowners.

View response from the Ministry of Energy and Resources