AER Mails Invoices For Interim Industry Levy

In the absence of an approved budget, the Alberta Energy Regulator (AER) says it has imposed interim administrative fees that will enable it to operate until the government approves a budget this fall.

The AER will issue a second set of fees to collect the balance owing once the budget has been passed.

 Invoices are in the mail and payments are due by Aug. 12, 2019.

The amount of each invoice depends on the AER’s revenue requirement, 2018 production volumes, the number of wells and schemes, and the number of operators within the sector.

All operating wells are classified into one of eight base fee classes, as set out in the Alberta Energy Regulator Administration Fees Rules (AFR). In addition, an adjustment factor is specified and applied to each base fee. This adjustment factor ensures that the total administration fee collected for the sector satisfies the revenue requirement for the AER.

The invoices also include $4.19 million in funding for the Alberta Upstream Petroleum Research Fund (AUPRF) as jointly requested by the Canadian Association of Petroleum Producers (CAPP) and the Explorers and Producers Association of Canada (EPAC). Payment of the AUPRF is voluntary.

Funds collected by the AER on behalf of the industry groups will be allocated to Petroleum Technology Alliance Canada (PTAC).