AER Approves Shell, Pieridae Request To Withdraw Foothills Licence Transfer; Application Will Be Revised

The Alberta Energy Regulator (AER) has authorized Shell Canada Limited and Pieridae Alberta Production Ltd.’s request to withdraw the applications to transfer all licences and approvals for Shell’s Foothills assets.

Accordingly, a public hearing will not be held, said the AER in a notice.

“We continue to own and operate the assets — nothing has changed there — and Shell remains the licensee of record,” said James Millar, a Pieridae spokesperson.

After recent changes to the AER’s regulations, both Shell and Pieridae have decided to revise the application and resubmit at a future date under the new regulatory framework, he added.

In January 2021, Shell applied to transfer all its licences and approvals for the Foothills assets to Pieridae. The Foothills assets are divided into three main operating areas in the southern Alberta Foothills: Caroline, Jumping Pound, and Waterton and include 282 well licences, 70 facility licences (including three gas plants), 81 pipeline licences, and other associated approvals and licences, said the regulator.

The AER issued a notice of hearing on July 5, 2021, and an amended notice of hearing on July 14, 2021, which included a deadline to file a request to participate by Aug. 3, 2021.

On July 15, 2021, Shell requested an adjournment of the proceeding. Pieridae agreed to the request on July 16, 2021, noted the AER.

The AER granted the adjournment request on July 20, 2021, and directed both companies to provide an update by Sept. 30, 2021.

“The hearing process was suspended and all filing deadlines, including the request to participate deadline in the July amended notice of hearing, were no longer applicable,” said the AER.

On Sept. 28, 2021, Shell provided an update and requested an extension of the adjournment to Jan. 31, 2022. Pieridae agreed to the extension request on Sept. 29, 2021. The AER granted the request and extended the adjournment to Jan. 31, 2022. Shell and Pieridae were directed to provide an update by Jan. 31, 2022.

On Jan. 31, 2022, Shell filed a request to withdraw the applications pursuant to section 5(15) of Directive 088: Licensee Life-Cycle Management, without prejudice to future applications, to transfer the licences, approvals, and dispositions for the Foothills assets from Shell to Pieridae.

Pieridae, as the only other party to this proceeding, confirmed its support of Shell’s request to withdraw the applications on Jan. 31, 2022.

On Feb. 1, 2022, the AER in accordance with section 4(2) of the AER Rules of Practice accepted the applicants’ withdrawal of the applications.

Shell remains the licensee of record.

Accordingly, a public hearing will not be held.

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