Replies to post #10533 on Xfuels Inc (XFLS)

[TheGuy87]

Statistics for the Grant program... IMO, we can expect more going forward


Application and project status
September 18:
38,071 completed applications have been submitted
36,355 applications have been processed (covering grant periods 1, 1B, 2, 3, and 4)
10,471 applications have been reassessed under reassessment period 1B
11,328 applications have been approved
65 % of approved applications are for abandonment work, representing $132 million in funding
35 % of approved applications are for remediation and reclamation work (including Phase 1 and 2 environmental site assessments), representing $66 million in funding
$199 Million in grant funding has been approved and is being allocated to 306 Alberta-based companies
This funding will lead to the creation of approximately 953 jobs, as estimated by oil field services companies in their applications

[TradersQue]

Wow huge info, Pin please

[TheGuy87]

https://cassels.com/insights/albertas-new-oil-and-gas-liability-management-framework/

On July 30, 2020, the Government of Alberta announced the release of its new liability management framework (LMF) for oil and gas producers in Alberta. The LMF will replace the former Licensee Liability Rating system established by the Alberta Energy Regulator (AER). There are approximately 97,000 inactive wells in the province of Alberta with total liability estimates exceeding $30 billion.1 Concerns regarding the growing inventory of orphaned and inactive wells caused the Government of Canada to commit $1.7 billion to the provinces of Alberta, British Columbia, and Saskatchewan to launch the Site Rehabilitation Program. Of this $1.7 billion, $1.2 billion went to the province of Alberta. Under the Site Rehabilitation Program, service companies can apply for grants to perform abandonment and reclamation work on oilfield sites.

The overhaul to the liability management regime has been highly anticipated since the Redwater decision2 was rendered by the Supreme Court of Canada in January 2019. The trend toward an overhaul of the existing system continued when the AER made corporate Liability Management Ratings (LMRs) confidential in February 2020. A company’s LMR is the ratio of a licensee’s eligible deemed assets in the Licensee Liability Rating, Large Facility Liability Management, and Oilfield Waste Liability programs to its deemed liabilities in these programs, as set forth in AER Directive 006.3 The LMF was due to be released earlier this year but was postponed due to the COVID-19 pandemic.4

Under the previous transfer system, the purchaser of well, facility or pipeline licenses in Alberta was required to maintain an LMR of 2.0 (and the seller was required to maintain an LMR of 1.0) in order to avoid having to a post a substantial security deposit or request special permission from the AER. Critics of the previous transfer system noted that it was too onerous and stalled many oil and gas asset deals. This prevented companies from receiving cash injections or offloading strategic assets at critical times. This problem was exacerbated by low commodity prices, which proved to be too much for many oil and gas companies to remain a going concern.