Alberta’s energy regulator has rebuffed some of Canadian Natural Resources Ltd.’s objections to dozens of asset deals the company says expose the energy industry to billions of dollars in new liabilities.
Canadian Natural had urged the Alberta Energy Regulator (AER) to block the deals or force buyers to post hefty deposits on grounds they did not meet the regulator’s threshold for financial health.
The AER dismissed the objections on a technicality, saying Canadian Natural submitted its complaint more than two weeks after a 30-day period for comment had expired.
Related: Canadian Natural pushes energy watchdog to block deals adding to cleanup costs
However, it did not address wider criticisms that the AER’s system for measuring liabilities overstates the industry’s overall financial well-being. A spokesperson for the regulator was not immediately available.
“The AER notes CNRL has filed the identical statement of concern in response to several other licence transfer applications (36 in total to-date),” the regulator said in a form letter posted to its website.
“Provided they otherwise comply with applicable requirements, statements of concern filed by CNRL within the time limits prescribed by the rules will be registered, processed and dispositioned as per the AER’s normal process.”
Oil-rich Alberta has struggled to manage billions of dollars in unfunded cleanup liabilities following a string of corporate bankruptcies in the energy sector.
Last year, the province offered $235-million in loans to oil companies to help tackle the problem.
Canadian Natural, whose executive chairman is billionaire Murray Edwards, is on the hook for a large share of those liabilities as one of the biggest contributors to an industry cleanup fund.
The AER has said it is working with the province to address shortcomings but a wider review of industry liabilities has been repeatedly delayed.
Pine Cliff Energy Ltd., Cardinal Energy Ltd. and Kaybob Energy Corp. were among companies targeted in Canadian Natural’s complaint.
The company had no immediate response to the AER decision.