The Licensee Liability Rating (LLR) Program manages the financial risk to the Saskatchewan Oil and Gas Orphan Fund and is designed to prevent the occurrence of orphaned wells and facilities within Saskatchewan.
Each licensee with upstream oil and gas wells and facilities, including service wells, in the province has their Licensee Liability Rating calculated monthly by the Ministry of Energy and Resources.
The Financial Security & Site Closure Regulations and Directive PNG025: Financial Security Requirements provide information on how:
- Abandonment and reclamation liability are calculated for a particular well or facility licence;
- A licensee's liability rating (LLR) and prorated LLR are calculated;
- A security deposit is assessed and invoiced, acceptable security deposit payment methods and eligibility requirements for refunds.