https://www.cbc.ca/news/canada/edmon...nies-1.6016843
Quote:
Alberta is changing how it calculates the payments oilsands mines make to ensure there's enough money to clean up the mess they leave behind.
The province says the decision is in reaction to low oil prices last year, which briefly reached negative values.
Lisa Fairweather of Alberta Environment said keeping the old program would have cost the industry billions of extra dollars, even though the environmental risk of the mines hasn't changed.
She said Thursday's move is temporary until a complete review of environmental security payments is held this summer.
Critics say the changes will reduce payments into a cleanup fund that the auditor general has said is already too low.
Under the changes, Alberta will no longer calculate payments based on a company's environmental liabilities and its assets.
Instead, the calculation will be based on a company's revenue.
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So, if you don't make enough revenue, the government is publicly telling the world your liability is actually the Province of Ab's?
Can any industry people here shine light on what type of magnitude of change this would be for the few surface mining oil sands companies?
Any idea on what $/bbl would need to be for this to roughly mean a higher payment (I get revenue is more than just that, but trying to understand the actual impacts of this)
From a math perspective, it seems insane to tie the liability levy to revenue and.... not the value of the liability.