Farmers' Advocate Office: Alberta Energy Regulator (AER) Suspends Over 1,660 Licences Belonging to Lexin Resources Ltd.

 
 
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 The Alberta Energy Regulator (AER) recently suspended the licences for all wells, facilities, and pipelines belonging to Lexin Resources Ltd. The closure will affect 1,380 wells, 81 facilities, and 201 pipeline licences.

“We have received a high number of calls from landowners who’ve had concerns about their lease with Lexin Resources Ltd.,” explains Jeana Schuurman, rural engagement and communications specialist with the Farmers’ Advocate Office.

On February 15, 2017, the Alberta Energy Regulator (AER) issued a press release announcing that the licences for all Lexin Resources Ltd. properties would be suspended to ensure public safety and limit environmental and financial risks. The press release indicated that a significant amount in AER levies and fees were unpaid and that the company had insufficient staff to adequately manage the sites.”

Landowners with a lease belonging to Lexin Resources Ltd. should be aware that:

  • Recourse for unpaid surface lease rentals is available through the Surface Rights Board.
  • Viable sites may be sold to other companies if the licence transfer conditions are met.
  • Where a Working Interest Participants (WIP) exists on the licence, the AER will work with them to shut-in the properties to ensure public safety. Note that the WIP is not responsible for unpaid surface lease rentals.
  • The Orphan Well Association (OWA) will have care and custody of the remaining sites. Any licenced site that poses a greater risk to public safety or the environment becomes a higher priority.
  • The AER has sought a court order to prevent equipment from being removed from AER-licensed sites. Anyone has information about the removal of Lexin equipment over the past six months should contact the AER’s 24-hour emergency and complaint line at 1-800-222-6514.

For more information on the enforcement actions, please visit the AER website at www.aer.ca or contact the AER directly at 1-855-297-8311.

Landowners with questions about their rights may contact the FAO through the Ag Info Centre at 310-FARM (3276).
 
 
 
 
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For more information about the content of this document, contact Jeana Schuurman.
This information published to the web on February 16, 2017.
Last Reviewed/Revised on September 15, 2017.