The regulator’s Liability Management Rating (LMR) assessment is a comparison of an operator’s deemed assets to its deemed liabilities. If an operator’s deemed liabilities exceed its deemed assets, the operator is required to provide a security deposit for the difference to the regulator.
Benoit has developed a workflow to help operators assess, forecast and amend their LMR. After an assessment has been conducted, Benoit provides clients with an LMR audit package which can include the following information:
- Corroboration of the regulator’s LMR calculation
- 12-month forecast of your company’s LMR
- Assessment of the potential impact of an acquisition or divestiture
- Discussion of any LMR strategies to mitigate security deposits
- Geological review of a well or area, and a summary of recommendations to increase your company’s deemed assets
- Review of your company’s land and regulatory approvals to ensure a favourable outcome for the LMR plan
Inactive Well Compliance Program (IWCP)
Benoit has created a workflow to manage and reduce companies’ IWCP inventory and increase their overall LMR. Click here to learn more.