The Evolution of Liability Management

360’s Director of Business Operations, Mike Newton, explores the impacts of updates to the Licensee Liability Rating (LLR) deemed liability values, the timing of these changes, ways energy producers can proactively prepare, and the economical case to transition from LLR to ARO values now.

CLICK HERE to read the presentation slide deck.

CLICK HERE to watch the presentation.

Presentation Overview:

  • History of Licensee Liability Rating (LLR) values
  • Timeline
  • Intended vs adopted applications
  • Why Change is Coming
  • ARO vs LLR examples
  • Potential Impacts
  • ARO reporting
  • Posting security on transfers
  • Mandatory spends (AB vs SK)
  • Expected timing of change
  • What operators should do now to prepare
  • ARO Assessment and disclosure to investors
  • Prioritize Liability Capability Assessment (Directive 088) and disclosure parameters that could impact business/transfers – reserves, liability, finances, etc.

Recent Insights

  • 360’s 2024 Sustainability Report – Optimization = Opportunity

    360 is proud to release our 2024 Sustainability Report. Themed Optimization = Opportunity, this year’s report summarizes highlights, successes, and changes for our growing organization. We reflect on a year that was dedicated to enhancement, modification, and our commitment to Making a Difference and Making it Simple. As part of the Optimization theme, the 360 Sustainability Committee had…

    Read More

  • Exploring New Frontiers: A Blueprint for Success in New Market Expansion

    “I don’t know, I’m making this up as I go!” Indiana Jones was my childhood hero growing up, but taking Indy’s famous approach when evaluating and entering a new geographical market is not the best strategy. Evaluating opportunities and costs before entering a new market or region is a crucial process that requires a comprehensive…

    Read More

  • Navigating the Human-Tech Partnership: Embracing Soft Skills in an Automated Era

    If my computer had arms, it would probably slap me in the face at the end of my work day.  I swear at it, give it dirty looks, and then throw it in a bag until I need it again.  However, I rely on it to perform most of my daily work routine.  Whether it’s…

    Read More

  • 2023 Year in Review

    Welcome to 360’s last insight of the year. As tradition dictates, the team has scoured the office for anyone willing to support a summary of our year of Insights and has come up empty. The pleasure now falls on me to hit the “high notes” and reflect on the year that was, while we prep…

    Read More