The Issue and Challenge
Asset Retirement Obligation (ARO) Well Abandonment and Reclamation
What technical solutions can reduce the costs associated with asset retirement obligations (ARO) and associated reclamation and remediation? Today, ARO cost estimates are established by regulators (e.g., Alberta Energy Regulator’s Directive 11). Reducing abandonment costs to equal or lower than the scheduled costs would provide incentive to the industry to more proactively reduce these liabilities.
The successful technologies will:
- Be ready for implementation in current ARO programs in Alberta;
- Be cost competitive with current Alberta Energy Regulator costs for ARO obligations (see Directive 11);
- Be demonstrable on an NAL production site;
- Contribute to the reduction of ARO related liabilities and/or the related operating costs associated with reclamation activities.
August 30, 2017