Frequently asked questions

  • The LI rating algorithms focus on liabilities from marginal, inactive, and un-reclaimed abandoned sites, as well as forecasted liabilities of flagged producing assets in Petrinex. It normalizes liability assessments across provincial regulatory jurisdictions.

  • The LI rating considers site-specific abandonment guidelines from regulators, as well as lifecycle operational, compliance, and stewardship data, which weigh heavily in overall liability risk assessment.

  • Yes, it evaluates historical asset ownership and considers significant issues impacting liability in its rating.

  • Yes, LEL Intelligence can generate corporate LI ratings and targeted liability evaluations for companies across the Western Canadian Sedimentary Basin.

  • The LI system provides normalized risk evaluations across all upstream well sites. It generates site-specific risk profiles monthly, enabling a comprehensive comparison regardless of geographic or jurisdictional differences.

  • Yes, the LI system uses AI to identify liability risks, automating evaluations. Unlike legacy ARO tools, which are static data aggregators, it continuously evaluates liability to surface and rank issues of concern across a company’s entire inactive site inventory.

  • Data is sourced from government, semi-public, and private providers and vetted by Source Data Quality Assurance (SDQA) partner enSift SGI, ensuring high-quality inactive asset data.

  • Risk factors and their relative significance depend on the stakeholder. For example, lenders may focus on Terminal Decommissioning Liability (TDL), producers on discounted ARO metrics, and Indigenous groups on operational compliance and asset stewardship history.

  • No. The LI rating provides a global benchmarking standard to measure performance improvements. It helps producers optimize resources to meet regulatory and corporate liability goals.

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