Shell Transfer Applications Set for an AER Public Hearing The Alberta Energy Regulator (AER) has decided not to approve the Shell applications to transfer the so-called "foothills assets" to Pieridae at this time and instead has referred the applications to a public hearing process. Over 35 individuals, organizations and corporations, some from the oil and gas industry, filed statements of concern opposing the asset transfer, largely because of concerns that Pieridae will not have the financial capability to safely operate the foothills assets or to take responsibility for the environmental liabilities associated with the assets, estimated at nearly $3 Billion. The AER has not yet appointed a hearing panel or issued a Notice of Hearing and the hearing dates and location will be announced shortly.
So I wonder, how can Pieridae proceed with a FID, which the deadline is coming up fast, without getting a resolution about whether or not they will be able to gain ownership of the foothills assets. Additionally, if they do not gain ownership, what are the contractual implications with Shell and the financial implications for Pieridae. Time will tell but this is starting to look very shaky...
I'm interested in what others think?