CSA Notice of Amendments to NI 51-101 Standards of Disclosure for Oil and Gas Activities and Related Rules and Guidelines

The Canadian Securities Administrators (“CSA“) are making amendments to National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities (“NI 51-101“), and its Companion Policy and related forms (the “Amendments“), in response to CSA’s observation of reporting issuer disclosure and to industry feedback on the amendments originally proposed in October 2013. Subject to ministerial approval requirements, the Amendments will come into force on July 1, 2015. CSA Staff Notice 51-324 Revised Glossary to NI 51-101 Standards of Disclosure for Oil and Gas Activities and CSA Staff Notice 51-327 Revised Guidance on Oil and Gas Disclosure are also being amended.

Background

On October 17, 2013, the CSA proposed the following amendments for comment:

  • in certain circumstances, permitting disclosure prepared under an alternative resources evaluation standard;
  • inclusion and refinement of product type definitions;
  • additional requirements regarding the disclosure of contingent and prospective resources;
  • introduction of a principle-based approach to the disclosure of oil and gas metrics;
  • clarification of the point at which sales of product types and associated by-products should be disclosed;
  • definition of and requirements related to the disclosure of abandonment and reclamation costs;
  • removal of the requirement to match the presentation of reserves not directly held by the reporting issuer in the reserves report to the disclosure of assets in the financial statements;
  • removal of the requirement to obtain independent qualified reserves evaluator consent before disclosing results from the annual evaluation outside of the required annual filings;
  • revision of the date at which the independent qualified reserves evaluator takes responsibility for information related to the reserves evaluation; and
  • clarification of required disclosure when an issuer has no reserves.

After considering the comments, CSA made amendments to the Rule including Form 51-101F1, Form 51-101F2, Form 51-101F3, and the Companion Policy, and added Form 51-101F5 Notice of Ceasing to Engage in Oil and Gas Activities. As these changes from the proposed amendments were not considered material, the CSA did not republish the Amendments for an additional comment period.

The full text of the CSA Notice is available here

CSA Staff Notice 51-324 Revised Glossary to NI 51-101 and CSA Staff Notice 51-327 Revised Guidance on Oil and Gas Disclosure are available here and here, respectively.

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