Page 63 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.71, # 1, 2014, pp. 53-79

As the figure provides below, the disturbed areas of land have been increasing for the last

three years.

Today, Canada exports more than two million barrels of oil to US and other international

markets. It is forecasted that export potential will even double before 2021. Such an extensive

increase in crude export cannot be pictured without bigger disturbed land areas. MFSP Liabilities

of Approval Holders will also extend with the increased number of land disturbances that will cost

billions of dollars per reclamation area. It is expected that operators will continue using financial

securities to keep their asset to liability balances on accepted levels for the Director of Alberta

Environment and Sustainable Resource Development.

We assume that the dollar amounts of financial securities will grow such hat any Approval Holders

will change forms of reclamation securities available to them. Due to differences in tax and royalty

revenue treatments of reclamation securities a change from one type of security to another will

Figure 2. Areal breakdown of Oil Sands Mining and Reclamation

Source: Provided by Alberta Environment

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