LIABILITY OF REPORTING ISSUERS, DIRECTORS, MANAGEMENT AND RESERVES ENGINEERS FOR RESERVES REPORT ERRORS

Who is liable for errors In oil and gas reserves reports and to whom? In the wake of newly adopted reserves reporting requirements, the question of liability deserves critical examination. What are the responsibilities imposed by the new reserves reporting instrument called National Instrument 51-101? What is the potential scope of liability faced by reporting issuers, their directors and senior management and the independent reserves evaluators and auditors who are appointed to evaluate reserves data? How do reserves reporting requirements fit into the statutory framework for public disclosure generally? What strategies can be adopted to limit liability and will they be effective? These and other questions are examined in this article.