Federal Funding Accelerating the Reclamation of Inactive Wellsites

The Canadian government’s COVID-19 Economic Response Plan included up to $1.7 billion in funding for the cleanup of oil and gas sites across Western Canada. Alberta, British Columbia and Saskatchewan have begun to implement grant programs intended to create jobs while funding well, facility, and oil and gas site reclamation work. This funding is an opportunity for oil and gas producers and licensees to address outstanding environmental liabilities and contribute to Canada’s economic activity.

Simplify the complex

Because each province has a different process, applying for this funding may appear complex. The team at Golder has been working in conjunction with producers and licensees to support applications, streamline efforts and increase chances of success. Some strategic considerations we’ve encountered include:

  • Oil field service contractors must have contract with Licensees (AB/BC) or must be listed as Lead suppliers (SK).
  • Sites nominated by private landowners, First Nations on reserve or residents of Metis Settlement may increase an applications’ priority level.
  • Orphan wells are not included as they are part of the Orphan Well Association programs for each province.
  • There is no deadline for submitting sites for closure, but work must be completed by December 31st, 2022.

Put our experience to work for you

In addition to our understanding of the funding programs and staying on top of details as they emerge, Golder has hundreds of upstream wellsites on progression to closure across Western Canada. This experience puts us in a position to identify the best strategies, tools, and cost-saving approaches to get sites remediated and reclaimed efficiently.

How to access the funding

  • For sites in Alberta, the provincial government has been releasing grants in $100 million increments. With the first two complete, future increments may focus on larger projects with larger contract values. Details around eligibility, timing, and how to apply can be found here.
  • For sites in British Columbia, the provincial government kicked off a Dormant Sites Reclamation Program in late May. Applications for the first increment of $50 million are being accepted until October 31, 2020. Further increments will follow as the province makes adjustments to its implementation process. Details around eligibility, timing, and how to apply can be found here.
  • For sites in Saskatchewan, the provincial government has recently opened Phase One, whereby eligible licensees can nominate inactive wells and facilities into the program. Details around eligibility, timing, and how to apply can be found here.

To speak to a member of our team about closure work, environmental site assessments, remediation, reclamation, or preparation of applications, please contact us.

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