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Multi-Licensed Site Reclamation Liability Reduction

Overview

Licensees with multiple well or facility licences that exist on a single surface lease may qualify for a reduction in the reclamation liability associated with the given well and/or facility licences under the LLR Program.

Guidance

A licensee can apply to the Ministry of Energy and Resources for a reduction in the reclamation liability associated with non-abandoned well and facility licences that are located on a single surface lease.

Eligibility

Before submitting a Multi-Licensed Site Reclamation Liability Reduction application, you must:

  • Have an Integrated Resource Information System (IRIS) account and the appropriate permissions assigned by your IRIS Security Administrator.
  • Be the registered licensee of the well or facility site in IRIS.
  • Obtain your Licensee Liability Inventory Report and ensure for the well and/or facility licences that you are requesting reclamation liability reduction on:
    • The reclamation liability associated with the well/facilities licenses is greater than $0.00. The Ministry does not assign a reclamation liability until one year after a well's spud date or facility's licence issue date.
    • The status for the well or facility licence is something other than “Abandoned” or "Cancelled". Note: if the well status is “Abandoned” or facility status is “Abandoned not Reclaimed”, please complete an exemption from reclamation application instead for the given abandoned well or facility licence.

How to Apply

To apply for a reduction in the reclamation liability of a multi-licensed site, the licensee must:

  1. Ensure the eligibility criteria are met.
  2. Obtain the most recent Licensee Liability Inventory Report to pull the surface location, current well status and reclamation liability details to complete the application form.
  3. Obtain the most recent well/facility licence survey for the surface lease which clearly defines:

    • Boundary of the surface lease highlighted in yellow
    • Well centre of each licence listed in the application 
    • Use an arrow to clearly indicate the applicable wells or facilities and label it with the corresponding licence number
  1. Complete the Multi-Licensed Site Reclamation Liability Reduction Form.



    Note: As shown in the completed form and survey example, the form will require you to indicate the proposed reclamation liability associated with each licence identified after the application is approved. Therefore, one licence (with the highest reclamation liability) will retain full reclamation liability and the remaining licences will be reduced to 10% of their current liability. 
  1. Prepare the application package as a single PDF document (no security applied) with the applicable components orientated so they can be read on a computer screen and presented in the following order:
    • Form
    • Survey (single page showing the details identified above)
  1. Submit the application to PNG.support@gov.sk.ca with subject line “Reclamation Liability Reduction (multi-licensed site) application.
  2. The status of the application is communicated to the licensee via email. At this time, the reclamation liability will be reduced on the LLR system; however, licensees will not see the change reflected on the Licensee Liability Inventory Report until the update is run on the 28th of the month.

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