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Orphan Fund Procurement Program

Apply to become a pre-qualified vendor for Saskatchewan Oil and Gas Orphan Fund (SOGOF) projects under the Orphan Fund Procurement Program.
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1. Guidance

The Orphan Fund Procurement Program is responsible for identifying orphaned upstream oil and gas well and facility sites in Saskatchewan.  Using the money collected through SOGOF, this program is also responsible for securing the appropriate vendors to carry out the necessary work to restore orphaned sites to an appropriate state.

SOGOF Projects

SOGOF projects are advertised on SaskTenders for pre-qualified vendors to bid on.  Projects include, but are not limited to:

The Ministry reserves the right to use contractors who have not pre-qualified as the Ministry deems it appropriate (for example, for work required in an emergency and the safety risk is assessed to be low).

Work completed by Working Interest Participant

Through The Oil and Gas Conservation Regulations, 2012 and by using the SOGOF funds, the Ministry has the ability to pay for a defunct working interest participant's (WIP) share of suspension, decommissioning, abandonment, and related reclamation costs if these costs are, in the opinion of the Minister, reasonable and necessary to the work incurred by the WIP.

To apply to have defunct WIP costs reimbursed, submit a Reimbursement for a Defunct Working Interest Participant Costs application to the Ministry.

Sites deemed Orphans

The well and facility sites deemed as 'orphans' under SOGOF and their current abandonment and reclamation progress, can be found in the Orphan Well List and the Orphan Facility List.  These lists are updated semi-annually based on project completions.

Transferring Orphan Licences

When a well/facility licence is deemed an orphan it will stay in the defunct licensees name. The Ministry has the authority to abandon/reclaim the orphan site or transfer the licence to another eligible party.

Parties interested in acquiring a licence identified on the Orphan Well List and/or Orphan Facility List must submit a request to PNG.support@gov.sk.ca, which includes the applicable licence number(s), for Ministry consideration. Please be advised that the Ministry will review the requests on a first come first serve basis and reserves the right to approve/deny any licence transfer application.

For a licensee to qualify to transfer orphaned well/facility licences in Saskatchewan, you must:
  • Be eligible to hold a licence under section 12 of The Oil and Gas Conservation Regulations, 2012;
  • Obtain Mineral Rights Agreement from the Crown/Freehold/Lessee of an active mineral rights agreement to the orphan well zone of interest;
  • Obtain Surface Lease with Landowner/Crown to access the orphan well/facility site of interest;
  • Submit a $10,000 non-refundable Orphan Fund fee if the licensee has not previously held a well/facility licence pursuant to The Oil and Gas Conservation Regulations, 2012 in the province of Saskatchewan;
  • Obtain an IRIS account and the appropriate permissions assigned by your IRIS Security Administrator to submit a well or facility transfer application;
  • Be registered with Information Services Corporation (ISC) as a corporation to do business in Saskatchewan;
  • Have submitted a license transfer application through IRIS, in which the transfer form would be completed in conjunction with the Ministry who would be signing on behalf of the Transferor in this situation; and
  • Have paid the security deposit required for the pending transfer, if applicable.

Note once a licence is transferred the applicant (now Licensee) is responsible for the liability associated with the future well abandonment and reclamation of the licenced site. This includes well or environmental liability the existed prior to acquiring the licence. Therefore applicants are encouraged to ensure they are aware of potential liabilities that may exist before applying to transfer the licences.

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2. Eligibility

Before applying to become a pre-qualified vendor, applicants must:

  • Employ and keep current all safety programs or safety management systems
  • Maintain a minimum of $2,000,000 Comprehensive General Liability Insurance
  • Maintain a minimum of $1,000,000 Automotive Liability Insurance
  • Be registered with the Workers Compensation Board (WCB)
  • Where applicable, hold a valid Saskatchewan or home province Certificate of Recognition (COR) or Small Employer Certificate of Recognition (SECOR)

The Ministry may ask for proof of eligibility before signing any agreement.

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3. How To Apply

To apply to become a pre-qualified vendor:

  1. Ensure you meet all eligibility requirements.
  2. Complete the appropriate SOGOF Vendor Pre-qualification Form
  3. Email the completed vendor pre-qualification form with all required documents as a single PDF attachment to Petroleum and Natural Gas (PNG) Support Desk with 'Orphan Fund - Vendor Pre-Qualification Application' in the subject line.
  4. You will be informed via email if your application has been approved or rejected.  In either instance the notification will include the basis for the results and additional information for how the vendor may improve their status.
  5. If approved, you are now eligible to submit proposals through SaskTenders for work related to the SOGOF.

The application, responses and any accompanying documentation submitted by the vendor are the property of the Government of Saskatchewan and will not be returned. 

This application is for the pre-qualification process only.  Being approved does not guarantee that the applicant will be invited to bid on, or will be selected for, any of the project work.

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4. Apply

Complete and attach the appropriate SOGOF Vendor Pre-qualification Form .

Send your application now

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5. Further Information

Maintaining Pre-Qualified Vendor Status

  • A vendor that has been approved as a pre-qualified vendor must maintain their status by submitting updates on their safety and environmental records, standards, and manuals when requested by the Ministry.  Failure to do so will result in removal from the pre-qualification vendor's list.  The Ministry is responsible for any cost incurred by the vendor in preparing the pre-qualification application or maintaining their approved status.
  • The Ministry reserves the right to review a vendor's status at any time and require the vendor to re-qualify if deemed necessary.
  • The Ministry may, as it sees fit, publish the names of the vendors who are on the pre-qualified vendor's list.

SOGOF Projects awarded through SaskTenders

All pre-qualified vendors who are the successful bidder for a SOGOF project must sign a Saskatchewan Orphan Well Contract Agreement with the Government of Saskatchewan's Ministry of the Economy which specifies the scope of the work, terms and conditions, cost, payment, etc.

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