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 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.email@example.com, 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.