With the recent 2017-18 Budget announcement, programs and services affected will be updated shortly. Posted March 22, 2017

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Apply to Transfer Well and Facility Licences

Applying to the Government of Saskatchewan’s Ministry of the Economy for authorization to transfer a well or facility licence to another person.

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1. Guidance

Under The Oil and Gas Conservation Actauthorization is required by the Minister of the Economy to transfer a well or facility licence from one licensee to another to ensure the new owner assumes the associated liability and responsibility under the Act and Regulations for the well or facility site. 

Pre-transfer liability assessments

As indicated in the Letter to All Operators sent out regarding the LLR Program in August 2016 the Ministry will no longer be relying on the standard LLR calculations in evaluating the deposit requirements due to transfers. Therefore, licensees with potential purchase and sales agreements are asked to complete a transfer pre-assessment application to ensure the parties are aware of potential deposit requirements and conditions that may accompany the transfer.

  1. Prepare the applicable "Schedule A Well List" and/or "Schedule B Facility List" as identified in the "How to Apply" section below.
  2. Log in to the Integrated Resource Information System (IRIS) and complete the licence transfer application process to obtain a pre-transfer liability assessment:
    • The application description box must include the following information:
      • "Pre-Transfer Liability Assessment Request to Transfer ## wells and ## facilities from <insert BA Code and Name associated with the Transferor> to <insert BA Code and Name associated with the Transferee>."
    • Attach the Well and/or Facility List as a single PDF (no security applied). Note: The Licence Transfer Application Form should not be included with the submission at this time.
    • Assessments are valid for 30 days.
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2. Eligibility

Before applying to transfer a well or facility licence, you must:

  • Have an IRIS account and the appropriate permissions assigned by your IRIS Security Administrator to submit a well or facility transfer application.
  • If a corporation, be registered with Information Services Corporation (ISC) to do business in Saskatchewan.
  • 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.  Use the Orphan Fund Fee Payment Form to submit the 'Orphan Fund - First Time Application Fee' to the Government of Saskatchewan. 
  • Have completed the licence transfer pre-assessment application and paid the security deposit required for the pending transfer, if applicable.
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3. How To Apply

To apply for authorization to transfer a well or facility licence:
  1. Ensure you meet all eligibility requirements.
  2. Complete the Licence Transfer Application.
  3. Prepare a Well List ("Schedule A”) by modifying the LLR Well List to include the following for each well being transferred:
    • Surface location
    • Licence number 
    • Transferee Working Interest Participants (WIP): Defined as a person who owns a legal or beneficial interest in a well.
    • Note: As shown in the "Schedule A" example, the well list must be sorted by "Surface Location" in reverse ascending order (starting from meridian, range, township, section, and legal subdivision). The "WIP Name" and "Percentage held by each WIP" should be defined at the bottom of "Schedule A" and correspond to the number provided in the WIP column.
  4. Prepare a Facility List ("Schedule B”) by modifying the LLR Facility List to include the following for each facility being transferred:
    • Surface location
    • Licence number Facility code
    • Transferee Working Interest Participants (WIP): Defined as a person who owns a legal or beneficial interest in a facility.
    • Note: As shown in the "Schedule B" example, the facility list must be sorted by "Surface Location" in reverse ascending order (starting from meridian, range, township, section, and legal subdivision). The "WIP Name" and "Percentage held by each WIP" should be defined at the bottom of Schedule ‘B’ and correspond to the number provided in the WIP column.
  5. Log in to IRIS and complete the Licence Transfer Application Process for authorization:
    • The application description box must include the following information: "Application to Transfer ## wells and ## facilities from <insert BA Code and Name associated with the Transferor> to <insert BA Code and Name associated with the Transferee>."
    • Attach the Licence Transfer Application Form as a single PDF (no security applied) with the information presented in the following order:
      • Licence Transfer Application Form
      • Schedule A
      • Schedule B 
  6. Before processing the licence transfer application, the Ministry conducts a liability assessment for both the transferor and the transferee. If the post-transfer Licensee Liability Rating (LLR) is less than 1.0, a security deposit must be submitted to the Ministry prior to approval of the licence transfer. Licensees are notified of their security deposit requirements through IRIS and provided with 30 days to submit the deposit. During this time, the transfer application is placed on hold. If the security deposit is not received by the Ministry, the transfer application is denied and a notification is communicated through IRIS.
  7. Transfer authorizations are only communicated as a notification in IRIS to the company that submitted the application. Authorized transfers are reflected in IRIS the next business day. It's the responsibility of both parties (transferor and transferee) to check if the transfer is completed in IRIS.
    Note: The transferor may continue to view confidential data, submit new data or documents, related to the well or facility until the transfer is reflected in IRIS.


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4. Apply

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5. Further Information

Transferring a Cancelled or Abandoned Well

All wells - including a cancelled or abandoned well - can be transferred. Where possible, the proper Acknowledgement of Reclamation (AOR) Program process is to be completed before transferring a cancelled well to ensure unnecessary liability isn't transferred to the new owner.  

Once transferred, any existing abandonment or reclamation liability associated with the well becomes the new owner's responsibility. Refer to the Acknowledgement of Reclamation (AOR) Program page for information on removing associated reclamation liability.