The Government of Saskatchewan has launched the Accelerated Site Closure Program (ASCP) to use $400 million in federal funding for the abandonment and reclamation of inactive oil and gas wells and facilities. The primary purpose of this program is to put Saskatchewan people and companies back to work in the oil and gas services sector.
The ASCP will be overseen by the Ministry of Energy and Resources and administered by the Saskatchewan Research Council (SRC). The program will maximize the use of Saskatchewan-based oil and gas service sector companies. Meaningful First Nations and Métis participation in the ASCP will be an important consideration over the life of the program.
It is estimated that the equivalent of up to 8,000 inactive wells and facilities will be abandoned and reclaimed over the life of this program. This funding is expected to support approximately 2,100 full-time equivalent jobs in the oil and gas service industry.
The ASCP will be rolled out in several phases. Phase 1, released in June 2020, allocated $100 million in funding to eligible oil and gas licensees to engage Saskatchewan's oil and gas service sector to carry out site closure work. The goal of Phase 1 was to move quickly to get Saskatchewan's oil and gas service sector back to work. Phase 2 allocated an additional $200 million and Phase 3 allocated an additional $55 million in ASCP funding to eligible licensees in December 2020 and November 2021 respectively.
Eligible licensees will receive a funding allocation that is commensurate with their share of total inactive liability in Saskatchewan. Eligible licensees will use the Integrated Resource Information System (IRIS) to nominate inactive wells, facilities and flowlines into the program. Through this process, licensees will also be able to identify preferred service companies.
Using these nominations, the SRC will commence the formation of work packages. Licensees will engage qualifying service companies to carry out site closure activities contained in an SRC issued work package. The SRC will pay service companies directly. Details on the schedule of payments to service companies will be contained in the work package agreements. All contracting for services will take place exclusively between eligible licensees and qualifying service companies.
In July 2022, the ASCP opened application processes to release all remaining ASCP funding to eligible licensees.
Important Program Updates
ASCP Stakeholder Concerns and Feedback
The ASCP has created a form for anyone to identify concerns or register complaints with the program. This form should be used to identify specific situations where it is believed that program rules are not being followed. This includes eligibility of service companies, practices of licensees, invoicing issues or other matters. If desired, feedback can be provided anonymously.
Please see the feedback form that can be filled out.
Comprehensive End of Program Guidelines
The ASCP is now in its final full year of operations. The funding agreement between the Government of Saskatchewan and the Government of Canada requires that the ASCP ends in the spring of 2023. You can download the ASCP Comprehensive End of Program Guidelines for important dates and deadlines regarding the end of the program. The guidelines cover important dates and deadlines for:
- All Phase 1, 2, and 3 funding, including any funding allocated by- application in August of 2022;
- All funding allocated under the First Nations Stewardship Fund, including any funding allocation by application in August of 2022; and
- All funding associated with the Indigenous Business Credit Pool.
You can also view the updated Question and Answer document for additional details by following the Associated Documentation tab on the left navigation bar.