Pre-Approval - Well Decommissioning

Well Decommissioning projects are eligible for a rebate of 90 per cent of eligible costs to a maximum payment of $10,000 per project.

Program payments are subject to a minimum rebate of $250. The minimum claim amount is $500.

You are eligible to apply for pre-approval if:

• You are a Saskatchewan agricultural producer (individual, partnership or corporation), value-added agricultural business, rural municipality or First Nation in Saskatchewan;
• For individual applicants, you are at least 18 years of age;
• You can demonstrate a minimum $50,000 of gross farm income or income derived from processing primary agricultural commodities in Saskatchewan in the year of application or the year prior to the application. Note: Income requirement does not apply for rural municipalities; and
• Producers who own, lease or rent property where livestock and poultry are grown, bred, kept, raised, displayed, assembled or disposed of require a Saskatchewan Premises Identification (PID) number.

The maximum amount that may be paid to an eligible applicant and to persons related to an eligible applicant will be subject to the program’s maximum funding cap. Related applicants include spouses, partners, relatives in the same residence or individuals/entities which have controlling interests in more than one operation.

Pre-approval is required for all well decommissioning projects. If your well is not decommissioned appropriately, your project will be ineligible for funding.

Approvals may include:

• Written authorization from the land owner is required if the well the applicant plans to decommission is not located on land owned by the applicant.
• If the applicant is a rural municipality, they must provide a copy of the resolution from council that authorizes the project and application to the Program.

It is the responsibility of the producer to determine if a project is located in an environmentally sensitive area. The online mapping tool is available to assist producers in recognizing if their project(s) is/are located in these areas.

For environmentally sensitive land, authorization and consent is required when the project is located on land with the following designations:

• Any Crown lease lands designated under The Wildlife Habitat Protection Act (WHPA) require project approval prior to commencing work. Please contact your local Ministry of Agriculture Lands Branch representative for more information.
• Any private lands with a Crown Conservation Easement (CCE) registered on title require project approval prior to commencing work. Please contact the Ministry of Environment at 1-800-567-4224 for more information.

• Any private or Crown lands federally designated as critical habitat under the Species at Risk Act for a federally listed species at risk require project approval prior to commencing work. To determine if your project is on critical habitat land, please call the Agriculture Knowledge Centre, toll free at 1-866-457-2377.

Eligible expenses for well decommissioning may include:

• Excavation (removing casing);
• Bentonite, chlorine;
• Gravel or clay (must be purchased from a recognized vendor);
• Costs related to well decommissioning including sealing and capping water wells by a registered well driller;
• In-kind labour at $22 per hour to a maximum rebate of $250; and
• In-kind machinery/equipment. Use rates established in the Farm Machinery Custom Rate and Rental Guide for class of machinery used.

Applicants must also meet the following requirements:

• Small diameter wells must be decommissioned by a registered well driller with expertise in well decommissioning and comply with Water Security Agency (WSA) recommended practices;
• For large diameter or bored well decommissioning, a WSA Bored Well Pre‐Approval Worksheet (see link below) must be completed and attached to the FRWIP application; and
• A post‐construction WSA Well Decommissioning Worksheet must be completed for all wells decommissioned and submitted with the FRWIP claim.

Ineligible activities or expenses include:

• Projects commencing prior to Oct. 1, 2017;
• Invoices not issued in the applicant's name;
• In‐kind freight/mileage;
• In‐kind materials such as rocks, sand, gravel or clay;
• In-kind payment (e.g. trading) for third party services/supplies;
• Used material – to be eligible, material must be purchased new from a recognized dealer;
• Materials from inventory;
• Removal and disposal of above ground structures;
• Purchase of land/property or payment of easements; and
• Taxes, financing fees, interest or legal fees.
• Any submissions for rebate utilizing a third-party contractor must be from a contractor who is third-party arm’s length, or the submission will be considered to be utilizing in kind labour and original invoices for all materials will be required.

Well-decommissioning (pre-approval) applications and claims are accepted on an ongoing basis. All applications must be submitted for approval on or before August 1, 2022.

Projects must have started on or after October 1, 2017, and completed 18 months following approval or by December 31, 2022.

Note: It is recommended that these application forms be saved to your computer before entering in your information.

Download:

Well Decommissioning Pre-Approval Application Form 

WSA Bored Well Decommissioning Pre-approval Worksheet
(for large diameter or bored wells only)

Completed application packages can be submitted by email or mail to:

Ministry of Agriculture, Programs Branch
329 – 3085 Albert Street
Regina SK S4S 0B1