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Well Decommissioning

Rebate

The Farm and Ranch Water Infrastructure Program (FRWIP) is designed to improve public safety and reduce potential groundwater contamination through well decommissioning.

Applicants are encouraged to assess their project against the program criteria and review program eligibility prior to submitting an application for a rebate.

Rebate Details

Well Decommissioning projects are eligible for a rebate of 90 per cent of eligible costs to a maximum rebate of $10,000 per project. There is no limit on the number of individual well decommissioning projects that can be submitted under the five-year term of the Sustainable Canadian Agricultural Partnership (Sustainable CAP) from April 1, 2023, to March 31, 2028. The deadline for rebate applications is on or before March 31, 2028.

Wells must be fully decommissioned before a rebate will be issued. No interim payments will be made. Program payments are subject to a minimum rebate of $250. The minimum claim amount is $500.

Applicant Eligibility

  • Primary agricultural producers (individual, partnership, co-operative or corporation) who can demonstrate a minimum $50,000 of gross farm income in Saskatchewan in the year of application or the year prior to the application. Individual applicants must be at least 18 years of age; or
  • First Nation Bands in the Province of Saskatchewan.
  • Rural Municipalities in the Province of Saskatchewan.
  • Crown Land Pasture Grazing Associations in Saskatchewan.

Our rebate programs allow flexibility for new entrants to become eligible if they are confident they will be able to provide proof of meeting the gross farm income threshold within the five-year term of Sustainable CAP. Complete the below New Entrant Self-Assessment for details:

New Entrant Self-Assessment:

  1. Did you earn less than $50,000 in gross farm income in the year of or the year prior to the application?
  2. Have you recently (roughly within the last five years) made a significant purchase of land, livestock, or other investment for the purpose of farming, which will allow you to generate $50,000 in gross farm income by March of 2028?
  3. Have you operated a farm or ranch and earned farm income for five years or less, either as a sole operator or with other related entities who have operated a farm or ranch for five years or less?

If you answered yes to all of these questions, please contact the Agriculture Knowledge Centre at 1-866-457-2377 and ask to be connected with an agriculture programs specialist to discuss whether or not you are eligible as a new entrant.

First Nation producers may have distinct characteristics reflecting regulatory, operational, cultural and other factors. Our programs are designed to allow for flexibility to reduce barriers and ensure accessibility. If you are interested in applying for programs and have questions about the application process or eligibility criteria, please contact one of our Building and Strengthening Indigenous Supports (BASIS) specialists or contact the Agriculture Knowledge Centre at 1-866-457-2377 and ask to be connected with one of our BASIS team members.

Eligibility Criteria/Other Parameters

  • Projects started, but not completed, under the Canadian Agricultural Partnership (substantially completed before March 31, 2023), may still be eligible under Sustainable CAP. Expenses incurred after October 1, 2022, will be eligible under the Sustainable CAP program and rules.
  • 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.
  • Small diameter wells must be decommissioned by a well driller (registered in Saskatchewan) with expertise in well decommissioning and comply with Water Security Agency (WSA) recommended practices.
  • For all well decommissioning projects, a post‐construction WSA Well Decommissioning Worksheet must be completed and submitted with the FRWIP claim and signed by the landowner.
  • Persons related to an eligible applicant will be subject to the program’s maximum funding cap for that eligible applicant. Related applicants include:
    • The maximum amount that may be paid to an eligible applicant, including persons related to an eligible applicant, may not exceed the maximum funding cap per applicant/related entity over the life of the program.
    • “Related applicants” include but are not limited to spouses, business partners, relatives living in the same residence, individuals/entities which have controlling interests in more than one operation and operations that are not legally, financially or operationally sufficiently independent of other entities.
    • In determining whether a person/entity is a related applicant, the ministry may consider the following factors:
      • whether the person/entity is engaged in a common enterprise with the applicant as a corporate affiliate or subsidiary, partner, member of a joint venture, trustee of a trust or estate in which the eligible applicant has a substantial beneficial interest or any other relationship which evidences an intention to share the profits or risk of loss of the operation with the eligible applicant;
      • whether the person/entity makes operational decisions in respect of the operation or makes those decisions jointly or in common with the eligible applicant;
      • whether the person is responsible to ensure that day-to-day operations are completed respecting the operation;
      • whether the person/entity and the applicant have access to common assets such as land, machinery, processing equipment, crop storage or animal handling facilities used in the operation;
      • whether the person/entity files separate income and expense statements for income tax purposes;
      • whether the person/entity maintains separate farm or business accounting records;
      • whether the person maintains a separate bank, credit union or trust company account;
      • whether the person has a separate Goods and Services Tax number;
      • whether the person/entity has any other financial interest in the operation; and
      • any other matter that the ministry believes is relevant to the legal, financial or operational independence of the operation.
    • For more information about related entities please send an email to agprograms@gov.sk.ca or contact the Agriculture Knowledge Centre at 1-866-457-2377.

Before You Apply

  • Pre-approval is no longer required for well decommissioning projects. Applicants are responsible for reviewing the WSA’s Decommissioning Abandoned Water Wells Fact Sheet and understanding the procedures and materials required for properly decommissioning both large and small diameter wells.
  • For large diameter well decommissioning projects, WSA’s Bored Well Decommissioning Calculation Worksheet is a good tool to determine what materials (bentonite pellets or chips, chlorine for disinfection, clean sand or gravel, local clay) are needed to properly fill and seal the well and have them ready at the job site pre-construction.
  • Regional agri-environmental specialists are available to offer assistance completing, or checking the accuracy of, the bored well decommissioning process, as well as general application support.
  • If your well is not decommissioned appropriately, your project will be ineligible for funding.

Approvals may include:

  • Written authorization from the landowner 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 authorizing the project and application to the program.

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

Eligible expenses for well decommissioning may include:

  • Projects started, but not completed, under the Canadian Agricultural Partnership (substantially completed before March 31, 2023), may still be eligible under Sustainable CAP. Expenses incurred after October 1, 2022, will be eligible under the Sustainable CAP program and rules.
  • Excavation (removing casing).
  • Bentonite, chlorine.
  • Gravel or clay (must be purchased from a third-party recognized vendor).
  • Costs related to well decommissioning including sealing and capping water wells by a registered well driller.
  • In-kind labour is funded at $22/hour to a maximum rebate of $250 per project. There is no allocation for supervising projects. In-kind labour cannot be claimed if the same work has been invoiced by a contractor.
  • In-kind machinery/equipment. Use rates established in the Farm Machinery Custom Rate and Rental Guide for class of machinery used.

Ineligible Activities or Expenses

Ineligible activities or expenses include:

  • Projects (and any expenditures) commencing prior to October 1, 2022.
  • Invoices not issued in the applicant's name.
  • In‐kind (applicant claimed) freight/mileage.
  • In‐kind materials (applicant claimed) such as rocks, sand, gravel or clay.
  • In-kind payment (e.g., trading) for third party services/supplies.
  • Used material, including material purchased at auction. To be eligible, new items and material must be purchased new from a recognized dealer. For the purposes of the program, a recognized dealer is typically defined as a business where manufacturing is a key service or the business is an authorized dealer for a certain item(s).
  • Materials from inventory.
  • Removal and disposal of above ground structures.
  • Purchase of land/property or payment of easements.
  • Taxes, financing fees, interest or legal fees.
  • Fees paid to third parties for application support.
  • Applicant/employee administration costs.
  • Any submissions for rebate using a third-party contractor must be from a contractor who is third-party arm’s length, or the submission will be considered in kind labour and original invoices for all materials will be required.
  • Costs claimed for expenses/activities which may receive funding under other Sustainable CAP programs, or any other government grant, rebate or assistance program.

Apply

Review the FRWIP well decommissioning eligibility criteria and program details.

Applicants are encouraged to submit rebate claims as soon as the project is fully decommissioned. All invoices must be paid in full before applying for the rebate. Proof of payment may be requested in the form of bank/credit card statements or processed cheque images from your financial institution. No interim payments will be made. Please submit copies of invoices as originals will not be returned.

Projects must be completed and applications for rebate submitted before March 31, 2028.

Download the Farm and Ranch Water Infrastructure Program Rebate Application Form

Download WSA’s Bored Well Decommissioning Calculation Worksheet

Download WSA’s Well Decommissioning Worksheet

Note: It is recommended this application form is saved to your computer before entering your information.

Completed application packages can be submitted by email to agprograms@gov.sk.ca or mail to:
Farm and Ranch Water Infrastructure Program
Ministry of Agriculture, Programs Branch
329 – 3085 Albert Street
Regina SK  S4S 0B1

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