The Orphan Fund Procurement Program is responsible for identifying orphaned upstream oil and gas well and facility sites in Saskatchewan. Using the funds within the Saskatchewan Oil and Gas Orphan Fund (SOGOF), this program is responsible for securing vendors to abandon, decommission, and reclaim orphaned well and facility sites.
Orphan Wells, Facilities, or Sites
In the upstream oil and gas industry, an orphan is defined as a well, facility, or associated site that has been investigated by the Ministry of Energy and Resources and confirmed as not having any legally responsible and/or financially able party to deal with the abandonment and/or reclamation responsibilities.
Funding Orphan Abandonment and Reclamation Activities
The SOGOF is solely funded by the Saskatchewan oil and gas producers. Under the authority established in The Oil and Gas Conservation Act and The Oil and Gas Conservation Regulations, 2012, the following sources of revenue are derived from industry:
- Orphan Fund Fee
- Orphan Fund Levy
- Security Deposit
Note: the above fees are only applicable to oil and gas producers. Therefore, any company holding only well/facility licences for purposes other than oil and gas production (such as potash mining, storage facilities or waste facilities) would be exempt from the fees listed above. If a licensee believes they qualify for exemption from these fees, please contact PNG.support@gov.sk.ca. Someone will review your request and add you to the “LLR Excluded Licensee” list if deemed appropriate to do so.
Unpaid Surface or Mineral Lease Payments on Orphaned Sites
The Ministry is not authorized to compensate landowners for unpaid surface and/or mineral lease payments from a defunct or insolvent company; however, the Ministry will use the SOGOF to secure vendors to complete the required work on orphaned well and facility sites.