The 2026 Orphan Fund Levy has been set at $11.5 million. Invoices are available through IRIS as of May 29, 2026. The orphan levy assessment is based on industry's deemed liability under the Licensee Liability Rating (LLR) Program on May 6, 2026.
The Saskatchewan Orphan Fund Levy is an annual industry fee prescribed by the Ministry of Energy and Resources in accordance with section 20.98(c) of The Oil and Gas Conservation Act. The levy supports the Orphan Fund Procurement Program, which is responsible for managing orphaned oil and gas sites.
The levy is paid by operating oil and gas companies to offset the costs associated with the safe decommissioning and reclamation of orphaned wells and facilities.
Paying into the Orphan Fund Levy
All oil and gas companies with abandonment and/or reclamation liability associated with their well and facility licences under the Licensee Liability Rating (LLR) Program are required to pay the Orphan Fund Levy.
Note: Companies that hold licences solely for purposes other than oil and gas production (such as potash mining, storage facilities, waste facilities, helium, lithium, etc.) may be exempt from the levy. Licensees who believe they qualify for exemption must submit supporting documentation to the Ministry for review at ER.Servicedesk@gov.sk.ca.
How the Licensee's Portion of the Orphan Fund Levy is Calculated
Each oil and gas producer will be invoiced for its proportionate share of the orphan fund levy in accordance with the following formulas found in section 7-3(1) of The Financial Security and Site Closure Regulations (FSSCR):
Each fiscal year, the Ministry determines the values used in the formula as follows:
- A is the sum of the licensee’s total deemed liability associated with their well and facility licences under the LLR Program, as of a date specified by the Ministry.
- The Licensee Liability Inventory (LLI) report used for the evaluation is provided with the IRIS invoice and details how the licensee's total liability was derived.
- Additional information on the calculations used to determine the abandonment and reclamation liability associated with each licence, as presented in the LLI report, can be found in Directive PNG025: Financial Security Requirements.
- B is the sum of the industry's total deemed liability associated with all oil and gas producers' well and facility licences under the LLR Program, as of a date specified by the Ministry.
- Annual Budget is set by the Ministry of Energy and Resources, in consultation with the Oil and Gas Fund Advisory Committee (which includes representatives from government and industry), the Canadian Association of Petroleum Producers (CAPP), the Explorers and Producers Association of Canada (EPAC), and the Saskatchewan Headquartered Oil Producers (SHOP).
- The annual budget amount is based on the following:
- Estimated costs for carrying out suspension, abandonment/decommissioning, remediation and reclamation work, under the Orphan Fund Procurement Program, for the upcoming fiscal year;
- Anticipated reimbursement of defunct licensees' working interest participant costs;
- Technical, administrative, legal or other costs related to acquiring professional services that are incurred in pursuing the above two points,
- Any other costs directly related to the administration and operation of the Orphan Fund; and
- Any surplus for emergency or contingencies and non-budgeted expenditures the ministry deems necessary.
How Orphan Fund Levy Invoices are Issued
The orphan fund levy invoice and supporting Licensee Liability Inventory (LLI) report are provided to industry through IRIS each May.
Please note that appeals will not be accepted.
For detailed instructions on accessing levy invoices and supporting documents, refer to the Access Orphan Fund Levy Invoices lesson within the Liability Management module at the User Learning Centre. This resources also provides guidance on how to receive notification when invoices are issued in IRIS.
Ministry Accepted Payment Methods
Orphan Fund Levy payments must be made payable to the Minister of Finance and must include reference to the applicable invoice number.
Payments may be made using the following methods:
- Pre-Authorized Debit (PAD),
- Electronic Funds Transfer (EFT),
- Direct deposit
- Cheque, or
- Credit card.
Note: Licensees wishing to enrol in PAD payments must complete and submit the Authorization for Pre-Authorized Debits form if they have not already done so.
For inquiries regarding payment, please contact the Collections group through the ER Service Desk at 1-855-219-9373 or ER.Servicedesk@gov.sk.ca.
Failure to Submit the Orphan Levy
Payment must be submitted within 60 days of the invoice being issued.
Failure to remit the full invoiced amount within this time frame may result in:
- Suspension of IRIS system access, and
- Regulatory action by the minister, including amendment, suspension, or cancellation of licences under section 12(2)(d) of The Oil and Gas Conservation Act.
Additionally, non-payment of levies will be considered when assessing a licensee's:
- Eligibility to obtain new licences,
- Eligibility to extend security deposit invoice deadlines, and
- Eligibility for security deposit refunds.