Upstream oil and gas licensees are levied annually pursuant to clause 20.98(c) of The Oil and Gas Conservation Act. The Orphan Fund Procurement Program uses the collected Orphan Fund Levy to abandon and reclaim orphaned well and facility sites.
Requirements to Pay the Orphan Fund Levy
Each Saskatchewan upstream oil and gas licensee that has abandonment and/or reclamation liability associated with their well and facility licences, under the LLR Program, is required to pay an orphan fund levy.
NOTE: The Orphan Fund Levy is 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. If a licensee receives and invoice and believes they qualify for exemption please contact ER.Servicedesk@gov.sk.ca. Someone will review your request and add you to the "LLR Excluded Licensee" list if deemed appropriate to do so.
Orphan Fund Levy Invoices
Orphan Fund Levy invoices are issued annually on May 1, and payment must be submitted within 30 days.
NOTE: The orphan levy will mailed to the address provided in IRIS. Therefore, the onus is on the licensee to ensure the current address is on file so communications will not be delayed. If a correction is required please contact ER.Servicedesk@gov.sk.ca.
How the Orphan Fund Levy is Calculated
Each fiscal year the Ministry of Energy and Resources, in consultation with the Fund Advisory Committee (which includes representatives from government and industry), sets an annual budget to carry out the orphan abandonment and reclamation work, under the Orphan Fund Procurement Program, for the upcoming year.
On April 26 of each fiscal year, the Ministry runs an evaluation of each Saskatchewan upstream oil and gas licensee liability, under the LLR Program, associated with all upstream facilities, wells and unreclaimed sites. Each licensee is then levied to pay a portion of the annual budget based upon their percentage of the upstream oil and gas industry's liability. Under section 119 of The Oil and Gas Conservation Regulations, 2012 each licensee's levy amount is calculated as follows:
Orphan Fund Levy = (Licensee Liability / Industry Liability) X Annual Budget
Licensees can refer to their Orphan Fund Levy invoice for details on the annual budget that was set for the given year, along with their liability and industry's liability when the evaluation was run April 26 of the fiscal year.
Licensees may refer to their Licensee Liability Inventory (LLI) Report to view their total liability along with the liability associated with each of their well and/or facility licences. Licensees may access their LLI report (Excel or PDF version) through the Licensee Liability Rating Program Reports page. Further information on the calculations used to derive the licensee's liability shown on the LLI report is provided in Directive PNG025 Licensee Liability Rating (LLR) Program.
How to Submit an Orphan Levy Payment
Orphan Fund Levy payments should be made payable to the Minister of Finance and submitted along with the remittance stub to:
Ministry of Energy and Resources
1000, 2103 - 11th Avenue
REGINA, SK S4P 3Z8
Acceptable forms of payment include:
- Cheque/Bank Draft
- Electronic Funds Transfer (EFT)
- Direct Deposit
- Online Payments
- Wire Transfer
Questions related to the payment methods should be directed to the ER Service Desk at 1‑855‑219‑9373 or ER.Servicedesk@gov.sk.ca.