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How to apply to the Saskatchewan Ministry of Energy and Resources to drill a well in the province.
A well licence must be obtained from the Ministry of Energy and Resources before drilling, operating, producing/injecting or exploring an upstream oil and gas well, or a potash well, in Saskatchewan. A well licence is also required to:
Well licence applications are approved by the ministry; however, they may be subject to review by the Ministry of Environment and the Ministry of Agriculture. All applications and supporting documentation required for all three ministries are submitted through the Integrated Resource Information System (IRIS).
Read the following Directives, Guidelines and Information Circular for regulatory requirements related to drilling and operating a well in Saskatchewan, and for information to assist you in applying for a well licence:
Also review:
The following documents may also be required with your well licence application:
For more information see the Ministry of the Environment and the Ministry of Agriculture.
Well licence applications are processed either as routine or non-routine in IRIS:
Before submitting an application for a well licence, applicants must:
NOTE: Licensees that solely hold well/facility licences for purposes other than oil and gas production (such as potash mining, storage facilities, waste facilities, helium, lithium, etc.) may be eligible for an exemption from the Security Deposit requirements under the LLR Program and/or annual Orphan Fund Levy.
If a licensee is acquiring licences for the first time and would like to be considered for the exemption, please contact the ER.Servicedesk@gov.sk.ca with subject “Attn: Liability Regulations – non oil and gas producer” and provide supporting evidence for the ministry to review.
To apply for a well licence:
For more information on licensed wells in the province, see:
In a situation where mineral ownership cannot be determined for a small portion of the drainage unit/area and a company still wishes to apply for a licence they may do so.
Two requirements prior to licence submission are:
Licence Process:
A horizontal production well can be proposed to licence with the productive interval crossing a unit boundary. On the licence application within the completion detail, indicate the well is crossing a unit boundary. Production allocation must be specified as per Directive PNG006. Declaration must be made that the proposed well is not meeting equity setbacks and that agreements are in place between unit/non-unit/other unit parties. An attachment must be provided that shows the impacted units and other parties that make up the drainage area of the well and confirms agreements are in place with said parties to allow for production allocation in accordance with Directive PNG006.
Petroleum and natural gas dispositions in Saskatchewan are acquired through Crown Public Offerings. Companies request land to be posted in the Public Offering and bid on parcels within the Integrated Resource Information System (IRIS).
There are a number of scenarios where an oil and gas disposition may be eligible to be transferred. In these scenarios, acquisition through the Public Offering would not be required. These include:
For more information on mineral lease transfers visit Transfer a Crown Oil and Gas Disposition Application.
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