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Application to Transfer Well, Facility, Pipeline and Flowline Licences

Apply to the Government of Saskatchewan's Ministry of Energy and Resources for authorization to transfer well, facility, pipeline and flowline licences.

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1. Guidance

Under The Oil and Gas Conservation Act, authorization is required by the Minister of Energy and Resources to transfer a well or facility licence from one licensee to another.

Under The Pipelines Act, 1998, authorization is required by the Minister of Energy and Resources to transfer a pipeline or flowline licence from one licensee to another.

Pre-transfer liability assessments

As indicated in the Letter to All Operators sent out regarding the LLR Program in August 2016, the ministry is no longer relying on the standard LLR threshold of 1.00 when determining the security deposit requirements resulting from a transfer.

Therefore, licensees with potential purchase and sales agreements are asked to complete a pre-transfer liability assessment application to ensure the parties are aware of potential security deposit requirements and conditions that may accompany the transfer.

For more information on the application process, refer to the How to Apply section below.

Note: Should your application only include the transfer of pipeline and/or flowline licences, a pre-transfer assessment is not required as there is no liability assigned to this infrastructure under the LLR Program and therefore, no security deposit requirement to assess.

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2. Eligibility

Note: A pre-transfer liability assessment application does not transfer licences. The application facilitates a way to ascertain the security deposit requirement for a potential transfer. Although the eligibility requirements (below) do not apply to a pre-transfer assessment, the applicant should review them to ensure there is no delay if the transfer were to proceed.

Before applying to transfer a well or facility licence, you must:

Note: Where a security deposit is required, the transfer will not proceed until the security deposit has been received and processed.

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3. How to Apply

Orphan Well/Facility Licence Transfer Application

To transfer a licence where the licensee has been deemed an orphan follow the Orphan Licence Transfer process.

Pre-Transfer Liability Assessment Application

Note: The Pre-Transfer Liability Assessment Application and all content within are confidential to the given licensee submitting the application and the ministry.

To apply for a pre-transfer liability assessment (to determine the security deposit requirement should a well and/or facility licence transfer occur):

  1. Complete the applicable schedules, using the templates below, for the licences to be transferred, as shown in the example:

    • Schedule A - Wells
    • Schedule B - Facilities
    • Note: Please be advised when completing Schedules A and B that the working interest participant (WIP) information is mandatory and must reflect the transferee's intentions assuming the transfer is authorized. This WIP information must include the WIP's full legal name and must be accurate as it cannot be edited when using the pre-transfer assessment authorization to create the licence transfer application.

    • Schedule C - Pipelines and Flowlines
    • Note: Please be advised when completing Schedules C that all segments under a given licence will be transferred upon approval. If you do not want all segments under a given licence to be transferred, perform a segment split prior to initiating a Licence Transfer application.

      For more information on licence splitting please see Pipeline Reporting Processes at the User Learning Centre.

      Please refer to Pipeline Licensing User Manual "Section 21" for more information regarding Pipeline/Flowline Licence Transfers.

  2. Log in to IRIS and submit the Licence Transfer Applications to obtain a pre-transfer liability assessment. For more information, refer to the Licence Transfer module at the User Learning Centre for step-by-step details of how to complete the pre-transfer liability assessment application in IRIS.

Pre-Transfer Application decision is communicated as a Notification in IRIS to the submitter. Please see Licence Transfer at the User Learning Centre for step-by -step details on how to obtain the Pending Transfer Report and view any security deposit requirements for the transferor and transferee.

Note: Any security deposit requirement from the pre-transfer assessment is valid for 30 days. If the 30 days is exceeded, the assessment authorization cannot be referenced in the licence transfer application and the security deposit requirement will be re-evaluated at that time.

Licence Transfer Application

To apply for authorization to transfer a well or facility licence:
  1. Ensure you meet all eligibility requirements.
  2. If you have a valid pre-transfer assessment authorization and the Schedule(s) information previously provided is still entirely valid, then you can skip to step 4 as all transfer information and schedules will be pulled across. If any information on the schedules has changed then the pre-transfer assessment is no longer valid.
  3. If you do not have a valid pre-transfer assessment authorization, complete the applicable schedules, using the templates below, for the licences to be transferred, as shown in the example:

    • Schedule A - Wells
    • Schedule B - Facilities
    • Note: Please be advised when completing Schedules A and B that the working interest participant (WIP) information is mandatory and must reflect the transferee's intentions assuming the transfer is authorized. This WIP information must include the WIP's full legal name and must be accurate as it cannot be edited when using the pre-transfer assessment authorization to create the licence transfer application.

    • Schedule C - Pipelines and Flowlines.
    • Note: Please be advised when completing Schedules C that all segments under a given licence will be transferred upon approval. If you do not want all segments under a given licence to be transferred, perform a segment split prior to initiating a Licence Transfer application.

      For more information on licence splitting please see Pipeline Reporting Processes at the User Learning Centre.

      Please refer to Pipeline Licensing User Manual "Section 21" for more information regarding Pipeline/Flowline Licence Transfers.

  4. Log in to IRIS and submit the Licence Transfer Application. For more information, refer to the Licence Transfer module at the User Learning Centre for step-by-step details of how to complete the Licence Transfer application in IRIS.

Post-submission – Transferor/Transferee must sign up to receive notifications when a work item has been assigned to either BA in the licence transfer application process. Delay in completion of the work items will result in a longer approval turnaround.


Below are work items both Transferor/Transferee may be assigned:

  • Licence Transfer Concurrency Approval Work Item – this work item must be completed to initiate the Licence Transfer review process. The application will be denied if this work item is not completed within 30 days.
    • Transferor Approval - If the Transferee initiates a Transfer Application (in step 4 above), then the Transferor will receive this work item. The Transferor must indicate the Decision as “Recommend Approval” and mark the work item as “Complete” to progress the application.
    • Transferee Approval - If the Transferor initiates a Transfer Application (in step 4 above), then the Transferee will receive this work item. The Transferor must indicate the Decision as “Recommend Approval” and mark the work item as “Complete” to progress the application.
  • Pay Security Deposit Work Item - The Ministry conducts an evaluation to determine the amount of security deposit required for the transfer. If a security deposit is required, this work item will be created to the applicable licensee to submit payment within 30 days, and an OFT invoice will be issued through IRIS. Please do not submit payment until the invoice has been generated.
    NOTE: Once the payment has been made, the licensee must mark the work item as “Complete” to progress the application.

  • Pay Outstanding Debt Work Item - The Ministry conducts an evaluation to determine if there are any outstanding invoices associated with the Transferor/Transferee. If there are outstanding invoices this work item will be created for the applicable licensee to submit payment within 8 days.
    NOTE
    : Once the payment has been made, the licensee must mark the work item as “Complete” to progress the application.

Licence Transfer application decisions are communicated as a notification in IRIS to the submitter. Please see Licence Transfer at the User Learning Centre for step-by -step details on how to obtain the Transfer Authorization results.

Authorized transfers are reflected in IRIS within the next business day. It is the responsibility of the Transferor and the Transferee to check if the transfer is completed in IRIS.

Note: The transferor may continue to view confidential data, submit new data or documents, related to the well or facility until the transfer is reflected in IRIS.

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4. Apply

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5. Further Information

Transferring a Cancelled or Abandoned Well

All wells – including a cancelled or abandoned well – can be transferred. Where possible, the proper Acknowledgement of Reclamation (AOR) Program process is to be completed before transferring a cancelled well to ensure unnecessary liability is not transferred to the new owner.

Once transferred, any existing abandonment or reclamation liability associated with the well becomes the new licensee's responsibility. Refer to the Acknowledgement of Reclamation (AOR) Program page for information on removing associated reclamation liability.

Acquiring Crown Mineral Leases

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:

  • if the transferor(s) and the transferee(s) have agreed to and signed (executed) the transfer; or
  • if a transfer is executed by or on behalf of a trustee, receiver, receiver-manager, liquidator, executor, administrator, property guardian or other person acting in a similar capacity and is accompanied by required documentation as set out in the Crown Minerals Act; or
  • if the transfer is a redistribution of the interest among the remaining holders.

For more information on mineral lease transfers visit Transfer a Crown Oil and Gas Disposition Application.