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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 complete the Licence Transfer Application Process to obtain a pre-transfer liability assessment. For more information, refer to:

Note: The applicant will be notified, through IRIS, of the transferor and transferee's resulting security deposits requirements, if any, for the potential transfer.
The pre-transfer assessments are valid for 30 days. Therefore, if the transfer is to proceed, the licence transfer application must be submitted and any applicable security deposit invoice payments provided before the 30 days has expired.

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 complete the Licence Transfer Application Process for authorization. For more information, refer to:
    • Please see Liability Management, at the User Learning Centre, for step-by-step details of how to complete the Licence Transfer application process in IRIS.
    • IRIS Help Screens are available for each business process found in IRIS.

Before processing the licence transfer application, the Ministry conducts an evaluation to determine the amount of security deposit required by the transferor and/or the transferee prior to the transfer. Licensees are notified of their security deposit requirements for the pending transfer via IRIS and provided 30 days to submit the deposit. During this time, the transfer application is placed on hold. Where there is a security deposit required, a Pay Security Deposit work item will be generated to the applicable party and an invoice will be issued through IRIS. Licensees may be advised of the security amount owing prior to receiving the invoice, but please do not remit payment until the invoice has been generated to ensure ministry knows how to appropriately apply the payment upon receipt. If the security deposit is not received by the Ministry within 30 days, the transfer application is denied and a notification is communicated through IRIS.

Licence transfer authorizations are communicated as a notification in IRIS to the submitter. Authorized transfers are reflected in IRIS by the next business day. It is the responsibility of both parties (transferor and 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.