News & Events

The Alberta Government recently announced the Site Rehabilitation Program to provide grants to oilfield service contractors to perform well, pipeline, and oil and gas site closure and reclamation work. Summit is actively focused on this program and we will share additional information and learning as they are available. We look forward to collaborating with you on this program to maximize your benefit, the benefit to the environment, and in an effort to put Alberta's skilled professional back to work. 

Program applications start on May 1, 2020 making this time sensitive so early planning and preparation are critical to ensure program success. We will follow up on this communication in person, if we haven’t done so already. However, please feel free to reach out to your Summit representative at your earliest convenience.

Overview

The intent of this program is to identify opportunities that will:

• Rapidly create jobs in the oil field services sector

• Expedite the abandonment, remediation and reclamation of inactive wells in Alberta

• Ensure a high volume of environmentally significant work is completed

More information on eligibility and project requirements will become available on the Government of Alberta Site Rehabilitation Program Website (including detailed program guidelines)  when the program officially begins on May 1st..

Grant Details: 

• Spending will occur in multiple stages over the course of 2 years.

• Initial Stage (May 1-May 31) $100 million to focus on projects eligible for 100% funding to a maximum of $30 000 per application.

• Second Stage (May 15-June 15) $100 million to focus on-site where some operators have failed landowners and where the government is paying compensation. 

• The portion of government funding will change in future stages

• Initially a well by well application process (i.e. no well grouping), however may change in the future

• Program administration will be conducted by AER with Provincial/Federal oversight. 

Eligible Activities:

• Upstream oil and gas infrastructure abandonment including:

  • Wellsite abandonment

  • Pipeline abandonment

  • Pipeline segment removal

  • Facility abandonment

• Environmental work including:

  • Phase 1 and Phase 2 environmental site assessments

  • Remediation

  • Reclamation

Eligibility Requirements:

• Oil and gas sites must be located in Alberta, putting Albertans to work.

• All laws, regulations, directives, and environmental and occupational health and safety standards, including social distancing and COVID-19 related health guidelines must be followed in carrying out the work.

• Oil field service contractors must seek out and obtain a valid contract with an Alberta oil and gas licensee.

• The contract must be fully executed, with no ‘subject to’ clauses.

• The licensee is responsible for ensuring the contractor has the skills, expertise, capacity and equipment to conduct the work to meet all provincial requirements.

• Grant funding will be awarded only to the contractor, not the licensee.

Eligible costs:

All costs associated with completing the work are eligible for grant funding, including:

• Materials and supplies

• Wages

• Equipment rentals

• Laboratory analyses

• Transportation of equipment and workers to and from sites

Effective: First stage - May 1, 2020

If you have any questions, please contact your project manager or business development contact.