Dormant Sites Reclamation Program

Last updated: March 9, 2021

Increment 2 of the Program closed to applications March 8, 2021.

Increment 1 of the Program closed to applications July 28, 2020.  

The Dormant Sites Reclamation Program (Program) has accessed $100 million of federal funding provided to the Province of British Columbia to clean up dormant oil and gas wells. The funding was established as part of the federal government’s COVID-19 Economic Response Plan. 

The Program will offer opportunities for oil and natural gas service sector contractors in British Columbia to apply for a financial contribution to undertake and complete work on dormant site reclamation. 

The Program will also provide Indigenous peoples, landowners and local communities in British Columbia the opportunity to nominate dormant sites for reclamation.

On this page:


Overview

$100 million in financial contributions is available to eligible applicants in two increments of $50 million.

  • Each increment has targeted priorities, application criteria, and timelines

Contractors whose application(s) are approved under the Program will receive:

  • 10% of the estimated eligible costs for the work in the form of a financial contribution from the Province, once their application is approved and the Province and the contractor enter into an agreement
  • Up to another 60% after submitting interim invoicing of actual costs and reports in accordance with the terms of financial contribution agreement
  • The remainder of the financial contribution when the work is completed. This is subject to review by the Province in accordance with the terms of the financial contribution agreement

The Program requires all work to be complete by December 31, 2022.

Indigenous peoples, landowners and local communities can nominate dormant sites for work under the Program.


Eligibility

  • Oil and gas field service companies and contractors based in British Columbia, with registration, office and operations in British Columbia
  • Sites must be located in British Columbia and put British Columbians to work
  • Companies and contractors must have a valid contract with a British Columbian oil and gas activity permit holder for a dormant site
  • Companies must be a registered business with BC Registries

The company responsible for doing the contracted work must apply for the funding. Contractors and consultants may not apply on behalf of others.

Eligible Applicants

  • Oil and natural gas field services contractors who are experienced in completing upstream oil and gas infrastructure abandonment, including:
    • Facility abandonment
    • Pipeline segment removal
    • Pipeline abandonment
    • Wellsite abandonment
  • Environmental contractors who are experienced in:
    • Work associated with abandonment of oil or natural gas activities
    • Stage 1 Preliminary Site Investigations (PSI)
    • Stage 2 Detailed Site Investigations (DSI) environmental site assessments
    • Remediation
    • Reclamation

Eligible Activities

The following work in relation to oil and gas dormant sites:

  • Closure work
  • Environmental site assessments (PSI and DSI)
  • Remediation
  • Reclamation
  • Preparation of applications for remediation and reclamation certificates

Ineligible Activities

  • Suspension (wells and facilities) and discontinuation (pipelines) costs that are not part of dormant site eligible activity work
  • Non-closure work on producing oil and natural gas sites (for example, spill remediation)
  • Closure work for dormant sites outside of British Columbia
  • Closure work on orphan and legacy sites (these sites have separate funding streams)
  • Work completed before the Program comes into effect on May 25, 2020

Program Requirements

  • Contractors must have a valid contract to undertake the proposed work with a British Columbian oil and gas activity permit holder
  • The contract must be fully executed, with no ‘subject to’ clauses
  • Only a contractor who has a signed agreement with a permit holder can apply
  • A financial contribution will be awarded only to the contractor, not the permit holder
  • The payment of applicable municipal taxes relating to an applied for site are in good standing by the permit holder
  • The permit holder is responsible for ensuring the contractor has the skills, expertise, capacity and equipment to conduct the work to meet all provincial laws and regulatory requirements
  • All laws, regulations, directives, environmental and occupational health and safety standards, including social distancing and COVID-19 related health guidelines of the Province will apply

How to Apply

Increment 1 of the Program closed to applications July 28, 2020

Increment 2 of the Program closed to applications March 8, 2021