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Funding Increments

Last updated on March 10, 2021

Last updated: March 9, 2021

First Increment — $50 Million

May 25, 2020 to July 28, 2020 

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

 

First Increment — $50 Million  

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

  • Applications being accepted by British Columbia contractors for work on dormant oil or natural gas sites located in British Columbia that are defined to be dormant or where a permit holder has provided notice that a wellsite is dormant under the Dormancy and Shutdown Regulation, and for which one or more of the following are required to be undertaken:
    • Abandonment
    • Contaminated sites investigation
    • Reclamation
    • Remediation
  • A financial contribution is available from the Province, up to 50% of total estimated or actual costs (per application, per closure activity) whichever is less, up to $100,000 (per application, per closure activity)
  • Projects will be selected on a first come, first serve basis and must be for dormant sites with, at minimum, one of the following eligibility criteria

Priority Criteria

Environmental

  • Within 1,000 m of a stream
  • Within 500 m of a groundwater well
  • Within environmental protection and management area or critical habitat
  • Suspected or known to have offsite contamination
  • Within 1,500 m of a private residence or community gathering area
  • Within areas that are actively used for trapping, guide outfitting, range tenure or hunting
  • Sites on Crown land that are winter access only
  • Sites that were drilled or abandoned prior to 1997
  • On agricultural land reserve

Indigenous

  • Within Treaty Land Entitlement, cultural lands and/or Indigenous peoples’ critical areas
  • Dormant sites that fall within sensitive watersheds that service communities
  • Dormant sites on or near reserve lands

Area-Based Efficiencies

  • Sites where a permit holder has provided notice that a wellsite is dormant under the Dormancy and Shutdown Regulation in order to achieve cost efficiencies for an area-based closure plan

Shovel-ready projects

  • Specified work that was included in a permit holder’s Dormant Sites 2020 Annual Work Plan

The Province reserves the right to prioritize application selection where more than one of the four priority criteria are being met and environmental, Indigenous priorities or area-based efficiencies are maximized. The Province reserves the right to limit the total financial contribution that would provide a benefit to any single permit holder.

Second Increment — $50 Million

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

  • Applications will be accepted from British Columbia contractors for work on dormant oil or natural gas sites that have been nominated under the Site Nomination process. 
  • The following Permit Holders had one or more Dormant wells nominated under the Site Nomination process.
  • [Note:  All Permit Holders that had sites nominated in this process have been notified].  Applications will be accepted for work on nominated dormant well sites for which one or more of the following are required to be undertaken:
    • Abandonment or decommissioning
    • Contaminated sites investigation
    • Remediation
    • Reclamation
  • A financial contribution is available to successful applicants for 50% of total estimated or actual costs (per application, per closure activity) whichever is less, up to a maximum of $100,000 (per application, per closure activity on a single well site)
  • Applications will be evaluated and scored based on Indigenous participation, environmental liability, and community priorities. The following well site attributes will be included in the scoring:
    • Within Treaty Land Entitlement, cultural lands and/or Indigenous peoples’ critical areas
    • Sites on or near reserve lands
    • Sites with limited closure activities to complete Restoration
    • Designated a Priority Site under the Dormancy and Shutdown Regulation
    • Sites with known surface case vent flows and/or high emissions risk
    • Historical site characteristics that indicate higher likelihood of contamination
    • Sites that were drilled or abandoned prior to 1997
    • Sites within 1,000 metres of a stream
    • Sites within 500 metres of a groundwater well
    • Sites that fall within sensitive watersheds that service communities
    • Sites within environmental protection and management area or critical habitat area
    • Sites within 1,500 metres of a private residence or community gathering area
    • Sites on private land
    • Sites within areas that are actively used for trapping, guide outfitting, range tenure or hunting
    • Sites on Agricultural Land Reserve

Eligibility

Applicants must be companies that are experienced in oil and gas well site restoration and be able to meet final reporting requirements of the Program, as detailed in the Increment 2 Program General Terms and Conditions ( now available General Terms and Conditions for Increment 2).

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 with the permit holder 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

 

What you need to complete an application and provide as part of an application:

  • A British Columbia address and corporate registration number.
  • A written agreement with the well site permit holder to complete work activities on the specific applying site (pdf copy).
  • Up-to-date company insurance to complete applied-for work activities (pdf copy).
  • If an applicant expects to engage sub-contractors to complete work activities under their application, the applicant must list the registered business name of sub-contractors.
  • The permit holder name you are applying to complete work for.
  • Well site details you are applying to complete work activities on, including well authorization number and legal name.
  • Expected start date and completion dates for the work activity (note: Activities and associated eligible costs incurred from November 1, 2020 will be allowed for sites that are approved for funding in increment 2).
  • Detailed cost estimate to complete work activities on the well site will be required to apply. Detailed cost estimates include the following categories:

Abandonment:

  • Abandonment Planning and Logistics
    • Well file review abandonment plan development
    • Abandonment plan submission
    • Mobilization/Demobilization to/from site and site preparation
    • Camp or lodging accommodations for workers
  • Well Decommissioning (Downhole Abandonment)
    • Permanent plugging of the wellbore
  • Well Decommissioning (Surface Abandonment)
    • Cut and Cap abandonment
  • Site Decommissioning
    • Removal of facilities and other equipment on the site

Preliminary Site Investigation

  • Historical well file review including interviews
  • Site visit
  • Report writing and submission
  • Preliminary Site Investigation review
  • Mobilization/Demobilization to/from site and any site preparation
  • Camp or lodging accommodations for workers
  • Intrusive sampling and site investigation
  • Submission of samples to accredited analytical lab
  • Completion of any and all required notifications
  • Analysis of results, technical report writing, and report submission

Detailed Site Investigation

  • Site Investigation Planning and Logistics
    • Preliminary Site Investigation review and Detailed Site Investigation scope development
    • Detailed Site Investigation Fieldwork Execution
    • Mobilization/Demobilization to/from site and any site preparation
    • Camp or lodging accommodations for workers
    • Complete sampling and delineation of historic contamination
  • Technical Assessment, Report Writing, and Submission
    • Analysis of lab results
    • Development of a remediation plan
    • Technical report writing and submission

Remediation

  • Remediation Planning and Logistics
    • Mobilization/Demobilization to/from site and any site preparation
    • Camp or lodging accommodations for workers
    • Completion of Physical Remediation
    • Excavation
    • Contaminated soil hauling and disposal
    • Confirmatory sampling
    • Backfilling of excavation
  • Completion of Risk Assessment
    • Risk assessment activities, technical report writing, and submission
  • Technical Report Writing and Submission
    • Site closure to either risk-based or numeric standards

Reclamation

  • Reclamation Planning and Logistics
    • Mobilization/Demobilization to/from site and any site preparation
    • Camp or lodging accommodations for workers
    • Reclamation Fieldwork
    • Surface re-contouring
    • Topsoil replacement and redistribution
    • Re-vegetation and monitoring
  • Reporting
    • Technical report writing and submission

If requested, you will need to provide a municipal tax statement of the permit holder of the dormant well sites you are applying under. The permit holder’s good standing regarding municipal tax payments may affect approval of financial contributions under the Program.