On April 24th, 2020, the Alberta provincial government announced the implementation of the Site Rehabilitation Program.
The Site Rehabilitation Program will provide grants to oil field service contractors to perform well, pipeline, and oil and gas site closure and reclamation work, creating jobs and supporting the environment.
The program goals are to:
- Immediately get Alberta’s specialized oil and gas labour force back to work
- Accelerate site abandonment and reclamation efforts
- Quickly complete a high volume of environmentally significant work. More information on eligibility and project requirements, as well as detailed program guidelines, will be published on their page when the program officially opens on May 1. This program will launch on May 1, with an initial focus on providing grants to service companies that have been significantly impacted by the unprecedented economic downturn. The program will provide funds in $100-million increments.
Quick facts
- The Site Rehabilitation Program will provide grants of between 25 and 100 per cent of total project costs – depending on the ability of the oil and gas company responsible for the site to help pay for cleanup – and will be paid directly to the oilfield service company completing the work.
- Contractors can apply for a grant online during the following dates and must meet all eligibility and project requirements:
- May 1 to 31: Open to service companies significantly impacted by the unprecedented economic downturn for contracts of up to $30,000 per application across Alberta. This $100-million increment will focus on projects that are eligible for 100 per cent government funding.
- May 15 to June 15: Open to service companies for contracts of up to $30,000 and eligible for 100 per cent funding. This $100-million increment will focus on sites where some operators have failed landowners and where government is paying compensation to landowners as required under the Surface Rights Act.
- Future increments will be developed for larger projects.
- Application and eligibility information, as well as the online application portal, is available at alberta.ca/siterehab.
- Grant-funded work must be done in Alberta, putting Albertans to work.
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Eligible work includes:
- Closure work on inactive wells and pipelines, including remediation and reclamation
- Removal of abandoned in-place pipelines
- Phase 1 and 2 Environmental Site Assessments
- Alberta has a strong regulatory system requiring that the thousands of oil and gas structures across the province – including pump jacks, pipelines, and wells – be properly decommissioned and their sites brought back to a land condition similar to the state they were in before the infrastructure was built. This work ensures that the sites are safe for landowners and Albertans and there are no negative impacts to the environment.
More information regarding the Site Rehabilitation funding program can be found at the following links:
https://www.alberta.ca/release.cfm?xID=70157C2391212-E275-B8DA-3FCC685A421CE43F
https://www.alberta.ca/site-rehabilitation-program.aspx
Salix Resource Management Ltd.
Salix has extensive upstream oil and gas environmental assessment experience working on forested, cultivated, and grassland sites. Our management and diverse team of consultants are prepared to meet the goals and objectives of the Site Rehabilitation Program. Our team of professionals are available to conduct these types of projects in accordance with the recently announced program. Strategies are being put in place to ensure timely completion of applications, beginning Friday May 1, 2020. We would be pleased to discuss the benefits your company can achieve from this opportunity.
For additional information, or to find out how we can help, please contact:
Bruce Johnson 403-844-6728
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or
Stacy Lunde 403-638-6048
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