The Government of Saskatchewan recently delivered on its commitment to ensure that Indigenous communities and businesses in the province are provided meaningful opportunities to participate in the Accelerated Site Closure Program (ASCP), which was a key component of federal funding.
The ASCP was designed to help manage the abandonment and reclamation of inactive oil and gas wells and facilities. The provincial government is introducing the First Nations Stewardship Fund and the Indigenous Business Credit Pool, two initiatives to support First Nations and Métis participation in the program.
The First Nations Stewardship Fund will allocate $15 million in program funding to conduct abandonment and reclamation activities on First Nation Reserve lands across Saskatchewan. Eligible licensees (producers) with oil and gas sites on reserves will be able to access the Fund by nominating sites for consideration. Licensees will engage with First Nations communities to ensure that their perspective is reflected in site closure work. If nomination numbers are sufficient, an additional $5 million will be made available to the Fund.
The Indigenous Business Credit Pool will create an incentive for eligible licensees to work with First Nations and Métis contractors to complete program work. If companies collectively spend $30 million of their existing ASCP allocations using Indigenous oil field service companies, they will be eligible to access an additional $15 million in ASCP funding for site closure work. The First Nations Natural Resource Centre of Excellence (COE), whose mandate is to create opportunities for First Nations communities for the sustainable, environmentally responsible development of natural resources within their lands, will review applicants for eligibility under the program.
For delivery of these programs, the provincial government is providing support to the COE, which will work with the Saskatchewan Research Council (SRC), licensees, oil and gas service companies, and First Nations communities to administer the First Nations Stewardship Fund and the Indigenous Business Credit Pool.
Announced in May 2020 as part of the federal COVID-19 Economic Response Plan, the $400 million ASCP is overseen by the Saskatchewan Ministry of Energy and Resources and delivered in partnership with the SRC. The program prioritizes Saskatchewan-based oil and gas service companies and will support more than 2,000 full-time equivalent jobs and reclaim up to 8,000 inactive wells and facilities over two years.
As of December 31, 2020, the ASCP has issued more than $98 million in contracts to licensees to engage oil and gas service companies to complete abandonment and reclamation activities. The ASCP has engaged 98 licensees and 307 Saskatchewan-based service companies in program work to date. As of December 31, 2020, the program has completed 724 well abandonments, 175 flowline abandonments, 39 facility decommissions, and 1,434 site remediation and reclamation activities in Saskatchewan.
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