Financial security
Under Alberta’s Environmental Protection and Enhancement Act (EPEA), operators of specified activities must provide financial security to ensure that sites are reclaimed to a safe, useful, and productive condition once operations have ceased. This requirement ensures the costs of conservation and reclamation are not left for Albertans. Learn more about financial security requirements under other legislation.
Operator responsibilities
Operators holding approvals or registrations under EPEA are responsible for reclamation including removal of all infrastructure, remediation, replacement of soils and revegetation.
Activities requiring financial security
The amount of financial security is based on the type and scale of the activity. Activities include:
- coal and oil-sands mining operations
- hazardous waste and recyclable projects
- landfills
- chemical manufacturing and metal production plants
- quarry activities
- sand and gravel operations
- waste management facilities
- solar and wind renewable energy operations
Payment
Acceptable forms of financial security include:
- cash
- letters of credit
- guaranteed investment certificates
- performance bonds
- demand forfeiture bonds (for pits, quarries, and mines only)
Financial security collected under EPEA is held in the Environmental Protection Security Fund, and includes funds collected under EPEA by the Alberta Energy Regulator. The fund's status and transactions are detailed in the annual report.
Security adjustment and return
Conditions that result in a change to the total cost of reclamation will be reflected in the security estimate and financial security required will be adjusted accordingly. A portion of security may be returned if partial reclamation occurs. Operators will have their remaining financial security returned once the site is fully remediated and reclaimed in accordance with legislative requirements.
Failure to reclaim
If an operator fails to meet reclamation obligations, financial security may be forfeited and used by the government to complete reclamation.
If the security is insufficient to complete reclamation, the government may complete the work and recover additional costs from the operator.
Security requirements
Oil sands mines and coal mines
Wind and solar renewable energy operations
- Code of Practice for Solar and Wind Renewable Energy Operations
- Guidelines for renewable energy operations
Landfills, waste management facilities, hazardous waste and recyclable projects
Pits (sand, gravel, clay and marl materials)
- Private land:
- Public land: