Important dates

Third application period: Open until March 31, 2021
Fourth application period: Open until March 31, 2021

Project completion: Contractors have until December 31, 2022 to complete the work

Overview

The Site Rehabilitation Program (SRP) provides grants to oil field service contractors to perform well, pipeline, and oil and gas site closure and reclamation work.

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

Funding

The program has up to $1 billion in funding available for eligible abandonment and reclamation projects.

Contractors with approved grant applications will receive:

  • 10% of the total grant amount once their application is approved
  • up to another 70% of the total grant amount after submitting interim invoicing (70% if the licensee’s municipal taxes are paid in full on the proposed site.  If taxes are not paid in full, the interim funding will be 50% of the total grant amount.)
  • the remainder of the grant when the work is completed

This program will access up to $1 billion from the federal government’s COVID-19 Economic Response Plan.

Attempting to obtain grant monies for work not done by the applicant, for ineligible costs such as administration fees or commissions, or through providing false or misleading information in the grant application, invoices, or certifications of work, may disqualify the contractor from further participation in the program, or disqualify the sites of the applicable licensee from being eligible for grant funding. Any activity appearing to be fraudulent will be referred to legal authorities for investigation and may be punishable by law.

Grant application periods

Grant funding will be available in $100 million increments with targeted priorities, application criteria, and timelines.

Grant period 1 – closed

$100 million in funding. Grant applications were accepted for:

  • oil and gas sites needing abandonment and/or reclamation across Alberta
  • projects that require 100% government funding
  • contracts of up to $30,000 (per application, per closure activity)

Grant period 2 – closed

$100 million in funding. Grant applications were accepted for:

  • oil and gas sites on land where government is paying compensation to landowners as required under Section 36 of the Surface Rights Act (otherwise referred to as Section 36 lands)
  • projects that require 100% government funding
  • no contract cost limit

Reassessment period 1B – closed

$116 million in funding (remaining funds from periods 1 and 2). Declined grant applications for abandonment work from period 1 were reassessed for possible approval, based on the criteria laid out in the Reassessment Period 1B Supplemental Guidelines (PDF, 718 KB). No new applications were accepted for this period.

Reassessment Period 1B is complete. Unless you have received further notification from government notifying you that your application was reassessed under Period 1B and is approved, your Period 1 application remains declined. We encourage all applicants who have not yet received funding to apply again in current or future grant periods.

Grant period 3

Application period 3 is open until March 31, 2021, or until licensees have fully expended their allocations.

$100 million in funding is available:

  • up to $139,000 in grant funding will be allocated to each active site licensee in the province
  • oil field service contractors can contract with these licensees to do closure work and apply for an SRP grant to get funding to do the work; licensees cannot apply for this funding – only the contractor doing the work can
  • projects are eligible for 100% grant funding, up to the $139,000 limit for each licensee

Follow the steps below to apply.

Grant period 4

Application period 4 is open until March 31, 2021, or until licensees have fully expended their allocations.

$100 million in funding is available:

  • licensees who have submitted either confirmed or proposed Area-Based Closure (ABC) plans to the Alberta Energy Regulator – prior to the 2020 spending targets being paused – have been allocated SRP grant funding amounts for Period 4, based on their ABC spending targets for 2020
  • oil field service contractors can contract with these licensees to do closure activities and apply for an SRP grant to get funding to do the work; licensees cannot apply for this funding – only the contractor doing the work can
  • Projects are eligible for up to 50% grant funding – the licensee is responsible for paying the remaining 50%
    • Grant funding will be increased up to 100% of the project value if the licensee contracts with Indigenous oil field service companies (see the Period 4 Supplemental Guidelines for details)

Follow the steps below to apply.

The application review process will continue to use department and industry data to assess whether the contract’s costs and scope of work are reasonable.

Eligibility

Eligible contractors

Oil field services contractors who do work such as:

  • upstream oil and gas infrastructure abandonment including:
    • wellsite abandonment
    • pipeline abandonment
    • pipeline segment removal
    • facility abandonment
  • environmental work including:
    • Phase 1 and Phase 2 environmental site assessments
    • remediation
    • reclamation

Eligibility requirements

Oil and gas sites must be located in Alberta and put Albertans to work.

All laws, regulations, directives, and environmental and occupational health and safety standards, including social distancing and COVID-19 related health guidelines must be followed in carrying out the work.

Oil field service contractors must have a valid contract with an Alberta oil and gas licensee.

  • The contract must be fully executed, with no ‘subject to’ clauses, with two exceptions:
    • contracts that are "subject to receiving grant funding" are acceptable
    • contracts that have "subject to" clauses referencing the necessary completion of required abandonment or Phase 1 Environmental Site Assessments are acceptable
  • Only the contractor who has signed the agreement with the licensee can apply.

The contractor or prime contractor who is responsible for doing the contracted work must apply for the grant. Prime contractors must show that their sub-contractors have been paid in full when submitting invoicing for interim and final grant payment.

  • The licensee is responsible for ensuring the contractor has the skills, expertise, capacity and equipment to conduct the work to meet all provincial requirements.
  • Grant funding will be awarded only to the contractor, not the licensee.

Eligible activities

The following activities are eligible for grant funding:

  • closure work on inactive wells and pipelines
  • environmental Site Assessments (Phase 1 and Phase 2)
  • remediation
  • reclamation
  • preparation of applications for remediation and reclamation certificates

Ineligible activities

The following activities are not eligible for grant funding:

  • suspension (wells and facilities) and discontinuation (pipelines) costs that are not part of abandonment and reclamation projects
  • non-closure work on producing sites (for example, spill remediation)
  • work on orphan wells (the Orphan Well Association receives dedicated funding and is responsible for cleaning up all orphan wells)
  • closure work outside of Alberta
  • work completed or in progress before the program comes into effect on May 1, 2020

Eligible costs

All costs associated with completing the work are eligible for grant funding, including:

  • materials and supplies
  • wages
  • equipment rentals
  • laboratory analyses
  • transportation of equipment and workers to and from sites

Ineligible costs

  • administration fees
  • costs of work to prepare for contract bids, grant applications and project contracts
    • similar costs not directly incurred in relation to eligible closure activities
  • non-work related expenses

Nominate land for clean up

Learn how to nominate an inactive site for clean up.

The list of nominated sites has been posted for contractors to view and negotiate with the site licensee (the oil and gas company responsible) to enter into a contract to close the site through a Site Rehabilitation Program grant.

The licensee decides if the work will be completed.

There is no deadline for submitting sites for closure. Nominated sites will be eligible for grants throughout each Site Rehabilitation Program application period.

How to apply

Step 1. Read the updated program guidelines

Make sure you meet the eligibility criteria and funding increment requirements in the Site Rehabilitation Program Guidelines (PDF, 844 KB).

Find this information in the Program Eligibility Criteria and Program Periods sections of the guidelines.

Step 2. Read the supplemental guidelines for the application period you are applying for

Grant application Period 3

SRP grant application period 3 is open to grant applications until March 31, 2021. Read the SRP Supplemental Guidelines for Application Period 3 (PDF, 1.1 MB) and make sure you meet all eligibility requirements.

  • Up to $139,000 in grant funding has been allocated to each active site licensee in the province:
    • oil field service contractors can contract with these licensees to do closure work and apply for an SRP grant to do the work. Licensees cannot apply for a grant
    • multiple applications (applications from multiple contractors or multiple applications from one contractor) are allowed up to the maximum approved grant allocation of $139,000 per licensee; licensees must ensure that the total grant amount requested by their contractors does not exceed this allocation
  • Licensees must plan the required work for each site and ensure that the applications submitted by their contractors are submitted and approved separately and in proper sequence:
    • abandonment, or
      • abandonment and a Phase 1 Environmental Site Assessment (ESA) if the Phase 1 ESA will be conducted at the time of abandonment or immediately afterwards
    • Phase 1 ESA
    • Phase 2 ESA
    • remediation
    • reclamation
  • Projects are eligible for 100% grant funding, up to the $139,000 limit for each licensee.

Grant application Period 4

SRP grant application period 4 is open to grant applications until March 31, 2021. Read the SRP Supplemental Guidelines for Application Period 4 (PDF, 1.4 MB) and make sure you meet all eligibility requirements.

  • Licensees with Area-Based Closure (ABC) plans in place with the Alberta Energy Regulator – prior to the 2020 spending target being paused – have been allocated SRP funding based on their 2020 ABC spending targets:
    • oil field service contractors can contract with these licensees to do closure activities and apply for an SRP grant to do the work. Licensees cannot apply for a grant
    • multiple applications (applications from multiple contractors or multiple applications from one contractor) are allowed up to the maximum approved grant allocation for each licensee; licensees must ensure that the total grant amount requested by their contractors does not exceed this allocation
  • Licensees must plan the required work for each site and ensure that the applications submitted by their contractors are submitted and approved separately and in proper sequence:
    • abandonment, or
      • abandonment and a Phase 1 Environmental Site Assessment (ESA) if the Phase 1 ESA will be conducted at the time of abandonment or immediately afterwards
    • Phase 1 ESA
    • Phase 2 ESA
    • remediation
    • reclamation
  • Projects are eligible for 50 per cent grant funding, up to the maximum allocation for each licensee, or
    • 100% grant funding if the licensee contracts closure work with Indigenous oil field service companies (see the Period 4 Supplemental Guidelines for details)

Step 3. Review the list of eligible licensees

Grant application Period 3

Review the list of eligible licensees (XLSX, 24 KB) that have been allocated grant funding.

Grant application Period 4

Review the list of eligible licensees (PDF, 619 KB) that have been allocated grant funding for Period 4.

Step 4. Contact site licensees

Contact eligible site licensees included on the Period 3 and Period 4 licensee lists to discuss entering into a contract to perform closure work on one or more of their sites.

If you are having trouble finding contact information for a licensee, you can review the Business Associate Code List (ST104A) for the legal name and contact information of all registered licensees or their receivers.

Once you have a signed contract with a site licensee, you can apply for a Site Rehabilitation Program grant to do the work.

Step 5. Create your SRP user account login and password, or sign in to ETS if you already have one

If you already have an Electronic Transfer System (ETS) account, skip this step and use your existing user account.

  1. Visit the Electronic Transfer System to create your new Site Rehabilitation Program user account login and password. You will need to use Chrome or Firefox.
  2. Click on “new user account registration” to create your Site Rehabilitation account and password. You will need your corporate registration number.

Step 6. Apply online

Once you’ve created your account login and password, or entered your existing login and password, you will be connected to the SRP grant application.

Follow the steps to complete your grant application.

If you need help, screen shots of the online application form are provided in each set of Supplemental Guidelines so you can plan ahead and prepare what you need to include in your application before starting the application process.

At a glance, you will need the following to complete your application:

  • your company’s legal name
  • your corporate registration number
  • your company’s signing authority contact information
  • the legal name of the oil and gas site licensee you are contracted with and their Business Associate (BA) identification number
  • a PDF or JPEG of the signed abandonment or reclamation contract between your company and the site licensee
  • the grant amount being requested
  • the type of infrastructure you will be working on (for example, well, pipeline, facility, etc.)
  • the well, pipeline, or facility site:
    • Identification number
    • Location
    • Work activity
  • the estimated number of work hours that will be generated during the contract – please be as accurate as possible with this estimate
  • the number of employees or sub-contractors that reside in the area where the work is located
  • whether your company or your sub-contractors are Indigenous (see the Period 4 Supplemental Guidelines for the criteria that must be met to be considered an Indigenous company for the purposes of the SRP)
  • your preferred method of grant payment, electronic fund transfer (eft) or cheque
  • an Alberta Energy Regulator approval letter if you are planning to do pipeline removal work

If applicable, you will need to provide a municipal tax statement confirming the licensee has no outstanding municipal taxes. This is not a requirement to get grant approval.

After you apply

We will verify your application and contract with the oil and gas site licensee.

Staff are working diligently to respond to applications in a timely manner. Applicants will be informed about the outcome of their applications – whether approved or declined – as soon as the review is complete.

Applications must be completed accurately and fully to be considered for the program. Deficient applications will be declined and applicants will be required to reapply.

If you are deemed eligible for a grant, you will be required to sign an agreement with the Government of Alberta outlining the roles and responsibilities of all parties.

Failure to meet the requirements laid out in the agreement could result in the loss of all or part of the grant.

Once the agreement has been approved and signed, you will receive an initial payment of 10%.

Reporting requirements and additional grant payments

Learn how to submit invoicing to receive additional grant payments.

Grant payments will be made by electronic funds transfer (EFT) or by cheque issued by Alberta Energy, whichever is preferred. To get EFT payment, you must complete an Application for EFT Direct Deposit form when you sign and return your first grant agreement. Only one EFT Direct Deposit Form is required for one company is receiving multiple grants. If you change your banking information after the first grant payment, fill out the Application for EFT Direct Deposit Form (PDF, 589 KB) and submit to Energy.SRP@gov.ab.ca for processing.

Sign up for updates

Sign up to get future updates about the Site Rehabilitation Program.

All fields are required unless otherwise indicated.

Disclaimer

The personal information collected through www.alberta.ca/siterehab will be used for the purpose of providing you with updates about the Site Rehabilitation Program. It will also be used to conduct subscriber analysis, assisting in making future communications more effective.

This personal information collection is authorized under section 33(c) of the Freedom of Information and Protection of Privacy (FOIP) Act.

If you have any questions about this collection of personal information or wish to unsubscribe at any time, you may contact Wade Clark, Executive Director Resource Stewardship Policy, at wade.clark@gov.ab.ca or 780-427-7426.

Contact

Connect with the Site Rehabilitation Program, Program Design Implementation and Monitoring Section:

Phone: 780-641-9083
Toll free: 1-833-680-9083
Email: energy.srp@gov.ab.ca

Address:
Alberta Energy
9945 108 Street NW
Edmonton, Alberta  T5K 2G6