Important dates

Second increment application period: Closed

Next application period: opening July 2020

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

Overview

The Site Rehabilitation Program 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 grant amount once their application is approved
  • up to another 70% after submitting interim invoicing and reports (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 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.

Funding increments

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

First increment - 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)

Second increment – Closed

$100 million in funding available. Grant applications will be 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

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.

Future increments

In consultation with the program’s Industry Advisory Committee, government will be holding the launch of future application periods until application reviews are completed for grant periods 1 and 2.

The next application period will open in July 2020. Criteria and supplemental guidelines will be posted at that time.

In the meantime, government will work to complete the review of all applications received in grant periods 1 and 2. System upgrades are also being completed to increase the efficiency of the application review process in future application periods.

Criteria for subsequent increments will be posted as they are developed.

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.
  • Only the contractor who has signed the agreement with the licensee can apply.

Contractors and consultants may not apply on behalf of others. The company responsible for doing the contracted work must apply for the grant.

  • 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
  • food
  • beverages
  • non-work related expenses

Nominate land for clean up

Learn how to nominate an inactive site for clean up.

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 program guidelines

Make sure you meet the eligibility criteria and funding increment requirements in the Site Rehabilitation Program Guidelines (PDF, 1.2 MB).

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 2 is closed. In consultation with the program’s Industry Advisory Committee, government will be holding the launch of future application periods until application reviews are completed for grant periods 1 and 2.

The next grant application period will open to applications in July. At that time, supplemental guidelines will be posted here.

Step 3. Apply online when the next application period opens

The next application period will open in July. Further details on how to apply will be posted at that time.

After you apply

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

Due to the high demand and volume of applications to the program, application review is taking longer than originally estimated. 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.

For first increment applications, once the agreement has been approved and signed, you will receive an initial payment of 10%.

Reporting requirements and additional grant payments

Interim report and second grant payment

You will receive the second grant payment of up to an additional 70% of the grant total when you provide a complete Interim Invoice Report, which includes:

  • A Site Rehabilitation Program Invoice and Reporting Form certifying completion of a certain percentage of the work
    • contractors can decide at what point they submit their claim for interim payment – at any time when between 30% and 70% of the work is done
  • all invoices for costs, services, supplies and equipment for abandonment or reclamation work completed to the date of submission
  • a description of the site rehabilitation work completed to the date of submission

Final report and grant payment

You will receive the remainder of the grant payment when the project is successfully completed.

To receive this final payment, you must provide:

  • a Site Rehabilitation Program Invoice and Reporting Form, certifying completion of the site rehabilitation work described in the Site Rehabilitation Program grant agreement
  • all invoices for costs, services, supplies and equipment incurred since the second grant payment
  • a report describing all work conducted including data, maps, and the final results, as well as demonstration of compliance with Alberta Energy Regulator requirements

More information

Read the Site Rehabilitation Program Fact Sheet (PDF, 453 KB) to learn more.

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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