Sask. moves into second phase of well abandonment program

By Medicine Hat News on December 16, 2020.

Saskatchewan has launched a second $200-million phase of a program to help properly abandon inactive oil and gas wells.

The new, larger phase follows a $100-million funding envelop that was awarded to well licensees this summer towards work to properly retire low-economic wells and reduce liabilities.

In April, Ottawa allocated $1.8 billion for inactive well cleanups, including funds for the Alberta ($1 billion) and Saskatchewan ($400 million) governments to administer.

Two initial $100-million phases in Alberta closed in July, at which point a third similarly sized phase was launched.

At that point, City of Medicine Hat officials said they received approvals worth a total of $1 million from programs in about equal shares from the two provincial governments related to its own abandonment program.

In Saskatchewan, the first $100-million phase was launched in May, and this week the government announced all but $6 million will be allocated by year end.

On a regional basis, projects in the Swift Current management area had received $17 million and Kindersley area $16 million. Estevan and Lloydminster areas totals were $61 million combined.

Provincewide the first phase of work included 4,400 projects, including 428 well closures, 552 site reclamations completed by Oct. 31.