On April 24th, Alberta’s provincial government announced the implementation of the Alberta Site Rehabilitation Incentive Program, funded as part of the federal government’s COVID-19 Economic Response Plan, which will allow industry to access up to $1 billion to perform site closure work. The program launched on May 1 and provides grants directly to service companies as a method to get Alberta’s service industry working again.
Oil field services contractors are eligible to apply for grants but require assistance from the licensees they contract to in defining end of life work including well, pipeline and facility abandonments and environmental work including Phase 1 and 2 ESA’s, remediation and reclamation.
Time is of the essence as the program will be funded in $100 million increments with the first 2 increments occurring May 1 to 31 and May 15 to June 15. Licensees and their subcontractors need to act quickly to apply for grants to take advantage of this unprecedented Incentive Program.
Solstice Engineering Ltd. provides industry leading end of life data analytics to assist licensees and their service providers to quickly and accurately determine well abandonment candidates that are unlikely to exceed $30,000 grant limits, cut and cap candidates, pipeline abandonment candidates, and to pinpoint reclamation candidates that have high annual carrying costs. By identifying these opportunities, licensees will be able to utilize the incentive grants to optimize their end of life programs, efficiently reduce annual carrying costs, effectively reduce regulator deemed liabilities, and improve asset divestiture potential. If all of industry takes this approach, the state of environmental cleanup in Alberta will improve dramatically providing a win-win for industry and taxpayers while reducing the current negative overtones regarding Alberta’s large inactive well populations.
Solstice has been providing end of life optimization reporting and ARO evaluation tools since 2008 and has the expertise to get you to the front of the line for this program. If you want to know exactly where to concentrate your efforts, contact Solstice today to avoid being left behind.
Industry leading resources provided by Solstice
Solstice provides end of life optimization reports for Alberta’s Area Based Closure (ABC) program, British Columbia’s Dormant Well program, and reclamation of sites with high annual fixed costs. These optimization reports assist licensees to concentrate on areas that will give the biggest bang for the buck.
About Solstice Engineering Ltd.
Solstice Engineering Ltd. provides petroleum software solutions, acquisition and divestiture liability estimates, LLR evaluations, independent ARO estimates, and petroleum consulting services. SolComp, Solstice Engineering’s regulatory compliance and end of life management system, provides petroleum companies with the most complete and intuitive compliance software system available to industry.
For further information:
Phone: 403-462-2863
Email: info@solsticesolutions.com