Quickly get to the front of the line for the alberta site rehabilitation incentive program
May 6, 20204:47 AM BOE Report Staff
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.
Downhole abandonment candidates. Understand the true liability of an asset with Solstice’s 3rd Party ARO Estimates to quickly find high working interest abandonment candidates that are unlikely to exceed $30,000 grant limits. We guarantee accurate, AFE-ready end of life estimates regardless of inventory size. Our expertise with oil and gas ARO estimates, allows us to provide detailed cost estimates for individually operated and non-operated wells, pipelines and facilities equal to that of a human manually doing each estimate.
Cut and cap candidates. Solstice’s software reviews a licensee’s entire well inventory and singles out only those wells that are either fully zonal abandoned or sitting cased. The Excel based report draws well schematics for each of these wells and has built in checklists that assist the user to quickly determine if each well is ready to be cut and capped. Benefits include well inventories are reduced with minimal cost, deemed liabilities are reduced efficiently, assists with deciding where to concentrate ABC program, average 90% reduction in well file review man-hours, and calculates theoretical cement tops where cementing data is available which expedites finding true candidates.
Pipeline abandonment candidates. Pinpoints pipelines that require abandonment based on related well statuses and has built-in geospatial based forms that assist field staff to decide on future of each pipeline to expedite building pipeline abandonment inventories.
ABC, Dormant Well, LLR optimization. Helps to find areas where a higher concentration of candidates can be taken care of while resulting in an optimized reduction in LLR deemed liability. Low hanging fruit is singled out to quickly organize opportunities.
Wellsite reclamation optimization. Can further be supplemented by loading in surface lease rental and property tax data to help pinpoint wellsites with high carrying costs to prioritize where to spend reclamation dollars.
Improve divestiture potential. If preparing assets for divestiture is part of the overall plan, Solstice’s LLR optimization report needs to be added to the above program tools. The LLR optimization report assists with significantly reducing deemed liability of yet to be optimized inventories by doing only paperwork.
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: firstname.lastname@example.org