Minister of Energy and Resources Colleen Young. Photo by Brian Zinchuk
REGINA – For the second straight year, the number of inactive oil wells in Saskatchewan has been reduced through the Inactive Liability Reduction Program (ILRP), which is administered by the Ministry of Energy and Resources. As of January 2025, there were 1,083 fewer inactive wells compared to when the ILRP was first launched in 2023, the ministry said in a May 29 press release.
“In addition to responsibly developing Saskatchewan’s natural resources, our ministry is the provincial oil and gas regulator, a role we take extremely seriously,” Energy and Resources Minister Colleen Young said. “The ILRP shows how we regulate the sector in a way that shields taxpayers from liability risks, protects the environment and facilitates growth. We are fortunate to have reliable oil producers in our province who ensure they are investing in responsible and sustainable resource development.”
The ILRP sets spending targets for oil producers to manage and decommission inactive facilities in a timely and responsible manner. In 2024, oil producers spent more than $228 million on these costs, nearly doubling the ministry target of $116 million.
“Saskatchewan’s oil and natural gas producers continuously strive to lower the environmental footprint of their operations and the ILRP enables industry to manage facilities through the final stage of the project lifecycle,” Canadian Association of Petroleum Producers President and CEO Lisa Baiton said. “Reducing the number of inactive wells and facilities in the province is an incredibly important responsibility for oil and gas producers, and their commitment to the program was demonstrated by the industry nearly doubling the ministry’s funding target. The success of the ILRP in its first two years is an example of how the best solutions come when industry and government work together.”
The Ministry of Energy and Resources has a successful track record of developing and administering several different clean-up programs for the oil and gas sector. Since 2010, the Saskatchewan oil and gas orphan fund secures contractors using industry funding to properly decommission orphaned oil facilities. Additionally, the Accelerated Site Closure Program, which closed in 2023, allocated $400 million in federal funding to properly decommission 9,823 oil wells in the province, along with thousands of other related facilities and sites.
For more information about the Government of Saskatchewan’s liability management programs, please visit saskatchewan.ca.
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