As many are now aware, initial details for Period 5 and Period 6 of Alberta’s Site Rehabilitation Program (ASRP) were released yesterday (November 26th) which outline high level details regarding allocations and eligibility related to each funding Period. Further details regarding these funding periods will be released in early 2021 with online grant application submissions anticipated to start on February 1st, 2021. An update to the ASRP Guidelines document was also released yesterday with additional clarifications and amendments to the program. All program updates including recent funding Period details can be found on ASRP’s webpage here: https://www.alberta.ca/site-rehabilitation-program.aspx.

Additionally, the Environmental Services Association of Alberta (ESAA), through its participation in the ASRP Industry Advisory Committee, also released further details in regards to yesterday’s program updates which can be found here: https://www.esaa.org/srp/. One important item to note is that ASRP has revised the industry benchmarking to create a new structure of cost reasonableness as it relates to grant application amounts being approved for each activity. This is excellent news as it will potentially address those previously approved and short-funded applications to allow the work to proceed.

Over the last number of months, North Shore has been very busy working with licensees and other service providers making applications and executing approved work through the program. We are extremely fortunate and thankful to work with some great companies who all share the same values and work ethic to ensure overall success of the program.

With many applications still being made for Period 4, coupled with the recent announcement of Periods 5 and 6 application timelines, preliminary planning and sequencing of closure activities continues to be key to the success of the program. North Shore is committed to working with licensees, contractors, and other key stakeholders to ensure eligible funding allocations are utilized as effectively and efficiently as possible. As well, with revisions to benchmarking, North Shore will be sure to update applicable licensees and contractors with any grant approval re-assessment details immediately as they are received to ensure adequate planning and execution schedules are maintained. 

North Shore would like to thank all the licensees, service providers, and other key stakeholders for participating in the program and continuing to work with us throughout the process. We look forward to continuing these relationships in an effort for everyone to benefit.

For additional information on how to work with North Shore as part of the ASRP program and/or to participate in future funding periods, please contact us either by phone or the email below.

ABSiteRehabProgram@northshoreenv.com

Between now and the end of 2022, companies may need to focus on re-determination of previously registered boilers and heaters. Pre-existing boilers and heaters were registered in 2017, however many companies classified them as Class 80 (under subparagraph 34(1)(b)(vi)) due to a lack of stack test. In order to avoid complying with the most stringent Class 80 NOx limit, companies must conduct a stack test to confirm reclassification to a lower compliance level.

Pre-existing boilers and heaters, those that were commissioned before June 17th, 2016 are split into three classes based on the NOx emissions intensity.

  • Class 40: <70g/GJ
  • Class 70: ≥ 70 g/GJ and < 80 g/GJ
  • Class 80: ≥ 80 g/GJ

For boilers and heaters classified as Class 40 there is no NOx emission limit. For Class 70 and 80 there is an emission limit of 26g/GJ, applicable in 2036 and 2026, respectively. Boilers and heaters that are reclassified as Class 40 require no further testing or compliance requirements, which makes this an ideal classification to fall under.

Redetermination must be completed by December 31, 2022 to change the classification of pre-existing boilers and heaters by means of a stack test or CEMS test (see Section 36 in MSAPR).

Companies must ensure that sample ports are installed and available for stack testing. Scoping the exhaust stacks for testing feasibility prior to the survey can streamline the testing day. North Shore recommends scoping the exhaust stacks for testing feasibility and conducting stack tests in 2021 and 2022.

Contact Tanner or Hillary at North Shore if you have any questions:

Tanner Nesbitt, EP
Emissions Specialist – Fugitive Emissions & MSAPR Coordinator
Main: 403-228-3095 ext.221
Email: tnesbitt@northshoreenv.com

Hillary Yeung, P.Eng
Air Quality and Emissions Coordinator
Main: 403-228-3095 ext.229
Email: hyeung@northshoreenv.com

MSAPR Background: Part 1 Boilers & Heaters

Multi-Sector Air Pollutants Regulation (MSAPR) is Canada’s first mandatory national air pollutant emissions standards that establishes a standard process for registering, testing, monitoring and reporting of NOx emissions and NOx emission intensity limits for boilers, heaters and engines. The regulations apply to all boilers and heaters with a rated capacity of over 10.5 GJ/h (10 mmbtu/h or 2.9 MW). Boilers and heaters are split into the different categories below, based on commissioning date.

  • Pre-existing: commissioned before June 17th, 2016. Split into classes (40, 70 and 80) based on NOx emission intensity
  • Transitional:
    • Packaged equipment commissioned between June 17th, 2016 and Sept 17th, 2016
    • Not packaged equipment commissioned between June 17th, 2016 and June 17th, 2019
  • Modern:
    • Packaged equipment commissioned on or after Sept 17th, 2016
    • Not packaged equipment commissioned on or after June 17th, 2019
  • Redesigned: Originally was not designed to combust gaseous fossil fuel and was redesigned to combust gaseous fossil fuel after June 17th, 2016

Important dates:

  • Pre-existing boilers and heaters – classified: 2017
  • Pre-existing boilers and heaters – classified under Class 80 can be re-determined via stack or CEMS test: December 31, 2022
  • Pre-existing boilers and heaters – Class 80 NOx emission intensity limit: January 1, 2026
  • Pre-existing boilers and heaters – Class 80 initial report: June 1, 2026
  • Pre-existing boilers and heaters – Class 70 NOx emission intensity limit: January 1, 2036
  • Pre-existing boilers and heaters – Class 70 initial report: June 1, 2036
  • Redesigned, transitional and modern boilers and heaters – compliance report: June 1 following the end of the reporting period

Over the past several months North Shore Environmental Consultants Inc. (North Shore) has been extremely successfully on the Site Rehabilitation Program (SRP) with Backwoods Energy Services (Backwoods), a 100% Indigenous-owned company in Alberta. Backwoods is one of the largest Indigenous-Community owned companies in Canada offering site services relating to civil contracting, abandonment, decommissioning, and waste disposal. Period 4 of SRP has just been announced and Alberta Energy has confirmed that grant funding will be increased up to 100 per cent of the OFS/Licensee contract value if the Licensee hires Indigenous contractors. We are anticipating that North Shore, in conjunction with Backwoods, will have the opportunity and capacity to successfully apply for grant funding under Period 4 and maximize the potential benefit to all stakeholders.

If you are interested in discussing Period 4 grant funding opportunities with North Shore and our working relationship with Backwoods, please contact us at ABSiteRehabProgram@northshoreenv.com. Additional background information on Backwoods and details regarding their services can be found here: https://www.backwoodsenergy.ca/.

It has been well over a month now since the Period 1 funding application deadline closed for the first tranche of Alberta’s Site Rehabilitation Program (ASRP). Following the deadline for application submissions, North Shore, like many other service providers who participated in Period 1 of the program, had been awaiting anxiously for results or feedback. After receiving numerous approvals in May, and now a significant influx of approvals over the last few weeks in June, it is obvious that Alberta Energy has stepped up their review process and capacity to address the tens of thousands of applications received during the Period 1 funding tranche.

Some interesting statistics regarding Period 1 funding applications have been released by the government and can be reviewed on their website here https://www.alberta.ca/site-rehabilitation-program-grant-funding-status.aspx. What is particularly interesting is that as of June 19th, Alberta Energy had processed over half of the 36,213 applications received during both Period 1 and Period 2 application periods and approximately $40 million in grant funding had been allocated to just over 100 Alberta-based companies so far. With the available funding allocations equaling $200 million for the two application periods and Period 2 funding being significantly under-subscribed due to the number of sites within the province that actually met application funding criteria, there appears to be a potential surplus of available funds that could be allocated back to either Period 1 applications (if required) or potentially to future funding periods. Either way, it should present additional opportunities for all Alberta-based companies participating in the program.

We anticipate that Period 1 applications will be fully processed by Alberta Energy in early July and prior to the announcement of Period 3 funding details in mid to later July. In the meantime, North Shore has initiated some of its approved projects earlier this month and is currently very busy planning and prioritizing its workloads based on the significant number of approvals being received. North Shore has also been fortunate enough to collaborate with various contractors who also made their own applications under the program and we look forward to supporting their planned work activities as well.

North Shore would like to thank all the licensees and service providers for participating in the program and for working with us during the application process. As a result of everyone’s contribution, North Shore has been able to successfully take part in this program, which will benefit many oil field service providers, their employees, and the licensees. We look forward to a very busy field season into the fall and are excited to participate in future funding periods under the ASRP program.

For additional information on how to work with North Shore as part of the ASRP program and/or to participate in future funding periods, please contact us either by phone or the email below.

ABSiteRehabProgram@northshoreenv.com

The Government of Saskatchewan has launched the Accelerated Site Closure Program (ASCP) to utilize $400 million in federal funding for the abandonment and reclamation of inactive oil and gas wells and facilities. The program is scheduled to run until December 31, 2022 with the primary purpose of this program to put Saskatchewan people and companies back to work. It is estimated that up to 8,000 inactive wells and facilities will be abandoned and reclaimed over the life of this program. This funding is expected to support approximately 2,100 full-time equivalent jobs in the Saskatchewan service industry. The ASCP will be rolled out in several phases. Phase 1 of the Program has been initiated and will allocate up to $100 million in funding to Saskatchewan service companies contracted to complete abandonment and reclamation activities. The ASCP will be overseen by the Ministry of Energy and Resources (MER) and administered by SaskBuilds and the Saskatchewan Research Council (SRC).

Town hall video-conference meetings were held this week to discuss the current state of the program and answer questions from oil field   and environmental service providers. The government representatives indicated that eligible licensees were assigned their funding allocations and are in the process of nominating wells and facilities through the Integrated Resource Information System (IRIS). Once the nomination process is complete, SRC will prepare and compile work packages consisting of 10 and 50 wells and/or facilities. These work packages will be prepared using an area-based approach to maximize efficiencies and create economies of scale. The work package allocation has yet to be determined, however government representatives stated that the will use a fair approach to ensure all eligible Saskatchewan service providers receive a portion of the funding to keep more Saskatchewan people employed.

An additional town hall video-conference meeting will be held June 9, 2020 via the Saskatchewan Industrial and Mining Suppliers Association (SIMSA) website https://simsa.ca/. This meeting is designated for Saskatchewan subcontractors to discuss the program and elicit communication with “prime or lead companies” that will be applying to become eligible service providers through SaskTenders.

North Shore will continue to share information and work with potential subcontractors service and eligible oil and gas licensees to ensure we are positioned to effectively and efficiently maximize program benefits and opportunities. For additional information on how to work with North Shore, please contact us by the email below.

SKSuppliers@northshoreenv.com