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Amendments Introduced to Dormancy and Shutdown Regulation.

EFFECTIVE DATE: Immediately

As part of the BC Energy Regulator’s (BCER’s) commitment to continuous regulatory improvement, amendments have been made to the Dormancy and Shutdown Regulation (DSR). These changes come after over 18 months of regulatory impact assessment and analysis which incorporated feedback from First Nations, industry and affected stakeholders.

The amended regulation enhances flexibility for efficient closure programs, provides early engagement opportunities with First Nations and allows for geographic areas of importance to be identified by First Nations for restoration planning, contributing to reductions in cumulative impacts from development. The amendments to the DSR also:

  • Require permit holder restoration reporting to be verified by qualified professionals;
  • Align assessment timelines with restoration timelines;
  • Move up the annual work plan submission deadline from January 30 to November 15;
  • Adds wells with “well authorization granted” status as dormant sites based on inactivity thresholds;
  • Change the eligibility requirements, maximum duration and engagement requirements for liability reduction plans (LRPs);
  • Create two tiers of LRPs based on permit holder portfolio size with alternative site closure targets;
  • Implement “relevant geographic areas” to ensure quality restoration occurs in the regions of importance to First Nations and introducing substitution of eligible sites; and
  • Improve engagement requirements as permit holders plan their closure work.

To operationalize the revised regulation, the BCER will update the Dormant Sites Program Manual and the eSubmission User Guide (both expected to be released later this year). The dormant sites webmap has been enhanced to provide more details about every dormant wellsite in the province including site locations status, whether closure work is planned at each site, and what type of closure work is planned. Guidance on restoration standards and expectations can be found in the Site Remediation and Reclamation Manual.

A revised version of the regulation is available online here. Permit holders who are subject to the DSR are advised to review the regulatory changes to ensure continued compliance with the regulation.

If you have any questions regarding this Technical Update or the revised regulation, please contact:

Matt Edgar
Manager, Closure
BC Energy Regulator
Matt.Edgar@bc-er.ca
250-980-6075