The Orphan Site Restoration Levy paid by permit holders is rising to $24 million per year.
DATE ISSUED: Oct. 24, 2025
EFFECTIVE DATE: Immediately
On Oct. 22, 2025, the BCER’s Board of Directors approved an increase to the Orphan Site Restoration Levy to ensure adequate funding for restoration of orphan sites.
The BCER has made significant progress cleaning up orphan wells. As of March 2025, 80 per cent of orphan sites had been decommissioned and 30 per cent had been restored. Additional funding is required to further support closure and restoration and address recent orphan designations made by the BCER.
While there has been an increase in orphan sites, a continued focus on liability management is reducing future pressures. Since the release of the Dormancy and Shutdown Regulation (DSR) in 2019, which requires timely closure and restoration of sites, there has been a significant increase in closure activity. More wells have been decommissioned than drilled in each year since the DSR came into effect, and there has been a reduction in liability over the same time. In addition, the Permittee Capability Assessment program, used to identify financial risk of permit holders, helps encourage additional closure work above DSR requirements, or requires additional security be provided to mitigate exposure to the orphan fund.
In April 2025, oil and gas permit holders were invoiced $15 million to fund the Orphan Site Restoration Levy under the Fee, Levy and Security Regulation. On Nov. 3, 2025, oil and gas permit holders will be invoiced an additional $9 million to bring the total Orphan Site Restoration Levy to $24 million. This Orphan Site Restoration Levy for oil and gas permit holders will be invoiced annually, starting in 2026.
Oil and gas well and facility permit holders have been contributing annually to a $15 million Orphan Site Restoration Levy since 2019, under the Fee, Levy and Security Regulation. The levy works to provide adequate funds to restore all orphan sites in the province in a timely manner. The BCER reviews the Fee, Levy and Security Regulation annually.
How is the levy calculated?
The proportion of the Orphan Site Restoration Levy paid by each permit holder is based on the permit holder’s share of the total deemed liability for wells and facilities under the Permittee Capability Assessment, established through the following calculation:
Permit Holder Orphan Site Restoration Levy = (Permit Holder Liability/Total Liability) x Orphan Site Restoration Levy
The Permit Holder Liability is equal to the deemed liability for each oil and gas permit holder’s wells and facilities. The Total Liability is the sum of the deemed liability for wells and facilities of all oil and gas permit holders in B.C. The resulting fraction is then multiplied by the approved amount to be raised by the levy, which is based on the projected orphan budget in each fiscal year.
Additional Resources:
If you have any questions regarding this Technical Update, please contact:
Taylor Boorman
Manager, Financial Risk & Liability
BC Energy Regulator
Taylor.Boorman@bc-er.ca
250-419-4365