If a licensee fails to meet their Annual Reduction Target (ART) in a given year, the Ministry of Energy and Resources may require the submission of a security deposit. However, the ultimate goal of the Inactive Liability Reduction Program (ILRP) is to reduce inactive liability, as such posting security year over year is not considered compliance with the program.
The deposit amount will be calculated by taking the year’s ART and deducting the reported spend for the year and any carryover accumulated in previous years. Licensees will receive notification through IRIS when the invoice has been issued and payment must be provided within 30 days.
The security deposits collected under the ILRP differ from deposits collected under other liability management policies in terms of how they will be refunded. A licensee must have reduced their liability by an amount that is greater than or equal to the deposit amount and be compliant with the ILRP. As well, compliance with other liability management programs and policies will be considered when determining refund eligibility. If a licensee believes that they are eligible for a refund, a refund application can be submitted in IRIS.
Another way licensees can apply to have security returned is through a Use of Security Toward Annual Reduction Target application. This allows licensees to use any type of security deposit (LLR, PRT, ILRP) the ministry holds for the purpose of putting it towards meeting their ART. To begin this process, licensees are to email the ER.servicedesk@gov.sk.ca with subject line “Request to Use Security for ART.” If the email request is approved, the licensee can then procure the necessary services to complete the planned closure work. Once the work has been completed and the expenditures made, licensees must submit a Request to Use Security Towards ART application in IRIS. This application must include a signed declaration certifying that the work has been completed and the invoices have been paid. This declaration can be downloaded from the hyperlink below:
More details regarding this application can be found in section 6.2 of Directive PNG025 – Financial Security Requirements.