Private Gas Wells

Oil and gas resources can be found trapped underground in layers of ancient sedimentary rock across southern Ontario. These resources are extracted by the drilling of wells. Since the beginning of the petroleum industry in Ontario in 1858, thousands of wells have been drilled. Some of these are now private gas wells used for non-commercial purposes.

Ontario requires the licensing of natural gas wells in order to promote safer operation, improve public safety and protect the environment. When natural gas wells are improperly constructed or poorly maintained they can pose a risk to the environment and to public health and safety.

The Ministry of Natural Resources has developed a new policy for licensing existing private natural gas wells that were drilled prior to 1997. Since these wells produce a lower volume of gas and operate at much lower pressures they generally have lower risks than commercial wells. The policy sets requirements that reflect the nature of these risks.

The new policy is also available for review on the Environmental Registry by entering the registry #011-2981.

In support of this new policy, the ministry is offering financial incentives for well site evaluations, wellhead improvements or well plugging. This funding will be offered over a five-year period.

What grants are available?

• All private well operators who qualify can receive a grant for 100 per cent of the costs of a wellhead and well location evaluation by a third-party Qualified Person, to a maximum of $500 per well.
• Operators may also qualify for an additional grant of up to $500 per well to cover the costs of above-ground improvements to a wellhead to meet the licence requirements.
• Where a well does not meet license requirements because setbacks cannot be met or the well is in a source water protection area, operators may qualify for a grant of 100 per cent of the costs of plugging the well.
• Where a well is outside setbacks or source water protection areas, operators may qualify for a grant of 50 per cent of the costs of plugging the well, to a maximum of $10,000 per well.
   

For more information
Email: pgwincentives@ontario.ca
Tel: 1-888-990-0902 (Toll Free) or (519) 873-4680