- What is the government doing with regard to existing private gas wells?
- What are the risks associated with operating a private gas well?
- How do I know if my gas well qualifies for a licence or for a grant?
- My gas well has been in my family for several generations without an issue. Why are you making this change now?
- Where do I find information on known petroleum wells in Ontario?
- How do I know if my well is in a source water protection area?
- Will a licence to operate an existing private gas well warrant the condition of the well by the ministry?
- Is there a set period within which operators of existing private gas wells must apply for a licence?
- Can MNR staff come on my property?
- What will government pay for?
- When will I get my money? How long will it take?
- I have more than one well on my property. Can I apply for grants or funding for more than one well?
- If I choose to plug my well and I am contracting the job myself, do I have to pay for the work in full before I can get the grant?
- What are the estimated costs for wellhead retrofitting and plugging?
- What if the gas from the well is being used by someone who doesn’t own the property where the well is located?
- What if my well is too close to my house, road or other setback?
- I have several houses hooked up to my well. Can I still get a licence?
GENERAL QUESTIONS
1. What is the government doing with regard to existing private gas wells?
The government has adopted a new policy for the licensing of private gas wells to promote safer well operation, improve public safety and help protect the environment. Licensing private gas wells allows MNR to know where they are, and that they meet minimum requirements. For a five-year period, MNR is providing financial incentives through the Private Gas Well Incentive Program to support this new policy.
2. What are the risks associated with operating a ‘private gas well’?
As the well ages, the infrastructure deteriorates and there is a potential risk of drinking water and environmental contamination, and to public safety. The government has established setbacks and minimum standards for private gas wells that help to diminish the risk of a leak or spill at the wellhead.
3. How do I know if my gas well qualifies for a licence or for a grant?
If your well was drilled prior to June 27, 1997, it may qualify for a licence or a grant. An evaluation of your wellhead and well location can be conducted by a Qualified Person (QP), such as a professional engineer, professional geoscientist, or a ministry-certified examiner. The QP will help you understand the licensing requirements and complete the application form to apply for a grant under the Private Gas Well Incentive Program. Note that the ultimate decision regarding well licensing and grant approvals rests with the Ministry of Natural Resources.
4. My gas well has been in my family for several generations without an issue. Why are you making this change now?
It has been the law to license the operation of private natural gas wells under Ontario’s Oil, Gas and Salt Resources Act for more than a decade. To encourage those who have not yet complied with this requirement, the government developed a targeted policy specific to the risks identified for private wells and is now offering an incentive in the form of a grant, for a period of five years.
5. Where do I find information on known petroleum wells in Ontario?
The Ontario Oil, Gas and Salt Resources Library maintains information on known petroleum wells in Ontario. Some of this information is available to the public free of charge on the library’s website at www.ogsrlibrary.com. The Library is open to the public from 8:15 a.m. until 4:30 p.m., Monday through Fridaymaintains information on known petroleum wells in Ontario. Some of this information is available to the public free of charge on the library’s website. The Library is open to the public from 8:15 a.m. until 4:30 p.m., Monday through Friday.
6. How do I know if my well is in a source water protection area?
To obtain information about source water protection areas, please contact your local Conservation Authority. A Qualified Person, such as a professional engineer, geoscientist or a ministry-certified examiner, will be able to assist you in obtaining this information.
For further information visit the Conservation Ontario website. The website provides a map of source water protection areas and provides links to the Assessment Reports for each area. The Assessment Reports contain maps showing the locations of the protection zones.
7. Will a licence to operate an existing private gas well warrant the condition of the well by the ministry?
No. The ministry’s licence only indicates that the well has met the minimum requirements to have it licensed. It does not in any way sanction the condition of the well. The well operator may contract a qualified industry professional to provide information about the sub-surface condition of the well.
8. Is there a set period within which operators of existing private gas wells must apply for a licence?
While there is no cut-off point for applying for a licence, the Incentive Program will only be offered for a five-year period. Changes to the Oil, Gas and Salt Resources Act implemented in 1997 require that all operating oil or gas wells be licensed by the Ministry of Natural Resources.
9. Can MNR staff come on my property?
Yes, under authority within the Oil, Gas and Salt Resources Act, ministry petroleum inspectors may enter upon a private property in carrying out their duties. However, the assessment of private wells by a Qualified Person will be conducted at the invitation of the well operator, with a contract between the operator and the Qualified Person. Fees for this service will be reimbursed by the government up to a maximum of $500 per well, including HST.
FINANCIAL INCENTIVE QUESTIONS
1. What will government pay for?
The Ontario government will pay up to $500 to have your wellhead and well location evaluated by a QP. You must pay the QP and then apply to government to have the evaluation fee reimbursed to you. Government will also pay up to 50 per cent of the costs to retrofit your wellhead to a maximum amount of $500 per well. For wells that are not within setbacks, the government will pay 50 per cent of the cost of plugging up to $10,000. For wells that are within setbacks, the government will undertake the work and cover 100 per cent of the costs of plugging.
2. When will I get my money? How long will it take?
You should receive your wellhead and well location evaluation reimbursement within about six to ten weeks of grant application, providing all the necessary information has been provided, including receipt of payment to the Qualified Person.
If you are applying for a wellhead retrofit grant, you must wait until you have confirmation from the ministry that your grant has been approved and you have received your well licence before any work is conducted on the wellhead. Payment for your wellhead retrofit could take up to six to ten weeks after your receipts are received and processed.
If you are applying for a plugging grant, you will receive notification that your grant has been approved along with a licence for plugging purposes only. You must wait for the licence and the grant approval before proceeding. Your reimbursement will be paid to you following submission of the itemized paid invoices within about six to ten weeks. However, the entire process may take several months to complete.
3. I have more than one well on my property. Can I apply for grants or funding for more than one well?
Yes, but each well is considered a separate project for the purposes of funding. If you are applying for grants or funding for more than one well, you must prepare separate applications for each.
4. If I choose to plug my well and I am contracting the job myself, do I have to pay for the work in full before I can get the grant?
Before commencing the work you need confirmation from MNR that the grant has been approved and have received your licence for plugging the well. You will be required to submit a statement of actual expenses incurred and provide copies of paid invoices.
5. What are the estimated costs for wellhead retrofitting and plugging?
The table below shows the estimated cost for wellhead retrofitting or well plugging. Costs will vary with the well type, depth and the nature of the location where work is to be undertaken. Cost estimates for your specific project should be obtained from a professional well contractor.
| Activity | Estimated Cost (per well) | Private Gas Well Incentive Program Grant |
|---|---|---|
| Wellhead and well location evaluation | $500 | 100% (Max $500, incl. HST) |
| Wellhead retrofit | $1500 | 50% (Max $500, incl. HST) |
| Plugging | $10,000 - $30,000 If difficulties are encountered in the plugging process, costs may exceed $30,000. |
|
| Integrity test | $8,000 - $15,000 | Not covered |
| New well drilling | $15,000 - $20,000 | Not covered |
| Well work-over | $10,000 - $15,000 | Not covered |
| New fuel source and/or appliances | $7,000 - $10,000 | Not covered |
PROPERTY QUESTIONS
1. What if the gas from the well is being used by someone who doesn’t own the property where the well is located?
The application to license the well would normally be submitted by the landowner who is the operator. However, if the landowner is not the operator of the well, the operator should apply for the licence with a detailed explanation of the arrangement, including any contracts or agreements that exist with the landowner.
2. What if my well is too close to my house, road or other setback?
If the well is too close to your house or falls within one of the other setback distances, you will not be able to continue using your well unless you get a report signed by a professional engineer that includes proof that appropriate mitigating measures are in place to support the safe operation of the well. Please be aware, pursuing this option can be quite costly.
Alternatively, the Ministry will plug the well at no cost to you.
3. I have several houses hooked up to my well. Can I still get a licence?
Details of your particular situation should be provided with your application so that the ministry may consider the specific circumstances and advise on the appropriate course of action, including the option of obtaining a commercial licence.
For more information
You may call the Ministry of Natural Resources Petroleum Operations Section in London from Monday to Friday, 8:30am to 5:00pm at 519-873-4680, toll free at 1-888-990-0902. Email inquiries should be sent to: pgwincentives@ontario.ca.
Download a PDF version (570 MB) of the Frequently Asked Questions
