Private Gas Well Incentive Program Details

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 Province has recently developed a new policy for licensing existing private gas wells that were drilled prior to 1997. It recognizes that these wells generally have lower risks than commercial wells because they produce a lower volume of gas and operate at much lower pressures. As a result, it sets standards that reflect the nature of these risks.

A new five-year incentive program will support these licensing efforts by providing financial assistance to well owners for site evaluations and wellhead improvements or well plugging.

The following grants are available to qualifying well owners:

• 100 % of the costs of a wellhead and well location evaluation by a third party qualified person to a maximum of $500/well;
• 50 % of the costs of improvements to the above-ground portion of a wellhead to meet the standards of the private gas well licensing policy up to a maximum of $500/well;
• 100 % of the costs to plug a well where setback standards cannot be met or if the well cannot be operated safely;
• 50 % of the cost to plug a well if it is outside setbacks or source water protection areas, to a maximum of $10,000/well.

Well owners who wish to participate in the program should review the appropriate Applicant Guide and contact a qualified person to conduct a well evaluation. A person qualified to carry out an evaluation includes a professional engineer, professional geoscientist or a ministry-recognized Class II Examiner.

Although the decision to license the well rests with the Ministry of Natural Resources, the Qualified Person will help operators understand the licensing requirements and can provide assistance to complete an application for a grant under the Private Gas Well Incentive Program.

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

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