Legal Header

When energy companies receive a licence to operate, they are required to decommission, remediate, and reclaim their energy infrastructure when development ends.  

To encourage companies to close their infrastructure, the AER introduced the area-based closure program (ABC) program in 2019. This voluntary program enabled companies to work collaboratively to complete closure work more efficiently, limiting the amount of  inactive infrastructure across the province and its impact on the environment. The program’s 2019, 2020 and 2021 highlight reports provide additional information.

In 2021, the AER phased out the ABC program and introduced the Inventory Reduction Program, with the publication of Directive 088: Licensee Life-Cycle Management. The Inventory Reduction Program puts in place industry-wide mandatory closure spend quotas. As of January 1, 2022, all licensees with inactive inventory are required to meet an individual annual mandatory closure spend quota set by the AER. 

The graph below reflects the closure spend as reported by participants in the voluntary ABC program between 2019 and 2021. Starting in 2022, the graph shows the closure spend under the Inventory Reduction Program and includes all eligible closure work reported by industry. Additional closure reporting is available at the bottom of the Closure Spend Quotas page as well as under the Industry Performance reporting section of our website.

Amount spent in each stage of the closure process based on licensee reported closure spend

Data is released annually.