FEBRUARY 10, 2021
H3M has been involved with the SRP since its inception and has been very successful connecting numerous companies with the funding to date. We made several applications and are currently conducting Environmental Assessments for our clients in Alberta. We achieved an incredible 95% success rate for all Alberta submitted applications.
H3M can help clients navigate this program and ensure they are capitalizing on the maximum benefits available to them. We complete Phase 1 and 2 Site Assessments (ESAs), Detailed Site Assessments (DSAs), Site Remediation, Surface Reclamation and abandonment of in-place pipelines. We help clients identify and confirm which sites would benefit the most from the program, navigate the application process and provide cost estimates to complete the work.
Addressing these liabilities has the additional benefit of improving the Liability Management Ratio (LMR) for companies, which has many favorable outcomes including: ease/enable transactability, held security returns, and reduction in Asset Retirement Obligation (ARO) which can improve or preserve a company’s borrowing base. Additionally, there are socioeconomic benefits as companies who address these liabilities are demonstrating to stakeholders that they have a proactive approach to their environmental obligations.
The goal of the program continues to be getting Alberta’s specialized oil and gas labor force back to work, to accelerate site abandonment and reclamation efforts and to quickly complete a high-volume of environmental work. For H3M, it has done just that. Through the program, we have been able to employ additional resources to help support the rehabilitation efforts, grow our project base across Western Canada and continue investing in our business during these difficult times.
Grant Periods 3 & 4
Grant periods 3 and 4 are both open and will remain open until March 31, 2021, or until licensee have fully expended their allocations. There is $100 million in funding available. H3M continues to work with clients to evaluate and submit applications for Grant Periods 3 and 4. Currently Grant Period 4 projects are eligible for up to 50% of grant funding, with the licensee being responsible for paying the remainder. However, grant funding will be increased to 100% if the licensee contracts with Indigenous oil field service companies.
One of H3M’s biggest strength has been our extensive experience working with Treaty 6, 7 & 8 Indigenous Communities and businesses, which will benefit companies looking to pursue additional funding, especially through the remaining periods. Our teammates and sister companies have decades of experience in Indigenous relations, consultation, relationship building and advisory services, as well as partnering and working directly with bands on client projects. H3M continues to grow our connection with local Indigenous Communities and works to maintain these strong relationships. Through the work involved with this program, we can enrich our connection with these communities and, in extension, be a liaison for stakeholders who procure our services.
H3M has a functional approach to full engagement:
- In-place hiring practices to procure employees from local Indigenous communities;
- Strategic partnerships that allow us to maintain our flexibility with all communities that we work within, such as:
- Committing to pursuing formal MOU’s with local Indigenous communities
- Maintaining a network of Indigenous-owned service providers; and
- Investigating opportunities for Indigenous equity within our organization.
Grant Periods 5 & 6
Grant Periods 5 and 6 will both open on February 1, 2021 and will remain open until March 31, 2022. Period 5 will have $300 million in available funding, while Period 6 will have $100 million. For both periods, oil field service contractors can contract with these licensees to do closure work and apply for an SRP grant to get funding to do the work; licensees cannot apply for this funding – only the contractor doing the work can. As well, projects are eligible for up to 50% of grant funding, with the licensee being responsible for paying the remainder. However, grant funding will be increased to 100% if the licensee contracts with Indigenous oil field service companies.
Committed to our Clients
Our team has been on the forefront providing updates to clients and consulting with them to determine which of their assets may be suitable for each round. We will continue to do so as the Grant Periods evolve, and more information is distributed. We are leveraging our strategic relationships to achieve each individual company’s goals and maximize the funding allocations within Grant Periods 4, 5, and 6. We have been regularly sharing updates on LinkedIn. Follow us for the latest and greatest!
Reach out to any member of our team for support with environmental services, SRP applications or to discuss potential suitable sites under both Alberta and British Columbia’s programs.