Saskatchewan Regulations 60/2024, enacted under The Financial Administration Act, 1993, comprise amendments to the Oil and Gas Processing Investment Incentive Regulations. These regulations aim to refine the existing rules governing investment incentives for oil and gas processing projects in Saskatchewan. The regulations may be cited as The Oil and Gas Processing Investment Incentive (Miscellaneous) Amendment Regulations, 2024, and introduce several amendments to clarify definitions, modify eligibility criteria, and update procedural requirements for applicants seeking investment incentives.

Key amendments include a revision to the definition of “participant” in section 2, which now specifies that a participant is an applicant whose application has been approved and who has entered into an agreement per section 6, with certain exceptions. Additionally, section 4 has been revised to exclude references to helium and lithium concerning associated gas. This section also delineates eligibility requirements, explicitly stating that applicants must not be governmental entities or not-for-profit corporations, thereby targeting private sector participants. A significant addition is the new section 6.1, which introduces a two-year deadline for applicants whose projects have been approved but who have not signed an agreement with the minister. If these applicants fail to provide evidence of material progress within this timeframe, their approvals will be deemed expired. They are required to submit project updates confirming signed contracts or satisfactory evidence of their intent to enter into agreements.

Moreover, changes to section 7 specify that the maximum amount of credits a participant can earn for eligible costs incurred is capped at $75 million or an amount that prevents exceeding a maximum aggregate of $500 million across all participants. Modifications to section 9 include the removal of the term “total” in specific clauses related to financial reporting, which could help streamline reporting processes for participants.

The new section 16.1 stipulates that regulations will continue to apply to projects related to helium and lithium for participants who entered into agreements before the Critical Minerals Processing Investment Incentive Regulations came into effect. It allows the minister to transfer applicants with eligible projects into the Critical Minerals Processing Investment Incentive Program, subjecting them to the new regulations applicable to critical minerals.

By clarifying the framework under which investment incentives are awarded and imposing stricter compliance requirements on applicants, the government aims to foster a more robust and responsible investment climate in Saskatchewan’s oil and gas sector, ensuring funding is directed toward viable and progressing projects.

Saskatchewan (60/2024) August 21, 2024