In 2022, we audited whether the Department of Energy and Minerals had designed and implemented the Site Rehabilitation Program (SRP) to achieve the program’s objectives of job creation and cleanup of inactive oil and gas wells and sites.
Our current assessment found that the department implemented a formal risk management process for the SRP and our testing confirmed its effectiveness. However, as of December 2022, an estimated $125 million remained unspent at the end of the SRP. The department is awaiting a response from the Government of Canada on transferring the unused funds to the Alberta Orphan Well Association and/or the Indian Resource Council.
- IMPLEMENTED Recommendation: Formalize risk management processes