Écrit par Vivek Warrier, Keely Cameron and Connor Wilson
The Government of Saskatchewan has recently implemented a number of regulatory changes to assist energy projects. These changes further expand and refine the Ministry of Energy and Resources 2019 Petroleum Innovation Incentive Program (PIIP or SPII) and the 2020 Oil Infrastructure Investment Program (OIIP). Additionally, the programs now go beyond oil and gas to include carbon dioxide projects and helium projects.
The OIIP program is intended to provide royalty/freehold production tax credits to qualifying projects. The Ministry will approve a project for the OIIP where they believe that the project provides new pipeline capacity in the province, and the project has invested at least $10 million in eligible costs. As a result of recent amendments, the OIIP program now applies to carbon dioxide pipeline projects, in addition to oil, gas, helium and chemical fertilizer facility projects.
Another change to the OIIP program is that costs incurred as part of the PIIP and the Oil and Gas Processing Investment Incentive Program may now be included for the purposes of meeting the $10-million spend threshold; however, those costs still may not be used to calculate the total amount of credits.
Helium projects also receive a boost as the Ministry has brought them into the fold of the PIIP. The PIIP seeks to foster and reward innovation in the oil, gas and now helium industries through transferrable tax credits for approved projects. Projects that will improve recovery, reduce environmental impacts, increase processing capacity or commercialize byproducts and waste may be eligible for the PIIP.
These changes signal a commitment to ensuring that Saskatchewan's energy industry remains viable and dynamic. If you have questions or wish to know more about how these changes affect your business, we invite you to contact our Energy group.
Bennett Jones