2024–25 Annual Report of the Commission of the Canada Energy Regulator - Appendix I: Abandonment Funding
The CER requires companies to set aside funds to pay for the future abandonment of their CER regulated assets pursuant to section 242 of the CER ActFootnote 1. Companies must also file annual reports with the CER and are responsible for proactively managing their obligations related to setting aside and collecting abandonment funds.
As part of its oversight, the CER periodically reviews companies’ abandonment cost estimates - typically every five years - to ensure that appropriate financial instruments are in place to secure these funds.
Companies using Letters of Credit or Surety Bonds
Table I.1 lists companies that use a letter of credit or surety bond to set aside funds for abandonment. For each company, the table provides the type of financial instrument, the value of the instrument, and the approved abandonment cost estimate (in 2028 dollars)Footnote 2.
Table I.1
| Company | Financial Instrument | Financial Instrument Value ($) | Abandonment Cost Estimate (2028 $) |
|---|---|---|---|
| 1057533 Alberta Ltd. | Letter of Credit | $5,922,751 | $5,922,751 |
| 2670568 Ontario Ltd. | Surety Bond | $463,849 | $463,849 |
| 6720471 Canada Ltd. | Letter of Credit | $1,086,121 | $1,086,121 |
| AltaGas Holdings Inc. for and on behalf of AltaGas Pipeline Partnership | Surety Bond | $3,801,694 | $3,801,694 |
| ARC Resources Ltd. | Letter of Credit | $5,191,728 | $5,191,728 |
| Astara Energy Corp. | Letter of Credit | $406,050 | $406,050 |
| Campus Energy Partners Operations Inc. | Surety Bond | $40,356,858 | $40,356,858 |
| Canadian Natural Resources Limited | Surety Bond | $19,766,093 | $19,766,093 |
| Canadian-Montana Pipe Line Company | Surety Bond | $555,368 | $555,368 |
| Canlin Energy Corporation | Letter of Credit | $1,834,595 | $1,834,595 |
| Cenovus Energy Inc. | Letter of Credit | $13,428,418 | $12,472,961 |
| Champion Pipe Line Corporation Limited | Letter of Credit | $17,176,995 | $17,176,995 |
| Chief Mountain Gas Co-op Ltd. | Letter of Credit | $116,930 | $116,930 |
| County of Vermilion River No. 24 Gas Utility | Letter of Credit | $169,732 | $169,732 |
| Enercapita Energy Ltd. | Letter of Credit | $1,771,121 | $1,771,121 |
| Energy Transfer Operations GP LLC on behalf of Sunoco Pipeline LP | Surety Bond | $1,355,345 | $1,355,345 |
| ExxonMobil Canada PropertiesFootnote 3 | Letter of Credit | $14,222,685 | $14,215,166 |
| FortisBC Huntingdon Inc. | Letter of Credit | $154,914 | $154,914 |
| Gear Energy Ltd. | Letter of Credit | $459,553 | $459,553 |
| Great Lakes Pipeline Canada Ltd. | Letter of Credit | $20,438,753 | $20,438,753 |
| ISH Energy Ltd. | Letter of Credit | $11,823,103 | $11,823,103 |
| Kiwetinohk Energy Corp. | Letter of Credit | $618,103 | $618,103 |
| LBX Pipeline Ltd. | Letter of Credit | $3,839,758 | $3,839,758 |
| Lignite Pipeline Canada Corp. | Surety Bond | $697,779 | $697,779 |
| Milk River Pipeline Ltd. (Red Coulee System) | Letter of Credit | $47,353 | $47,353 |
| Minell Pipeline Limited | Letter of Credit | $7,622,338 | $7,622,338 |
| NorthRiver Midstream G and P Canada Pipelines Inc., as general partner and on behalf of NorthRiver Midstream G and P Canada Pipelines Limited Partnership | Letter of Credit | $2,962,803 | $2,962,803 |
| Obsidian Energy Ltd. | Letter of Credit | $496,821 | $496,821 |
| Omimex Canada, Ltd. | Letter of Credit | $132,950 | $51,842 |
| Ovintiv Canada ULC | Surety Bond | $15,565,687 | $15,565,687 |
| Pembina Energy Services Inc. | Letter of Credit | $9,964,502 | $9,964,502 |
| Pembina Prairie Facilities Ltd. | Letter of Credit | $69,004,732 | $69,004,732 |
| Pieridae Alberta Production Ltd. | Letter of Credit | $624,044 | $624,044 |
| Pine Cliff Border Pipelines Limited | Letter of Credit | $6,173,266 | $6,173,266 |
| Pine Cliff Energy Ltd. | Letter of Credit | $452,984 | $452,984 |
| Pouce Coupé Pipe Line Ltd. (Northwest System) | Letter of Credit | $518,512 | $518,512 |
| Prairie Thunder Resources Ltd. | Letter of Credit | $980,586 | $980,586 |
| Prospera Energy Inc.Footnote 4 | Letter of Credit | $90,276 | $216,615 |
| SCL Pipeline Inc. | Letter of Credit | $475,084 | $475,084 |
| Shiha Energy Transmission Ltd. | Letter of Credit | $2,740,787 | $2,740,787 |
| Spartan Delta Corp. | Letter of Credit | $244,583 | $244,583 |
| Steel Reef Infrastructure Corp. | Surety Bond | $8,307,951 | $8,307,951 |
| Strathcona Resources Ltd. | Letter of Credit | $831,166 | $831,166 |
| Surge Energy Inc. | Letter of Credit | $1,770,574 | $1,770,574 |
| Tamarack Acquisition Corp. | Letter of Credit | $412,905 | $412,905 |
| TAQA NORTH by its managing partner TAQA NORTH Ltd. | Letter of Credit | $1,673,124 | $1,673,124 |
| Tidewater Midstream and Infrastructure Ltd. | Letter of Credit | $3,805,417 | $3,805,417 |
| Tourmaline Oil Corp. | Letter of Credit | $146,208 | $146,208 |
| Tundra Oil & Gas Limited for and on behalf of Tundra Oil & Gas Partnership | Letter of Credit | $321,032 | $321,032 |
| Twin Rivers Pulp Ltd. | Surety Bond | $3,174,288 | $3,174,288 |
| Veren Inc. | Letter of Credit | $1,044,202 | $1,044,202 |
| Veresen Energy Pipeline Inc. | Letter of Credit | $5,450,545 | $5,450,545 |
| Veresen NGL Pipeline Inc. | Letter of Credit | $2,939,072 | $2,939,072 |
| Vermilion Energy Inc. | Letter of Credit | $609,199 | $609,199 |
| Whitecap Resources Inc. | Letter of Credit | $2,154,389 | $2,154,389 |
| Yoho Resources Inc. | Surety Bond | $226,349 | $226,349 |
| Zibi Community Utility | Letter of Credit | $236,477 | $236,477 |
Companies using Trusts
Table I.2 lists companies that use a trust to hold funds for abandonment. For each company, the table includes the collection period approved by the Commission on 24 May 2024 and 30 August 2024 ( C29751 and C31218 respectively), the trust balance as of 31 December 2023Footnote 5, and the current abandonment cost estimate (in 2023 dollars). Companies contribute funds throughout the approved collection period to ensure that sufficient funds are available to cover the cost of abandonment at the end of that period. The Commission periodically reviews the collection periods and other underlying assumptions.
Table I.2
| Company | Approved Collection Period End Date | 2023 Closing Balance ($) (Actual) | Abandonment Cost Estimate (2023 $) |
|---|---|---|---|
| 2193914 Canada Limited | 31 December 2054 | $1,663,000 | $12,860,075 |
| Alliance Pipeline Ltd., as general partner for and on behalf of Alliance Pipeline Limited Partnership | 31 December 2045 | $95,109,152 | $587,731,326 |
| Aurora Pipe Line Company Ltd. | 31 December 2049 | $14,783 | $349,413 |
| Centra Transmission Holdings Inc. | 31 December 2054 | $8,770,000 | $30,803,647 |
| Emera Brunswick Pipeline Company Ltd. | 16 July 2034 | $8,101,000 | $36,252,444 |
| Enbridge Bakken Pipeline Company Inc., on behalf of Enbridge Bakken Pipeline Limited Partnership | 31 December 2039 | $5,851,000 | $31,367,962 |
| Enbridge Gas Inc.Footnote 6 | Fully funded | $251,786 | $235,799 |
| Enbridge Pipelines (NW) Inc. | 31 December 2030 | $24,082,000 | $98,945,130 |
| Enbridge Pipelines Inc. | 31 December 2054 | $409,429,000 | $2,446,585,854 |
| Enbridge Southern Lights GP Inc. on behalf of Enbridge Southern Lights LP | 31 December 2054 | $38,536,000 | $261,845,974 |
| Express Pipeline Ltd. | 31 December 2054 | $21,054,000 | $86,891,525 |
| Foothills Pipe Lines Ltd. | 31 December 2045 | $86,896,000 | $380,687,059 |
| Genesis Pipeline Canada Ltd. | 31 December 2049 | $2,460,683 | $9,662,436 |
| Kinder Morgan Utopia Ltd. | 31 December 2054 | $306,000 | $1,311,608 |
| Kingston Midstream Virden Limited | 31 December 2034 | $1,482,000 | $10,507,662 |
| Kingston Midstream Westspur Limited | 31 December 2054 | $13,754,000 | $76,222,688 |
| Maritimes & Northeast Pipeline Management Ltd. | 30 June 2034 | $115,978,000 | $187,467,344 |
| Milk River Pipeline Ltd. | 31 December 2049 | $1,139,053 | $7,336,724 |
| Montreal Pipe Line Limited | 31 December 2044 | $6,455,293 | $61,371,755 |
| Niagara Gas Transmission Limited | 31 December 2054 | $1,699,000 | $7,890,583 |
| NorthRiver Midstream Canada Partner Limited, as general partner and on behalf of NorthRiver Midstream Canada LP | 31 December 2054 | $241,000 | $2,593,319 |
| NGTL GP Ltd. on behalf of NGTL Limited Partnership | 31 December 2045 | $798,525,000 | $5,203,697,226 |
| PKM Cochin ULC | 31 December 2050 | $15,181,967 | $105,855,977 |
| Plains Midstream Canada ULC | 31 December 2049 | $14,223,447 | $210,402,113 |
| Pouce Coupé Pipe Line Ltd. (Northern System) | 31 December 2042 | $7,498,990 | $20,913,245 |
| Pouce Coupé Pipe Line Ltd. (Pouce Coupé System) | 31 December 2042 | $2,178,243 | $7,183,125 |
| Souris Valley Pipeline LimitedFootnote 7 | Fully Funded | Greater than $5,944,404 | $5,944,404 |
| St. Clair Pipelines Ltd. | 31 December 2054 | $441,000 | $1,094,243 |
| Trans Mountain Pipeline ULC | 10 December 2053 | $112,058,399 | $646,783,266 |
| Trans Québec and Maritimes Pipeline Inc. | 31 December 2043 | $44,885,000 | $162,399,840 |
| TransCanada Keystone Pipeline GP Ltd. | 31 December 2054 | $103,190,000 | $412,604,118 |
| TransCanada PipeLines Limited | 31 December 2043 | $1,347,707,000 | $4,133,159,254 |
| Trans-Northern Pipelines Inc. | 31 December 2054 | $30,345,129 | $160,818,666 |
| Vector Pipeline Limited on behalf of Vector Pipeline Limited Partnership | 31 December 2054 | $1,638,000 | $7,702,872 |
| Westcoast Energy Inc. (Transmission System) | 31 December 2053 | $89,357,000 | $854,191,998 |
| Westcoast Energy Inc. (Gathering and Processing System) | Fully Funded | $46,397,000 | $18,520,357 |
| Westover Express Pipeline Limited | 31 December 2054 | $7,478,000 | $49,821,242 |
Companies without funds set aside for abandonment
In limited circumstances, companies may be exempt from providing a letter of credit or surety bond or setting aside funds in a trust.
Table I.3
| Company | Abandonment Cost Estimate (2023 $) | Note |
|---|---|---|
| Canada Border Services Agency | $255,363 | The NEB granted an exemption from setting aside funds for abandonment on the basis that the Canada Border Services Agency is a federal government agency. On 27 March 2024 the Commission maintained the exemption (C29054). |
| Many Islands Pipe Lines (Canada) Limited | $79,844,582 | On 4 March 2025 the Commission granted an exemption from setting aside funds for abandonment on the basis that Many Islands Pipe Lines (Canada) Limited is a wholly owned subsidiary of SaskEnergy, a Saskatchewan Crown corporation (C33651). The exemption will remain in effect until any shares are sold to a non-government-affiliated entity. |
| NorthRiver Midstream NEBC Connector GP Inc. | $42,088,437 | NorthRiver Midstream NEBC Connector GP Inc. is a new pipeline company. The Commission directed it to file a letter of credit, surety bond, or documents relating to a trust by 2 June 2025 (C34006). |
| Portal Municipal Gas Company Canada Inc. | $333 | The NEB granted an exemption from setting aside funds for abandonment due to Portal Municipal Gas Company Canada Inc.’s low abandonment cost estimate. On 27 March 2024 the Commission maintained this exemption (C29054). |
- Date modified: