Working Interest Cost Claim Process
Key Updates to WICC Process - Effective December 8, 2025
- An Authorization for Expenditure (AFE) prior to starting work is strongly recommended. Where an AFE is not submitted prior to a WICC submission, the claimant may not receive full reimbursement due to an inability for the OWA to provide guidance on reasonable costs and the most cost-effective options prior to work completion. AFE's are not required if the gross amount is less than $15,000 or the net amount to the OWA is less than $5,000.
- WICCs should be submitted within two years of completing the closure activity type and confirmation of AER acceptance.
- Outstanding claims for work completed prior to 2025 should be submitted by December 10, 2026.
- Invoices and receipts (i.e., proof of payment) must be included with any WICC submission, as outlined in the Oil & Gas Conservation Rules Section 16.541 (2)(e).
- WICC submissions exceeding reasonable costs or with non-compliance issues may be partially reimbursed or rejected by the OWA.
- One WICC submission per activity type will be enforced to deliver efficient review and processing. Applicants are asked to provide a comprehensive submission after the closure activity type is complete.
The OWA targets a 30-day turnaround time for AFE review and feedback to industry. If AFE approval is urgent with ongoing operations, the OWA will prioritize a response. The AER and OWA target a 90-day turnaround time from WICC submission to reimbursement.
Closure work completed by applicants is expected to meet costs as outlined in the AFE. WICCs exceeding the AFE or where an AFE has not been submitted may not be fully reimbursed.
WICC Types and Eligibility
Specific Instances of Ineligible WICC expenses
- Effective October 7, 2022, the AER will not approve reimbursement WICCs related to pipeline abandonment costs that may be attributable to a defunct partner. The Pipeline Act and associated Rules contain no reference or recognition of working interest and/or working interest participants for pipelines.
- GST, surface lease payments, municipal taxes and legal expenses are not eligible for reimbursement.
- WICCs may not be approved as submitted for the following reasons:
- No AFE submitted prior to commencing the work.
- Feedback provided in original AFE submission was not implemented in actual work completed.
- Costs are above the original AFE amount and there was no record of engagement with OWA to discuss additional costs as work progressed in the field.
- A recommendation was given by OWA to pursue a WIPA and the applicant instead chose to complete the work and submit a WICC.
- The closure work that was completed does not meet regulations.
Note: The OWA and the AER have discretion to partially or fully reject WICCs for reasons beyond what is listed above.
Instructions to Submit a WICC
WICCs must only be submitted to the AER when the incurred costs are complete in accordance with the Regulator’s rules and regulations. All costs must be segregated into their associated activities and claimed independently. Please note, only one WIP may submit one WICC per closure activity type with funds being redistributed amongst any remaining WIPs post-reimbursement.
- Authorization for Expenditures (AFE)
Applicants are strongly encouraged to submit AFE’s for OWA review and response prior to commencing operations. If costs and/or work required beyond original AFE scope occurs, the OWA requests engagement.
AFE's are not required if the gross amount is less than $15,000 or the net amount to the OWA is less than $5,000.
Please submit AFEs to AFE@orphanwell.ca. The OWA has a response timeline of 30 days.
2. Claim Submission and Eligibility.
WICCs must be submitted through the AER website once the work is complete. The AER will determine WICC eligibility based on a review of the criteria for a defaulting WIP in the Oil and Gas Conservation Act (OGCA). The AER may request supplementary information to support working interest percentage in the wells and facilities, if discrepancies arise against AER records.
Inquiries can be directed to the AER’s Orphaning, Insolvency and Legacy Team at CostClaims@aer.ca. If the total required document size exceeds 70 MB, please email the remaining files to CostClaims@aer.ca.
3. Documentation and OWA Review
The AER will refer eligible WICCs to the OWA for a technical review of incurred costs and to provide comment. The minimum requirements for WICC submission are found in s. 16.541 of the OGCR. The WICC must include:
a. AER online WICC Form completed in full,
b. Copy of AER Order, if applicable,
c. Documentation to support the request to deem the WIP as defaulting, as per s. 70(2)(b) of the OGCA:
- Proof of Non-Active Corporate Status from Corporate Registry Search.
- Where a defunct WIP retains an active corporate status, documentation to support multiple attempts to collect funds from the defunct partner, including rejected/returned deliveries and any response from the defaulting WIP.
d. Summary expenditures using the OWA single-site or multi-site template, including:
- WICC activity
- Vendor name
- Invoice number
- Proof of payment information as it relates to the invoice
- Amount claimed (working interest per cent)
Comments:
If applicable, please indicate the specific activities that have received Site Rehabilitation Program (SRP) funding. Licenses/sites that have received SRP funding will not be eligible for a WICC unless the WIP/claimant can demonstrate which specific closure activities have received funding. Any additional costs being claimed through the WICC program will be the sole responsibility of the WIP/claimant to demonstrate as separate and unfunded to the satisfaction of the AER. The AER will continue to review submissions on a case-by-case basis and may request additional information/documentation to ensure eligibility as per s.3.071(2)(g) and 16.541(2)(i) of the Oil and Gas Conservation Rules.
For reclamation or remediation work, please include a comment stating whether the cost was for Phase 1 ESA, Phase 2 ESA, remediation cost (Remediation Certificate required) or reclamation cost, as well as totals for each Phase.
e. Proof of payment and invoices for all expenditures. This must include total cost incurred as outlined in the Oil & Gas Conservation Regulations (OGCR) s.16.541(2)(e).
f. Daily operation reports.
g. Salvage credits or, alternately, an explanation detailing why no salvage was obtained. Please note that the salvage value given is expected to be market value, even if the tubing or equipment has not yet been sold at the time of the application.
h. If licenses were operating during the period when a working interest participant is known to be insolvent, claimants are expected to identify net production revenue received pursuant to s.71(1) of the OGCA without set-off for working interest participant expenditures incurred on unrelated assets.
NOTE: Claims with insufficient documentation may be rejected or returned, including incomplete claims (missing receipts, receipts with inadequate work description) or poorly organized submissions. Any inquiries/questions can be sent to the WICC inbox: cost.claims@aer.ca.
NOTE: Any data submitted to the AER may be eligible for information release under the applicable access to information and protection of privacy legislation.
4. Final Processing and Payment
After the OWA has completed the review and confirmed that all relevant documentation has been provided, the OWA notifies the AER of the proposed payment amount. The AER reviews the amount and if approved, notifies the OWA that the final payment can be made directly to the claimant. If the claimant maintains any outstanding debt with the AER or OWA, final reimbursement may be withheld until debt(s) have been satisfied. Please note the AER/OWA specifies that only one claim is submitted per activity type to include defaulting WIPs with reimbursement to be redistributed by the claimant amongst any remaining WIP(s).