Abandonment Cost Estimates (ACE) and Set Aside and Collection Mechanism (SAM-COM) Review 2021 – Background

2021 Abandonment Cost Estimates Review

Every five years, we require a review of the amount of funds companies are required to set aside to pay for future abandonment of their regulated energy infrastructure. Pipeline abandonment is when a pipeline is permanently taken out of service and the delivery of a product to an end user is discontinued. Operation ceases and the pipeline is shut down. The pipeline may then either be removed from the ground or it may be left in the ground (known as abandoned in place). The right-of-way is then reclaimed and returned to a state similar to its surroundings.

Companies review how much money they think it will cost to abandon their facilities. Then, the CER reviews this information to confirm that the amount of money being set aside is appropriate.

Key Milestones

• The 2021 review process, and seeks applications to participate [Filing C16773]
  [2021-12-14]
• Draft Registration form [PDF 759 KB] for participation
  [2021-12-14]

 

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