Saskatchewan Energy Ministry violated legislation by handing out grants before approval

Saskatchewan's auditor says the Ministry of Energy and Resources violated government legislation by handing out grants for cleaning up inactive oil wells before getting approval.

Saskatchewan’s auditor says the Ministry of Energy and Resources violated government legislation by handing out grants for cleaning up inactive oil wells before getting approval.

Tara Clemett says the ministry paid $125 million to the Saskatchewan Research Council in instalments in 2020-21. The money was part of a total of $400 million the province has received from the federal government to help pay for such cleanups.

However, the ministry did so without obtaining the required approval from the lieutenant-governor in council, she said.

“They were not complying with the legislative requirements … and this is a significant amount of money,” Clemett told The Canadian Press. “They should have obtained (an) order-in-council, but they did not.”

Clemett said orders-in-council are necessary for transparency and accountability to the public, especially when dealing with large amounts of money.

“And also so cabinet and government is aware of significant purchases that ministries across government are being made.”

Energy Minister Bronwyn Eyre, who has served in the role for four years, said it was her understanding that an order-in-council wasn’t needed from an accounting point of view.

The federal government gave Saskatchewan the money to assist in cleaning up inactive oil and gas wells, because the industry was facing financial challenges brought on by low commodity prices and the COVID-19 pandemic.