Forum theme: Financial Assurances and Securities

“Securities” are funds (cash) or financial assurances such as letters of credit supplied by authorized users of land and water, and held by government, to ensure there is money available to clean up a site, if needed.  

Security deposit requirements are often conditions of specific authorizations such as water licences, land use permits, or leases. Securities are required for resource development and infrastructure projects, as well as other types of land uses. If an owner or operator abandons a site or becomes insolvent (bankrupt), the government can use the securities to cover the costs of  decommissioning and reclamation.

Currently, security is calculated on the basis that it must cover 100% of what it would cost the government to remediate the project. How would you propose the Department calculate the amount that is required for dispositions on public land? What factors should the determination take into account? 

The GNWT’s preferred forms of security are cash and irrevocable letters of credit. Do you have any suggestions about this?

What information should the GNWT report to the public about securities?