Part A, Step 4 of the 2021 ACE Calculation Method
Above-Ground Facility Abandonment Activity Costs
In Part A, Step 4 of the 2021 Abandonment Cost Estimate (ACE) Calculation Method, the expected costs to abandon a company’s above-ground facilities are calculated.
The 2021 ACE Calculation Method has seven above-ground facility types:
- valve with above-ground appurtenances
- meter station
- compressor station
- pump station
- oil terminal & storage facilities
- processing plant
- other - riser
The geospatial data filed by companies with the CER to calculate their ACE includes above-ground facility information. This allows the CER to determine the total number of above-ground facility sites in their pipeline system, by facility type. These counts are reported, by facility type, in the second column of the table in Part A, Step 4 of an ACE.
The Above-Ground Facilities cost category is split into three sub-categories:
- Removal
- Remediation
- Reclamation and Restoration
The Commission established unit costs (Base Case 2021) for each sub-category by above-ground facility type.
Learn more about each cost sub-category, the associated Base Case 2021 unit costs, and the calculation method used for each below:
-
Removal sub-category
Description of cost category
- Mobilization and demobilization of equipment and personnel
- Removal of buildings and equipment
- Excavation of pipelines and appurtenances to allow for removal of underground appurtenances (includes topsoil stripping)
- Removal of underground appurtenances
- Stockpiling, loading, hauling, and disposal of removed pipelines, appurtenances, buildings, and equipment
- Backfill and compaction of disturbed soils
Calculation method and finding this calculation in an ACE
Costs for removing above-ground facilities at the time of abandonment are presented, by above-ground facility type, in the third column of the first seven rows of the table in Part A, Step 4, of an ACE.
- For each above-ground facility type, the applicable Base Case 2021 unit cost for the Removal sub-category (in $/facility site, as shown in the table below and in Step 4 of an ACE) is multiplied by the number of above-ground facility sites reported by the company for that above-ground facility type.
Base Case 2021 unit costs ($/facility site) Removal cost sub-category ACE above-ground facility type Base Case 2021 unit costs ($/facility site)
Removal cost sub-categoryValve with above-ground appurtenances $50,000 Meter station $200,000 Compressor station $3,000,000 Pump station $250,000 Oil terminal & storage facilities $1,000,000 Processing plant $1,000,000 Other – riser $25,000 - The removal costs for all above-ground facility types are then summed to obtain a sub-total cost for the Removal sub-category.
Refer to Part, Step 4 of this example ACE to see where above-ground facility removal costs are shown in an ACE.
-
Remediation sub-category
Description of cost category
- Remediation of contaminated soil, sediment and/or groundwater, where necessary, including monitoring and testing. Includes, but is not limited to: excavation; hauling, and disposal of contaminated soil; backfilling; field sampling and analytical testing; and, follow-up monitoring
Calculation method and finding this calculation in an ACE
Costs for remediating above-ground facility sites at the time of abandonment are presented, by above-ground facility type, in the third column of the ninth to fifteenth rows of the table in Part A, Step 4 of an ACE.
- For each above-ground facility type, the applicable Base Case 2021 unit cost for the Remediation sub-category (in $/facility site, as shown in the table below and in Step 4 of the ACE) is multiplied by the number of above-ground facility sites reported by the company for that above-ground facility type.
Base Case 2021 unit costs ($/facility site) Remediation cost sub-category ACE above-ground facility type Base Case 2021 unit costs ($/facility site)
Remediation cost sub-categoryValve with above-ground appurtenances $12,000 Meter station $60,000 Compressor station $480,000 Pump station $100,000 Oil terminal & storage facilities $500,000 Processing plant $500,000 Other – riser $6,000 - The remediation costs for all above-ground facility types are then totaled to obtain a sub-total cost for the Remediation sub-category.
Refer to Part, Step 4 of this example ACE to see where above-ground facility remediation costs are reported in an ACE.
-
Reclamation and Restoration sub-category
Description of cost category
- Assess, reclaim and restore the ground surface (e.g., soil, vegetation) at above-ground facility sites to equivalent land use of adjacent lands (or other relevant reclamation objective such as critical habitat for specified wildlife species at risk, landowner requests, Indigenous cultural values, etc.)
- Alleviate any noted soil and/or vegetation issues (e.g., sub-soil compaction, subsidence)
- Seeding
- As relevant, planting of trees and shrubs to restore critical habitat for wildlife species at risk and implementing access control measures
- Erosion control measures
- Weed control
- Monitoring (e.g., up to five years) to confirm reclamation objectives are met
Calculation method and finding this calculation in an ACE
Costs for reclaiming and restoring above-ground facility sites at the time of abandonment are presented by above-ground facility type in the third column of the seventeenth to twenty-third rows of the table in Part A, Step 4, of an ACE.
- For each above-ground facility type, the applicable Base Case 2021 unit cost for the Reclamation and Restoration sub-category (in $/facility site, as shown in the table below and in Step 4 of the ACE) is multiplied by the number of above-ground facility sites reported by the company for that above-ground facility type.
Base Case 2021 unit costs ($/facility site) Reclamation and Restoration cost sub-category ACE above-ground facility type Base Case 2021 unit costs ($/facility site)
Reclamation and Restoration cost sub-categoryValve with above-ground appurtenances $15,000 Meter station $35,000 Compressor station $300,000 Pump station $75,000 Oil terminal & storage facilities $500,000 Processing plant $500,000 Other – riser $10,000 - The reclamation and restoration costs for all above-ground facility types are then totaled to obtain a sub-total cost for the sub-category.
Refer to Part A, Step 4 of this example ACE to see where above-ground facility reclamation and restoration costs are shown in an ACE.
- Date modified: