16. (1) Subject to section 16.1, every operator of a well shall establish security, (a)  in the amounts prescribed by this section; and (b)  in the form of a trust fund administered in accordance with the Trustee Act for the purpose of providing financial assurance that wells will be plugged and works completed in accordance with the Act and regulations and any order of the Board or the Tribunal.  O. Reg. 245/97, s. 16 (1); O. Reg. 471/17, s. 1; O. Reg. 151/22, s. 7 (1). (1.1) The trustee of a trust fund referred to in clause (1) (b) must be, (a)  Revoked: O. Reg. 151/22, s. 7 (2). (b)  an insurance company, or a fraternal benefit society, to which the Insurance Companies Act (Canada) applies; (c), (d)  Revoked: O. Reg. 151/22, s. 7 (2). (e)  a trust, loan or insurance corporation incorporated by or under an Act of Ontario; (f)  a brokerage firm incorporated or formed by or under an Act of Canada or of Ontario that is primarily engaged in dealing in securities, including portfolio management and investment counselling; (g)  an accountant licensed under the Public Accounting Act, 2004 who carries at least $2,000,000 of professional liability insurance; or (h)  a lawyer qualified to practise in Ontario who carries at least $2,000,000 of professional liability insurance. O. Reg. 22/00, s. 5 (1); O. Reg. 189/14, s. 2; O. Reg. 151/22, s. 7 (2). (1.2) The trustee of a trust fund referred to in clause (1) (b) shall not be the operator of any well that is secured by the trust. O. Reg. 22/00, s. 5 (1). (2) A well licence shall not be issued to a person who has not established a trust fund in accordance with this section.  O. Reg. 245/97, s. 16 (2); O. Reg. 22/00, s. 5 (2). (3) Subject to subsection (4), well security required for each operator is, (a)  $0 for each licensed oil well that is registered as part of an oil field having historical oil field status; (b)  $0 for each private well; (c)  $0 for each licensed hydrocarbon storage cavern well located on land as long as the operator owns both the surface rights and the mineral rights; (d)  $3,000 for each unplugged well located on land drilled to less than 450 metres in depth; (e)  $6,000 for each unplugged well located on land drilled to a depth greater than 450 metres but less than 800 metres; (f)  $10,000 for each unplugged well located on land drilled to a depth greater than 800 metres; and (g)  $15,000 for each unplugged well located in water covered areas. O. Reg. 245/97, s. 16 (3); O. Reg. 22/00, s. 5 (3). (4) The maximum security required is, (a)  $70,000 for unplugged wells located on land; and (b)  $200,000 for unplugged wells located in water covered areas.  O. Reg. 245/97, s. 16 (4). (5) Each operator shall maintain the prescribed security at all times.  O. Reg. 245/97, s. 16 (5). (6) The operator shall not adjust the security without the Minister’s consent.  O. Reg. 22/00, s. 5 (4). (7) All well licences of an operator who allows the amount of well security to fall below the prescribed level are not valid.  O. Reg. 245/97, s. 16 (7). (8) When establishing security, an operator shall ensure that the fund trustee, (a)  does not make any payments out of the trust fund without the written consent of the Minister; and (b)  follows the directions of the Minister with respect to payment out of the trust fund.  O. Reg. 245/97, s. 16 (8). (9) The Minister’s directions to the trustee of an operator’s security trust fund are limited to directing payments to remedy a situation where a work represents a hazard to the public or environment or an operator does not properly plug a well or complete works in accordance with the Act and regulations or in accordance with an order of the Board or the Tribunal  O. Reg. 245/97, s. 16 (9); O. Reg. 471/17, s. 1. (10) If, no later than December 31, 1997, an operator of wells drilled before this Regulation comes into force submits a written request to the Minister in respect of the security of the wells, the Minister shall, (a)  allow the operator to establish prescribed security in 10 per cent annual increments starting on July 1, 1997 and ending with July 1, 2007; and (b)  return any deposit held by the Minister in respect of previous security deposit requirements for the wells.  O. Reg. 245/97, s. 16 (10). (11) The Minister shall transfer to the trustee of the trust fund established by an operator all security held by the Minister under Regulation 915 of the Revised Regulations of Ontario, 1990 in respect of the operator.  O. Reg. 245/97, s. 16 (11).