Alberta exam case: Planned sale of gas wells, pipelines raises cleanup concerns

The probable send of hundreds of green gas wells, pipelines and other comforts from an appetite hulk to a most smaller association has lifted concerns about Alberta’s efforts to safeguard taxpayers don’t get stranded with a cleanup bill.

“My faith that a [regulator] is creation some form of unequivocally clever highlight exam on these companies is only not there,” pronounced Mike Judd, a late beam and outfitter who lives in a center of a gas margin and has filed a matter of regard over a sale.

Last summer, Shell Canada concluded to sell 284 wells, 66 comforts and 82 pipelines in a southern Alberta foothills to Pieridae Energy, a Calgary-based association with a marketplace value reduction than a cost of a assets. Its batch cost is underneath $1.

The squeeze is partial of a devise to pierce Alberta gas to a yet-to-be-built, $10-billion liquefied healthy gas plant in Nova Scotia, from where it would be shipped to Europe. Pieridae says it is authorised for a $4.5-billion loan from a German supervision for a project.

The Alberta Energy Regulator contingency approve a transfer, a preference it contingency make as it copes with a flourishing list of wells, pipelines and other infrastructure deserted by companies that went broke during a appetite cost slump.

Orphan wells swell

Since January, a series of wells eliminated to a Orphan Well Association has increasing to 3,400 from 3,100. Alberta’s cleanup spending is budgeted during $70 million by 2023 — a some-more than 50-per-cent boost in differently belt-tightening times.

The regulator has betrothed a closer eye on looseness transfers to safeguard purchasers are means to cover reclamation costs.

“We … are broadening a comment processes to concede for a some-more holistic proceed to cruise a company’s ability to residence a end-of-life obligations,” pronounced an email from regulator orator Shawn Roth.

“The AER will cruise a due send to settle either regulatory mandate have been confident and either a confidence deposition will be required.”

The Shell-Pieridae sale is a exam case, suggested Shaun Fluker, a University of Calgary law professor.

“You would cruise these resources fit underneath that discussion,” he said. “They keep articulate about wanting to redo a existent process they have for ensuring resources are scrupulously looked after. At some indicate they’re going to have to be active and take stairs to make certain that happens.”

Pieridae orator James Millar pronounced in an email that Shell will cover any decay from when it owned a sites — nonetheless that doesn’t embody a cost of reclaiming a sites themselves.

Millar wrote that Pieridae is “still operative through” those costs.

“We did cruise a item retirement requirement of a resources before we purchased them.”

He points out that Shell had designed to tighten a field, that would have been a serious blow to circuitously communities such as Pincher Creek. Pieridae skeleton a new drilling module and says a squeeze would be essential roughly right away.

Fluker pronounced Albertans merit some-more than association assurances that those who distinction from a province’s resources are means to purify adult their mess. This sale is a possibility to settle clear, publicly accepted manners for such transfers, he said.

“Why not … levy what [the regulator] says it’s looking at, that is genuine timelines for reclamation and things like that? It’s a good opportunity.”

Judd only wants to be means to trust that a wells and pipelines pumping poisonous green gas nearby his home will be spotless adult safely.

“Our children and a grandchildren are going to finish adult with an environmental cleanup that is approach over their capability to understanding with,” he said.

“We in Alberta have gotten approach too used to backroom deals and backroom regulators that are not transparent.”

Article source: https://www.cbc.ca/news/canada/calgary/gas-well-cleanup-concerns-1.5359615?cmp=rss