Alberta landowners fear repeat of orphan well crisis as renewable energy booms
It’s an old adage that explains why Jason Schneider, the elected reeve of Vulcan County, Alta., is jittery about the renewable energy boom under way in his province.
“These are large industrial developments, and the reclamation costs are going to be substantial,” he said.Across rural Alberta, concerns are growing about the long-term implications of the province’s renewable energy boom — the speed and scale of which has been nothing short of stunning. For example, the Rural Municipalities of Alberta recently passed a resolution calling on the provincial government to protect taxpayers from incurring costs associated with the potential decommissioning of renewable energy infrastructure.
In Alberta, the Orphan Well Association is an industry-funded organization tasked with decommissioning old oil and gas infrastructure and returning the land to its prior state. But he added many companies do offer landowners some form of reclamation commitment, either in the form of a letter of credit or bond.“So that puts a lot of pressure on our members to ensure that landowners do feel comfortable with the terms.”
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