The commission estimates total restoration costs for all those sites at $3 billion, though active oil and gas operators are on the hook for most of it — at least in theory.
VICTORIA — When Calgary-based Terra Energy Corporation shut down three years ago, the company left behind 175 abandoned gas wells in B.C. with unfunded restoration costs in the tens of millions of dollars.
Then there’s the case of Quattro Exploration and Production Ltd., another Calgary-based oil and gas company that went into receivership in early 2017. It left behind 75 orphan sites in B.C. with restoration costs of $19 million. Security deposits on hand in the orphan sites fund: $0.Just three years earlier the commission had returned a $1.4 million security deposit to Quattro, for reasons unexplained.
Recent years have seen a seven-fold increase in the number of orphan sites in B.C., from 45 in 2016 to 326 in the fiscal year ending this month. “While the oil and gas commission had clear standards in place for how to decommission inactive wells and remediate sites, it lacked the tools to compel operators to decommission and restore well sites in a timely way,” wrote the auditor general.
A further 3,198 decommissioned wells were on sites that had not been otherwise restored, making in all 10,672 sites that fell short of full restoration. The new provincial government enacted legislation to toughen the commission’s powers to require operators to restore sites. Operators are being taxed a higher rate to top up reserves and reduce unfunded liabilities in the orphan sites fund.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Vaughn Palmer: Voters repeatedly said no, but politicos pushing for electoral reform“We respect the result, but it doesn’t end here. … The desire to improve democracy in Canada remains strong.”
Read more »
Vaughn Palmer: Scientists highlight regulator failings over fracking projects‘It is important for public confidence that operators are not seen as being rewarded or able to skip important regulatory requirements that are in place to ensure safety.’
Read more »
Vaughn Palmer: B.C. should pay attention to Alberta's energy concerns about Bill C-69Unless the New Democrats intend to facilitate obstruction by litigation, they’d be wise to pay closer attention to the amendments suggested by Notley and others.
Read more »
Vaughn Palmer: Arcane votes add up to a safe year for Horgan governmentThe John Horgan government looks good to survive for another year, maybe longer.
Read more »
Vaughn Palmer: Voters repeatedly said no, but politicos still pushing for electoral reform“We respect the result, but it doesn’t end here. … The desire to improve democracy in Canada remains strong.”
Read more »
Vaughn Palmer: Hammering out rules for perks like booze, gifts, prime parking stallsThis is not a speedy process, nor likely to be a cheap one.The rumour mill is already speculating that the price tag could hit $1 million for the three LAMC-commissioned reviews.
Read more »
Fitzpatrick plays bogey-free golf, takes one-stroke lead after third round of Arnold Palmer InvitationalFitzpatrick plays bogey-free golf, takes one-stroke lead after third round of Arnold Palmer Invitational Globe_Sports
Read more »
Q&A: Canadian baseball phenom Caitlin Tomotsugu takes part in MLB Grit - Sportsnet.caCaitlin Tomotsugu is widely considered the best high-school female player Canada has produced. Read her thoughts on participating in MLB Grit and more in this Q&A with donnovanbennett.
Read more »
Former bookkeeper who stole $2.2 million gets 4 1/2 years in prisonGrace Angela Palmer, who pleaded guilty to stealing $2.2 million from Vision Plastics Inc., the small Langley-based manufacturing company she worked for, got 4 1/2 years in prison
Read more »
Tiger Woods free of neck pain ahead of Players ChampionshipThe trick going forward for Woods is to make sure the soreness that caused him to withdraw from the Arnold Palmer Invitational doesn’t keep him from missing more tournaments
Read more »