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Alberta government and AER seek to reduce orphan wells

May 12, 2017 | 5:19 PM

 

EDMONTON —  The Alberta Government has teamed with the Alberta Energy Regulator in an effort to reduce the number of orphan wells in Alberta.

An orphan well is an oil site or facility that is no longer in use, and remains untouched with no company financially responsible for the removal of the well. Many of these wells have been sitting in place for decades because the companies that operated them are no longer financially capable of removing them.

Due to the recent downturn in the oil and gas industry, many companies have gone bankrupt and left their remaining wells standing. As a result, the number of orphan wells in the province has gone from just over a hundred to well over a thousand.

“I think most companies go out with the intent to take care of their liabilities,” says Medicine Hat Natural Gas and Petroleum Resources general manager Brad Maynes. “But, some at the end of the day are unable to do that, and I think that’s why the orphaned well is such a topic of conversation today.”

In a news release, Alberta Energy Minister Margaret McCuaig-Boyd insisted that more effort be put into solving a problem that has been a part of the oil industry for far too long.

“It’s important we take action and find the best way to improve the system and ensure these sites are managed responsibly,” said McCuaig-Boyd.

Environmental groups are calling for measures to be taken to avoid an increase in the number of orphan wells, such as a drilling deposit on every new well, and firm deadlines for reclamation of the sites.

The Orphan Well Association has taken the responsibility of removing orphan wells from oil sites that are no longer in use. They have already removed hundreds of wells, but in this unpredictable industry, their workload may go up.

Meetings between the government, the AER, industry representatives, and stakeholders to discuss possible solutions have started this week and will continue until June 14th in Calgary.