One of thousands of abandoned wells that dot Alberta that could potentially be eligible for a billion-dollar aid package. (CHAT News photo).

By Alex McCuaig

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Federal aid program for oil and gas could see money flowing soon

Jun 17, 2020 | 1:10 PM

MEDICINE HAT, AB – It’s been a trying five years for the oil sector in Alberta, even longer for the natural gas industry. But a billion-dollar federal program might end up being a lifeline to the industry’s service companies while cleaning up abandoned wells at the same time.

“This program will allow companies to survive, to clean up some of their liabilities, to be able to move on to better days,” said Jason Tweten, president of Action Land and Environmental Services. “For the last three or four months, most companies have been pretty slow, looking for things to do because our clients just do not have the funding or capital to move forward with programs.”

Tweten said that aid will translate into jobs for oil and gas workers almost immediately once the money starts flowing. And with southeastern Alberta dotted with thousands of wells ready for reclamation, it could result in unemployed or under-employed oil and gas workers in Medicine Hat getting back on the job.

The first $100-million stage of the Site Rehabilitation Program announced last month will be administrated by provinces and allow companies unable to pay for rehabilitation of oil and gas infrastructure to apply for up to $30,000 per site.

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“From what we’ve seen from our clients and talk around the industry, almost every licence-holder in Alberta has been looking at this program, if not already made application,” said Tweten

The funds will go directly to reclamation consultants and service companies actually doing the work rather than through the company that operates of is responsible for the wells or infrastructure.

The application window for the first stage of the program ended May 31. The second $100-million stage of the program will be applicable to surface lease payments currently being paid out by the provincial Surface Rights Board.

That program’s deadline is June 18.

Details Third and fourth stages have yet to be announced though the program is set to run until March 2022 or until the $1 billion in funding is all allocated.