Discussion:
Oil firm ceasing operations, leaving thousands of untended Alberta wells
(too old to reply)
gordo
2018-03-08 19:53:49 UTC
Permalink
Raw Message
Oil firm ceasing operations, leaving thousands of untended Alberta
wells
The Alberta Energy Regulator has issued an order against privately
held oil and gas company Sequoia Resources Corp. after it warned it is
ceasing operations "imminently" and won't be able to maintain
thousands of wells and pipelines in the province.

In a letter posted on its website, the AER says Calgary-based Sequoia
indicated in two meetings in late February that it wasn't able to
abandon and reclaim its licensed properties as a result of "defaults
in municipal tax payments."

The AER says it owns licences for 2,300 wells, almost 200 facilities
and nearly 700 pipelines.

The industry-funded Alberta Orphan Well Association's inventory of
licensed wells left behind by companies that can't or won't look after
them has more than tripled from almost 1,200 to nearly 4,000 as oil
and gas prices slumped over the past two years.

PricewaterhouseCoopers Inc. says on its website it has been named
trustee for Sequoia after the company filed a notice of intention in
court last week to make a proposal under the Bankruptcy and Insolvency
Act.

In its order, the AER warns that Sequoia is still responsible for its
licensed properties, including cleanup at the end of a well's life,
and failure to comply could result in it reassessing eligibility of
related entities, ordering security payments and pursuing other
enforcement options.

It says failing to comply could result in the company's partners being
invited to bid to take over licenses in which they hold an interest.
http://www.cbc.ca/news/canada/calgary/alberta-energy-regulator-sequoia-resources-untended-wells-1.4567790

---
This email has been checked for viruses by AVG.
http://www.avg.com
Greg Carr
2018-03-08 20:32:13 UTC
Permalink
Raw Message
Post by gordo
Oil firm ceasing operations, leaving thousands of untended Alberta
wells
The Alberta Energy Regulator has issued an order against privately
held oil and gas company Sequoia Resources Corp. after it warned it is
ceasing operations "imminently" and won't be able to maintain
thousands of wells and pipelines in the province.
In a letter posted on its website, the AER says Calgary-based Sequoia
indicated in two meetings in late February that it wasn't able to
abandon and reclaim its licensed properties as a result of "defaults
in municipal tax payments."
The AER says it owns licences for 2,300 wells, almost 200 facilities
and nearly 700 pipelines.
The industry-funded Alberta Orphan Well Association's inventory of
licensed wells left behind by companies that can't or won't look after
them has more than tripled from almost 1,200 to nearly 4,000 as oil
and gas prices slumped over the past two years.
PricewaterhouseCoopers Inc. says on its website it has been named
trustee for Sequoia after the company filed a notice of intention in
court last week to make a proposal under the Bankruptcy and Insolvency
Act.
In its order, the AER warns that Sequoia is still responsible for its
licensed properties, including cleanup at the end of a well's life,
and failure to comply could result in it reassessing eligibility of
related entities, ordering security payments and pursuing other
enforcement options.
It says failing to comply could result in the company's partners being
invited to bid to take over licenses in which they hold an interest.
http://www.cbc.ca/news/canada/calgary/alberta-energy-regulator-sequoia-resources-untended-wells-1.4567790
---
This email has been checked for viruses by AVG.
http://www.avg.com
Interesting. Good post.
Dhu on Gate
2018-03-08 21:56:38 UTC
Permalink
Raw Message
The AER says it owns licences for 2,300 wells, almost 200 facilities and
nearly 700 pipelines.
This is a long standing problem. The energy industry has attracted a
lot of "get rich quick" types over the years. It's also been used as
an argument for them to actually pay tax for things like roads...

Dhu
--
Je suis Canadien. Ce n'est pas Francais ou Anglaise.
C'est une esp`ece de sauvage: ne obliviscaris, vix ea nostra voco;-)

http://babayaga.neotext.ca/PublicKeys/Duncan_Patton_a_Campbell_pubkey.txt
Loading...