Latest news with #OrphanWellAssociation
CBC
22-07-2025
- General
- CBC
Leaking historic gas well in Bonnyville, Alta., being decommissioned due to safety concerns
The Orphan Well Association has begun decommissioning a leaking historic gas well in Bonnyville after methane was found in several homes. A drilling rig has been set up in the area of the 4500 block of 46th Avenue of the town about 240 kilometres northeast of Edmonton. "[The well] was decommissioned in 1954 but the standards have changed, and so we've purchased a number of homes. They've been demolished, and we're bringing in a drilling rig to do the repair," association president Lars DePauw told CBC in an interview on Tuesday. As part of the process, two single-family homes and one duplex were demolished, DePauw said. "Methane obviously has some safety issues regarding to the explosive nature of the gas, and so we wanted to make sure that this was repaired adequately for the long term." A well leak was found in 2024 by Apex Utilities workers. After locating the leak, the wellbore was found and excavated, and a monitoring and mitigation program was put in place to check gas levels regularly. The association says it monitors methane levels in soil and homes near the well on a weekly basis. Mitigation systems have been installed in eight homes to capture any methane and vent it to the atmosphere. "When this issue came forward, we moved on it very quickly," DePauw said. The decommissioning involved the collaboration between the Alberta Energy Regulator, Apex Utilities, Alberta Health Services, The Town of Bonnyville and its fire department. CBC requested further comment from the Town of Bonnyville on the impact of the work on residents, but the town has not yet given a response. The well in Bonnyville was drilled by the now defunct licensee Trican Petro-Chemical Corporation in 1954. Shortly after, Alberta's Energy Regulator declared it to be an orphan well and tasked the association with decommissioning it. There are about 470,000 non-producing wells across Canada, most in Alberta but also in B.C. and Ontario. According to the association, there are 3,874 wells lined up to be decommissioned in Alberta. The rig in Bonnyvillie is expected to be on-site for two to three days to complete the work. Residents are being asked not to park along 46th Avenue during this time. Once work is completed, the association says it will monitor to see when methane is no longer detected in the soil near the well. Sean Carnahan is mayor of Calmar, Alta., about 50 kilometres south of Edmonton and said the town has dealt with its share of well clean-ups. Three homes in Calmar were demolished in 2010 after a leaking gas well was discovered in the community. Imperial Oil, the owner of that well, temporarily sealed it and negotiated with homeowners to buy their houses. "We have to be patient with one another. We have to recognize that the cleanup is necessary for the future of the community," Carnahan said.
Globe and Mail
27-05-2025
- Business
- Globe and Mail
Alberta oil levy too low to cover orphan well costs, report claims
A new report is warning the annual levy charged to Alberta oil companies to fund the cleanup of orphaned oil and gas wells remains too low to keep up with the rate of surrendering. The report, written by former University of Calgary Public Interest Law Clinic lawyer Drew Yewchuk, says this year's levy rate combined with low rates in previous years is leading to an estimated funding shortfall of $1.2-billion. The levy funds the Orphan Well Association, a non-profit entity overseen by industry and regulator officials and tasked with reclaiming wells that are orphaned when oil and gas companies go bankrupt. The association says it currently has more than 3,700 wells on its books that need to be decommissioned and reclaimed, which could cost more than $860-million. Yewchuk's report says the $144-million in levies the Alberta Energy Regulator recently approved to be collected this fiscal year continues the trend of underfunding for the Orphan Well Association. Since the association will also need to repay more than $300-million in federal and provincial government loans over the next 10 years, Yewchuk says Alberta's orphan well situation will only get further out of hand. A spokesperson for the energy regulator says it hasn't seen the report and was unable to comment on it.
Global News
27-05-2025
- Business
- Global News
Levy charged to Alberta oil companies too low to cover orphan well costs: report
A new report is warning the annual levy charged to Alberta oil companies to fund the cleanup of orphaned oil and gas wells remains too low to keep up with the rate of surrendering. The report, written by former University of Calgary Public Interest Law Clinic lawyer Drew Yewchuk, says this year's levy rate combined with low rates in previous years is leading to an estimated funding shortfall of $1.2 billion. The levy funds the Orphan Well Association, a non-profit entity overseen by industry and regulator officials and tasked with reclaiming wells that are orphaned when oil and gas companies go bankrupt. The association says it currently has more than 3,700 wells on its books that need to be decommissioned and reclaimed, which could cost more than $860 million. View image in full screen Alberta's Orphan Well Association says it has more than 3,700 abandoned well that need to be cleaned up, but a new report says the annual levy oil companies are charged to fund the cleanup is far less than what it will actually cost. Global News Yewchuk's report says the $144 million in levies the Alberta Energy Regulator recently approved to be collected this fiscal year continues the trend of underfunding for the Orphan Well Association. Story continues below advertisement Since the association will also need to repay more than $300 million in federal and provincial government loans over the next 10 years, Yewchuk says Alberta's orphan well situation will only get further out of hand. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy A spokesperson for the energy regulator says it hasn't seen the report and was unable to comment on it. 2:01 University of Calgary study looks at abandoned oil well burden in Alberta Another study, produced by the University of Calgary's School of Public Policy in May 2021, put the number of inactive and abandoned wells much higher. That study estimated there were 97,000 inactive wells in the province and 71,000 abandoned wells. With files from Global News.
CBC
27-05-2025
- Business
- CBC
Levy charged to Alberta oil companies too low to cover orphan well costs, says report
A new report is warning the annual levy charged to Alberta oil companies to fund the cleanup of orphaned oil and gas wells remains too low to keep up with the rate of surrendering. The report written by Drew Yewchuk, formerly a staff lawyer with the University of Calgary's Public Interest Law Clinic, says this year's levy rate combined with low rates in previous years is leading to an estimated funding shortfall of $1.2 billion. The levy funds the Orphan Well Association, a non-profit entity overseen by industry and regulator officials and tasked with reclaiming wells that are orphaned when oil and gas companies go bankrupt. The association says it has more than 3,700 wells on its books that need to be decommissioned and reclaimed, which could cost more than $860 million. Yewchuk's report says the $144 million in levies the Alberta Energy Regulator recently approved to be collected this fiscal year continues the trend of underfunding for the Orphan Well Association. Since the association will also need to repay more than $300 million in federal and provincial government loans over the next 10 years, Yewchuk says Alberta's orphan well situation will only get further out of hand.
CTV News
27-05-2025
- Business
- CTV News
Levy charged to Alberta oil companies too low to cover orphan well costs: report
A new report is warning the annual levy charged to Alberta oil companies to fund the cleanup of orphaned oil and gas wells remains too low to keep up with the rate of surrendering. The report, written by former University of Calgary Public Interest Law Clinic lawyer Drew Yewchuk, says this year's levy rate combined with low rates in previous years is leading to an estimated funding shortfall of $1.2 billion. The levy funds the Orphan Well Association, a non-profit entity overseen by industry and regulator officials and tasked with reclaiming wells that are orphaned when oil and gas companies go bankrupt. The association says it currently has more than 3,700 wells on its books that need to be decommissioned and reclaimed, which could cost more than $860 million. Yewchuk's report says the $144 million in levies the Alberta Energy Regulator recently approved to be collected this fiscal year continues the trend of underfunding for the Orphan Well Association. Since the association will also need to repay more than $300 million in federal and provincial government loans over the next 10 years, Yewchuk says Alberta's orphan well situation will only get further out of hand. A spokesperson for the energy regulator says it hasn't seen the report and was unable to comment on it. This report by The Canadian Press was first published May 27, 2025. Jack Farrell, The Canadian Press
