Alberta energy company told to abandon hundreds of wells after ongoing care problems
Global News
The AER is telling a Calgary energy company to abandon hundreds of wells, pipeline sections and other facilities over concerns about care and maintenance of the sites.
A Calgary energy company has been ordered to abandon close to 2,000 wells, pipeline sections and other facilities over concerns about care and maintenance of the sites.
But questions remain about whether Tallahassee Exploration will be able to pay for the multimillion-dollar reclamation plan the provincial regulator has ordered the company to submit. Phone numbers for the Calgary company’s office were not in operation Monday.
In a release issued Monday, the Alberta Energy Regulator told the company it has 60 days to complete the first stage of cleanup for 817 wells, 964 pipeline segments and 77 facilities.
“Abandonment work, including surface abandonment and removal of cement pads, debris and produced liquids associated with the wells, must be completed in accordance with (regulatory) requirements,” the order says.
The company also has 30 days to submit a detailed plan for how it will complete remediation.
“Tallahassee has not demonstrated it is capable of providing reasonable care and measures to protect public safety and the environment and is unable to meet its regulatory and end-of-life obligations,” says Monday’s order.
The Parliamentary Budget Office estimates the average cost of cleaning up a well at $78,000 — although some experts consider that figure low. Still, that figure would put the cost of remediating Tallahassee’s wells at nearly $64 million, not including the pipelines or other facilities.
The regulator first issued an order in September for to the company to clean up its sites.
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