Gas drilling rig near Sexmith, Alta. in the Peace River region, home of B.C. and Alberta’s extensive shale gas drilling area. (Wikimedia Commons)

B.C. needs to catch up in restoring old gas wells, auditor says

Taxpayers won’t be stuck with ‘orphaned’ wells, regulator says

The shale gas boom in northeastern B.C. has left a backlog of thousands of inactive wells that need to be filled in and have their sites restored, B.C. Auditor General Carol Bellringer says in a new report.

Legislation was passed last year to require gas drillers to decommission wells, but the rules lacked a “trigger” to determine when that should happen, the audit concluded. By 2018, that left a backlog of more than 7,000 well sites that were inactive but not sealed with concrete and cleaned up.

Bellringer also found that security deposits from drilling companies did not cover growing restoration costs as horizontal hydraulic fracturing led to rapid growth in gas development.

“Decommissioning and restoration are the operator’s responsibility, but in cases where sites are ‘orphaned’ by bankrupt or absent operators, the B.C. Oil and Gas Commission becomes responsible for the work,” Bellringer wrote. “The number of orphan sites in B.C. increased from 45 in 2015-16 to 326 in 2018-19.”

Security deposits from drilling companies are put into an “orphan fund” to cover costs, but in 2016-17 the fund was short $16.6 million and the following year it was short $13.1 million.

In its response to the audit, the B.C. Oil and Gas Commission said it is developing a new “comprehensive liability management plan” based on changes to B.C. legislation passed in May 2018. The plan “holds industry accountable, addresses unrestored oil and gas sites and protects the environment and public safety,” the commission says in its response to the audit.

READ MORE: Coastal GasLink setting up B.C. work camps for pipeline

READ MORE: Stone tools at pipeline route ‘not likely’ in original location

“These new tools will address he restoration of orphan sites in a timely manner, while ensuring no direct costs to taxpayers.”

The commission has implemented a policy to restore orphan wells within 10 years of designation, and has agreed with all 11 recommendations in the audit. They include allocating $14 million for the orphan fund for the current year.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Jaffray local Katie Anderson wins Boarderstyle event

A Jaffray woman dominated the slopes Saturday to claim first place in… Continue reading

Education key to coexistence: CanWel

CanWel executives say education is key to the Fernie community and forestry… Continue reading

RCMP investigating break-and-enter attempts in Fernie

Police are investigating four reports of attempted break-and-enters at the condos and… Continue reading

Fernie food share program thrives under new partnership

Four times the amount of food is being saved from landfill under… Continue reading

Paramedics union raises alarm over spike in out-of-service ambulances

Staffing shortages affecting service levels in Kootenays

Truck driver in fatal Broncos crash sentenced to eight years

Judge Inez Cardinal told court in Melfort, Sask., that Sidhu’s remorse and guilty plea were mitigating factors

Fierce feline spotted as ‘aggressor’ in face off with coyote in B.C. backyard

North Vancouver resident Norm Lee captures orange cat versus coyote in backyard showdown

Wilson-Raybould to reveal more details, documents on SNC-Lavalin affair

Former attorney general has written to the House of Commons justice committee

Anti-discrimination group wants to map offenders with cross-Canada hate atlas

Morgane Oger Foundation issues call for volunteers to help build Canadian Atlas of Populist Extremism

Kater to launch ridesharing service in Vancouver by end of month

The Surrey-based company got its permits from the Vancouver Taxi Association

Second case of measles reported in the B.C. Interior

Case is connected to an earlier measles case in 100 Mile House

Cheetahs will not prosper in Creston: Permit rejected for two big cats

Earl Pfeifer owns two cheetahs, one of which escaped in December 2015

GM announces jobs, electric vehicle after Trump criticism

The company says it will spend $300 million at its plant in Orion Township

Most Read