Tags
Industry News

Alberta moves to better deal with delinquent oil and gas operators

Brad Herald, vice-president, Canadian Association of Petroleum Producers, Margaret McCuaig-Boyd, Minister of Energy, Jim Ellis, president and CEO, Alberta Energy Regulator.
Brad Herald, vice-president, Canadian Association of Petroleum Producers, Margaret McCuaig-Boyd, Minister of Energy, Jim Ellis, president and CEO, Alberta Energy Regulator.

The province of Alberta is building on recent moves to protect Albertans and the environment while ensuring a fairer liability system for oil and gas companies operating there.

 The provincial government worked with the Alberta Energy Regulator (AER) on amending a key requirement, known as Directive 67, to close a loophole. Officials from companies that walk away from wells or other oil and gas infrastructure without cleaning up will now be subject to greater scrutiny and AER discretion if they apply to start new companies.

"We're taking action to protect Albertans and the environment by ensuring consequences for those who try to get around the ‘polluter-pays' principle, said Minister of Energy Margaret McCuaig-Boyd. "Closing this loophole helps ensure Albertans are protected from financial and environmental liabilities, and that the vast majority of companies that behave responsibly are protected from those who attempt to offload their obligations onto others."

Changes made to Directive 67 will support companies that behave responsibly and help shield them from potential further increases in the number of orphan wells, which are reclaimed through a fund which industry pays into under the polluter-pays principle.

"We consider operating in Alberta a privilege, not a right. Enhanced disclosure of information and increased evaluation of an operator's compliance is a step in the right direction to ensure this privilege is only granted to those companies with a demonstrated history of responsible operations," commented Brad Herald, vice-president, Canadian Association of Petroleum Producers.

"We're pleased with the government's initiative to reduce environmental and financial risk to Albertans. We support provincial efforts that help ensure licences are granted to companies with the sound financial capacity, compliance history and professional expertise to responsibly operate through the life cycle of oil and natural gas development, from lease acquisition to reclamation," added Marty Proctor, president and CEO, Seven Generations Energy Ltd. 

Additional action the government has taken to protect Albertans includes:

  • A $235-million loan to the Orphan Well Association (OWA) to accelerate the cleanup of old wells across the province over the next three years.
  • Launching a broader review of oil and gas liabilities to determine long-term, made-in-Alberta solutions.
  • Lobbying the federal government for changes to bankruptcy laws that would hold companies accountable for their environmental cleanup.
  • Supporting municipalities provincewide with a credit for uncollectable taxes on disowned oil and gas properties.

This most recent action stems from the 2016 Redwater decision by the Alberta Court of Appeal and other receivership cases that have been undermining the AER's ability to ensure companies and operators are held accountable for their actions. This case is currently being appealed to the Supreme Court of Canada by the AER.

"The stronger rules will help prevent individuals who leave liabilities behind from returning to the industry without proper safeguards in place. Albertans permit companies to produce and profit from the province's energy resources with the expectation that they address end-of-life abandonment and reclamation obligations. The revised Directive 67 is one way we are working to enforce those obligations," said Jim Ellis, president and CEO, Alberta Energy Regulator.

Many other receivership cases within Alberta have used the precedent from the Redwater decision in disclaiming assets, raising Alberta's orphan well inventory dramatically. The OWA's inventory increased to 1,861 wells that were in need of reclamation in November of this year, up from 705 wells in March 2015.

Latest News

Tags
Industry News
Pipelines

TransCanada's Topolobambo project goes into service in Mexico

TransCanada's Topolobambo project goes into service in Mexico

TransCanada Corporation  announced its Topolobampo Pipeline project has been placed into service in northern Mexico, providing capacity for 670 million cubic feet of natural gas per day to markets in the states of Chihuahua and Sinaloa. The project represents an investment of approximately US$1.2 billion and provides the upstream interconnection with the company's Mazatlan Pipeline.

Read More

Tags
Instrumentation, Systems & Automation

Hand-held combustion emissions analyzer

Hand-held combustion emissions analyzer

The E1500 Hand-Held Combustion Emissions Analyzer from E Instruments is a new, rugged unit with the ability to measure CO & O2 from high efficiency & condensing boilers, burners, engines, turbines, kilns, furnaces, incinerators and other industrial combustion processes.  Featuring a new large COLOR display and expanded internal memory, the E1500 lets you easily see and save your sample data without worrying about running out of memory. The E1500 also features pre-calibrated, field replaceable sensors which allow for easy diagnostics and replacement to reduce "down-time" and costly repair charges.

Read More

Tags
Industry News

Vertex Resource acquires Three Star Trucking

Vertex Resource acquires Three Star Trucking

Vertex Resource Group Ltd. has acquired Three Star Trucking Ltd., an environmental service company providing fluid hauling service, pressure truck services, hot oilers and combo vac services throughout western Canada on July 12th, 2018. The acquisition of Three Star will add over 270 pieces of equipment to Vertex's fleet, making the company's fleet one of the largest in operations serving Saskatchewan, the Montney, and the Duvernay resource plays of Alberta and British Columbia. 

Read More

Tags
Asset Management

Baker Hughes, SGS agree on joint deployment of corrosion management solution

Baker Hughes, SGS agree on joint deployment of corrosion management solution

SGS and Baker Hughes, a GE company, announced a Strategic Alliance Agreement (SAA) for the joint deployment and commercialization of BHGE's real-time software and sensor-based Predictive Corrosion Management (PCM) solution. Leveraging the capability of the Industrial Internet of Things (IIoT), PCM will enable asset owners to increase their ability to monitor their facilities, and detect and predict corrosion issues using real-time data powered by BHGE's ultrasonic sensing technology and advanced analytics. 

Read More

Tags
Drilling & Production
Industry News

Petroteq to test equipment for non-conventional oil production

Petroteq Energy Inc., a company focused on the development and implementation of proprietary technologies for the energy industry, announced an agreement with Cavitation Technologies, Inc., a company providing highly scalable and cost-effective solutions to various fluids processing industries. The companies have entered into a licensing agreement to test its equipment during oil production for workflow efficiencies and to lower its cost of production obtained through Petroteq's oil sands extraction process.  

Read More

Tags
Industry News

Painted Pony receives encouraging results from Lower Montney test wells

Painted Pony receives encouraging results from Lower Montney test wells

Painted Pony Energy Ltd. has announced results from two recent Lower Montney wells drilled on the northern edge of the South Townsend block. Preliminary results indicate production levels higher than Painted Pony management's Townsend type curve and include higher liquid yields compared to previous wells in the Townsend block. Painted Pony is encouraged by the results to-date and anticipates re-directing a portion of drilling activity within the existing 2018 development budget to better capitalize on these well results.

Read More

Tags
Industry News

Terex RT cranes handle desert drill site project without downtime

"Five months of continuous back-breaking work without any downtime," Nabors Drilling Manager David Siljeg succinctly puts it while summarizing how well the Terex RT 90 rough terrain crane performed at a work site in Abqaiq, Saudi Arabia. The crane lifted numerous components for drilling rigs, generators, and a power distribution and control centre at the oil field while enduring challenging environmental conditions.

Read More

Tags
Industry News

Paramount, Strath close sale of Resthaven/Jayar assets for $340 million

Paramount, Strath close sale of Resthaven/Jayar assets for $340 million

Paramount Resources Ltd. has closed the previously announced sale of its oil and gas properties and related infrastructure at Resthaven / Jayar in the Kakwa region to Strath Resources Ltd. Consideration received by Paramount totaled $340 million, and included $170 million in cash (subject to customary post-closing adjustments), 85 million Strath common shares and 10-year warrants to acquire 8.5 million Strath common shares. As a result, Paramount holds an approximate 16% equity interest (undiluted) in Strath and Jim Riddell, Paramount's President and Chief Executive Officer, has joined Strath's Board of Directors. The cash consideration received will be used to reduce outstanding indebtedness under Paramount's credit facility.

Read More

Tags
Industry News
Offshore Technology

Decommissioning Leadership Group meets to set strategy

Industry leaders have, this month, joined together to shape the future of decommissioning through the formation of the Decommissioning Leadership Group (DLG). Conceived and managed by Decom North Sea, the DLG held its inaugural meeting at The Chester Hotel in Aberdeen earlier in June with the mission to set out a strategy for leading the development of an efficient and effective oil and gas decommissioning sector.

Read More

Tags
Instrumentation, Systems & Automation

Harting introduces Han-Smart modular connectors

In launching the first Han-Smart modules, HARTING is bringing new, intelligent capabilities to the highly esteemed, customer configurable Han-Modular connector system. Until now, industrial connectors have been used exclusively as passive devices for carrying power, signal, data transmission and pneumatics - functions they continue to provide. However, with Han-Smart solutions, connectors can provide added value while beginning to evolve into active devices to serve the needs of future manufacturing. These three modules are just the beginning:

Read More