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

Strathcona Regional District looking at pay hikes for board members

The Strathcona Regional District board is planning on a pay raise. At… Continue reading

City still fighting for long-term plan for Snowden

Another letter from the province without ‘tangible response’ spurs mayor to request in-person meeting

Willow Point Summer Market back for third go-round

Now accepting applications for ‘anything and everything,’ but specifically in need of entertainers

Carihi fly fishers earn invite to National Championship

10 students will travel to Maple Ridge next month, but they need your help to get there

Storm sweeps Saanich in semifinals

Despite starting well after the other semi-final series, the Storm now has to wait….

Sparks fly as SUV speeds down wrong side of Highway 1 trying to flee RCMP

Captured on video, the vehicle headed westbound against oncoming traffic before crashing

Calgary captain has 3 points as Flames torch Canucks 3-1

Giordano leads way as Alberta side cracks 100-point plateau

Fire crews battle large blaze at Courtenay hostel

Courtenay Fire Chief Don Bardonnex said nobody was injured

1,300 cruise ship passengers rescued by helicopter amid storm off Norway’s coast

Rescue teams with helicopters and boats were sent to evacuate the cruise ship under extremely difficult circumstances

B.C. university to offer first graduate program on mindfulness in Canada

University of the Fraser Valley says the mostly-online program focuses on self-care and well being

Province announces $18.6 million for B.C. Search and Rescue

The funding, spread over three years, to pay for operations, equipment, and training

Late-season wave of the flu makes its round in B.C.

BC Centre for Disease Control reported 50 per cent jump in flu cases in first weeks of March

Tofino’s housing crisis causing some to seek shelter at the local hospital

Tofino’s housing crisis is pushing the town’s ‘hidden homeless’ population into the forefront.

Sentencing judge in Broncos crash calls for carnage on highways to end

Judge Inez Cardinal sentenced Jaskirat Singh Sidhu to eight years

Most Read