The Globe and Mail reports in its Tuesday, Sept. 17, edition that Alberta Energy Minister Brian Jean has vowed to take strong action by next fall to address the province's increasing backlog of unreclaimed oil and gas sites. A Canadian Press dispatch to The Globe reports that Mr. Jean stated, "The current system is unlikely to see them reclaimed." He said the industry might require assistance from public finances to fulfill its legal obligations, as well as reduced municipal tax burdens and a more lenient regulatory approach. Alberta has nearly a half-million energy wells. Less than a quarter are reclaimed.
Meanwhile, the province's conventional oil patch is in decline, with production falling slightly over the past decade. Less than 30 per cent of Alberta's wells are new or active. The squeeze between growing environmental liabilities and falling revenue has many worried about who will pay the cleanup bill. The tab has been estimated at anywhere from $59-billion to $260-billion. Mr. Jean declined to confirm if industry levies, including those for cleaning up abandoned wells, would rise. "At this stage, I would say the Orphan Well Association is well funded. But the truth is, it's going to change."
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