The Globe and Mail reports in its Thursday, Oct. 3, edition that oil sands mining companies in Alberta will not be required to increase payments for future site cleanup. The Globe's Emma Graney writes that the changes to the rules will not address concerns about a global shift away from fossil fuels impacting the industry's ability to pay. Liabilities have increased by billions, while companies have only contributed one dollar to cleanup funds. The Mine Financial Security Program (MFSP) is under review after concerns raised by Alberta's Auditor-General about an inconsistent formula used to calculate mine values. This could lead to taxpayers covering conservation and reclamation costs if necessary adjustments are not promptly identified. University of Calgary energy resources chairman Martin Olszynski is a consultant for the
MFSP review on behalf of Athabasca Chipewyan First Nation in Alberta.
He said that changes to the program will not address a fundamental design flaw: It essentially allows oil companies to avoid paying securities when their economics are good, and only requires cash later when they are much more likely to be financially distressed. He called the changes "disappointing and totally inadequate."
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