Wall asks feds for money to get Saskatchewan oil workers back on the job, cleaning abandoned wells
[ http://leaderpost.com/news/saskatchewan ... oned-wells ]
D.C. Fraser More from D.C. Fraser Published on: February 9, 2016 | Last Updated: February 9, 2016 6:29 AM CST
Premier Brad Wall is pitching an idea to the federal government to get Saskatchewan energy workers back on the job.
A few weeks ago, Wall said he spoke with Prime Minister Justin Trudeau about getting $156 million in federal funding to pay for the cleanup of abandoned oil and gas wells around the province.
“We just think this a good source of transition help,” said Wall, adding Trudeau and Regina MP Ralph Goodale were open-minded about the idea.
Wall’s number crunchers say the investment would create about 1,200 jobs in the energy sector and help clean up about 1,000 abandoned wells. Because of previous experience in the industry, many of those jobs would go to energy-sector employees struggling because of oil’s low price.
“It’s not perfect. No program is going to be perfect. Thirty-dollar oil isn’t perfect,” he said.
The premier said he appreciates Trudeau’s commitment to the Prairies in extending employment insurance and offering money for infrastructure during the hard economic times.
Those are, in Wall’s mind, only part of the solution.
“This particular initiative we think would have a more direct impact on those affected,” he said, adding many energy workers are being kept on the job at reduced hours rather than being laid off, or are private contractors not eligible for employment insurance.
Brothers Dan and Matt Cugnet from Weyburn-based Valleyview Petroleum first brought the idea of getting money to clean up abandoned wells to the premier’s office.
“We think it’s a great step for getting people back to work and continue the environmental initiatives that the industry wants to keep going with,” said Dan.
In 2012, then-auditor Bonnie Lysyk criticized the way Wall’s government was cleaning up orphan wells, or wells where there is no legally responsible or financially able company to do a proper abandonment.
She estimated there were potentially 700 orphan wells in the province. At the time, then-energy minister Tim McMillan disputed that number. On Monday, Wall said there were about 100 orphan wells in the province. According to the province, there are over 20,500 suspended wells in the province; many of which are waiting to be decommissioned and reclaimed.
Industry does pay a fee — essentially a tax — to the province to clean up orphan wells.
MORE:
[ http://leaderpost.com/news/saskatchewan ... oned-wells ]
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Where did Tory-Touted ‘Free Market’ Go? More theft by the oil & gas industry enabled by a politician? Premier Brad Wall begs Ottawa to make Canadians pay to clean up after billion dollar profiting oil & gas companies finish ravaging Saskatchewan
[ http://www.ernstversusencana.ca/where-d ... rofiting-o ]
Posted on February 8, 2016 by admin
EXCERPT
Wall asks feds for money to get Saskatchewan oil workers back on the job, cleaning abandoned wells by D.C. Fraser, Regina Leader-Post, February 7, 2016, Edmonton Journal
[ http://www.edmontonjournal.com/news/wal ... story.html ]
Wall proposes federal funding for clean-up of wells
Premier Brad Wall is pitching an idea to the federal government to get Saskatchewan energy workers back on the job.
A few weeks ago, Wall said he spoke with Prime Minister Justin Trudeau about getting $156 million in federal funding to pay for the cleanup of abandoned oil and gas wells around the province.
“We just think this a good source of transition help,” said Wall, adding Trudeau and Regina MP Ralph Goodale were open-minded about the idea.
Wall’s number crunchers say the investment would create about 1,200 jobs in the energy sector and help clean up about 1,000 abandoned wells. Because of previous experience in the industry, many of those jobs would go to energy-sector employees struggling because of oil’s low price.
“It’s not perfect. No program is going to be perfect. Thirty-dollar oil isn’t perfect,” he said.
The premier said he appreciates Trudeau’s commitment to the Prairies in extending employment insurance and offering money for infrastructure during the hard economic times.
Those are, in Wall’s mind, only part of the solution.
“This particular initiative we think would have a more direct impact on those affected,” he said, adding many energy workers are being kept on the job at reduced hours rather than being laid off, or are private contractors not eligible for employment insurance.
Brothers Dan and Matt Cugnet from Weyburn-based Valleyview Petroleum first brought the idea of getting money to clean up abandoned wells to the premier’s office.
“We think it’s a great step for getting people back to work and continue the environmental initiatives that the industry wants to keep going with,” said Dan. [But wants to make ordinary Canadians pay for after taking billions of dollars out of the province? How low can Brad Wall and the oil and gas industry go?]
In 2012, then-auditor Bonnie Lysyk criticized the way Wall’s government was cleaning up orphan wells, or wells where there is no legally responsible or financially able company to do a proper abandonment.
She estimated there were potentially 700 orphan wells in the province. At the time, then-energy minister Tim McMillan disputed that number. On Monday, Wall said there were about 100 orphan wells in the province. According to the province, there are over 20,500 suspended wells in the province; many of which are waiting to be decommissioned and reclaimed.
Industry does pay a fee — essentially a tax — to the province to clean up orphan wells. [How much? As insignificant an amount as in Alberta?]
Wall said that if the price of oil remains low, there is a chance more wells will become orphaned as companies go out of business. [Why don’t any provinces make the companies pay before they drill, for complete clean up and abandonment costs, with a $100,000 retainer in case of leaks, spills, accidents, road damages, etc? The solutions have always been easy and simple, but no politician has the courage to make industry do right by the resource owners in Canada]
Money from the federal government to potentially support those companies, he argues, could help prevent that. [Whatever happened to the Tory-touted “Free Market?” Who pays for the endless cases of contamination? Who pays to help the Kerrs? Who pays for the livestock killed by sour gas? The health harms caused to families? The road damages? The lost farm land?]
The federal government doesn’t have a legal responsibly to clean up orphan wells, but Wall charged they do have a responsibility to help Saskatchewan’s busting economy.
“In terms of helping the energy sector, that’s their obligation,” he said.
