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COVID-19 Updates: Taking steps to return to normal.
Alberta’s government is taking long overdue action to accelerate the responsible reclamation of oil and gas sites, ensuring a cleaner environment for current and future generations.
A new framework to manage oil and gas liabilities – which includes a series of mechanisms and requirements to improve and expedite reclamation efforts – will enable industry to better manage the clean up of oil and gas wells, pipelines and facilities at every step of the process, from exploration and licensing, through operations, reclamation and post-closure.
Setting clear expectations throughout the life cycle of oil and gas projects will provide certainty to industry and landowners, who will now have a defined opportunity to ensure the timely cleanup of sites on their property. Taken together, the new framework will shrink the inventory of inactive and orphaned wells across the province, ensure more timely restoration of land to its original state, and protect future generations from experiencing a backlog of sites needing cleanup.
“Alberta has a world-class oil and gas sector that takes responsible resource development seriously. This new approach will further ensure everyone who benefits from development also addresses their ongoing reclamation responsibility in a way that is fair and achievable. By clarifying the rules and improving the process, industry can confidently make long-term investment decisions, which will help the province’s recovery efforts and create jobs, putting thousands of Albertans and Canadians back to work.”
“I’m pleased this government is taking action where governments in the past have failed to do so. Farmers and other private landowners deserve a voice in the reclamation process, to ensure industry brings their land back towards its original condition – enhancing safety and their ability to repurpose their land. This is a positive step forward on an issue that is important to many Albertans.”
“The Metis Settlements have long been advocates for responsible resource development. That means ensuring the work of ‘cleaning up’ is central to those operations. I am pleased to hear that Alberta will be taking the necessary steps to ensure that we not only practise responsible resource development but responsible reclamation. This work is critical to ensure our beautiful lands remain for future generations.”
The new framework, which will be implemented over the coming months:
The growing inventory of orphaned and inactive wells is an issue across North America and the world, exacerbated in recent years by low commodity prices and the resulting economic downturn. Alberta’s current approach to govern the cleanup of these wells was put in place decades ago, when the oil and gas industry was largely focused on growing production and new infrastructure. As the province’s oil and gas sector has matured, a new approach is required to more actively manage reclamation of sites throughout their life cycle. This means working on the existing sites that require cleanup and keeping new sites from joining the inactive and orphan inventories in the future.
“From drilling through reclamation, it’s important that industry meets its obligations. Alberta’s Liability Management Framework will ensure oil and gas sites are cleaned up faster, reinforcing Alberta’s reputation as a leader in responsible energy development. The new framework provides clarity and certainty, which will help spur activity in the energy sector and put Albertans back to work when and where jobs are needed the most.”
“The new Alberta Liability Management Framework provides strong protections for Alberta to enhance the responsible reclamation of oil and gas sites, while ensuring responsible energy development can continue to produce high-paying jobs for Alberta workers and their families. This is an innovative and modern approach to ensure continued focus by companies on their responsibilities to local communities.”
“PSAC welcomes the introduction of Alberta’s new Liability Management Framework that will provide certainty to industry and investors while easing landowner and public concerns of a growing inventory. The new framework will also provide the oilfield services sector that PSAC represents with a predictable and regular stream of closure activity, sustaining jobs and retaining key skills and expertise. PSAC has long advocated for mechanisms for closure activity of orphan and inactive sites to create jobs while providing positive environmental outcomes that demonstrate our responsible resource development. Alberta’s new framework will uphold that trustworthy reputation.”