Peace River District asked to nominate 1,400 dormant wells for cleanup

Old well site Image: JWN Energy file photo

The Peace River Regional District is being asked to identify more than 1,400 wells for priority cleanup as part of a new $100-million reclamation program launched this year.

Oil company Canadian Natural Resources Limited has submitted a 26-page list of wells to the district indicating its endorsement could "maximize" provincial spending and create more jobs.

"The first phase of funding was significantly oversubscribed by industry, with the majority of dormant wells not receiving any funding, CNRL senior vice-president Bill Peterson wrote in a letter received Sept. 1.

“By nominating Canadian Natural wells, the Regional District will be helping create more jobs while also abandoning and reclaiming a high number of wells within the allocated funding."

The deadline for nominations is Sept. 30, and the PRRD will discuss CNRL's proposal at its Thursday meeting.

The district’s board declined to identify or nominate the wells in June, saying it had neither the in-house expertise, time, nor money to do the work itself. Directors have requested quarterly updates on reclamation works from the BC Oil and Gas Commission instead.

The $100-million Dormant Sites Reclamation Program was announced in April, and split into two phases of $50 million.

The first phase was significantly oversubscribed, with $152 million of work proposed for 2,400 inactive wells.

Nominated sites from local governments, landowners, and First Nation communities are to be given priority consideration for the second round of funding.

CNRL's long list include well sites in and around Fort St. John, Buick, Prespatou, Cecil Lake, Montney, Stoddart Creek, Inga, and up to Tommy Lakes and Buckinghorse.

Peterson noted nomination doesn't guarantee funding, but said CNRL will match government funding "dollar for dollar, doubling the potential total spend on abandonment and reclamation." 

He said CNRL uses an "area based closure" program that increases the number of wells closed, and the number of jobs for workers.

"These ABC programs ensure that wells are abandoned and reclaimed in a manner that addresses wells within a program area, as opposed to inefficiently abandoning and reclaiming wells in a scattershot manner across a large number of geographic areas," Peterson wrote.

"In addition, we are committed to prioritizing wells in environmentally or culturally sensitive areas as well as using local contractors to maximize local job creation."

The province estimates the cleanup program will create 1,200 jobs.

– Alaska Highway News

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