Gas flare near Dawson Creek B.C., the province’s main region for gas and oil production. (Tom Fletcher/Black Press)

B.C. tackles dormant oil and gas wells for COVID-19 industry jobs

Ottawa provides $120 million to B.C. for cleanup program

The B.C. government is moving ahead with cleanup and securing of more than 2,000 “dormant” or “orphaned” natural gas and oil wells, using federal funds to provide some industrial work in B.C.’s northeast region during the COVID-19 pandemic.

B.C.’s $120 million share of a federal fund will accelerate dealing with “an environmental stain on British Columbia,” with more than 7,000 wells that are either dormant or orphaned by the collapse of the company that drilled them, Premier John Horgan said.

“This program will support upwards of 1,200 jobs, helping B.C. workers, the environment and the economy during these challenging times,” Horgan announced May 13.

Applications for reclamation sites from local governments, landowners and Indigenous communities are being accepted beginning May 25, with oil and gas field service companies based in B.C. to do the work.

RELATED: B.C. Auditor General says taxpayers won’t get cleanup bill

RELATED: Trudeau pledges $1.7 billion to clean up old oil and as wells

With the oil and gas industry struggling with a world-wide price slump due to COVID-19 and a trade war between Saudi Arabia and Russia, the industry in B.C. and Alberta has seen an unprecedented slowdown. With Ottawa providing aid to millions of individuals and businesses to help them through the coronavirus pandemic, the well cleanup program is the only one so far that has been directed at oil and gas, Canada’s largest industry.

Most of the cleanup fund, $100 million, is directed at dormant wells, those that have been out of production for at least five years, with little chance they will be restarted. The fund will provide up to 50 per cent of the decommissioning and cleanup costs, or $100,000, whichever is less.

Of the 25,000 oil and gas well sites in B.C., only 357 are considered orphaned, meaning the company that drilled them no longer exists or can’t be located. There is $15 million set aside for those. Another 7,685 are classified as dormant, and the new fund will augment B.C.’s existing reclamation program administered by the Oil and Gas Commission.

The accelerated program was welcomed by Indigenous leaders in northeastern B.C., where decades of drilling and processing have taken place.

“This is a win-win for the oil and gas sector and the environment,” said Chief Sharleen Gale of the Fort Nelson First Nation. “It will bring much-needed local employment for former oil and gas workers and clean up dormant, legacy and orphan wells.”


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislatureCoronavirus

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Vandals deface Aldergrove elementary school with racist slur, male genitalia

Langley School District confirms it has filed a report with the Langley RCMP

‘Our hands are tied’: Langley Good Times Cruise-In announces cancellation due to COVID-19

People are encouraged to donate to the chosen Langley charities online, said Cruise-In director

Langley Township lifts evacuation alert as flooding threat drops

People are still advised to avoid the Fraser River due to fast running water

Rideshare expands into Aldergrove

As of Thursday, Lyft is now offering service throughout Metro Vancouver

Conservationists in race against time to rehabilitate grizzly cubs transferred to Aldergrove zoo

‘Let them be assessed now before their fate is sealed,’ urges B.C. conservationist Barb Murray

B.C. sees 25 new COVID-19 cases, community exposure tracked

One death, outbreaks remain in two long-term care facilities

B.C. Ferries increasing passenger capacity after COVID-19 restrictions

Transport Canada 50-per-cent limit being phased out, no current plans to provide masks

Once-in-a-lifetime comet photographed soaring over Abbotsford

Photographer Randy Small captures Comet NEOWISE in early-morning sky

BREAKING: Amber Alert for two Quebec girls cancelled after bodies found

Romy Carpentier, 6, Norah Carpentier, 11, and their father, Martin Carpentier, missing since Wednesday

Bringing support to Indigenous students and communities, while fulfilling a dream

Mitacs is a nonprofit organization that operates research and training programs

B.C. man prepares to be first to receive double-hand transplant in Canada

After the surgery, transplant patients face a long recovery

Grocers appear before MPs to explain decision to cut pandemic pay

Executives from three of Canada’s largest grocery chains have defended their decision to end temporary wage increases

Man shot dead in east Abbotsford suburbs

Integrated Homicide Investigative Team called to investigate

RCMP ‘disappointed’ by talk that race a factor in quiet Rideau Hall arrest

Corey Hurren, who is from Manitoba, is facing 22 charges

Most Read