"while speaking at an industry event this week. "They've got to put a little bit of money aside so that by the time it's at its end of life, the money is there to be able to clean it up, said Smith, during a question and answer session on stage in front of 800 people at the Canadian Association of Energy Contractors event in downtown Calgary.""
"If a company paid a $10,000 deposit, the amount would grow and compound with interest over time, Smith said, so when the well is no longer producing oil or natural gas, the money would be there" to help cover reclamation costs. "I hope that we can find a way to get to a resolution on that, said Smith, as conversations with industry continue."
Alberta government is considering a requirement for oil and gas companies to post a deposit before drilling new wells, suggested at about $10,000 per well. The deposit would accumulate with interest so funds exist for reclamation when wells cease production. The measure targets nearly 250,000 inactive or marginally producing wells and aims to limit growth in orphaned sites. The Orphan Well Association faces a record-high cleanup caseload and is funded by industry to remediate wells left after bankruptcies. The proposal has prompted industry resistance and expert skepticism about its feasibility as government and industry continue discussions.
Read at www.cbc.ca
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