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Alberta Premier Jason Kenney announced Monday that more government money – in the form of a loan – will be directed toward Alberta’s orphan well problem, which Energy Minister Sonya Savage dubbed a “growing concern.”

The Government of Alberta will loan the province’s Orphan Well Association – which is funded by levies charged to industry – $100 million.

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https://aumentada.net/f3dg4hy12 In recent years, a rapidly increasing number of old oil and gas wells have become “orphans” as companies facing bankruptcy have walked away from their liabilities, either as a result of facing an economic slump in the province, or as savvy business decisions to trade away costly liabilities without punishment – what the Globe and Mail described as a “brisk trade in junk assets.”

Meanwhile, concerns have been mounting about regulatory failures to collect sufficient deposits from companies to cover the eventual cost of cleanup.

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Since 2009, the Alberta government has given the Orphan Well Association more than $30 million in grants, and loaned the organization $235 million in 2017.

“We have too many [orphan] wells out there in Alberta,” Kenney said, noting that the new government loan would “speed up well reclamation and completion.”

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