CAPP Issues Statement on Government of Alberta loan to Orphan Well Association
March 2, 2020 – Calgary, Alberta
The Canadian Association of Petroleum Producers appreciates the efforts by the Government of Alberta to accelerate reclamation of orphan well sites in Alberta. It aligns with industry’s commitment to responsible resource development throughout the entire life cycle of a project.
Upstream oil and natural gas companies are responsible for decommissioning and closure of sites associated with their operations. In instances where companies are no longer able to fulfil their regulatory obligations for closure, industry collectively funds the decommissioning and closure of these sites through the current orphan fund levy.
Low commodity prices and a difficult environment for our industry have led to many companies experiencing financial difficulty; a stress that many in our business, and Albertans across the province, are feeling every day.
– Brad Herald, Vice-President, Western Canada Operations, CAPP