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

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

Bystanders attend to a cyclist who is knocked to the pavement of Oak Bay Avenue. Witnesses say the cyclist was knocked off their bike in a dooring incident on Oak Bay Avenue at Fell Street at around 12:40 p.m. on Wednesday. 
(Daniel Opden Dries Photo)
UPDATED: VicPD tickets driver for ‘dooring’ cyclist on Oak Bay Avenue

Incident occurred at Oak Bay Avenue and Fell Street

West Shore RCMP pulled over a 2010 Jeep Grand Cherokee on Nov. 23 after noting that it didn’t appear safe for the road. (West Shore RCMP)
West Shore RCMP pull over vehicle held together by tape and cargo strap

RCMP deemed the vehicle unsafe for the road and had it towed away

Salon owner Philip Ferreira with the PPE collection box at The Natural Hair Salon, 618 View St. (Mariah Johal photo)
Victoria salon inspires more mask recycling

Anyone welcome to drop disposable masks in bin outside View Street shop

(Black Press Media file photo)
Victoria dine and dash brings $230 fine

Group paid the bill, police locate suspect who violated provincial restrictions, mistreated staff

Sidney and Central Saanich fire crews responded to a small fire at Eurosa Farms Tuesday evening. (Courtesy of Ryan Worsfold)
Small fire extinguished at Brentwood Bay flower farm

Family-run business sprang into action after smelling smoke at Eurosa Farms

A man wearing a face mask to help curb the spread of COVID-19 walks in downtown Vancouver, B.C., Sunday, Nov. 22, 2020. The use of masks is mandatory in indoor public and retail spaces in the province. THE CANADIAN PRESS/Darryl Dyck
B.C. records deadliest day of pandemic with 13 deaths, 738 new COVID-19 cases

Number of people in hospital is nearing 300, while total cases near 30,000

Anyone with information on any of these individuals is asked to call 1-800-222-TIPS (8477) or visit the website victoriacrimestoppers.ca for more information.
Greater Victoria Crime Stoppers wanted list for the week of Nov. 24

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

(AP Photo/Haven Daley)
POLL: Do you think the current COVID-19 restrictions should continue beyond Dec. 7?

One week into the new restrictions to curtail the spread of the… Continue reading

(File photo)
Alberta woman charged after allegedly hitting boy with watermelon at Okanagan campsite

Police say a disagreement among friends at an Adams Lake campsite turned ugly

Court of Appeal for British Columbia in Vancouver. (File photo: Tom Zytaruk)
B.C. woman loses appeal to have second child by using late husband’s sperm

Assisted Human Reproduction Act prohibits the removal of human reproductive material from a donor without consent

An excavator was stolen from a rural property south of Nanaimo this month, say police. (Photos submitted)
Excavator stolen from property south of Nanaimo

Bobcat Mini believed to have been stolen between Nov. 12-14, say RCMP

Krista Macinnis displays the homework assignment that her Grade 6 daughter received on Tuesday. (Submitted photo)
B.C. mom angry that students asked to list positive stories about residential schools

Daughter’s Grade 6 class asked to write down 5 positive stories or facts

B.C. projects targeting the restoration of sockeye salmon stocks in the Fraser and Columbia Watersheds will share in $10.9 million of federal funding to protect species at risk. (Kenny Regan photo)
13 projects protecting B.C. aquatic species at risk receive $11 million in federal funding

Salmon and marine mammals expected to benefit from ecosystem-based approach

Most Read