The Alberta Energy Regulator has suspended licenses of Lexin Resources Ltd., a natural gas producer and processor based in Calgary, citing concerns that include the company’s handling of sour gas.
“Lexin has failed to comply with multiple orders, lacks sufficient staff to manage its more than 1600 sites, and owes more than $1 million in orphan fund levies and administrative fees and more than $70 million in security for its end of life obligations,” the AER said in a statement.
“Repeated attempts by the AER to bring the company into compliance have failed. As a result, the AER has little confidence in Lexin’s ability to conduct its operations safely and is taking measures to prevent increasing public safety, environmental, and financial risk.”
An AER official told CBC News the company is the largest against which the agency has issued such an order.
CBC said the company operated a sour-gas plant in southern Alberta and had 1,380 wellsites, 201 pipeline licenses, and 81 facilities.
The AER transferred management of Lexin’s properties to the Orphan Well Association. Last August, it ordered Lexin and affiliate LR Processing to suspend work at the Mazeppa sour gas plant.
The agency also secured an interim court order against removal of equipment from Lexin properties for which it issued licenses.
