The Alberta government is seeking legislative approval to lend the Orphan Well Association (OWA) $235 million (Can.) to accelerate work on oil and gas wells with defunct or insolvent owners.
The OWA operates as an independent, nonprofit organization under the delegated authority of the Alberta Energy Regulator. Most of its funding comes from the oil and gas producing industry, which currently provides $30 million/year. The industry contribution is to double in fiscal 2019-20.
Alberta Premier Rachel Notley said the loan “is about creating jobs and fixing a longstanding problem.”
In its latest inventory, OWA said Alberta last month had 1,411 orphan wells for abandonment, 1,125 orphan wells for suspension, 666 orphan sites for reclamation, and 1,764 orphan pipeline segments for abandonment.
OWA closed 185 wells last year.
According to the provincial government, Alberta has about 180,000 active wells, 83,000 inactive wells, and 69,000 abandoned wells.
