SanLing Vitality Ltd. has advised Alberta regulators it plans to stop operations on the finish of April, simply weeks after the licences it held for hundreds of oil and fuel wells had been suspended.
In early March, the Alberta Vitality Regulator stated the privately owned junior vitality firm owes $67 million in safety to the company for its end-of-life obligations.
It additionally stated on the time it had “little confidence in SanLing’s skill to conduct its operations safely.” On Wednesday, the AER stated the corporate intends to stop operations as of April 30.
SanLing Vitality, headquartered in Calgary, holds licences for 2,266 wells, 227 services and a couple of,170 pipelines.
The AER stated the Orphan Effectively Affiliation (OWA) has utilized to Alberta’s Court docket of Queen’s Bench to have a receiver assume management of SanLing’s stock.
“Our repeated makes an attempt to deliver SanLing into compliance have failed,” Blair Reilly, AER director of enforcement and emergency administration, stated in a launch.
“Whereas it is unlucky SanLing has determined to stop operations, we’ve got programs in place for when firms can’t meet their tasks to shut and clear up their websites.”
The AER stated SanLing has dedicated “to an orderly transition of its belongings to a receiver earlier than it ceases operations.”
This consists of sustaining its 24-hour emergency response quantity and responding to any incidents, making certain enough staffing and sustaining care of its belongings till a receiver is in place.
“The receiver will assist a transition of SanLing’s stock to accountable events, and the AER will orphan any remaining belongings to the OWA for closure,” based on the regulator.
The AER stated it would oversee SanLing’s belongings to make sure they’re secure, transferred into the palms of accountable operators, or, as a final resort, transitioned to the OWA for closure.
“Albertans know that occasions are powerful and our province’s vitality trade is struggling,” stated Lars DePauw, government director for the OWA.
“In these occasions, generally firms fail. When this occurs, the Orphan Effectively Affiliation is right here to make sure the issues these firms are experiencing do not develop into an issue for Albertans.”
The variety of orphan oil and fuel wells within the province have been a rising concern within the province for each monetary and environmental causes.
Final 12 months, the federal authorities introduced it might present Alberta with $1 billion to assist clear up orphaned and inactive oil and fuel wells.