AER shows its teeth over orphan wells

February 22, 2017 1 Comments

Surface Casing Ventflow Testing

Now more than ever the Alberta’s Energy Regulator (AER) is showing producers will not bully it. Ultimately they expect the responsible management of our resources and the associated equipment As Albertan’s we should cautiously applaud proper resource development with an eye on the economy.

The AER announced the suspension of 1,380 wells Lexin Resources Ltd, along with its facilities and pipelines, as this company announced that they could not continue to maintain acid wells, these emanate acid gas containing the deadly hydrogen sulfide.

Since last summer the AER has been talking about this issue with producer Lexin and issued an environmental protection order to prevent this company from complying only with the parameters it wants.

The law caused the company to change its sweet gas acid wells south of the city which makes this a minor concern. Lexin owes more than $ 70 million in security deposits for its end-of- life obligations, according to the AER.

In addition to suspending licenses, the environmental protection order issued to the company and an affiliated entity: LR Processing Ltd., requires them to address environmental concerns at its Mazeppa sour gas plant. The AER has taken a strong stand in this case and conducted 276 inspections of Lexin facilities last year.

As part of the AER action, the Orphan Well Association has assumed the "care and custody" of Lexin wells and services for the time being. The critical reaction of the Alberta energy regulator makes it possible to protect not only the environment but also the economy and lives of people living in nearby cities.

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