Alberta company ordered to abandon wells following months of regulatory failures
CBC
An Alberta company has lost the right to manage its own well sites after the provincial regulator ruled the operations pose a safety risk and must be abandoned by the operator.
The Orphan Well Association has assumed control of Revitalize Energy Inc.'s operations, two months after the Calgary-based company was formally ordered by the Alberta Energy Regulator to suspend operations.
Due to the company's ongoing financial distress and failure to comply with a string of previous orders, the regulator has ruled the operator can not be relied on to safely maintain its wells.
Staff from OWA — the industry-funded agency tasked with cleaning up wells in Alberta that have been abandoned or no longer have a responsible owner — will now ensure pipelines and more than 200 wells are shut down.
When a licensee is unable to provide ongoing reasonable care over assets, the regulator can place it under the association's care.
"At the end of the day, Revitalize did not do this work, whether they chose not to do the work or could not pay to have the work done," OWA present Lars De Pauw said in an interview with CBC News.
"That's why we're coming in to make sure it's put into safe condition."
CBC was unable to reach the company for comment.
An AER order dated Nov. 14 said the company failed to safely suspend wells and pipelines and doesn't have the cash flow needed to operate properly.
"[Due to] outstanding non-compliances, compliance history, lack of timely and meaningful communication with the AER, and with the additional risks of freezing during the upcoming winter season, the manager is of the opinion that Revitalize is not capable of providing reasonable care," the order says.
The drilling company operates across Alberta and Saskatchewan with the majority of its sites concentrated around the cross-border city of Lloydminster.
The operator has been the subject of a string of AER orders.
The company has been on a sanction status since last November when the AER flagged the company as unable or unwilling to comply with regulatory requirements.
Last month the company was ordered to cease operations and abandon all infrastructure, including wells, operational sites and pipelines, following repeated failures to comply with the regulator.
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