Whereas the Alberta Vitality Regulator says there isn’t any danger to public security, the cease manufacturing order was issued in an effort to guard the atmosphere
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Alberta’s vitality sector watchdog has imposed a stop-production order on a northern Alberta oil and fuel facility after the corporate was handed almost 100 non-compliances between March and July 2022.
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Everest Canadian Assets, which operates a Steam Assisted Gravity Drainage (SAGD) facility north of Fort McMurray, was ordered on Friday, March 3 by the Alberta Vitality Regulator (AER) to instantly stop operations in any respect of its licensed property.
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A report revealed by the AER stated the corporate had failed to stick to its compliance plan after it was discovered to have did not adjust to 93 gadgets over a four-month interval in 2022.
Whereas the AER says there isn’t any danger to public security, the affordable care and measures order was issued in an effort to guard the atmosphere following “repeated failures by Everest Canadian Assets to adjust to AER regulatory necessities,” the regulator’s web site says.
“When it comes to the order, the power and its related infrastructure have to be shut down, which suggests Everest should safely cease manufacturing and stop operations. As well as, the AER directed the Orphan Properly Affiliation (OWA) to offer speedy care over the websites and ensure that the power is closed or closed by March 18, 2023,” it stated.
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“The order doesn’t relieve Everest Canadian Assets of any of its obligations and liabilities, however ensures that the websites are monitored responsibly for the safety of the atmosphere.”
‘Flawed’ treatment plan pressured to close down
In early July 2022, the AER and members of Everest management met to debate points and “set expectations” to deal with the excellent non-compliance and requested that the AER develop and submit a plan to deal with any remaining points to repair, the report says.
A number of experiences and answer proposals, together with a groundwater monitoring program proposal and a groundwater monitoring thermal report, have been deemed “flawed” by AER.
On February 21, 2023, personnel from AER subject operations northeast inspected Everest’s McKay in-situ facility and located that the corporate was not following the accepted actions in its compliance plan.
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The next week, on March 1, Everest management advised the AER that the corporate would shut its McKay facility, primarily halting all manufacturing and operations.
On March 2, an Everest worker contacted the AER to inform it of an tools failure on the McKay facility that left it with out warmth.
An AER employees member visited the location that day and confirmed “the McKay facility is being closed and there may be decreased safety from the freezing temperatures,” the report stated.
After Everest assured the AER that it will resume steam operations on the facility, the report states that an Everest employees member advised the AER that the remaining heating system on the website “needs to be shut down by a third-party inspector as a consequence of integrity issues of the tools.”
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AER’s inspecting supervisor, Heath Williams, made the choice to droop the websites and Everest was notified of speedy motion to be taken, which included the suspension of all wells and services operated by the corporate and any figuring out doubtlessly affected events within the occasion of a chemical launch and offering, amongst different issues, a duplicate of its emergency response plan.
Over the subsequent two weeks, the Orphan Properly Affiliation has been tasked with making certain that any containment units or tools are safely suppressed, emptied and disposed of. Fifteen days after the order is launched, all Everest web sites have to be shut down or shut down.
Representatives from Everest weren’t instantly out there for remark.
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Tax deferral accepted by RMWB board
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In November 2022, Everest made a bid to the Regional Municipality of Wooden Buffalo Council to get a deferment on property taxes due from 2018, 2019 and 2021.
Citing low oil costs, Everest requested the council to delay almost $890,000 in taxes owed, and provided to pay the quantity in month-to-month funds of $75,000. The request was accepted with one councilor in opposition.
The earlier board granted conditional remission of greater than $2.5 million in taxes, again taxes and related penalties owed by the identical firm.
The corporate has 33 effectively licenses, three facility licenses and 14 pipeline licenses within the area.
— With recordsdata from Vincent McDermott
ocondon@postmedia.com
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