fbpx
Tuesday , 29 September 2020

Billion dollar oil and gas well-site reclamation project to create over 5,000 jobs: Alberta

The provincial government’s oil and gas well-site reclamation, which has seen major investments from the federal government, will begin May 1.

The feds announced $1.7 billion in orphan well reclamation in western Canadian provinces, of which roughly $1 billion will go to Alberta.

The Site Rehabilitation Program will provide grants to oilfield service contractors to perform well, pipeline, and oil and gas site reclamation work.

Starting now, the program is expected to create about 5,300 direct jobs and lead to the cleanup of thousands of sites, the province said.

“We’re going to be moving as quickly as we possibly can to turn that money into jobs in communities all across Alberta and particular helping to put back to work great oilfield service workers that have been laid off,” said Premier Jason Kenney during a press conference on Friday.

With an initial focus on providing grants to service companies that have been significantly impacted by the unprecedented economic downturn, the program will provide funds in $100-million increments.

The first $100 million will be available for service companies to do eligible work anywhere in the province.

Future increments may be allocated for work conducted in specific regions within the province, directing funds where they can have the most significant environmental benefits.

The province said all laws, regulations, directives, and environmental and occupational health and safety standards, including physical distancing and COVID-19-related health guidelines, must be followed in carrying out the work.

The Site Rehabilitation Program will provide grants of between 25 and 100 per cent of total project costs – depending on the ability of the oil and gas company responsible for the site to help pay for cleanup – and will be paid directly to the oilfield service company completing the work.

Contractors can apply for a grant online during the following dates and must meet all eligibility and project requirements.

From May 1-31, the program is open to service companies significantly impacted by the unprecedented economic downturn for contracts of up to $30,000 per application across Alberta.

This $100-million increment will focus on projects that are eligible for 100 per cent government funding.

From May 15-June 15, it will be open to service companies for contracts of up to $30,000 and eligible for 100 per cent funding.

This $100-million increment will focus on sites where some operators have failed landowners and where government is paying compensation to landowners as required under the Surface Rights Act.

Future increments will be developed for larger projects.

Alberta appoints advocate in Washington D.C.

As part of the Alberta Government working with partners in the United States on an integrated North American energy strategy, Premier Jason Kenney has appointed former MP and business executive James Rajotte to lead Alberta’s office in Washington, effective May 1.

Rajotte’s primary responsibility will be to bring Alberta’s voice to policymakers at both the national and state levels, as we explore North American energy security and deal collaboratively with threats to our markets from overseas, the province said in a press release on Friday.

About Michael Menzies

Menzies is the editor-at-large for Connect Media. Born and raised in Vermilion, he started in May 2018 during his NAIT Radio and Television practicum and reports on local politics, sports, and community issues. He became the Bonnyville Pontiacs play-by-play voice during the 2019-20 season. He also comments on provincial and national issues. Menzies hosts Connected! Evening Monday-Thursday at 5 o’clock. He also likes to buy books and read some of them.