Province promises $400M for next round of oil and gas well cleanup

Share:

The provincial and federal governments have announced the next round of project funding to kick start a nearly year-old program to clean up Alberta's abandoned and orphaned oil and gas sites.

The $400-million funding commitment announced Friday is part of Ottawa's $1.7 billion reclamation and remediation plan, which was announced last year for old oil and gas sites in B.C., Alberta and Saskatchewan.

Alberta was promised $1 billion of that and has since created what it calls the Site Rehabilitation Program.

Energy Minister Sonya Savage announced Friday that $300 million will be given to oil and gas producers who have already done similar work in the past two years.

The remaining $100 million in Friday's announcement will go toward site cleanup on First Nations and Métis settlements. 

Canada's Minister of Natural Resources, Seamus O'Regan, who called in from his home in Newfoundland, joined Savage for the announcement. 

"It's well documented that there are some areas where the Alberta government and the federal government haven't always seen eye to eye. But in many areas, such as this one, we are in perfect alignment," she said.

The program provides grants to oilfield service contractors to perform well, pipeline and oil and gas site closure and reclamation work, according to the province. 

When the program was announced last April, it promised to create 5,200 jobs in Alberta. By the end of last year, the majority of the money hadn't been spent.