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Alberta

Audit of supervised consumption site in Lethbridge uncovers $1.6 million unaccounted for

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From the Province of Alberta

ARCHES audit finds serious financial mismanagement

Senior executive made $342,943 in 2019

The province has released the audit of the ARCHES supervised consumption site in Lethbridge and as a result of its findings, will be ending its grant funding agreement with the organization.

The independent accounting firm Deloitte conducted a grant expenditure audit after the Alberta government learned of possible financial irregularities within the ARCHES organization.

The review substantiated allegations of asset and funding misappropriation, non-compliance with grant agreements, and inappropriate governance and organizational operations. The ARCHES organization was found to have seriously mismanaged taxpayer funds meant for the most vulnerable in our society.

“It is disturbing and extremely disappointing to me that taxpayer funds allocated to this organization in order to serve the most vulnerable in Lethbridge would be used for European conferences, expenses for retreats, entertainment and gift cards. Our government will not stand idly by while millions in taxpayer funds are missing or misappropriated.”

Jason Luan, Associate Minister of Mental Health and Addictions
Below is a summary of the audit’s findings:

$1,617,094 unaccounted for due to missing documentation for expenditures from 2017 to 2018.
$13,000 of interest off ARCHES bank accounts was used to fund parties, staff retreats, entertainment and gift cards.
A senior executive’s compensation totalled $342,943 for calendar year 2019. This includes $70,672 in overtime for fiscal year 2019-20. The grant agreement allows for a salary of $80,000.
The Everyone Comes Together (ECT) program staff salaries and benefits also exceeded the amount allocated by the grant agreement by $16,000.
The number of ARCHES employees is greater than allowed by the grant agreement. ARCHES maintained up to 126 employees. However, the exact number could not be verified.
$4,301 spent on European travel for management to attend a conference in Portugal.
Thousands of dollars in unverifiable travel expenses, including trips charged to company credit cards but not recorded in the ledger.
A senior executive’s family member was hired, earning $9,900. The auditors could not locate a resume or personnel file to verify any qualifications.
$7,557 for management retreats, including meals and mileage where documentation for spending was unclear.
The grant agreement requires the organization to maintain the funding received from Alberta Health within a separate bank account; however, the audit revealed that it was comingled with other funding sources. As a result of ARCHES comingling their accounts, the auditors could not verify thousands of dollars of expenses.
Proper personal conflict of interest declarations were not recorded when related individuals or vendors were hired or utilized.
Vendors were repeatedly secured in secrecy with a lack of transparency and accountability.
No petty cash reconciliations have been completed.
$1,129 was used to buy gift cards for board members for The Keg, iTunes, Boston Pizza, Earls, Gap, Shell, Chapters, Cineplex, Amazon, Starbuck’s, Tim Hortons, MasterCard, and Bath and Bodyworks. The expense was recorded as “Gift cards – Board Members.”
$2,100 was spent on gift cards to The Oil Changer – a business owned by a senior executive’s spouse.
$2,205 was spent on a television with no receipt documentation to support the purchase.
The auditors were unable to complete the grant expenditure review in respect to all allegations received or provide a complete financial value attributable to each allegation, due to the state of ARCHES’ records and the related outstanding documents.

Due to missing funds and unverifiable transactions, as well as allegations, which could not be investigated in the scope of this audit, government will consult with law enforcement to determine whether further investigation is warranted.

To ensure people struggling with addiction can continue to receive services, government has asked Alberta Health Services to set up a temporary mobile overdose prevention site in Lethbridge with the goal of seamlessly transitioning services. Government will also be adding three recovery coaches to the region to assist in expediting individuals into treatment.

Quick facts

ARCHES has received more than $14.4 million in taxpayer dollars over the past two years.
In June, government announced an additional $4 million over four years to expand access to the virtual opioid dependency program to allow Albertans to use telehealth technology to access treatment for opioid use disorder.
Also announced was the opioid agonist therapy gap coverage program to cover the costs of medications to treat opioid use disorder for Albertans waiting to receive coverage through a supplementary health benefit plan.
As part of the $140-million mental health and addiction commitment to create 4,000 spaces, government has announced additional treatment spaces at Poundmaker’s Lodge Treatment Centres, Sunrise Healing Lodge, Fresh Start Recovery Centre, Thorpe Recovery Centre, and the Blood Tribe Bringing the Spirit Home detox centre.

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Alberta

‘Weird and wonderful’ wells are boosting oil production in Alberta and Saskatchewan

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From the Canadian Energy Centre

By Deborah Jaremko

Multilateral designs lift more energy with a smaller environmental footprint

A “weird and wonderful” drilling innovation in Alberta is helping producers tap more oil and gas at lower cost and with less environmental impact.

With names like fishbone, fan, comb-over and stingray, “multilateral” wells turn a single wellbore from the surface into multiple horizontal legs underground.

“They do look spectacular, and they are making quite a bit of money for small companies, so there’s a lot of interest from investors,” said Calin Dragoie, vice-president of geoscience with Calgary-based Chinook Consulting Services.

Dragoie, who has extensively studied the use of multilateral wells, said the technology takes horizontal drilling — which itself revolutionized oil and gas production — to the next level.

“It’s something that was not invented in Canada, but was perfected here. And it’s something that I think in the next few years will be exported as a technology to other parts of the world,” he said.

Dragoie’s research found that in 2015 less than 10 per cent of metres drilled in Western Canada came from multilateral wells. By last year, that share had climbed to nearly 60 per cent.  

Royalty incentives in Alberta have accelerated the trend, and Saskatchewan has introduced similar policy.

Multilaterals first emerged alongside horizontal drilling in the late 1990s and early 2000s, Dragoie said. But today’s multilaterals are longer, more complex and more productive.

The main play is in Alberta’s Marten Hills region, where producers are using multilaterals to produce shallow heavy oil.

Today’s average multilateral has about 7.5 horizontal legs from a single surface location, up from four or six just a few years ago, Dragoie said.

One record-setting well in Alberta drilled by Tamarack Valley Energy in 2023 features 11 legs stretching two miles each, for a total subsurface reach of 33 kilometres — the longest well in Canada.

By accessing large volumes of oil and gas from a single surface pad, multilaterals reduce land impact by a factor of five to ten compared to conventional wells, he said.

The designs save money by skipping casing strings and cement in each leg, and production is amplified as a result of increased reservoir contact.

Here are examples of multilateral well design. Images courtesy Chinook Consulting Services.

Parallel

Fishbone

Fan

Waffle

Stingray

Frankenwells

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Alberta

Alberta to protect three pro-family laws by invoking notwithstanding clause

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From LifeSiteNews

By Anthony Murdoch

Premier Danielle Smith said her government will use a constitutional tool to defend a ban on transgender surgery for minors and stopping men from competing in women’s sports.

Alberta Premier Danielle Smith said her government will use a rare constitutional tool, the notwithstanding clause, to ensure three bills passed this year — a ban on transgender surgery for minors, stopping men from competing in women’s sports, and protecting kids from extreme aspects of the LGBT agenda — stand and remain law after legal attacks from extremist activists. 

Smith’s United Conservative Party (UCP) government stated that it will utilize a new law, Bill 9, to ensure that laws passed last year remain in effect.

“Children deserve the opportunity to grow into adulthood before making life-altering decisions about their gender and fertility,” Smith said in a press release sent to LifeSiteNews and other media outlets yesterday. 

“By invoking the notwithstanding clause, we’re ensuring that laws safeguarding children’s health, education and safety cannot be undone – and that parents are fully involved in the major decisions affecting their children’s lives. That is what Albertans expect, and that is what this government will unapologetically defend.”

Alberta Justice Minister and Attorney General Mickey Amery said that the laws passed last year are what Albertans voted for in the last election. 

“These laws reflect an overwhelming majority of Albertans, and it is our responsibility to ensure that they will not be overturned or further delayed by activists in the courts,” he noted. 

“The notwithstanding clause reinforces democratic accountability by keeping decisions in the hands of those elected by Albertans. By invoking it, we are providing certainty that these protections will remain in place and that families can move forward with clarity and confidence.”

The Smith government said the notwithstanding clause will apply to the following pieces of legislation:

  • Bill 26, the Health Statutes Amendment Act, 2024, prohibits both gender reassignment surgery for children under 18 and the provision of puberty blockers and hormone treatments for the purpose of gender reassignment to children under 16.

  • Bill 27, the Education Amendment Act, 2024, requires schools to obtain parental consent when a student under 16 years of age wishes to change his or her name or pronouns for reasons related to the student’s gender identity, and requires parental opt-in consent to teaching on gender identity, sexual orientation or human sexuality.

  • Bill 29, the Fairness and Safety in Sport Act, requires the governing bodies of amateur competitive sports in Alberta to implement policies that limit participation in women’s and girls’ sports to those who were born female.”

Bill 26 was passed in December of 2024, and it amends the Health Act to “prohibit regulated health professionals from performing sex reassignment surgeries on minors.”

Last year, Smith’s government also passed Bill 27, a law banning schools from hiding a child’s pronoun changes at school that will help protect kids from the extreme aspects of the LGBT agenda.

Bill 27 will also empower the education minister to, in effect, stop the spread of extreme forms of pro-LGBT ideology or anything else to be allowed to be taught in schools via third parties.

Bill 29, which became law last December, bans gender-confused men from competing in women’s sports, the first legislation of its kind in Canada.  The law applies to all school boards, universities, and provincial sports organizations. 

Alberta’s notwithstanding clause is like all other provinces’ clauses and was a condition Alberta agreed to before it signed onto the nation’s 1982 constitution.

It is meant as a check to balance power between the court system and the government elected by the people. Once it is used, as passed in the legislature, a court cannot rule that the “legislation which the notwithstanding clause applies to be struck down based on the Charter of Rights and Freedoms, the Alberta Bill of Rights, or the Alberta Human Rights Act,” the Alberta government noted.

While Smith has done well on some points, she has still been relatively soft on social issues of importance to conservatives , such as abortion, and has publicly expressed pro-LGBT views, telling Jordan Peterson earlier this year that conservatives must embrace homosexual “couples” as “nuclear families.” 

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