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Alberta

Province of Alberta loaning Orphan Well Association 100 Million to create jobs and accelerate clean up

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5 minute read

From The Province of Alberta

Creating jobs, accelerating well cleanup

A government loan to the Orphan Well Association (OWA) will spur the creation of hundreds of green jobs and reduce the number of orphaned wells across Alberta.

As the first step in A Blueprint for Jobs, the province is extending its loan to the OWA by up to $100 million. This loan will bolster the association’s immediate reclamation efforts and generate up to 500 direct and indirect jobs in the oil services sector.

“Today’s investment is part of our Blueprint for Jobs. This taxpayer investment will create good-paying jobs while improving the environment. Actions like this will help to get Alberta back to work.”

Jason Kenney, Premier

“We are getting Albertans back to work while staying true to our province’s reputation as a responsible resource developer. This loan will increase economic activity across our province and is an important step in addressing the pressing issue of oil and gas liabilities – particularly in rural Alberta.”

Sonya Savage, Minister of Energy

“By staying on top of the orphaned well inventory, we’re helping to ensure a sustainable energy industry in Alberta. The Orphan Well Association continues to increase our efficiencies while also increasing the number of sites we are addressing. This loan will help us further these efforts while helping Alberta’s service sector and reducing the impact on affected landowners.”

Lars De Pauw, executive director, Orphan Well Association

Government and the OWA are currently finalizing specific loan terms and conditions, including establishing a repayment schedule. Both parties have agreed that this investment will be completed before April 1, 2021.

The Blueprint for Jobs is a plan to bring jobs and investment back to Alberta and restore the province’s position as the best place in the country to live, work, start a business, and raise a family. The Government of Alberta is focused on creating jobs, growing the economy and getting Alberta back to work.

Quick facts

  • The loan extension will enable the OWA to:
  • decommission approximately 1,000 wells
  • start more than 1,000 environmental site assessments for reclamation
  • The Alberta government previously provided the OWA with a $235 million interest-free loan. The OWA began repaying the loan in 2019, using money received from industry through the annual Orphan Fund Levy.
  • In the coming weeks, government will be introducing a full suite of products, covering the entire lifecycle of wells from start to finish.

About the Orphan Well Association

The Orphan Well Association is an independent non-profit organization that operates under the delegated legal authority of the Alberta Energy Regulator (AER). The mandate of the OWA is to safely decommission orphan oil and gas wells, pipelines and production facilities, and restore the land as close to its original state as possible. Funding for the OWA comes primarily from the upstream oil and gas industry, through annual levies administered by the AER.

Key Terms

Inactive well: A well that has not been used for production, injection, or disposal for a specified amount of time – six months for high-risk wells, or 12 months for medium- and low- risk wells.

Orphan: A well, pipeline, or facility that does not have any legally responsible and/or financially able party to conduct abandonment and reclamation responsibilities.

Abandoned well: A well that is no longer needed to support oil and gas development and is permanently plugged, cut and capped according to Alberta Energy Regulator requirements.

Reclamation: The process of returning the site, as close as possible, to a state that’s equivalent to before it was disturbed. Companies are responsible for reclamation liability for 25 years, after which the liability reverts to the Crown.

After 15 years as a TV reporter with Global and CBC and as news director of RDTV in Red Deer, Duane set out on his own 2008 as a visual storyteller. During this period, he became fascinated with a burgeoning online world and how it could better serve local communities. This fascination led to Todayville, launched in 2016.

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Agriculture

Lacombe meat processor scores $1.2 million dollar provincial tax credit to help expansion

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Alberta’s government continues to attract investment and grow the provincial economy.

The province’s inviting and tax-friendly business environment, and abundant agricultural resources, make it one of North America’s best places to do business. In addition, the Agri-Processing Investment Tax Credit helps attract investment that will further diversify Alberta’s agriculture industry.

Beretta Farms is the most recent company to qualify for the tax credit by expanding its existing facility with the potential to significantly increase production capacity. It invested more than $10.9 million in the project that is expected to increase the plant’s processing capacity from 29,583 to 44,688 head of cattle per year. Eleven new employees were hired after the expansion and the company plans to hire ten more. Through the Agri-Processing Investment Tax Credit, Alberta’s government has issued Beretta Farms a tax credit of $1,228,735.

“The Agri-Processing Investment Tax Credit is building on Alberta’s existing competitive advantages for agri-food companies and the primary producers that supply them. This facility expansion will allow Beretta Farms to increase production capacity, which means more Alberta beef across the country, and around the world.”

RJ Sigurdson, Minister of Agriculture and Irrigation

“This expansion by Beretta Farms is great news for Lacombe and central Alberta. It not only supports local job creation and economic growth but also strengthens Alberta’s global reputation for producing high-quality meat products. I’m proud to see our government supporting agricultural innovation and investment right here in our community.”

Jennifer Johnson, MLA for Lacombe-Ponoka

The tax credit provides a 12 per cent non-refundable, non-transferable tax credit when businesses invest $10 million or more in a project to build or expand a value-added agri-processing facility in Alberta. The program is open to any food manufacturers and bio processors that add value to commodities like grains or meat or turn agricultural byproducts into new consumer or industrial goods.

Beretta Farms’ facility in Lacombe is a federally registered, European Union-approved harvesting and meat processing facility specializing in the slaughter, processing, packaging and distribution of Canadian and United States cattle and bison meat products to 87 countries worldwide.

“Our recent plant expansion project at our facility in Lacombe has allowed us to increase our processing capacities and add more job opportunities in the central Alberta area. With the support and recognition from the Government of Alberta’s tax credit program, we feel we are in a better position to continue our success and have the confidence to grow our meat brands into the future.”

Thomas Beretta, plant manager, Beretta Farms

Alberta’s agri-processing sector is the second-largest manufacturing industry in the province and meat processing plays an important role in the sector, generating millions in annual economic impact and creating thousands of jobs. Alberta continues to be an attractive place for agricultural investment due to its agricultural resources, one of the lowest tax rates in North America, a business-friendly environment and a robust transportation network to connect with international markets.

Quick facts

  • Since 2023, there are 16 applicants to the Agri-Processing Investment Tax Credit for projects worth about $1.6 billion total in new investment in Alberta’s agri-processing sector.
  • To date, 13 projects have received conditional approval under the program.
    • Each applicant must submit progress reports, then apply for a tax credit certificate when the project is complete.
  • Beretta Farms has expanded the Lacombe facility by 10,000 square feet to include new warehousing, cooler space and an office building.
    • This project has the potential to increase production capacity by 50 per cent, thereby facilitating entry into more European markets.

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Alberta

Alberta Next: Alberta Pension Plan

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From Premier Danielle Smith and Alberta.ca/Next

Let’s talk about an Alberta Pension Plan for a minute.

With our young Alberta workforce paying billions more into the CPP each year than our seniors get back in benefits, it’s time to ask whether we stay with the status quo or create our own Alberta Pension Plan that would guarantee as good or better benefits for seniors and lower premiums for workers.

I want to hear your perspective on this idea and please check out the video. Get the facts. Join the conversation.

Visit Alberta.ca/next

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