Alberta's Oil Patch Eyes Solar Power to Offset Cleanup Costs

A recent government-commissioned report suggests a novel approach for Alberta's oil and gas sector: utilizing old well sites for solar power generation. This strategy could allow companies to offset their environmental cleanup obligations, sparking debate about the province's energy policies and the principle of polluter pays.

A New Strategy for Old Sites

The report, authored by David Yager, a special advisor to the premier and Alberta Energy Regulator board member, proposes that oil and gas companies could install solar panels on disturbed land instead of undertaking full reclamation of old well sites. This would offer "both environmental and economic benefits," according to the report. Alberta faces a significant challenge with approximately 80,000 inactive wells, and the estimated cleanup cost is $36 billion, though critics suggest the actual figure could be much higher.

Key Takeaways

• Oil and gas companies might avoid full reclamation of old well sites by installing solar projects.

• The proposal contrasts with recent government restrictions on renewable energy projects.

• Critics argue this could allow companies to evade cleanup responsibilities.

• Concerns exist about the potential weakening of environmental policies and the "polluter pays" principle.

• The report also suggests using carbon credits or the provincial carbon levy fund to finance cleanup.

Environmental and Policy Concerns

Environmental groups and rural municipalities have raised concerns about the proposal's potential to undermine the "polluter pays" principle. Phillip Meintzer of the Coalition for Responsible Energy stated that this idea seems to contradict the government's justification for its moratorium and restrictions on renewable energy projects, which were partly based on end-of-life cleanup costs. He questioned whether renewable projects would even be permitted on these sites given the existing restrictions.

Government's Stance and Future Implications

An official from the Energy Ministry indicated that the idea of solar installations on old sites was brought forward by groups interested in taking over leases, particularly those with small gas plants. These companies would assume reclamation costs and require landowner consent. However, the report's suggestions, including the use of carbon credits or the TIER fund for cleanup, have also drawn criticism for potentially weakening the integrity of emissions reduction initiatives. The provincial government has not yet committed to adopting any of the report's recommendations, many of which would require new legislation and cross-ministry collaboration.

Sources

• Alberta oil and gas companies could install solar panels to avoid cleanup costs, The Narwhal.