What does the indicator show?
The indicator shows that oil and gas well reclamation certification is progressing at a much slower rate than abandonment. This is resulting in a buildup of uncertified wells. There were 45,248 uncertified wells remaining at the end of 2008. Approximately 25% (11,505) uncertified wells were abandoned between 1963 and 1998. On average, over the last 10 years, approximately 16,306 wells were drilled per year, 4,190 were abandoned and 1,874 certified. (Click here for a graph). This indicates that over the last 10 years, the certification rate has been approximately 44.7% of the abandonment rate.
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Why is this indicator important?
Alberta’s oil and gas well drilling rates are increasing, and a significant number of drilled wells are abandoned each year. The goal of the reclamation program is to ensure that abandoned wells are reclaimed in a timely manner, and have a land capability that is equivalent to pre-drilling conditions. A sustainable development process should ensure that oil and gas wells are reclaimed at the same time as they are abandoned. This reduces the potential for land to remain unused or unusable due to the presence of unfavorable or adverse conditions. Reclamation and abandonment rates should be similar to prevent future liabilities associated with a buildup of uncertified wells.
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What actions are being taken?
Land reclamation programs and reclamation incentives are continually reviewed and adjusted:
- the Upstream Oil and Gas Reclamation Program changed on October 1, 2003 to include contamination assessment and remediation as a requirement for obtaining a reclamation certificate. The program changes also provide for reclamation applications to be certified throughout the year following a desktop review.
- the Orphan Well Program , funded by the oil and gas industry and administered by the Alberta Energy Utilities Board, is designed to reclaim wells formerly owned by companies that are no longer in business.
- the License Liability Rating Program , administered by the Alberta Energy Utilities Board, is designed to encourage reclamation soon after well abandonment.
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