There are continuing questions about a provincial government proposal to give oil companies breaks on royalty rates if they clean up old inactive wells.
Alberta has launched engagement on a pilot project called the Liability Management Incentive Program, which would provide up to $100 million in credits over three years to companies that clean up sites that have been inactive for at least 20 years.
"Why would we take the obligation away from the producers? The people that, when they started the oil and gas production, they knew full well that cleanup was part of the obligation?" said Drew Barnes, an independent MLA who used to be part of the United Conservative Party caucus.Danielle Smith, before becoming premier, lobbied the province on an incentive-based cleanup program known as RStar.
It's an issue that is likely to be much talked about in the lead up to May's provincial election, according to political scientist Trevor Harrison. The government document outlining the pilot lists eligibility criteria for the program, such as well sites needing to be drilled prior to 1980, and says it will be"applied to all well sites in the province and the orphan well site inventory."
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