Two energy companies whose controversial deal over aging assets in southern Alberta failed to win approval from Alberta’s energy regulator say they will try again.
The regulator refused Thursday to allow licences for wells, pipelines and other facilties to be transferred to Pieridae Energy, a small Calgary company, from Shell Canada.
The regulator said it wasn’t happy with how the deal would have allowed the companies to divide cleanup liabilities.
It added the deal appeared to reduce Shell’s responsibility for cleaning up two gas processing sites.
But Shell says in a statement that it will look for a way to transfer the licences to Pieridae and keep the cleanup liabilities.
Pieridae also says the hundreds of wells, pipelines and processing plants can be brought into its operations in a way that satisifies the regulator.
The company says the decision has nothing to do with its financial position nor its cleanup ability.
The regulator’s ruling on the deal is seen as a test case of its determination to prevent more cleanup costs for energy facilities falling to the taxpayer.
This report by The Canadian Press was first published May 15, 2020
The Canadian Press