Calgary energy company told to abandon hundreds of wells over care and maintenance problems

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Tallahassee Exploration has 60 days to properly abandon the sites, after failing to fulfil the requirements of two previous orders by the Alberta Energy Regulator

A Calgary energy company has been ordered to abandon close to 2,000 wells, pipeline sections and other facilities over concerns about care and maintenance of the sites.

In a release issued Monday, the Alberta Energy Regulator told the company it has 60 days to complete the first stage of cleanup for 817 wells, 964 pipeline segments and 77 facilities. The Parliamentary Budget Office estimates the average cost of cleaning up a well at $78,000 – although some experts consider that figure low. Still, that figure would put the cost of remediating Tallahassee’s wells at nearly $64-million, not including the pipelines or other facilities.Another order was issued in November, demanding the company provide financial information and forbidding company officials from being on its site without approval from the Orphan Well Association.

Tallahassee will remain the owner of those assets although the Orphan Well Association will take control of their care and custody.In 2019, the Alberta Energy Regulator rated its liability-to-asset ratio at less than half of what it considered stable. Still, the regulator approved its purchase of assets from other troubled energy companies the following year even as the Northwest Territories was blocking Tallahassee’s purchase of wells in its jurisdiction.

 

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