Earlier this month, my colleague Andrew Weaver asked Hon. Michelle
Mungall, Minister of Energy, Mines and Petroleum Resources, about
orphan oil and gas wells in British Columbia. The Auditor General of British
Columbia reviewed the situation in our province and
reported that the number of orphan sites is dramatically increasing and the
funds set aside by companies is falling well short of what is needed.
We have a problem with the orphans, but it’s not just a problem in
British Columbia. The $3 billion price tag that British Columbians will likely
be on the hook for is small in comparison to the estimated $50-70 billion that
Albertans can expect.
Western provinces have a regulatory problem.
Does the polluter pay?
In our province, the Oil and Gas Commission regulates the industry.
Apparently, we have a polluter pays principle. This means the company who is
causing the mess is responsible for cleaning it up. However, in the case of the
liabilities of companies that are now bankrupt, the cost is offloaded to the
public purse — you and me and our children. While the companies must put a
security deposit down to cover the cost of the future cleanup, the Orphan Fund
is millions short.
Commons is a
Canadaland podcast hosted by Arshy Mann. In the latest season
"Crude" he his diving into our history of how Canada became a
petro-state. There is an episode on the growing
problem with orphan wells and how the oil and gas industry is sidestepping its
responsibility and putting it into the hands of the people.
There are a lot of orphans in the oil and gas industry, but these are just
one concern.
What about the orphan pipeline that Prime Minister Justin Trudeau
bought? Or how about another kind of orphan: First Nations communities left
explaining to their members how they are going to fill the
space in the vacuum following the evaporation of LNG speculators, the midnight
movers vanishing into the darkness.
This devastates modern treaty communities like Malahat and Huu-ay-aht
who desperately need to create stable sources of revenue and who are nothing
more than leverage for oil and gas players.
Whose interest does government serve?
It's a bad situation. There is a looming environmental, social and
economic disaster. Increasingly, Minister Mungall stands and defends the system
with massive loopholes that the oil and gas industry exploits. It's a system
that is failing the public, whose interests she has sworn to protect.
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| There are a lot of orphans in the oil and gas industry, but these are just one concern |
There is a growing public demand that government get out of the business
of subsidizing oil and gas. Unfortunately, the BC NDP government
continues to roll out same plan as the BC Liberals before them. This government
must stop hiding under the "polluter pay" rhetoric, and actually make
the polluter pay.
As the unfolding storyline in Commons highlights, and as we have
heard repeatedly about the National Energy Board hearing on the Trans Mountain
Pipeline Expansion Project, the provincial and federal regulators have been
captured by industry.
Industry capture
The unhealthy relationship with the extractive industries is part of the
DNA of our provinces and country. It's been the source of much of my
frustration in numerous recent posts about logging and fisheries.
When searching for solutions we have to start with raising awareness.
British Columbians need to know the economic boom for corporate interest is
actually a bust for the public interest. As their awareness increases, I
believe many more will demand government change.
Over and above that, we need politicians that have the political will to
separate the regulators and the regulated, strengthen the rules and ensure the
public interest is at the centre.
Finally, they must be willing to follow through on enforcing the rules
we have.
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