Canada Energy receives conditions re water disposal
Canada Energy Partners Inc. can resume water disposal operations if it limits daily disposal volumes to 200 cubic mpd. It must also install seismic detection and cease disposal if the safety factor at the Peace Canyon Dam falls below a certain level.
CANADA ENERGY Partners Inc. has received a decision from the British Columbia Oil & Gas Commission (OGC) that will allow resumption of water disposal if certain conditions are met. The additional conditions are: (1) daily disposal volumes are limited to 200 cubic metres per day; (2) installation of seismic detection and accelerometer equipment with regular reporting of gathered data; and (3) a requirement to cease disposal if BC Hydro’s safety factor at the Peace Canyon Dam falls below an acceptable level. The company believes that it can meet these conditions and will proceed to re-establish water disposal operations as soon as practicable.
In early March, 2017, BC Hydro, the Crown utility company, notified the OGC that it believed the company’s disposal operation imposed a risk of induced earthquakes that could damage its Peace Canyon Dam. The OGC issued a suspension order March 16, 2017, terminating water disposal operations at the company’s Peace River disposal facility. The company requested a technical review which was conducted from April to July, 2017. Concurrent with the technical review, the company appealed the suspension order to the Oil & Gas Appeal Tribunal but the appeal was denied in August. The OGC notified the company on June 16 that it was considering cancelling the company’s water disposal well permit. However, based upon an exhaustive review of the technical data, on Dec. 4, 2017, the OGC decided not to cancel the company’s disposal well permit and to allow resumption of water disposal as long as certain conditions are met.
The OGC decision can be read in its entirety at the company’s website.
We seek Safe Harbor.
Jonathan Bahnuik, Kyle R Burnett, Benjamin Jones, John Graham Proust, Winston R Purifoy
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