Wells close as efforts to sell ADM Mill land continue

Work is again proceeding to permanently close in two natural gas wells that sit on the ADM Mill property, but it’s not clear whether that is foreshadowing ahead of a potential sale.

A larger issue may be combining a number of land titles at the 110-year-old property, sources tell the News.

In December, initial work to abandon historic but still producing gas wells caused a minor traffic delays on Spencer Street, but heavier work is underway this week causing more major disruption.

“We continue to work with the province and the city to close two natural gas wells as we work to find a potential buyer for the site who can bring new business to the local economy,” said Dane Lisser, a spokesperson for Chicago-based ADM.

The wells are privately owned by a third party that is not the City of Medicine Hat.

The buildings, warehouse and rail-spur serviced elevator on 16 acres of land in central Medicine Hat was listed for sale in 2015 for an asking price of $1.35 million. But a condition on any sale is that the purchaser not be a competitor in food production or milling.

Complicating the matter, it was eventually discovered that the when ADM acquired the property it didn’t acquire all titles involving the land that was developed over decades in the early 20th century.

As such, some land titles are owned by companies that no longer exist, and legally can’t be sold. Such situations are typically resolved by a special order of the provincial cabinet.

Archer Daniels Midlands announced in 2013 it would close the century-old facility, laying off 40 workers, as it concentrated production elsewhere in the province.

The building has sat vacant and for sale for seven years since it was shuttered.

Last spring a local developer said he was interested in setting up manufacturing capability in the 140,000 square-foot facility, while leasing space to other businesses.