Alberta regulator orders takeover of Mojek Resources’ wells, pipelines, facilities

Alberta regulator orders takeover of Mojek Resources’ wells, pipelines, facilities

CALGARY — The Alberta Energy Regulator says it is directing the Orphan Well Association and working interest partners of Mojek Resources Inc. to take over its wells and facilities after the company failed to clean up multiple spills and comply with multiple orders.

The regulator says the escalation of enforcement was deemed necessary when the Calgary-based company failed to comply by March 5 with an order issued Jan. 4 requiring the suspension of its wells and facilities, discontinuation of its pipelines and demonstration of proper care of all of its assets.

The AER says the OWA and Mojek’s partners are to suspend all of its oil and gas assets and ensure they are left in a safe state while addressing non-compliances at Mojek sites and confirming a working emergency response number.

It says Mojek holds AER licences for 32 wells, 35 pipelines and one facility, and owes $1.76 million in security to the AER for its end-of-life obligations, along with debts to the OWA and the AER.

Two weeks ago, the AER said it had ordered Calgary-based SanLing Energy Ltd. to suspend its 2,266 wells, 227 facilities and 2,170 pipelines and ensure they are left in a safe state.

It added SanLing owes $67 million in security to the AER for its assets’ end-of-life obligations.

“We work with licensees to ensure they understand Alberta’s rules, and the majority of companies follow those rules,” said Blair Reilly, AER’s director of enforcement and emergency management, on Wednesday.

“When they don’t, we take action to protect public safety and the environment.”

The AER noted that working interest participants with a financial interest in a licensee’s assets have a duty to step in as necessary when the licensee won’t or can’t meet obligations.

This report by The Canadian Press was first published March 17, 2021.

The Canadian Press

oil & gas

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