An oil and gas company has received a six-month extension so it can continue to run four wells and associated pipelines in Red Deer’s northeast area.
On Monday, Red Deer city council gave Conserve Oil and Gas a postponement so it could continue running its operations in the city. The pipelines were supposed be shut-in by Dec. 31 and the wells would be abandoned by Dec. 31, 2012.
Conserve asked for the extension in part because city staff have indicated that development in the region, where the four producing wells are, won’t occur until 2022 or beyond. The city is planning in 2014-2015 to bring services into the area where the main oil pipeline runs.
In a letter to the city, engineering operations manager Peter McNichol said that the extension would allow Conserve, the City of Red Deer and the landowners to negotiate a new oil and gas facility abandonment agreement.
“If at that time, we are unable to negotiate a suitable agreement, Conserve would proceed with shut-in and timely abandonment of the wells as specified in the original agreement,” said McNichol.
The city was formerly dealing with NAL Resources, which was then bought by Conserve Oil.
The city has been working with the company since 2006 to ensure that oil and gas wells don’t prevent urban growth from happening in the area.