The orphans

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.

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. Wells 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 vaccuum 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.

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.

Image by Anita starzycka from Pixabay