A Calgary-based company that owns thousands of gas wells in Alberta has closed its doors and critics say the firm is shirking its responsibility.
Trident Exploration ceased operations abruptly on April 30, handing over the ownership of its 4,700 wells to the Alberta Energy Regulator.
The company said it was forced to close because of low natural gas prices as well as high lease costs and property tax bills.
For the past few months, Trident was working with the landowners it leases land from to operate its wells to convince them to accept lower rent. Most of the people refused.
The AER says it was working with Trident Exploration to make sure they take the proper responsibility in regards to the wells, but the company ignored the regulatory order and their obligations.
Instead, Trident terminated all 31 employees and 61 contractors and walked away from its operations.
Many people are worried that other energy companies will follow Trident’s example.
“What was their business model? Was it pump as much out of the ground and make as much money as possible? When it’s not economical anymore, we’re just going to forget about paying landowners and we’re going to dump these wells on the Orphan Well Association and we’re going to take advantage of the Redwater Ruling to walk away and leave the taxpayer paying the mess?” says Daryl Bennett with Action Surface Rights Association.
Bennett says he’s heard from a number of other landowners that other companies aren’t paying them anymore either, so he fears that Trident is just the tip of the iceberg.
The AER will now be assessing any of Trident’s high-risk sites to ensure there is no danger to the public.
(With files from Shaun Frenette)
