Alberta Energy Regulator suspends company’s operations for well, pipeline non-compliance

The Alberta Energy Regulator suspended the licences for all SanLing Energy Ltd.’s wells, facilities and pipelines for non-compliance through a “reasonable care and measures order.”

In a news release Friday, the AER said repeated attempts to bring SanLing into compliance have failed.

“As a result, the AER has little confidence in SanLing’s ability to conduct its operations safely and is taking this measure to protect the public and environment and to minimize financial risk,” the AER release said.

The AER’s compliance dashboard shows the company has been issued several notices of non-compliance in 2020 for not storing oilfield waste properly, not discontinuing a pipeline properly, and not operating and maintaining its pipeline systems in accordance with the rules.

There were also two orders issued in 2020 and 2021, stating work was needed to address concerns with preventing damage to its infrastructure, failure to pay a security deposit, failure to abandon dozens of wells once their leases expired and failure to remediate releases at two locations.

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The order requires the company to take a number of actions, including:

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• Suspending all wells, facilities and pipelines, and ensuring they are left in a state that is safe to the public and environment
• Complying with past orders to clean up historic spills and contamination
• Confirming that SanLing’s emergency response number is active and will initiate an immediate response in an emergency
• Providing a detailed plan that demonstrates how SanLing will maintain the care of its wells, facilities and pipelines while they are suspended.

SanLing holds AER licences for 2,266 wells, 227 facilities and 2,170 pipelines. The company also owes $67 million in security to the AER for its energy infrastructure end-of-life obligations.

“If SanLing, or any company, wants to do business in Alberta, they must follow our rules,” said Blair Reilly, director of Enforcement and Emergency Management.

“We cannot allow a company that has ignored the rules continue to operate — that’s not in Alberta’s interest.”

The AER said SanLing may be able to resume operations if it meets the conditions of the order.

— More to come…