Sunday, May 21, 2017

I had breakfast with a group of landowners in Lacombe this morning! Although I was never given any reason for the invite-- I was sure it had to do with the Alberta public offering a loan to the OWF, so industry could keep there money in the bank!! These land owners cross examined me on who was responsible for the news item that stated Alberta Land Owners were happy with government rather than industry funds being used over a period of time to start a job that has been purposely delayed until government money was secured to get a job done? --Stewart Shields





From: Stewart Shields <lagran@shaw.ca>
Date: Mon, May 22, 2017 at 11:48 AM
Subject: Are We In For Another 40 Years of Thivery, Cheating, and Abusing Thje Public Trust?
To: premierr@gov.ab.ca, brian mason <brian.mason@assembly.ab.ca>, dunvegan.centralpeace.notley@assembly.ab.ca, Liberal Canada <info@liberal.ca>
Cc: Calgary MountainView <Calgary.MountainView@assembly.ab.ca>, calgary.currie@assembly.ab.ca, Debbie carlson <edmonton.ellerslie@assembly.ab.ca>, edmonton.goldbar@assembly.ab.ca, edmonton.riverview@assembly.ab.ca, fishcreek <calgary.fishcreek@assembly.ab.ca>, goodale <goodale.r@parl.gc.ca>, grande prairie <grandeprairie.wapiti@assembly.ab.ca>, innisfail <innisfail.sylvanlake@assembly.ab.ca>, Lacombe Ponoka <Lacombe.Ponoka@assembly.ab.ca>, lethbridge.east@assembly.ab.ca, little <little.bow@assembly.ab.ca>, mccallum <mccallum.j@parl.gc.ca>, Ministerial Unit <MCU@justice.gc.ca>, Office of the Premier <brad.wall@gov.sk.ca>, raitt <raittl@parl.gc.ca>, Strathmore Brooks <Strathmore.Brooks@assembly.ab.ca>, T Banks <>, Tom <tomnahirniak@telus.net>, 


 
              Once the public become financially involved with the Orphan Well Association—it is totally impossible for the Minister of Energy to stay abreast of the public’s interests in these ongoing events?  Remembering Stelmach was rumoured to be forced to turn over $30 million Alberta tax dollars to the OWF without any tracking of where and how that money was spent or indeed if it was spent??  We have the issue of the Lexin wells---have they indeed been turned over to the OWA?   If this is indeed so what is the value of the Cresent Point and Pengrowth operations with respect to the Lexin share of ownership?  What happens with these funds if indeed the properties are not part of the OWA properties?  I have ask for a long time for a arms length Professional Crown Cooperation to take over the publicly owned petroleum recourses in Alberta to be professionally managed in the best interests of the Alberta Public?  The AER are continually acting in conflict of interest as a paid member of the industry while trying to act as a Quasi-Judicial public entity?  Most Albertans recognize we were very very badly treated with respect to trading our petroleum resources for public wealth under the Conservatives for close to 40 years!!  Many folks are disappointed in the total lack of clarity-transparency, along with the secrecy that takes place under this present government!! The NDP although familiar with the hornets nest that exists with the CAPP and AER seem frightened to get in there and make progressive changes. Anyone who still maintains the industry paid AER exist for the public’s benefit—really should seek medical attention!!  That leaves us with the Minister of Energy stationed of course in Edmonton- while the AER are domiciled in Calgary for the industries benefit?                           
 
Stewart Shields
 

A Working Interest Claim (WIC) is a claim submitted by industry to the AER for the proportionate        share of abandonment and/or reclamation costs incurred on behalf of a defaulting working interest participant (wip) when the abandonment or reclamation is complete. A wip is any party to a joint operating or other agreement under which the party is entitled to a proportionate share of cash flows for the same proportionate share of costs. 

Abandonment or reclamation is considered complete when the well, pipeline abandonment or facility decommissioning is done in compliance with AER requirements and the AER DDS system is updated. Reclamation is considered complete when a reclamation certificate has been obtained from the AER. 

Step One The OWA requests applicants to notify the OWA beforehand of their intentions of making a WIC by sending the OWA an AFE for approval before commencing operations. This process will help us better manage the influx of claims, and is intended to improve turnaround times on claims at the time of application. 

Step Two WIC’s are submitted to the AER with a letter and supporting documentation. It is suggested that applicants confirm with the AER Insolvency Team, Closure and Liability Branch that their claim is eligible before proceeding. Please contact the AER Insolvency Team at 403-297-3113 or at 
liabilitymanagement@aer.ca for further information on the AER process. 

The AER reviews WIC’s and first determines that the claims are eligible for a company that has been deemed a defaulting working interest participant in accordance with section 70 (2)(iii)(b)(iii) of the Oil and Gas Conservation Act. 

Step Three The AER then gives the WIC to the OWA to review for appropriate backup and to provide comment. The OWA requires backup documentation including a summary sheet of expenditures, invoices, daily reports and salvage credits before claims are reimbursed. GST is reimbursed and administration, overhead expenses, surface lease payments, municipal taxes and legal expenses are not reimbursed. 

The summary sheet should include invoice date, vendor name, invoice number, invoice amount and the defunct company's percentage of invoice. 
(Summary Sheet Examples)
. Please provide summary sheet in electronic and paper format. Claims with insufficient documentation can be rejected at this stage. 

Step Four When the OWA is in agreement with the cost submission and has confirmed that all relevant documentation in the claim has been provided, it notifies the AER. The AER then designates the property (well, pipeline, facility or site) as an orphan for the purpose of reimbursement in a letter to the OWA. OWA will make the payment directly to the applicant and notify the AER.

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From: Stewart Shields <
Date: Mon, May 22, 2017 at 8:40 AM
Subject: Premiers Lack Of Resolve When Dealing With Big Oil !
To: letters@thestarphoenix.com, citydesk@leaderpost.com, Office of the Premier <brad.wall@gov.sk.ca>, Liberal Canada <info@liberal.ca>
Cc: brian mason <brian.mason@assembly.ab.ca>, Calgary MountainView <Calgary.MountainView@assembly.ab.ca>, calgary.currie@assembly.ab.ca, Debbie carlson <edmonton.ellerslie@assembly.ab.ca>, Doreen Mueller <Doreen.Mueller@justice.gc.ca>, dunvegan.centralpeace.notley@assembly.ab.ca, edmonton.goldbar@assembly.ab.ca, edmonton.riverview@assembly.ab.ca, Elaine Hughes <tybach@sasktel.net>, fishcreek <calgary.fishcreek@assembly.ab.ca>, goodale <goodale.r@parl.gc.ca>, grande prairie <grandeprairie.wapiti@assembly.ab.ca>, innisfail <innisfail.sylvanlake@assembly.ab.ca>, Lacombe Ponoka <Lacombe.Ponoka@assembly.ab.ca>, lethbridge.east@assembly.ab.ca, letters <letters@edmontonjournal.com>, mccallum <mccallum.j@parl.gc.ca>, Ministerial Unit <MCU@justice.gc.ca>, raitt <raittl@parl.gc.ca>, sherwood <sherwood.park@assembly.ab.ca>, slave lake <lesser.slavelake@assembly.ab.ca>, Strathmore Brooks <Strathmore.Brooks@assembly.ab.ca>, T Banks <>, Tom <>, whitecourt <whitecourt.steanne@assembly.ab.ca>, bphippen


Although this Orphan Well Fund stupidity is only days old, we must question how Brad Wall is gong to handle his Orphan Well problem in Saskatchewan?  Although Notley lacked the guts to make industry properly respond to their promised responsibilities—Wall is still under his bed hoping this will also blow over—like the bitumen spill in the North Saskatchewan!!  The down turn in the oil sector was only days old when Wall was headed to Ottawa “in a palms-up position” to demand federal tax dollars to clean up industry messes he allowed to accumulate!  As an “industry sweetheart” we know he could never ask industry to now fulfil their promised duty and help the service industry that exists for their benefit!!  Wall is kept in power as a industry “Petro-Puppet” by the Calgary based industry, through donations to his Saskatchewan Party’s election funds----no wonder he demands tax dollars to clean up messes caused by the wealthy industry!!  Wall’s request from the federal government was not for a government loan like what happened in Alberta, but gifted monies for the richest industry on the planet?  Although Notley will no doubt pay a political penalty for lack of resolve and stupidity---Wall should be replaced for having no fix or resolve to a major Saskatchewan problem, while offering the public’s royalty production back to the Calgary industry as drilling incentives!!

Stewart Shields

Captive political parties and lost cash--Has anyone considered that the oil and gas industry after earning billions of dollars and having billions in assets is perfectly capable of paying for its own orphan well program?
Why are taxpayers offering an interest free loan of $235 million to a group of major profiteering companies? We have our own uses of this money and I see no reason for us to be subsidizing a program that is way behind in terms of the industry paying into the fund as well as doing the work of reclamation.
The entire fault for this failure for the polluter to pay rests with the PCs who were failures in the area of oversight period. Now we have the NDP failures continuing the sad tragedy of subsidizing work that the industry should be doing by themselves without a dime of our cash but no we have to bribe them with a "loan" with no interest payments so as to get them to do their fricking jobs. Unbelievable.
Then we are given the fairy tale that this will give folks jobs--the same folks who were fired by the oil and gas industry so that they could continue to make big profits and buy up other oil and gas companies. It's amazing to me that anyone believes these fairy tales but there you go. Either Albertans will do anything to get their lost jobs back or else there are some pretty gullible folks out there.


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It is pretty clear to me -as it is to Stewart Shields that we may have had a change in political parties but the folks who are really in charge of the GOA are in the oil and gas industry. Why else would we have our taxpayer dollars given to the industry to fund their orphan well program with the $30 million offered by the federal government to be used as the means of paying for the interest payments on this so called "loan"?

 The fact is we're being scammed, the land owners are being portrayed as being happy about this scheme, the unemployed folks who were laid off by big oil are shown to us as the reason for this massive bail out scheme that defers costs to the industry for ten years --well--I guess the unemployed who became unemployed by the industry are just happy to have any job.

It's shameful and yet not unlikely that when the Wildrose get to power that this so called "loan" will be forgiven and taxpayers will be fleeced for the entire amount of this bailout.

In Alberta, the political parties change but the hands on the balls of the parties squeezing tight belong to the oil and gas industry.

The true masters.

Why are we offering a single dime to the oil and gas industry for doing the work that they need to be doing BY THEMSELVES?
You can't fool us with a loan offer Ms. Notley. It's a disguised handout to the oil and gas industry portrayed to us as a make work project. Why doesn't the oil and gas industry simply go to the banks to get this loan? Why do we have to be the public bank financing work it should be doing itself?
In addition, could this money that was provided by the federal government not go to more useful stimulation of the economy in other industries besides big oil? Why the pandering to big oil? Could it be that the NDP are even worse than the PCs in their abject captive situation with reference to big oil?
Why not get some balls and get big oil to do the work it should be doing itself? Please don't tell me that big oil is suffering when we have them buying up other oil and gas companies. Please don't tell me that they can't afford it when they are sitting on billions of dollars of assets. The oil and gas industry could jolly well sell off these assets to fund the orphan well program themselves but nope, we have to be scammed with a make work project proposal to give up our tax dollars that could be used elsewhere. Why can't for example-this money be used to create a make work project in the continuing care industry? Why can't some of this money be used to create employment possibilities for folks with disabilities? Why only big oil Ms. Notley?
Who do you represent Ms. Notley? The ordinary citizens of Alberta or Corporate Alberta? This NDP government is beginning to feel more and more like the Redford government.
This is a poor use of public dollars and you can't fool us that it is creating jobs--those jobs that big oil originally deleted so as to maintain profits.


Alberta will loan $235 million to a non-profit group that cleans up abandoned oil and gas wells, Premier Rachel Notley announced Thursday.
CBC.CA

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From: Stewart Shields 
Date: Sun, May 21, 2017 at 12:33 PM
Subject: The NDP Is Our Government--But The Petro-Industry Still Our Power!!
To: premier@gov.ab.ca, justin.trudeau@parl.gc.ca, brian mason <brian.mason@assembly.ab.ca>, dunvegan.centralpeace.notley@assembly.ab.ca, letters <letters@edmontonjournal.com>, Liberal Canada <info@liberal.ca>, Office of the Premier <brad.wall@gov.sk.ca>, letters@calgaryherald.com, mailbag@edmsun.com
Cc: Calgary MountainView <Calgary.MountainView@assembly.ab.ca>, calgary.currie@assembly.ab.ca, Debbie carlson <edmonton.ellerslie@assembly.ab.ca>, Doreen Mueller <Doreen.Mueller@justice.gc.ca>, edmonton.goldbar@assembly.ab.ca, edmonton.riverview@assembly.ab.ca, fishcreek <calgary.fishcreek@assembly.ab.ca>, goodale <goodale.r@parl.gc.ca>, grande prairie <grandeprairie.wapiti@assembly.ab.ca>, innisfail <innisfail.sylvanlake@assembly.ab.ca>, JuliaP@parl.gc.ca, Julie Ali >, Lacombe Ponoka <Lacombe.Ponoka@assembly.ab.ca>, lethbridge.east@assembly.ab.ca, mccallum <mccallum.j@parl.gc.ca>, Ministerial Unit <MCU@justice.gc.ca>, raitt <raittl@parl.gc.ca>, slave lake <lesser.slavelake@assembly.ab.ca>, Tom <t>


I had breakfast with a group of landowners in Lacombe this morning!  Although I was never given any reason for the invite-- I was sure it had to do with the Alberta public offering a loan to the OWF, so industry could keep there money in the bank!!  These land owners cross examined me on who was responsible for the news item that stated Alberta Land Owners were happy with government rather than industry funds being used over a period of time to start a job that has been purposely delayed until government money was secured to get a job done?  I’m totally unaware of what happened to the $30 million the Feds offered Alberta other than I read it was to be used for interest payments on the $235 loan?  I also have no Idea what amounts will be turned over this year to the OWF—be it the total $235 or a portion there of –over the estimated time frame of the work schedule? Is the $30 million gifted by the Feds to be held as the desired interest payable by the OWF to the Alberta Government?
I’m afraid I was unable the answer any of the questions I was asked, but I agreed that the release on a Thurs of a long week-end meant  to Coincide with the Conservative news of a union with the Wild-Rose Party was very very unfortunate!  This however is a common practise when governments are ashamed of actions they have taken- and want little to no discussion about their actions- to gain “industry sweethearts” and “Petro-Puppets” allegiance !! I thought I was done with this kind of stuff when I shut down Alberta Activism-however, I see plainly the fault in getting financially involved in the OWF when industry without question are playing games with government by using their pigeons CAPP and AER to sell this as a Polluter-Pays endeavour—now that’s the biggest joke of this spring!!  The NDP may be our government—but the energy industry are still our power in Alberta!


Stewart Shields


In Alberta the polluter never pays and we do.
It's unfortunate but the PC practice of abject servitude to the oil and gas industry simply continues with the NDP folks who have even used the $30 million of federal funds --that the Federal Liberals were too canny to hand directly to the oil and gas industry.
It's notable that the NDP folks didn't tell us the bad news until just before the May long weekend when they expect us to be preoccupied with hiking and family.
We're still not stupid even if we're on holidays--we note that we're being used to pay for the work that big oil is avoiding for yet another decade by using this "loan" to do the work it should be doing itself.
When will big oil be responsible? When the political parties don't get their balls squeezed by the industry.


Alberta will loan $235 million to a non-profit group that cleans up abandoned oil and gas wells, Premier Rachel Notley announced Thursday.
CBC.CA

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http://www.cbc.ca/news/canada/calgary/orphan-wells-notley-announcement-plan-cleanup-alberta-province-1.4121235


Alberta offers $235M loan to clean up orphan wells


Funds will help get oil services workers back on the job


CBC News Posted: May 18, 2017 8:53 AM MT Last Updated: May 18, 2017 2:21 PM MT
Alberta Premier Rachel Notley waits before making an announcement regarding work to speed the cleanup of Alberta’s old energy infrastructure near Carstairs, Alta.
Alberta Premier Rachel Notley waits before making an announcement regarding work to speed the cleanup of Alberta’s old energy infrastructure near Carstairs, Alta. (Jeff McIntosh/Canadian Press)
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Alberta will loan $235 million to the energy industry to clean up orphaned oil and gas wells, Premier Rachel Notley announced Thursday.
The money will flow to the Orphan Well Association (OWA), which is administered by the Alberta Energy Regulator but funded by energy companies. The loan will be paid back over a decade by industry, with the interest covered by $30 million the federal government announced in the last budget.
The OWA is dealing with about 2,000 orphan wells. A well becomes orphaned when its corporate owner goes bankrupt without enough assets to pay for the cleanup. Until recently, industry paid $15 million a year into the fund. It doubled to $30 million annually in 2015.
"Since the orphan fund was established, industry has contributed almost a quarter of a billion dollars and this funding has been used to successfully abandon almost a thousand wells and reclaim over 600 sites," said Brad Herald, the chair of the OWA.

Oil service jobs created

The funds that the province will loan the industry will not fully take care of the inventory of wells already on the books of the OWA, but it will help to get oil services workers back on the job.
"The agreement will put people to work as early this summer and will go toward cleaning up orphaned wells over the next three years," Notley said.
Notley made the announcement on an orphan well site near Carstairs, north of Calgary. The well was drilled in 1980, saw 10 different owners and was orphaned in 2015.
"By the end of this summer, you won't be able to tell there was even a well here," she said.
Many oil services workers have been reluctant to come back to the industry because of its uncertainty, but this funding will help, according to Mark Salkeld, chief executive of the Petroleum Services Association of Canada (PSAC).
"A lot of that talent is leery of coming back into that sector for fear of not having a long-term opportunity. What this does is add job security," he said.

Thousands of wells on list

The plan doesn't replace an industry-run fund to clean up wells, Notley said.
Nor does it solve the much larger problem of Alberta's inactive and abandoned wells.
Tens of thousands of Alberta's wells have been abandoned and plugged with concrete, but not fully reclaimed. And 82,546 are inactive, meaning no more oil or natural gas is being produced, but the wells haven't been plugged and could, at least theoretically, be brought back to life.
The province said that it is also working on that problem

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