Canada Energy Partners Updates Appeal Process for Water Disposal


Oil and Gas - Jul 21, 2017

Canada Energy Partners Inc.'s has made its final submission required under the appeal procedures to the Oil & Gas Appeal Tribunal of British Columbia. The Tribunal now has all the pleadings, responses, and evidence and will begin deliberating toward a decision. There is no specified time frame for a decision from the Tribunal. All of the Company's submissions to the Tribunal can be viewed on our website at: www.canadaenergypartners.com .

On June 16, 2017, the Company received a letter from the BC Oil & Gas Commission which stated, "I write to advise that the Commission is considering taking action under Section 26(1)(c) of the Oil and Gas Activity Act to cancel the above noted well permit." The OGC still has this matter under consideration and has not made a decision.


Also on June 16, 2017, the OGC concluded and released the results of its Technical Review of the Company's water disposal well and the potential of induced seismicity related thereto. The OGC engaged an outside consultant to evaluate the risk of damage to the Peace Canyon Dam (the " PCD ") from induced seismic event related to the Company's water disposal operations, which concluded in part, "A pulse type motion, as is expected from a low to moderate induced seismic event, is considered to have a reduced probability of causing failure or damage to the PCD…. We have not identified any compelling reason for induced seismicity to result in significant damage to, or an outright failure, of the PCD. Based on the recorded history of fracking and injection well induced seismic events in northeast BC, and provided that reinjection conditions remain similar to the practice to date, the probability of significant damage or a failure occurring is within expected norms for life safety , based on the British Columbia Building Code and our present understanding of the stability of the PCD structure." The Company believes that this study supports the preservation of its disposal well permit and the reinstatement of its water disposal rights.

The Company will announce the Tribunal's decision and/or the OGC decision as soon as it is received.

Source : Canada Energy Partners Inc.

Published on Global Energy World: Jul 21, 2017

 
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