SanLing Energy gets extension to comply with regulator's order

·2 min read
Early last month, the AER suspended the licences for wells and pipelines belonging to SanLing Energy Ltd. The company holds licences for 2,266 wells, 227 facilities and 2,170 pipelines. (Kyle Bakx/CBC - image credit)
Early last month, the AER suspended the licences for wells and pipelines belonging to SanLing Energy Ltd. The company holds licences for 2,266 wells, 227 facilities and 2,170 pipelines. (Kyle Bakx/CBC - image credit)

The Alberta Energy Regulator has granted a Calgary-based junior energy company a 45-day extension to comply with an order issued last month that suspended the licences of thousands of its oil and gas wells.

In early March, SanLing Energy Ltd. was given 30 days to comply with the order, which included suspending all wells, facilities and pipelines, and complying with past orders to clean up historic spills and contamination.

An AER spokesperson said this week that SanLing Energy continues to suspend its wells, pipelines and facilities in accordance with its order from March 4.

"The AER has granted SanLing a 45-day extension to meet the order, due to seasonal access issues to some of its sites," Jordan Fitzgerald said in an email statement.

"AER staff have visited SanLing's sites and have verified that suspension activities are ongoing."

With the extension, SanLing has until May 18 to come into compliance with the order.

In March, the regulator suspended the licences for all of SanLing Energy's wells, facilities and pipelines through a reasonable care and measures order. The company holds licences for 2,266 wells, 227 facilities and 2,170 pipelines.

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

  • Suspending all wells, facilities and pipelines and ensuring they are left in a state that is safe to the public and environment.

  • Confirming that SanLing's emergency response number is active and that it 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.

The regulator said last month that SanLing owes $67 million in security to the AER for its end-of-life obligations.

The company may be able to resume operations if it meets the conditions of the order, the regulator has said.