Alberta energy board orders shutdown of 158 gas wells
'Risk to bitumen recovery' cited
ReutersOctober 16, 2009
Alberta's energy regulator said Thursday that three energy companies must shut off a total of 158 gas wells on an interim basis, saying continued production may threaten future oilsands projects.
The Energy Resources Conservation Board order, which is effective Oct. 31, affects a relatively small 33 million cubic feet a day of gas produced at wells licensed to Canadian Natural Resources Ltd, EnCana Corp and Paramount Energy Trust.
The move stems from applications by Sunshine Oilsands Ltd and French oil major Total SA, which want to develop in situ bitumen projects, where companies pump steam into the earth to liquefy the tar-like crude in the oilsands so it can be pumped to the surface in wells.
The gas wells, located about 100 kilometres northwest of Fort Mc-Murray, will remain shut off at least until after a full hearing, which is expected to be held early next year, the ERCB said.
"Gas production from these wells may lead to a risk to bitumen recovery," the regulator said in a statement. "The geological strata at issue contain natural gas that is in contact with potentially recoverable bitumen."
The regulator has made similar moves before, saying the value of the oilsands is much higher to Alberta than that of the natural gas.
In 2004, it ordered 835 wells, producing 123 million cubic feet a day, shut down, after a heated battle between gas producers, led by Paramount, and oilsands developers.
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