Are gas well estimates accurate?

By Letter to the Editor on May 7, 2020.

Taxpayers should be concerned they are not being told the full truth with the cost of the well abandonment project the city is embarking on. T

he City Natural Gas and Petroleum Resources Division should explain in detail why it estimates the cost of abandonment of the 2000 gas wells to be $90 million.

Industry experience warns that the cost to taxpayers could be must higher. The down hole portion could be covered at $45,000 per well. The total remediation cost to clean, remove infrastructure and return the land could add another $50,000 to $75,000 per well according to sources we have contacted. Many of these wells are in environmentally sensitive areas and will require extra precautions for clean-up. This would bring the City of Medicine Hat’s cost up to $250 million, almost three times the current estimate.

The City must be upfront and honest about its spending. Taxpayers need the full details, not just a snapshot. The City needs to remember that taxpayers are the ones signing the cheques.

Alan Rose

Medicine Hat

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