City Notebook: Trouble Brewing
By COLLIN GALLANT on July 20, 2019.
cgallant@medicinehatnews.com@CollinGallant
There’s a sudden sense of urgency to address the state of shallow gas industry.
The province is bringing in property tax breaks and promising changes to how they are taxed going forward.
Major gas producers are suggesting a voluntary curtailment program to avoid negative (not just downward, but actually less than zero) pricing situations at time of pipeline maintenance.
Perhaps that’s enough to finally bring into focus the situation facing southeast Alberta, where 2,600 new gas wells were drilled in 2006, but just three in 2017.
The utterly grim outlook for the sector, and potential cures, are a double or triple whammy for the local economy.
The potential property tax implications for rural governments and ratepayers is not the only looming problem in the sector that’s been bread and butter in southeast Alberta for decades.
Dry gas has steadily become less and less economical since the advent of shale gas exploration about 10 years ago.
Beyond tax revenue, it also underpins farm income through surface lease agreements.
Simple math tells us the 21,000 wells up for tax relief in Cypress County could easily provide a total of $21 million per year to farm operation income via access and surface agreements.
How big is that? Aurora Cannabis will pay about $18 million per year in wages when its new unbelievably huge facility is running at full clip.
Last December a report commissioned by the then-NDP government laid out a host of strategies to help stabilize sector, and that’s been adopted as the initial playbook by the United Conservatives as they craft a strategy.
That, hands-down, is the most important issue facing the southeast right now.
In the region
Damien Kurek will be the Conservative Party candidate in Crowfoot-Battle River, it was decided this week as party members in the riding north of Medicine Hat-Cardston-Warner voted. Kurek, most recently a constituency assistant to the area’s retiring MP Kevin Sorenson, beat two others in the race that concluded Wednesday in Camrose.
Errata
Last week this column stated NewRock Developments, the potential buyer of the Medicine Hat Arena lands, was also behind a condo development bordering nearby Lions Park. That proposal is put forth by Meadowlands Developments.
A look ahead
The Medicine Hat Exhibition and Stampede gets underway this week with the grounds opening on Wednesday and the parade following on Thursday morning downtown.
Looking over the horizon at the long-term forecast, we can see temperatures in the mid-30C range for much of the week.
Also, in honour of Saturday’s anniversary of the moonwalk, why not spend some time soon staring at the stars. It will do you good.
50 years ago
A Giant Leapwas the headline adorning the top of the Medicine Hat News on July 21, 1969, the day after the moon landing.
The top picture, however, was of Pierre Elliott Trudeau as the new prime minister visited Taber during a six-day fact-finding mission to the prairie provinces with his new government’s ag minister H.A. (Bud) Olson. That tour also included the famous “Why should I sell your wheat?”comment a meeting Saskatchewan farmers angry about slow sales by the Canadian Wheat Board. Less reported was Trudeau spirit defence of the CWB system following the question.
In Medicine Hat, the Stampede was on the horizon, and a schedule of downtown street dances showcases local acts, Elgin Mann, Cecil and the Polka Pals, Crown of Creation and the Sunsetters.
Mayor Harry Veiner began announcing potential cost cutting measures for the planned construction of the Arena, which was set to begin in the fall, but at a $929,000 cost, nearly double early estimates. Architect Jack Russell would lower his fee, and a committee including Rittinger Construction representatives would also study costs.
100 years ago
“A spirit of rejoice” was expressed at events in Riverside and Armoury parks in Medicine Hat on a national Peace holiday signify the signing by all parties of the Treaty of Versailles, this week in July 1919.
City council agreed to hire two men to guard against public swimming in the river after two drownings. Members also voted to begin reducing utility discounts offered to the dependants of active duty soldiers.
Collin Gallant covers city politics and a variety of topics for the News. Reach him at 403-528-5664 or via email at cgallant@medicinehatnews.com.
