AER Suspends SanLing Energy Ltd.’s Operations

Source: www.gulfoilandgas.com 3/5/2021, Location: North America

The Alberta Energy Regulator (AER) has suspended the licences for all of SanLing Energy Ltd.'s wells, facilities, and pipelines through a reasonable care and measures order. 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,
• complying with past orders to clean up historic spills and contamination,
• confirming that SanLing's emergency response number is active and will initiate an immediate response in an emergency, and
• providing a detailed plan that demonstrates how SanLing will maintain the care of its wells, facilities, and pipelines while they are suspended.

SanLing holds AER licences for 2266 wells, 227 facilities, and 2170 pipelines and currently owes $67 million in security to the AER for its end-of-life obligations. Repeated attempts by the AER to bring SanLing into compliance have failed. As a result, the AER has little confidence in SanLing's ability to conduct its operations safely and is taking this measure to protect the public and environment and to minimize financial risk.

"If SanLing, or any company, wants to do business in Alberta, they must follow our rules," said Blair Reilly, director of Enforcement and Emergency Management. "We cannot allow a company that has ignored the rules continue to operate—that's not in Alberta's interest."

A copy of the reasonable care and measure order and past orders issued to SanLing can be found on the AER's Compliance Dashboard under the tab "Noncompliance and Enforcement." SanLing may be able to resume operations if they meet the conditions of this order.

The AER ensures the safe, efficient, orderly, and environmentally responsible development of hydrocarbon resources over their entire life cycle. This includes allocating and conserving water resources, managing public lands, and protecting the environment while providing economic benefits for all Albertans.


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