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Alberta Petroleum Industry Faces Hefty $500M Bill.
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Publisher: The Financial Post
Author: Ian McKinnon, Calgary
Issue: Monday, October 4, 1999
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... The practice of grandfathering, where older facilities are exempt from new environmental regulations, was a major issue last week at a hearing before Alberta's Energy and Utilities Board where residents of Olds, 90 kilometers north of Calgary squared off against Canadian Energy 88 Energy Corp.
... Drilling in the area did not add significant volumes (of natural gas), making it uneconomic to go to the higher level (of sulphur recovery), Canadian 88 said in its application (for a lower increase in recovery rates) to the EUB. The move has been opposed by a number of residents.
... Canadian 88's original application which contemplated a 43% increase in gas throughput and a 50% jump in sulphure volumes. However, the amount of gas flowing into the plant has not risen substantially from what was previously allowed before Canadian 88 asked for the expansion permit.
... ways of dealing with the province's 61 granfathered plants, ... A preliminary cost estimate of upgrading grandfathered plants (to 1988 regulations) ranged between $300-million and $500-million. ... (small plants) are not mandated (to follow the regulations). This creates reverse economies of scale because small plants are cheaper to build and operate than larger, cleaner ones. About 140 plants in Alberta have no sulphur recovery. ...
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