Updated May 17 2021 they cut 5 padlocks off gate!Ember Resources defaults on surface rights lease

[Grizzly Adams]

Originally Posted by Big Grey Wolf

Imperial Oil (Exxon) abandoned the entire Leduc oilfield a couple years back so they would not have to complete the well abandonment and environmental clean up. Sold it to a small company that went bankrupt. When big boys do not clean up their mess, what do you think the small fly by night ones with no cash will do. Save your lease revenue in the bank, you may need it.

It's called passing the buck, anyone could have his own little oil company with a well or two and workable on a small scale. I know of a couple, always wondered if these guys knew the potential liability they were taking on ? Shell just sold it's gas plants to some venture company that had trouble raising the cash, I'm waiting for the train wreck.

Grizz

[Simplefarmer]

Originally Posted by Sundancefisher

I see. Not a farming question but rather a subdivision for residential development issue.

I would agree. Pipelines under the land would pose an issue. If brought up during surveying that the land was to be developed in that way the pipeline company should move the route.

The pipeline and wells should all be surveyed such that it is easier to do work?

If the pipeline is abandoned you have to make sure it was done correctly.

Your missing the point, the only way to properly abandon a pipeline is dig it up and reclaim surface to original before it was there.

Why should any land owner have to deal with loss of develop opportunity if the infrastructure was properly decommissioned and removed. Legally I am on the hook for all costs needed to remove a pipeline that is abandoned today. Complete bull &%*$

Jim

[esher]

My friend is not confused. Neither is the law firm he had talking to the surface rights board and the orphan fund. Like i said he wont live long enough to get his land back.

[Sundancefisher]

Originally Posted by Simplefarmer

Your missing the point, the only way to properly abandon a pipeline is dig it up and reclaim surface to original before it was there.

Why should any land owner have to deal with loss of develop opportunity if the infrastructure was properly decommissioned and removed. Legally I am on the hook for all costs needed to remove a pipeline that is abandoned today. Complete bull &%*$

Jim

No. I get it. The pipelines are more of a problem and treated differently. Some areas have lots of them. Decommissioning pipelines is pigging old product out and filing with freshwater.

If you needed to can you not work around decommissioned pipelines? Is it added costs or just can’t be done?

I wonder with the price of steel if someone will figure out how to pull the pipe out of the ground. Maybe a D12 cat. Lessen ground disturbance.

In the Pipeline installation agreement what was the abandonment said to consist of?

[troutbug]

Originally Posted by Sundancefisher

No. I get it. The pipelines are more of a problem and treated differently. Some areas have lots of them. Decommissioning pipelines is pigging old product out and filing with freshwater.

If you needed to can you not work around decommissioned pipelines? Is it added costs or just can’t be done?

I wonder with the price of steel if someone will figure out how to pull the pipe out of the ground. Maybe a D12 cat. Lessen ground disturbance.

In the Pipeline installation agreement what was the abandonment said to consist of?

D11T as big as they get

[esher]

Pulling pipe is nothing new, pipeline buddy of mine has done it for years. They just wont do it unless they have to and they dont. I got a half mile of dead pipe improperly installed 70 years ago and i am stuck with it.

[MountainTi]

Originally Posted by Grizzly Adams

It's called passing the buck, anyone could have his own little oil company with a well or two and workable on a small scale. I know of a couple, always wondered if these guys knew the potential liability they were taking on ? Shell just sold it's gas plants to some venture company that had trouble raising the cash, I'm waiting for the train wreck.

Grizz

Nope. Not yet. AER hasn't approved it

[sillyak]

I've abandoned a few pipelines (large diameter otherwise they don't need us.) Usually a pig train and a nitrogen purge, lots of samples when each segment of the train comes in to make sure it's clean. Also have pumped them full of cement if they go underneath a water way.

Didn't know they pulled them out of the ground. Interesting.

[esher]

Originally Posted by sillyak

I've abandoned a few pipelines (large diameter otherwise they don't need us.) Usually a pig train and a nitrogen purge, lots of samples when each segment of the train comes in to make sure it's clean. Also have pumped them full of cement if they go underneath a water way.

Didn't know they pulled them out of the ground. Interesting.

Probably not large pipe but he said you dig down to the pipe and cut it and pull the other end with a large dozer. Cant ask him more he passed away but said you could pull a nice chunk.

[Sundancefisher]

Originally Posted by sillyak

I've abandoned a few pipelines (large diameter otherwise they don't need us.) Usually a pig train and a nitrogen purge, lots of samples when each segment of the train comes in to make sure it's clean. Also have pumped them full of cement if they go underneath a water way.

Didn't know they pulled them out of the ground. Interesting.

High grade pipe steel should have great recycling value. Maybe it’s harder to melt and reform once used? If there is a market, that could drive the work.

Otherwise, properly abandoned pipe should not be a liability.

I’ve heard of some pipes that weren’t properly pigged, cleaned and sealed off.

[Albertacoyotecaller]

Pulled lots of p/l with a D6 to D8. Not the big stuff but have pulled lots when reclaiming.

[Sundancefisher]

Originally Posted by Albertacoyotecaller

Pulled lots of p/l with a D6 to D8. Not the big stuff but have pulled lots when reclaiming.

Curious what happens with the old pipe?

[sweld]

Originally Posted by Sundancefisher

Curious what happens with the old pipe?

Check it for norms. If it’s good off to the scrap yard. If not dispose of as per regulations.


Sent from my iPhone using Tapatalk

[sweld]

........

[Albertacoyotecaller]

Originally Posted by sweld

Check it for norms. If it’s good off to the scrap yard. If not dispose of as per regulations.


Sent from my iPhone using Tapatalk

^Yep^

[wwbirds]

hadnt been in the field for a few weeks. Arrived at gate yesterday to find 5 padlocks and chain had been removed from gate. Pallets around well site had been removed and stacked to gain access to techno gate.

[JDK71]

Originally Posted by esher

Not what i said at all, i said the orphan well fund said they would cut the wellhead off and then the landowner is on his own . That has not happened. So the well and buildings and berms are still there, so no need to search for a reclaim certificate.

the sites we are doing we are taking out all piping and cutting off and capping well and pipes to property line

[ganderblaster]

A friend who works in the oil field sector was saying SNC Lavalin is involved with the Orphan Well Association over seeing clean up?I couldn’t find any press on this does any one know if that’s whats up?

[jstubbs]

They probably are, but I don’t see how that is an issue. SNC is a major EPC firm in Canada, no different than if Worley, AECOM, Bantrel, etc were doing it.

[ganderblaster]

Originally Posted by jstubbs

They probably are, but I don’t see how that is an issue. SNC is a major EPC firm in Canada, no different than if Worley, AECOM, Bantrel, etc were doing it.

Just more western dollars going east is my concern.

[tbiddy]

Originally Posted by ganderblaster

A friend who works in the oil field sector was saying SNC Lavalin is involved with the Orphan Well Association over seeing clean up?I couldn’t find any press on this does any one know if that’s whats up?

I posted this in another thread on SNC:


SNC does have offices all over Canada and are not strictly a Quebec company but this is not true. Too many people get their news from Fakebook

The OWA has a list of prime contractors. SNC is not on the list.

http://www.orphanwell.ca/contractors...e-contractors/

I don’t know how to link tweets but Sonya Savage debunked this too:

https://twitter.com/sonyasavage/stat...539952640?s=21

[KegRiver]

Originally Posted by Sundancefisher

Curious what happens with the old pipe?

LaPrairie has been using old pipeline pipe as culvert liners for at least ten years.

[JDK71]

Originally Posted by Sundancefisher

Curious what happens with the old pipe?

We process it in to 4ft lengths (all pipe ) plate steel (tanks) we process it into 3x5 ft

[Dean2]

Just for a bit of an update. Longshore Resources Ltd still has not paid the rent due for last year, nor have they responded to the Compensation Recovery applications made to the Surface Rights Board. They also continue to default on the maintenance of existing sites, such as weed control, access and fences. Despite defaulting on existing contracts, and I am far from the only one having these problems with them, they have the audacity to apply for new sites, pipelines and batteries. If any of you guys are having the same issues you may want to consider filing Statements of Concern on the new projects. You cannot go after recovery of rents in this venue but you can go after the Oil companies for not meeting their maintenance obligations. If they can't and won't look after their existing installations and sites, why should they be allowed to develop more.

[Dean2]

Per my earlier update: the Surface Rights Board did in fact issue Longshore Resources LTD. an order to pay rents due, and it was issued back in late July. Apparently the company thought they could just ignore that order too. Turns out threatening to file a Statement of Concern to new development they are doing got their attention. An AER meeting is about a $60,000 cost for the company to show up to, so all of a sudden a cheque has been cut for last years rent, copious apologies for the oversight on the SRB order and a promise that the cheque due for Mar 2022 will be dead on time. They have a new person looking after the lands area, came from Husky/Cenovus. Maybe the influx of talent with big oil experience will help this company out but I still will not trust Longshore Resources till I see concrete proof they have changed their ways.

So WWbirds - an operating company can abandon a well if they want too, but they are still on the hook for the rental payments. Even if they abandon the well, they have no ability to reduce the rent they owe, let alone pay no rent, on the well unless you agree to it. If a company has a working interest, no matter how small, and their partner declares bankruptcy, the remaining partner is on the hook for all producing and abandoned wells until such time as they get a reclamation Certificate issued on the abandoned wells. I have learned a lot about dealing with Oil companies over the past 20 years and a whole bunch more that past 5. If you need any help dealing with them PM me, I would be happy to lend whatever assistance I can.

Any of you that have dealings with Longshore Resources Ltd or any oil company for that matter, make darn sure your Ts are crossed and Is dotted. No matter how much they smile to your face, they are not your friend.

[wwbirds]

I hired a lawyer who advised Ember they were in default last month in writing and were not be be on the land for any reason until arrears and damages were paid.
Land guy left casual message on phone Friday "we have not talked since April".
Left message for him that we havent talked as nothing could be resolved going through you so dealing direct with Ember, Surface Rights through my lawyer.

[coyotecaller]

CNRL quit paying half our lease fees two years ago.
Good luck fighting them over it. I just keep wiring the gates shut. Put some posts in but they cut em.

[Dean2]

Originally Posted by coyotecaller

CNRL quit paying half our lease fees two years ago.
Good luck fighting them over it. I just keep wiring the gates shut. Put some posts in but they cut em.

Did you file a section 39 complaint. I found the surface rights board very helpful. Once CNRL are ordered to pay you have a LOT of leverage. The paper work is a snap to fill out. Took me maybe 20 minutes to do three claims.

[hal53]

Originally Posted by Dean2

Did you file a section 39 complaint. I found the surface rights board very helpful. Once CNRL are ordered to pay you have a LOT of leverage. The paper work is a snap to fill out. Took me maybe 20 minutes to do three claims.

Also, once it's filed, it is flagged and comes up when they apply for a drilling license. I worked for a couple companies that were in a panic to get caught up on their D-13 abandonments because they had applied for licenses for their winter drilling program and were told no licenses until "X" number of abandonments were completed

[Dean2]

Cheques showed up from Longshore yesterday and are in the Bank. Being a privately held company a guy can't look at their financial statements but I do know they have been buying up property at discount prices so they must be sitting on some cash. With Oil at 82 bucks and gas strong, their cash flow will have improved greatly. Amazing how some effective pressure tunes up these guys. Glad I am not having these issues with any of the other companies.