Sour Gas Well Blowout Insurance (March 9)

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Mr. Taylor: Thank you, Mr. Speaker. A sour gas blowout near Hythe has been burning for almost two weeks now, and regulators are saying that it might take another two weeks to fully put it out.

Now, while blowouts are rare, industry is required to take out insurance to protect themselves. Unfortunately, their insurance does nothing to cover the losses incurred by Albertans as owners of the resource. To the Minister of Energy. During a blowout there is an absolute open flow of gas which is much higher than normal production rates. How much gas is expected to have been released over the last two weeks?

Mr. Liepert: Mr. Speaker, I don’t have that information.

The Speaker: The hon. member.

Mr. Taylor: Thank you, Mr. Speaker. Companies are not required to pay royalties on gas that is not produced, so the gas wasn’t the only thing going up in smoke for the last couple of weeks. How much money in royalties is the province expecting to lose because of this blowout?

Mr. Liepert: Well, Mr. Speaker, obviously, if I don’t have the answer to the first question, I don’t have the answer to the second.

Mr. Taylor: Well, then, hopefully, Mr. Speaker, the minister will be able to provide written answers to those questions and perhaps this one as well, written or oral. Albertans are the owners of the resource, so why hasn’t this government made it mandatory for blowout insurance to cover the loss in royalties?

Mr. Liepert: Well, Mr. Speaker, the member is correct that he should put those questions on the Order Paper, and I will respond accordingly.

Alberta Hansard, March 9, 2010

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