Depression style make work project in the oil patch

[blueversi]

Good to know Oneoff, all my experience is in Alberta so don't know about Sask. I never ever figured there would be a ton of money in any kitty just going by what I have been told. Have worked on a few orphan well reclaims and once the money budgeted for the year is gone, it's gone and the work stops regardless of whether it is complete or not and have to wait until the next years budget to continue.

[oneoff]

I see that I didn't make it clear that it is not individual wells that enter the government LLR calculation.. Whilst true for any single "one" well oil company; larger companies get to cover the dog and suspended wells with their higher money making producers.

What becomes evident is that it has been cheaper to just drain the tanks; suspend the well and pay the lease compensation.

Thats what has caused the current government dilemma...and the recent brain wave is a knee jerk reaction that shows very little long term deep thought. We'll see which companies get the free gifts.

Sure did take divert attention away from Bill Boyd et al. and tap into begging for federal tax money that will have to be paid back (with interest)sometime in the future.

And global recessions just may make those future payments both painful and difficult

[oneoff]

Could it be that the deposits made to the orphan well fund; and meant to be reserved for down payments to be applied to costs of abandonment of that companies specific wells...will morph into a tax designated for industry wide coverage of actual wells that have no owners.

Thus this brainchild of make work and provide employment in these tough times may be just the first step to transforming "deposits" into non refundable taxes.

At the present time those deposits can be returned when the deemed liability risk is reduced through a couple of various ways.