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Alberta Politics

Orphan Wells finally getting attention but Bill 12 draws concerns about landowner rights and political interference

The Alberta Liabilities Disclosure Project is raising concerns about changes made to the management of the Orphan Well Association in the recently passed Bill 12: The Liabilities Management Statutes Amendment Act.

Sonya Savage

While it is good news that orphan wells are finally getting the attention they deserve, critics are questioning why Bill 12 was rushed through the Legislative Assembly during the COVID-19 pandemic.

The bill was introduced by Energy Minister Sonya Savage on March 31 and received Royal Assent on April 2 after limited debate through an expedited legislative process.

Bill 12 included amendments to the Oil and Gas Conservation Act and the Pipeline Act, which Savage argued “provide clarity about the OWA’s mandate, better enabling it to, first, make agreements with producers to help bring sites through closure stages; two, ensure oil and gas resources are not prematurely abandoned; and three, exert more financial control to actually manage the orphan sites.”

During debate in the Legislature, Edmonton-Gold Bar NDP MLA Marlin Schmidt criticized the accelerated passage of a bill dealing with this decades old problem.

Marlin Schmidt NDP MLA Edmonton Gold Bar
Marlin Schmidt

“I certainly don’t want to be responsible for leaving a $300 billion bill for my children and grandchildren to have to deal with because we didn’t have the foresight and the fortitude to make the polluters pay when we had the opportunity to do so,” Schmidt said in the Assembly on April 1.

In a press release last week the ALDP expressed concerns that Bill 12 threatens landowner rights by broadening the list of activities companies can carry out on private property without compensation to or consent from the landowner and creates loopholes which effectively transfer landowner compensation to taxpayers, leaving unpaid property taxes being written off in bankruptcy.

The group also expressed concern about political interference in oil well clean-up, with Bill 12 giving the provincial cabinet the power to direct the Orphan Well Association’s work and funding.

David Swann Liberal MLA Calgary-Mountain View
David Swann

“Which wells get prioritized for cleanup should be determined by independent evaluations and public health requirements, not by partisan politics,” said former Calgary-Mountain View Liberal MLA David Swann, who is a member of the ALDP.

“Having Cabinet drive decisions on well cleanup means the OWA could become a slush fund for the government to reward their friends and punish vocal opponents. We can’t let that happen,” Swann said.

Oil well liability became a big issue in Alberta politics in January 2020 when rural municipal politicians raised giant red flags about the estimated $173 million in unpaid municipal taxes as a result of some oil and gas companies nearing insolvency and many more companies just believing paying taxes is voluntary.

Speaking an energy symposium organized by the Canadian Association of Petroleum Producers last week, Premier Jason Kenney described oil well reclamation as “a collective financial liability,” which has raised some concern that the government is creating a dine-and-dash business model – especially with the price of Western Canadian Select hitting record lows.

On March 3, the Alberta government announced a $100-million loan which was expected to fund the decommissioning of 800 to 1,000 orphan wells.

There is currently estimated to be more than 3,700 orphan wells scattered across Alberta and an additional 94,000 inactive wells in the province.

New AER CEO

Laurie Pushor Alberta Energy Regulator
Laurie Pushor

Stepping right into the middle of the oil well liability issue is Laurie Pushor, who took over as the new Chief Executive Officer of the Alberta Energy Regulator on April 15. Pushor recently served as deputy minister of Energy and Resources in the Saskatchewan government and before that as a ministerial chief of staff, but political watchers in Alberta may remember him from his time in Alberta in the 1980s an 1990s.

Pushor served as executive assistant to Premier Ralph Klein and spent two years as a senior aide to Peter Elzinga, former minister of economic development and was executive assistant to transportation minister Marv Moore in the early 1980s.

He was also the Progressive Conservative candidate in Edmonton-Meadowlark in the 1993 and 1997 elections, where he earned 31 percent and 38 percent of the vote placing second to Liberal MLA Karen Leibovici. He served as president of the local PC Party association in-between those two elections.

 

Categories
Alberta Politics

A History of recent Federal By-Elections in Alberta.

The November 26 by-election in Calgary-Centre will be the fourth federal by-election held in Alberta in the past twenty-six years. In that time, only one of the by-elections saw the election of a candidate not from the incumbent political party. All three by-elections were won by candidates representing conservative parties.

Walter Van De Walle
Walter Van De Walle

Pembina By-election
(September 29, 1986)
Progressive Conservative Member of Parliament Peter Elzinga jumped into provincial politics and was elected as an MLA that year, vacating the riding he had represented since 1974. Longtime Sturgeon County councillor and reeve Walter Van De Walle faced a high-profile main competitor, New Democrat Ivor Dent, in a closely fought by-election. Mr. Dent had served as Mayor of Edmonton from 1968 to 1974.

When the votes were counted, Mr. Van De Walle defeated Mr. Dent by a narrow margin of 274 votes. Although Mr. Dent did not win the by-election, the strong showing for the NDP foreshadowed that party’s first federal electoral win in Alberta two year’s later when Ross Harvey was elected in Edmonton-East.

Deborah Grey Beaver River MP
Deborah Grey

Beaver River By-election
(March 13, 1989)
Tory MP John Dahmer died five days after he was elected in the November 21, 1988 election, triggering a by-election in this safe Tory riding. Reform Party candidate Deborah Grey earned a distant 4th place finish in the 1988 general election and carried the young protest party’s banner in the by-election only months later.

Riding a wave of western Canadian discontent with Prime Minister Brian Mulroney‘s PCs, Ms. Grey surprised the nation when she defeated PC candidate Dave Broda by 18%, becoming the first Reform Party MP. (Mr. Broda would later serve as the PC MLA for Redwater from 1997 to 2004). Ms. Grey was re-elected with 58% of the vote in the 1993 election along with 51 other Reform Party candidates.

Stephen Harper
Stephen Harper

Calgary-Southwest By-election
(May 13, 2002)
While he served as the Reform Party MP for Calgary-West from 1993 to 1997, Stephen Harper was not a sitting MP when he replaced Stockwell Day as leader of the Canadian Alliance in 2002. With a by-election expected in the riding vacated by former Reform Party leader Preston Manning, Mr. Harper managed to convince a reluctant Ezra Levant to step aside as his party’s already nominated candidate.

Mr. Harper was elected with 71% of the vote, more than 10,000 votes ahead of United Church Minister Bill Phipps, his NDP challenger. The Liberal Party declined to run a candidate in order to not oppose the new party leader’s entry into the House of Commons.

Categories
Dave Bronconnier Don Koziak George Dadamo Jon Lord Naheed Nenshi Paul Hughes Peter Elzinga Ric McIver Stephen Mandel

207 days until mayoral vote 2010.

Following Mayor Stephen Mandel‘s recent announcement that he will be running for a third-term in office, I have a couple of quick thoughts on the October Municipal election:

1) A cake-walk through the park? It is really too early to tell whether Mayor Mandel will face an easy re-election in October. In the non-race for Mayor of 2007, second place challenger Don Koziak earned 25% while only running a semblance of a city-wide campaign. I would not underestimate the electoral potential of an even moderately organized & well-funded outsider/anti-Council candidate, especially if it looks like Mayor Mandel is going to cruise to another victory.

2) Opposition is split. Mayor Mandel enjoys wide-spread support and the opposition he does face appears to be fragmented around varying issues. The people who are furious about the closure of the Edmonton City Centre Airport or annoyed about the funding of the Art Gallery of Alberta are unlikely to vote for the same candidate as the people angry over the Capital Power-Epcor decision. At this point, no champion challenger apparent has emerged with the potential of galvanizing this dissent (watching Season 3 of The Wire has taught me that even two or three reasonable challengers could bleed a Mayor’s support and create some interesting results).

3) What issues? There are no shortage of issues that I hope will be the focus of debate in this election (urban sprawl, inner city schools, regional amalgamation, and others that I plan to write about over the next six months), but the one issue that may have the potential to create a major wave is the Katz Group‘s desire to have the City of Edmonton to fund $400,000,000 for a new downtown arena. The Katz Group has hired long-time PC-insider Peter Elzinga as a lobbyist and launched a political campaign to “Revitalize Downtown” in advance of the election. Mayor Mandel was an early supporter of the downtown arena, but remains publicly coy about his position on the actual Katz Group proposal.

Meanwhile in Calgary, the race to replace retiring Mayor Dave Bronconnier remains eerily quiet. Former PC MLA Jon Lord and food activist Paul Hughes are in the race. Former Ontario NDP MPP George Dadamo entered the race last Summer and has since dropped off the political map. Game show contestant and Alderman Ric McIver is widely expected to join the race and an online campaign to draft Mount Royal University professor Naheed Nenshi is growing.

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Danielle Smith David McColl Ed Stelmach Jennifer Pollock Jim Campbell Laurie Hawn Leona Aglukkaq Maurice Tougas Patricia Godkin Peter Elzinga Shannon Stubbs Vitor Marciano

alberta politics notes 3/15/2010

– New polls from Angus-Reid (Wildrose: 42%, PC: 27%, Liberal: 19%, NDP 9%, Other 3%) and Environics (PC: 34%, Wildrose: 30%, Liberal: 23%, NDP 10%). Calgary Grit has more on these polls.
– According to the PC Party website, Patricia Godkin has replaced Jim Campbell as Executive Director (Mr. Campbell recently joined Cenovus Energy as their Vice-President Government Relations and Corporate Accountability). Ms. Godkin previously served as Director of Finance and was the acting Executive Director in 2007 after the resignation of Peter Elzinga. While holding the interim position in 2007, Ms. Godkin faced a challenge from outgoing PC Youth President David McColl, who published an op-ed in the Calgary Herald predicting that “PC Alberta will continue its slow death march, to the beat of a rural drum and tired, stale policies.”
Vitor Marciano is expected to become the new Executive Director of the Wildrose Alliance. Mr. Marciano recently stepped down from his position on the National Council of the Conservative Party of Canada and served as Campaign Manager for Edmonton-Centre MP Laurie Hawn in 2004 and 2006, and for Nunavut MP Leona Aglukkaq in 2008. In 2006, he supported former Edmonton-McClung PC MLA Mark Norris‘ bid for the PC leadership. This is the second prominent Edmonton conservative to join Danielle Smith‘s staff in recent months. In February, former PC Party VP Outreach and 2004 Edmonton-Strathcona candidate Shannon Stubbs became Executive Assistant to Ms. Smith.
– Former Edmonton-Meadowlark Liberal MLA Maurice Tougas has written a piece in this month’s Alberta Views Magazine that focuses on Danielle Smith’s time on the Calgary Board of Education from 1998 to 1999. Mr. Tougas’ reliance on comments from former Trustee Jennifer Pollock provided a fairly one-sided perspective of the issue. You can read my four part series Smith v. Board of Education part 1part 2part 3, and part 4.
– The Alberta Party has posted an update on The Big Listen.
Tyler Shandro has raised some interesting questions about the interim report of Alberta’s Electoral Boundaries Commission.
– Three years after the a committee of top-tier economic experts recommended increasing the royalty rates collected by the provincial government, Premier Ed Stelmach has cut back the amount of resource royalties that are collected. The Pembina Institute responded by pointing out that “Albertans, the owners of the province’s oil and gas resources, were completely left out of the process of reviewing Alberta’s royalty rates.”

Categories
Daryl Katz Don Iveson Ed Stelmach Joan Forge Peter Elzinga Ralph Klein

does downtown edmonton need a katz arena district?

The Katz Group launched a new website last week reframing their campaign for a new downtown arena as the centrepiece of a new “Arena District” north of Edmonton’s downtown core. The new website features a video interview with Katz Group President Daryl Katz. In the video, billionaire businessman Mr. Katz spoke emotionally about the potential for downtown Edmonton and the need for a conversation about the future of a revitalized downtown Edmonton. The website provides different types of social media, like Twitter and Facebook, to start this conversation.

I expect that this website is the beginning of a larger political campaign that will unfold before the 2010 Edmonton City Council elections. In October 2009, the Katz Group retained the services of Peter Elzinga, former MP, MLA, and Chief of Staff to Premier Ralph Klein from 1998 to 2004, for activities related to a “downtown Edmonton redevelopment project.” Until December 2009, the Katz Group had also acquired the services of lobbyist Joan Forge, who served as Premier Ed Stelmach‘s communications shop during the 2006 PC leadership race.

While I liked the video, Mr. Katz avoided the most important question of the exercise: money. It is no secret that the Katz Group would like the City of Edmonton to loan upwards of $400 million towards a new downtown arena, likely making it the largest non-transportation-related one-time investment that our municipality will have ever made (Councillor Don Iveson recently explained the funding request issue more articulately than I ever could here and here).

Aside from the political spin, I welcome a wider public conversation and am excited about the potential for a real debate about downtown. There are those people who are stuck in the 1980s and 1990s mentality that downtown Edmonton is a barren wasteland of warehouses and closed down rail yards, and then there are those Edmontonians who have moved on and seen the evolving character of our downtown core. The Katz Group campaign could generate competing ideas and a real discussion about what kind of face Edmontonians want our downtown to wear.

Downtown Edmonton (what I describe as the area between 100 Street and 124 Street) is a drastically different place than it was ten years ago. From the time when I first lived downtown in 2003 to when I moved back in 2009, I am excited by the changes that I have witnessed. New condo developments in the Oliver and Grandin have created a new identity in those neighbourhoods. People are moving into the core of the city and enhancing its diversity. Walk down Jasper Avenue west of 109th Street on a summer night and you will bump into many people coming in from the restaurants, bars, and coffee shops. The 104th Street Farmers’ Market is a perfect example of the vibrant new identity of Edmonton’s downtown core.

The business district of downtown Edmonton is like many other commercial business districts: employees leave work and it closes down at 6pm. This is the purpose of a commercial district dominated by office towers. An arena is not going to change this. An arena district north of downtown developed on clear urban development concepts could help revitalize a rougher part of the downtown core.

I have heard many arguments about how a downtown arena could revitalize the area, but I have not been convinced that our current arena, Rexall Place, is as bad as its detractors would characterize it. Admittedly, I have only been inside Rexall Place about a dozen times over the past ten years (mostly during the Canadian Finals Rodeo). While this is the case, I don’t fully understand why it needs to be replaced so badly. As a friend pointed out to me yesterday, ‘because it is old’ isn’t a very good argument.

Although the idea of a downtown “arena district” intrigues me, any new development must be based in solid urban development concepts, and not in emotional appeals from politically and financially motivated individuals.

I welcome a real conservation about downtown Edmonton. Let’s start it!