In the Legislative Assembly on February 28th, 2022. See this topic in context.

Question 946-19(2): Strategic Oil and Gas Liabilities
Oral Questions

February 28th, 2022

Page 3565

Kevin O'Reilly

Kevin O'Reilly Frame Lake

Merci, Monsieur le President. My questions are for the Minister of Lands, who seems to have primary responsibility for the former Cameron Hills production area held by Strategic Oil and Gas.

Can the Minister tell us whether there's been any successful bids for the assets at Cameron Hills and if not, what is the next step in managing this site? Mahsi, Mr. Speaker.

Question 946-19(2): Strategic Oil and Gas Liabilities
Oral Questions

Page 3565

The Speaker

The Speaker Frederick Blake Jr.

Thank you, Member for Frame Lake. Minister responsible for Lands.

Question 946-19(2): Strategic Oil and Gas Liabilities
Oral Questions

Page 3565

Shane Thompson

Shane Thompson Nahendeh

Thank you, Mr. Speaker. Mr. Speaker, the receiver is working through the results of this sale process. There is one bid for a portion of the site. The department is reviewing the bid and will provide comments back to the receiver. However, it is in the hands of the court and the receivership process. Thank you, Mr. Speaker.

Question 946-19(2): Strategic Oil and Gas Liabilities
Oral Questions

Page 3565

Kevin O'Reilly

Kevin O'Reilly Frame Lake

Merci, Monsieur le President. I want to thank the Minister for that, though those bids closed in September. So several months. Although there was a conditional approval given for the fourth version of the closure and reclamation plan for the Cameron Hills site, the receiver's not yet submitted a final version with numerous changes required by the land and water board. It's been over two years now, and this plan is needed to do a cost estimate and calculate financial security.

Can the Minister explain why a final closure plan has not yet been submitted and give us a date as to when it's going to come? Thanks, Mr. Speaker.

Question 946-19(2): Strategic Oil and Gas Liabilities
Oral Questions

Page 3565

Shane Thompson

Shane Thompson Nahendeh

Thank you, Mr. Speaker. Mr. Speaker, the receiver has not submitted a reclamation plan because they're awaiting for the outcome of the sale process. A process for the plan will begin once the sale process is completed and, unfortunately, the receiver hasn't provided a timeline for the conclusion of the sale process. Thank you, Mr. Speaker.

Question 946-19(2): Strategic Oil and Gas Liabilities
Oral Questions

Page 3565

Kevin O'Reilly

Kevin O'Reilly Frame Lake

Merci, Monsieur le President. I want to thank the Minister for that. Seeing as we seem to have some leverage with the receiver, maybe we can suggest that they speed that up a bit.

In my statement, I noted that the financial security held for this site was totally inadequate and has probably run out by now. Can the Minister confirm that the financial security has run out and tell us how much additional money our government has paid to the receiver for the compliance and limited reclamation at the site? Mahsi, Mr. Speaker.

Question 946-19(2): Strategic Oil and Gas Liabilities
Oral Questions

Page 3565

Shane Thompson

Shane Thompson Nahendeh

Thank you, Mr. Speaker. The security for the land use permit and water licence is at $2.9 million. In addition, OROGO holds an additional $1 million as proof of financial responsibility. The financial securities that have been converted to cash are being held in trust accounts. To date, the receiver's costs have been approximately $3.0 million which has been funded fully by the Department of Lands. Thank you, Mr. Speaker.

Question 946-19(2): Strategic Oil and Gas Liabilities
Oral Questions

Page 3565

The Speaker

The Speaker Frederick Blake Jr.

Thank you, Minister. Final supplementary, Member for Frame Lake.

Question 946-19(2): Strategic Oil and Gas Liabilities
Oral Questions

Page 3565

Kevin O'Reilly

Kevin O'Reilly Frame Lake

Merci, Monsieur le President. I want to thank the Minister for that. The full cost for implementation of the close and reclamation plan that's not yet finished does not appear on the public record anywhere but our government must have prepared some sort of estimate by this point.

Can the Minister provide that cost estimate and its calculation to this House? Or if he has to give it to me on a confidential basis, I'd be willing to take that. Mahsi, Mr. Speaker.

Question 946-19(2): Strategic Oil and Gas Liabilities
Oral Questions

Page 3565

Shane Thompson

Shane Thompson Nahendeh

Thank you, Mr. Speaker. Mr. Speaker, there has been some very high level work completed around estimates for the cost of reclamation. However, due to the lack of information about the conditions of the wells and the site infrastructure, it is not possible to accurately establish the cost at this time. One of the next steps, once the sale proceeds is complete, will be to better understand the conditions of the ground, its strategic, and complete work so the government can actually estimate the cost to fix this issue. Thank you, Mr. Speaker.

Question 946-19(2): Strategic Oil and Gas Liabilities
Oral Questions

Page 3565

The Speaker

The Speaker Frederick Blake Jr.

Thank you, Minister. Oral questions. Member for Yellowknife North.