Statement on Everest Canadian Resources Order - updated April 11, 2023
April 11, 2023
On April 5, 2023, the Court of King’s Bench approved the Orphan Well Association’s (OWA) application to appoint a receiver over Everest Canadian Resources Corp.’s assets.
Having a receiver in place helps to ensure Everest’s assets end up in the hands of responsible parties and that end-of-life obligations will be addressed to the greatest extent possible.
Receivers provide for the care and custody of the licensed sites until they are transferred or discharged and assigned to a responsible party.
As a result of the OWA’s successful application to appoint a receiver over Everest’s assets, the AER has amended the order issued on March 24, 2023, to transfer the responsibility from the OWA to the receiver to provide care and custody over the assets, including fulfilling regulatory obligations and requirements of the order. A copy of the amended order can be found on the AER’s Compliance Dashboard.
More information about the AER’s role when a company moves into receivership proceedings and the role of a receiver can be found on the Insolvency page on aer.ca.
March 28, 2023
The AER has issued an order to abandon oil and gas assets at the McKay Facility, licensed to Everest Canadian Resources Corp. The AER is escalating enforcement against Everest Canadian Resources Corp. after it failed to properly care for its assets and comply with the initial order we issued to them on March 3, 2023.
The AER has directed the OWA to continue providing care and custody over the site to ensure public and environmental safety. Under the order, the OWA is required to submit a detailed plan to the AER by April 12, 2023, demonstrating that reasonable care and measures are being taken at the site.
The order also directs Everest to submit an abandonment plan to the AER by March 29, 2023, and confirm its ability to retain third party services for the duration of the abandonment process until reclamation certification is achieved.
With this new order in effect, the initial order issued on March 3, as well as the amended orders issued on March 5 and March 9, have been rescinded.
A copy of the order issued to Everest Canadian Resources Corp. can be found on the AER’s Compliance Dashboard.
March 09, 2023
Efforts to stop the uncontrolled release coming from a steam injection well at Everest Canadian Resources Corp.’s McKay Facility have been successful. The release has stopped and the well in now in a safe and secure state.
The OWA continues to provide care and custody of the site to ensure public and environmental safety. In addition, the OWA continues to address the items in the Reasonable Care and Measures Order together with Everest Canadian Resources Corp., which was amended today to provide greater clarity regarding the roles and responsibilities of the parties.
March 07, 2023
On Sunday, March 5, 2023, the Orphan Well Association (OWA) notified the AER of an uncontrolled release of steam, coming from a steam injection well at Everest Canadian Resources Corp.’s McKay Facility, approximately 55 kilometres northwest of Fort McMurray.
Due to the Reasonable Care and Measures Order the AER served on the company on March 3, the OWA was already on site to respond when the incident occurred. We have instructed the OWA to take control of this incident and they are working to stop the release and make the site safe. There is no risk to public safety and no injuries have been reported. The OWA and the AER have notified stakeholders about the incident, including the Regional Municipality of Wood Buffalo, and also eight Indigenous communities in the region.
A copy of the amended order issued for Everest Canadian Resources Corp. can be found on the AER’s Compliance Dashboard.
March 04, 2023
On Friday, March 3, 2023, the AER issued a Reasonable Care and Measures Order for Everest Canadian Resources Corp.’s licensed assets, including its McKay in situ facility. The AER has issued this order after repeated failures by Everest Canadian Resources to comply with AER regulatory requirements.
There are no risks to public safety. However, the AER has concerns about Everest Canadian Resources Corp.'s ability to conduct its operations in compliance with Alberta’s regulatory requirements and as a result, we are taking this preventative measure to protect the environment.
We acknowledge that these activities take place on and near Indigenous traditional and Treaty territories, and we are ever mindful of the need to involve and inform them regarding those activities. Contact has been made with eight Indigenous communities in the region and the Regional Municipality of Wood Buffalo.
Under the order, the facility and its associated infrastructure are to be shut in, which means Everest is required to safely stop production and stop operating. In addition, the AER has directed the OWA to provide immediate care over the sites and confirm that the facility has been closed or shut down by March 18, 2023.
The order does not absolve Everest Canadian Resources from any of its responsibilities and liabilities but ensures that the sites are responsibly attended to for the protection of the environment.
A copy of the order issued to Everest Canadian Resources Corp. can be found on the AER’s Compliance Dashboard.