The Oil & Gas Appeal Tribunal of British Columbia (the “Tribunal”) has revised the timeline for Canada Energy Partners Inc.’s (TSX-V: CE) (the "Company") appeal of the order issued by the British Columbia Oil & Gas Commission (“OGC”) suspending all disposal activities at the Company’s water disposal well in northeast British Columbia. All submissions related to the appeal must now be delivered by July 20th, after which the Tribunal will deliberate and render a decision. This delayed schedule was issued in response to the request of BC Hydro, the owner of the Peace Canyon Dam (“PCD”). The PCD is located 3.3 km away from the Company’s water disposal well, which is a focal point of the appeal.
The Company also received a letter from the OGC which stated, “I write to advise that the Commission is considering taking action under Section 26(1)(c) of the Oil and Gas Activity Act to cancel the above noted well permit.” The Company has until June 26th, 2017 to rebut the OGC’s consideration and will be doing so.
The OGC also concluded and released the results of its Technical Review of the Company’s water disposal well and the potential of induced seismicity related thereto. The OGC engaged an outside consultant to evaluate the risk of damage to the PCD from induced seismic event related to the Company’s water disposal operations, which concluded in part, “A pulse type motion, as is expected from a low to moderate induced seismic event, is considered to have a reduced probability of causing failure or damage to the PCD….We have not identified any compelling reason for induced seismicity to result in significant damage to, or an outright failure, of the PCD.
Based on the recorded history of fracking and injection well induced seismic events in northeast BC, and provided that reinjection conditions remain similar to the practice to date, the probability of significant damage or a failure occurring is within expected norms for life safety, based on the British Columbia Building Code and our present understanding of the stability of the PCD structure.” The Company believes that this study supports the preservation of its disposal well permit and the reinstatement of its water disposal rights.
The Company will provide further updates of significant benchmarks to the appeal process as they emerge.
The OGC’s General Order, letter of June 16, 2017, and consultant’s “Induced Seismicity” study and the Company’s Notice of Appeal, Appeal, and Stay application can be viewed on the Company’s website: www.canadaenergypartners.com.
SOURCE: Canada Energy Partners Inc.
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