Ontario pumps $23.6M into capping old oil, gas wells

Ontario pumps .6M into capping old oil, gas wells

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Nearly two years after the downtown Wheatley explosion, the Ontario government announced it will invest $23.6 million to develop a provincewide strategy to identify and plug old oil and gas wells.

An additional $2.5 million will also be allocated to Chatham-Kent to assist with costs associated with emergency management from the August 2021 blast, said Minister of Natural Resources and Forestry Graydon Smith.

Speaking during a media conference at a Blenheim-area farm June 2, Smith said this investment is the first step in a government action plan to address the challenges and risks.

“(Wheatley) showed us the hazards that old oil and gas wells can pose in Ontario,” he said. “While that incident is almost two years in the rear-view mirror, it is still very much a present-day issue.

“It continues to be a difficult situation for the residents and business owners in Wheatley.”

Ontario has records for approximately 27,000 oil and gas wells, primarily on private land in Southwestern Ontario.

The $23.6 million will be used to develop an oil and gas action plan to mitigate the risks of old wells and conduct research to better understand the issue. The funding includes:

$7.5 million over three years to directly support municipal efforts to reduce risks and enhance emergency preparedness. Eligible municipalities will be invited to apply for funding in coming weeks.
Doubling of the existing Abandoned Works Program over three years to $6 million to support the plugging of old oil and gas wells.

“Today marks a historic first step in the development of a comprehensive action plan,” Smith added. “To tackle the very complex challenges related to the legacy of Ontario’s petroleum industry and the use of petroleum resources in our communities.

“This plan is in the early stages and will be an ongoing process.”

Ontario has invested over $25 million to date to support the investigation, recovery and monitoring activities in Chatham-Kent, and support eligible businesses and residents evacuated from their homes.

The provincial action plan will continue to be guided by ongoing engagement with industry, municipalities, Indigenous partners, other stakeholders and the public.

Chatham–Kent–Leamington MPP Trevor Jones said it was important to support municipalities and landowners, so their land can remain “safe and productive for a variety of uses.”

The ministry administers the Abandoned Works Program, which supports the plugging of inactive wells that pose a heightened risk to public safety or the environment by providing financial assistance to eligible landowners.

To date, this program has spent $29.5 million to plug 415 wells.

Chatham-Kent Mayor Darrin Canniff in a release thanked the province for its “commitment to reviewing and addressing the difficulties municipalities are grappling with due to the challenges posed by legacy oil and gas wells.

“We appreciate the financial and technical assistance provided to date and the province’s recognition of the need to provide further assistance. This will contribute to the healing of our community and protection of the environment.”