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May 14, 2020 12:36 AM -

B.C. lays out $120 million plan to clean up inactive oil and gas

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Premier John Horgan addressing media conference in Vancouver, about activating its provincial pandemic plan to deal with the novel coronavirus. Health Minister Adrian Dix and Provincial Health Officer Dr. Bonnie Henry can also be seen in the pic. March 6, 2020. Connect News/Jawad Siddiqui

British Columbia has announced details on how it plans to spend $120 million in federal funds earmarked for cleaning up inactive oil and gas well sites across the province.

Premier John Horgan says restoring more than 2,000 inactive oil and gas wells would support upwards of 1,200 jobs in B.C.

The federal government announced $120 million for cleaning up so-called orphan wells in B.C. in mid-April, money the province says it intends to spend on three new programs once a final agreement is reached with Ottawa.

B.C. says up to $100 million would be used to reclaim wells that have been inactive for five consecutive years and aren't likely to come back into service.

That would provide oil and gas companies based in B.C. with up to $100,000, or up to half the total costs of site clean up, whichever is less.

The province says a second program managed by the BC Oil and Gas Commission would provide $15 million to reclaim oil and gas sites operated by companies that are insolvent, cannot be located or no longer exist.

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