Canadian Natural Resources Ltd. Fails to Deactivate Thousands of Pipelines in B.C.

One of Canada’s largest oil and gas companies, Canadian Natural Resources Ltd. (CNRL), failed to meet targets set by B.C.’s energy regulator to deactivate over 4,300 pipelines in the province. The BC Energy Regulator found CNRL had not deactivated the pipelines as agreed and issued an order for cleanup. Despite facing no financial penalties, CNRL complied and is now exceeding targets under a new plan.

Companies like CNRL operate short pipelines connecting natural gas wells to major networks. When wells stop producing gas, these pipelines must be decommissioned within 18 months to prevent environmental damage. CNRL proposed a multi-year plan for deactivation, but failed to meet targets for three consecutive years.

The BC Energy Regulator did not fine CNRL but could impose penalties if deactivation requirements are not met. CNRL still had 865 pipelines to decommission as of early March. The company did not respond to requests for comment.

Legal expert Martin Olszynski noted CNRL’s history of slow cleanup. The regulator’s approach of ordering compliance without fines was effective in getting CNRL back on track. Critics question the regulator’s leniency towards oil and gas companies and its ability to enforce regulations.

The BC Energy Regulator, funded by levies from oil and gas projects, plays a crucial role in overseeing the industry. As the sector expands, concerns arise about the regulator’s ability to hold companies accountable and build public trust.

According to the source: The Narwhal.