Evidence of meeting #111 for Natural Resources in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was wells.

A video is available from Parliament.

On the agenda

MPs speaking

Also speaking

Adam Legge  President, Business Council of Alberta
Deborah Yedlin  President and Chief Executive Officer, Calgary Chamber of Commerce
Sean Strickland  Executive Director, Canada's Building Trades Unions
Clerk of the Committee  Mr. Thomas Bigelow

Ted Falk Conservative Provencher, MB

Thank you, Mr. Chair.

I'll try to collect my thoughts again as to where I was going. That's the second or third interruption, by way of a point of order.

I was just saying that just because a Liberal says something is so, it doesn't mean that it is so. The comment is made that these abandoned and orphaned wells are polluting farmland, waterways and air. There's no evidence to suggest that it's actually happening. To make a comment randomly, out of the blue.... To me it's a comment or a point that's made just to create agitation, which it obviously does. We shouldn't, I don't think, include things in our preamble that are intentionally put there to agitate people. I don't think it's helpful or useful for constructive debate and study for a preamble to start off from the perspective of agitating someone. However, I think if there's a legitimate concern, something that's well documented, I think those are the things we should be talking about. Regardless, it doesn't need to be in the preamble; it could be in the actual motion itself.

If we look at the difference between an abandoned and an orphaned well, we can see that abandoned wells actually have lifetime liability for contamination to the environment by the proponent. The company that owns them has a 25-year liability for surface reclamation issues. If there are issues to do with topography, vegetation, soil texture or drainage, the proponent of the well is responsible for those thing for 25 years following the abandonment of that well and, in fact, actually has lifetime liability for that well creating any contamination.

It's something I think the industry has taken very seriously. The Alberta Energy Regulator monitors these abandoned wells very carefully and makes sure that the owners of the wells are actually doing their due diligence and that they're actually maintaining their responsibilities and reducing the liabilities to our environment.

I also find it very interesting that, to a Liberal, a scandal is when somebody repays the federal government. In this case, the Alberta government has repaid the federal government $137 million. I find it interesting that they don't think it's a scandal when there's $400 million in the Sustainable Development Technology Canada program that's been misappropriated. They don't seem to think that's a scandal. In fact, the House has been seized with, for the better part of the last three weeks, debate on exactly that issue of whether documents related to the SDTC scandal, to their board of directors, to the misappropriation of funds and to the 186 conflicts of interest that existed should not be turned over to the RCMP because it certainly reeks of corruption.

The Liberals, for whatever reason, aren't seized with the scandalous nature of that particular occurrence, but they seem to be seized with $137 million that's returned to the federal government. Wow...talk about thinking backwards.

Let's talk about that $137 million. The Government of Alberta was given approximately a billion dollars, which was to be spent in the cleanup, the reclamation, the proper decommissioning of abandoned and orphaned wells. In the time frame that it was allotted, it was not able to complete the expenditures of the full billion dollars, and it asked the federal government for an extension so that it would be able to use the $137 million that remained unspent. The federal government, this Liberal government, Liberal-controlled bureaucracy, said, "No, send us the money. Send us $137 million." Because the Alberta government could not responsibly, from a good stewardship perspective, spend the money to achieve the results that it was supposed to achieve, it sent the money back to the federal government.

Instead of commending Alberta for being good stewards of the money, they now want to conduct a study to find out why it gave $137 million back. “Why didn't you spend it?” Well, I think we should be commending provinces that are good stewards of money and that can responsibly spend money to do this in a way they know they can stand behind, along with the results they have achieved. They issued the money through a tendering process that was fair, open and honest, and that resulted in qualified contractors doing the work. As we heard from Mr. Dreeshen, we know to what extent first nations rehabilitation folks were involved in the decommissioning of some of these wells. They do tremendous work. However, just because money is available doesn't mean it has to be blown out the door and squandered. Yet, this preamble suggests that would have been a better solution than returning the money to the federal government unspent.

I think we should be commending Alberta and saying, “Wow, Premier Smith, you've done a phenomenal job of making sure you responsibly stewarded the money the federal government gave you for a specific purpose. You weren't able to spend the money frivolously and without accountability, so you returned it to the federal government and kindly asked us for an extension to use the money responsibly.” We said no. This Liberal government should be praising Premier Smith for the good work she and her government are doing in Alberta.

The next bullet point talks about Saskatchewan. Again, in my earlier comments, I indicated that this government is one of division, seeking to create disunity right across Canada. Why would a preamble swipe at a neighbouring province to try to create some kind of animosity between the two? Only a Liberal would know the motivation behind that. I don't think there's any good reason to create animosity between provinces. We should, rather, be trying to build unity across this country. That's not something a bullet point like this does.

It also says, “Companies who abandon wells and fail to pay for their cleanup negatively impact provincial taxpayers and municipalities”. That's true. They should. That's why regulatory bodies, including the Alberta Energy Regulator, seek to monitor this carefully and hold individuals to the responsibility they committed to when they drilled the wells, exploited the resources in them and sent them to market. When they choose to no longer have them as productive resource wells, they also have to follow up. If they don't follow up with the owners of these wells to make sure there has been proper remedial action taken, it costs provincial and municipal taxpayers money. That's why the regulator is on top of these things and, I think, doing a good job. To have that as part of the preamble.... I don't think we've been hearing from any provincial or municipal taxpayers who think it's an issue, so why would you put that in a preamble? Again, it's to create animosity among people and to incite divisiveness.

“Orphaned and abandoned wells present an economic opportunity to support energy solutions like geothermal energy.” I'm not sure where that bullet point comes from, but it sounds like they want to repurpose oil wells to be geothermal energy sources. That might be worth studying. It could have been part of the motion, but here it is. We see it in part of the preamble. Who knows if there are opportunities there? I'm not sure how geothermal and oil go together. It's water and oil. I know my experience, Mr. Chair. Whenever I put oil in water, the two don't seem to want to comingle together very well. In fact, they separate. That is part of the process of oil extraction—sending steam down and having the oil come up. I'm not sure about the validity of that. There could be a business case there. Who knows? It probably would be worth a study.

I think the point I want to get back to, again, is found in the first couple of bullet points. It seems as though the province of Alberta has been unfairly targeted by the Liberal government, instead of recognized for the economic prosperity it gives our entire country.

I think there should be commendation shown to Alberta for the good work that it did do in responsibly using over $800 million of the funds given to it to actually fund remediation projects for abandoned and orphaned wells. I think it would have been wise of this Liberal government to have granted the extension to Alberta and to have said: “You've got qualified contractors and we want you to continue to use qualified contractors. We don't want you just throwing this out on the market and hiring contractors that, first of all, may not be properly trained and vetted to do this kind of work and may not be competent in this kind of work.”

I don't think those are necessarily the types of contractors that we want to award projects like this to, to do completion. As we've heard, there are responsible contractors. There are people who are trained. They have good safety programs. They employ indigenous.... Many that complete these remediation projects are actually 100% indigenous-owned contractors. I think that to grant an extension would have been the thing that this level of government should have done, and you know what? It would have been a non-issue, Mr. Chair.

The other problem I have with this motion is that we're currently in the midst of two studies. There's the TMX pipeline project, and Mr. Angus has really promoted studying what exactly happened that took this TMX pipeline project from a cost of what initially was pegged at $9.7 billion. By the time the federal government took it over or purchased it, that grew to just under $13 billion and now has exploded to $34 billion. I think that's a very worthy study and is one that this committee should have been seized with. I don't think we've actually gotten quite to the bottom of it yet, and I think our study will be wrapping up soon as far as hearing from witnesses goes.

We've got a lot of work to do on that study. We've got to give the analysts time to write a report. We've got to give them time to sift through all the data that's being submitted by the witnesses who we've had at committee and those who we weren't able to listen to. They have got to compile all that data and actually put together a report that's going to be cohesive for this committee to study and review. I think it would be important that we get that done before we embark on another study.

Also, then, we've been looking at electricity, at the capacity we have in this country and the grid and whether it's sufficient to meet the demands that, seemingly, right across the country, are increasing for electricity, especially clean electricity. I think that's been a really good study. We've heard from some very good witnesses. They are industry people who understand the situation and understand the economics here in Canada. That's also a report that needs to be written and studied by this committee.

We have a significant workload that we've undertaken at this committee, Mr. Chair. I just think that it would be helpful if you would take some time, together with the clerk, to sit down and prepare a schedule for this committee as to when these different things are going to happen and when we're going to be continuing the study with TMX or jumping back to electricity, rather than having these motions thrown in front of us by Liberal parliamentary secretaries to conduct yet another study when we have two that we're in the middle of and haven't finished.

They're both very important studies, Mr. Chair, and I would really hope that you, as the chair of this committee, would take some time to prepare a schedule that we can review and approve so that at least we know what we're going to be doing here, but I think our plate is full. I think this—especially the preamble—is very sad, and I would question its appropriateness in actually trying to create a cohesive atmosphere around this committee that would lead to doing productive work.

At this time, Mr. Chair, I'll cede my time to you. I'm sure there are other speakers who have opinions as well and who will make them known. Thank you.

The Chair Liberal George Chahal

Thank you, Mr. Falk.

Now we'll go to Ms. Goodridge, who is online.

Ms. Goodridge, go ahead. The floor is yours.

6:25 p.m.

Conservative

Laila Goodridge Conservative Fort McMurray—Cold Lake, AB

Thank you, Mr. Chair.

It's been really frustrating sitting here, listening to some of these arguments and these attacks being made. It's really interesting, because one thing that was said was that Saskatchewan managed to spend all their money and Alberta didn't. Well, Alberta got $1 billion and Saskatchewan got $400 million. There's a different order of magnitude in those two sums of money.

We're really having a conversation over the fact that the Government of Alberta created a program, and that program had private people then spending that money to do the cleanup. That's not something that happens willy-nilly, or at least not in the case of the province I come from. I actually was an MLA at the time this was being discussed, so I remember some of those conversations fairly in depth. It was a program that initially was very oversubscribed. To be able to do it properly and not have shell companies and companies like Dalian that the Government of Canada decided to use, that qualified for contracts under federal government indigenous procurement but was effectively a shell, one of the big challenges is that the Government of Alberta actually wanted to engage with meaningful work so that these projects could go forward meaningfully. That required indigenous companies to get appropriate equipment and get the appropriate training. That doesn't happen just overnight, especially in the context of a pandemic. This program wasn't simply about wells. This was about job creation.

The member from Newfoundland, Ms. Jones, raised some really good points. There are lots of ties to the energy industry in Newfoundland. There are many ties between Alberta and Newfoundland. That's part of why we have so much commonality. I have many constituents who go back and forth to Newfoundland. As well, many have retired back home to Newfoundland after having worked their career up here. It's really frustrating; I don't know if most of the constituents I talk to who are from Newfoundland would appreciate the fact that the Government of Alberta, and more specifically the energy workers, are constantly under attack by this Liberal government.

This is the problem we're [Technical difficulty—Editor].

The Chair Liberal George Chahal

We'll have to suspend for a moment. I know that Ms. Goodridge does have the floor.

The Chair Liberal George Chahal

We're back.

Ms. Goodridge is not online, so we'll go to the next speaker.

I'll go to you, Mr. Patzer.

12:50 p.m.

Conservative

Jeremy Patzer Conservative Cypress Hills—Grasslands, SK

Thank you very much.

It's the blessing and curse of technology, I guess, that sometimes these things do happen. It wouldn't matter which party or which individual it was, I certainly wouldn't want to step on someone's privileges as a member. Hopefully, this doesn't create issues going forward with regard to the types of situations that could arise from somebody's technology accidentally restarting on them or an update being forced through when the user didn't actually approve of the update yet. I will happily take the floor for a few minutes until she can return. When she is back online, I'll be sure to turn it back over to her. She was in the middle of some very important thoughts there.

One thing I want to talk about here is I think part of the heart of the motion. We know that it's been a long-standing goal of both the environment minister and the natural resources minister to end the use of fossil fuels. Whether it's the emissions cap, whether it's the—

Julie Dabrusin Liberal Toronto—Danforth, ON

I have a point of order, Chair.

The Chair Liberal George Chahal

Ms. Dabrusin, go ahead on the point of order.

Julie Dabrusin Liberal Toronto—Danforth, ON

It might be a matter of relevance. Right now we're talking about a motion about wells and orphaned wells, so I am not sure what the relevance is. It is not even correct.

The Chair Liberal George Chahal

Thank you for your point of order, Ms. Dabrusin.

I just would ask members to keep their remarks relevant to the motion at hand.

Thank you, Mr. Patzer. If it's okay, I'll go back to Ms. Goodridge.

Ms. Goodridge, I know that you had a bit of an interruption there. We want to make sure you have the opportunity to continue with your intervention. Go ahead.

12:50 p.m.

Conservative

Laila Goodridge Conservative Fort McMurray—Cold Lake, AB

Thank you. It's the joy of technology. It's great when it works, and a little challenging when you have a bit of failure.

I don't exactly know where I was when my computer decided to shut down, but where I was going is here: We wouldn't be having this conversation if this was an attack on another province. The Liberals have made comments like, “Well, this isn't”.... If we're talking about the main motion, what's the point of having the preamble? The process and procedure are very clear. They recommend against having preambles. Many people choose to put in preambles to give some context, but this context is misleading, not accurate and an attack on the province of Alberta—the province you and I both represent, Mr. Chair. I'm not sure how you can sit in that chair position and allow a conversation to continue that is such an affront to the people you and I have been elected to represent. This is one of those complicated spaces that we're in. This government doesn't see Alberta as a relevant conversation piece, or something.

I'm not quite sure why this Liberal government has decided to continually attack. It's not some backbench member of Parliament who brought this forward of their own volition. It was the Parliamentary Secretary to the Minister of Natural Resources, which means that, if the ministry of natural resources hadn't approved this, we wouldn't still be having this conversation. It means these were marching orders given by the Minister of Natural Resources. This means it was the intention of the Liberal government, under Prime Minister Justin Trudeau, to further attack Alberta, Albertans and Alberta workers.

One of the frustrating pieces is that this entire motion was created to attack an industry and a program that was set up that didn't throw money out the door, like the Liberals did during COVID. Instead, it made sure it was set up in such a way—

Charlie Angus NDP Timmins—James Bay, ON

I have a point of order.

The Chair Liberal George Chahal

Mrs. Goodridge, we have a point of order. I'll ask you to hold for a second.

Go ahead, Mr. Angus, on the point of order.

Charlie Angus NDP Timmins—James Bay, ON

Could the clerk read out the motion? I think my colleague has gotten.... Once the thing came back on the screen, she might have thought she was in another committee.

I don't remember where in the preamble it attacks workers. Does it attack workers? Could you read the preamble? I think she's very worried that we're picking on Alberta and all of her friends when we're talking about abandoned wells. They also think it's attacking indigenous people. I don't know if they read it. Maybe there's a different motion out there.

Could the clerk read the motion so that the member isn't so confused?

Thank you. I think it would be very helpful.

The Chair Liberal George Chahal

Mr. Angus, I'll ask you to hold, please. I think you're done with your point of order. You've asked for information or clarity on the motion at hand.

Charlie Angus NDP Timmins—James Bay, ON

Yes. That's so we're on the same page when talking about something. It's very hard to debate something when people are talking about something else. I don't know what they're talking about.

The Chair Liberal George Chahal

Thank you, Mr. Angus, for your point of order.

The clerk, earlier in the meeting, read out the motion to members for clarity. If members choose to have another update on it, we can do that.

However, I have a point of order from Mr. Patzer.

Mr. Patzer, go ahead.

12:50 p.m.

Conservative

Jeremy Patzer Conservative Cypress Hills—Grasslands, SK

For Mr. Angus's enlightenment, there was an opportunity for a lot of jobs for Treaty No. 7. They said they were looking for the funding, through the FSNRP in the province of Alberta, so they could use their expertise and workforce. The Liberals, by saying no, directly said no, in effect, to those workers who have the skill set and ability to—

The Chair Liberal George Chahal

Mr. Patzer, I gave you some leeway so we could hear your point of order, but that is not a point of order. That's full-on debate. You're up next on the list, so you can debate away.

Thank you.

Mrs. Goodridge, you had a point of order, but you have the floor. I'm going back to you.

12:50 p.m.

Conservative

Laila Goodridge Conservative Fort McMurray—Cold Lake, AB

I'm just going to go right into it, Mr. Chair.

I was going to raise, on a point of order, that I am more than capable and that I have, in fact, read the motion we are debating and the preamble we are debating. I listened when the clerk read the motion and preamble, and I am capable of understanding what those words mean, which frustrates me that Mr. Angus somehow believes that it is not the case. If it was an attack....

Here's part of the problem. Mr. Angus has a private member's bill that is a full-on attack on Alberta's energy industry. He has made no ifs, ands or buts about his dislike for it. However, this is the absolute frustration that we are in right now, Mr. Chair. We have this Liberal-NDP coalition that sees the energy industry and, in turn, the Province of Alberta and the people of Alberta, as “lesser than”. It does not support Alberta and our energy industry. It does not support the workers that get their paycheques from this industry. It wants to see less of this industry, and this is where we disagree.

I am proud of our world-class energy industry that we have here in Canada. I think we need to do more to support it. I'm proud of the fact that the Government of Alberta didn't just throw money out the door to get it spent so that it could check boxes to the Government of Canada, and instead, it decided to create a program that was actually robust. It made sure that there was accountability, something that the Government of Canada could learn a lot from.

I know that in the government operations committee, they are currently studying failures on indigenous procurement. Our House of Commons is completely seized and paralyzed because of the government refusing to hand over documents when it comes to a green slush fund. There is such a pattern of abuse of taxpayer dollars from the federal government that it is very frustrating that the Government of Alberta, which was unable to spend all of the money under this program, said, “Do you know what? Let's ask for an extension because we're showing that we are doing credible work.” It was actually moving—

The Chair Liberal George Chahal

Mrs. Goodridge, I didn't want to interrupt you because you're in....

We're going to continue in our next meeting with your having the floor, Mrs. Goodridge. We are suspended, as it's one o'clock.

Thank you.

[The meeting was suspended at 1 p.m., Monday, October 28]

[The meeting resumed at 4:34 p.m., Wednesday, October 30]

4:30 p.m.

Conservative

Garnett Genuis Conservative Sherwood Park—Fort Saskatchewan, AB

I have a point of order....

I'm sorry. Go on.

The Chair Liberal George Chahal

Thank you.

Welcome back, Mr. Genuis, to our committee.

4:30 p.m.

Conservative

Garnett Genuis Conservative Sherwood Park—Fort Saskatchewan, AB

Thank you. It's good to be back.

The Chair Liberal George Chahal

I call this meeting back to order. We are resuming meeting number 111 of the House of Commons Standing Committee on Natural Resources.

Today's meeting is taking place in a hybrid format. I would like to remind participants of the following points.

Please wait until I recognize you by name before speaking. All comments should be addressed through the chair. Members, please raise your hand if you wish to speak, whether participating in person or via Zoom. The clerk and I will manage the speaking order as best we can.

When we suspended last Monday, we were debating the motion of Ms. Dabrusin as amended. Mrs. Goodridge had the floor.

Mrs. Goodridge, I will turn the floor back to you.