Land Petroleum International Inc. has been ordered to pay an $80,000 fine for failing to allow AER staff access to a natural gas facility to inspect it in August 2018.
The company was found guilty of one charge under the Oil and Gas Conservation Act (OGCA) in provincial court.
The AER made several attempts to inspect the natural gas facility near Ponoka, Alberta, licensed to Land Petroleum.
The company’s president, Bill Fung, told AER staff that they could not enter the facility to inspect it. The AER considers this a serious noncompliance because it prevents us from ensuring safe and environmentally responsible energy development.
The AER subsequently conducted an inspection of the facility. It has since been sold and licensed to a different operator and is currently operating within AER requirements.
The fine follows charges that were laid by the AER against Land Petroleum and Mr. Fung.
The charges against Mr. Fung were withdrawn by the court after he agreed to enter a common law peace bond. The peace bond is a court order that requires Mr. Fung to comply with all AER requirements for three years. If he fails to meet the conditions of the peace bond, he could face criminal charges.
The court’s decision is available on the AER’s Compliance Dashboard under the tab “Noncompliance & Enforcement.”
The AER ensures the safe, efficient, orderly, and environmentally responsible development of hydrocarbon resources over their entire life cycle. This includes allocating and conserving water resources, managing public lands, and protecting the environment while providing economic benefits for all Albertans.