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Unpaid oilpatch taxes rise again despite industry boom, say rural municipalities

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Unpaid municipal taxes from the Alberta oilpatch keep rising despite the industry’s boom, the province’s rural communities say.

“This is the worst ever,” said Paul McLauchlin, president of Rural Municipalities of Alberta, which released the data Tuesday. “We’ve got a serious problem.”

The group says energy companies now owe towns and villages in which they operate a total of $268 million. That’s up more than six per cent from last year and up 261 per cent since 2018, when the association began keeping track.

As well, the rate of nonpayment is increasing.

McLauchlin said there was $53 million left unpaid in 2022 and $38 million in 2021.

The growing tax debt is occurring at a time of record profits in the industry. McLauchlin said nearly half the unpaid taxes are due from operating companies.

“You’ve got the highest commodity prices in a generation, free cash flow like no one’s ever seen. You think that people would pay their bills.”

It’s the third year the municipalities have released a tally of unpaid taxes.

Previously, the province’s United Conservative Party government told the Alberta Energy Regulator that it “may” use factors such as tax arrears in ruling on whether to allow transfers of energy assets. Municipalities can submit statements of concern on applications for licence transfers if the companies involved have unpaid taxes.

Municipalities can also attach liens to property if taxes go unpaid.

McLauchlin said that’s no longer enough.

“I don’t think you can use kid gloves to deal with this. I don’t think ‘nudge, nudge, please pay’ is working,” he said. “You need to use regulation and you need to use enforcement.”

Comment from the Alberta Energy Regulator and Alberta Energy was not immediately available.

Jay Averill, spokesman for the Canadian Association of Petroleum Producers, said industry knows it needs to pay its taxes.

“The revenues generated from industry to municipalities play a significant role in maintaining quality of life for rural communities,” he said in a statement.

“(The association) also acknowledges that we continue to see the lagging effects of a multi-year downturn for the oil and gas sector. We are committed to continuing to work with the province’s liability management system.”

Last March, when the municipalities released their 2021 total, a spokesman for Alberta Energy Regulator said the agency is working with municipalities and the province to find solutions but can only implement government policy.

But McLauchlin calls the regulator “complicit” in the problem. He said many of the remaining tax deadbeats, most of which are not members of industry associations, are companies so marginal the regulator is afraid to crack down on them and force them to close their doors before they’ve cleaned up their wells.

Those wells would then go to the Orphan Well Association, which already has a backlog of unremediated wells that has forced the Alberta and federal governments to bail it out.

McLauchlin said the tax tally and the growing environmental liability of unreclaimed wells on the Alberta landscape are linked.

“(The regulator) uses surface payments and property tax to prop up companies that shouldn’t be operating,” McLauchlin said. “That’s why they’re not enforcing it.

“If they were, (the companies) wouldn’t meet their environmental responsibilities and these companies would go into some level of receivership.”

In 2020, the federal government provided $1 billion for well cleanup in Alberta. The province also requires operators to remediate a certain percentage of their wells every year and has introduced programs that allow the industry to concentrate their cleanup efforts in one area to improve efficiency and reduce cost.

But environmental liabilities continue to grow. Alberta needs to figure something out, McLauchlin said.

“What are we doing here? What’s our plan?”

This report by The Canadian Press was first published March 7, 2023.

— Follow Bob Weber on Twitter at @row1960

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Rescue missions after Helene’s flooding include dozens stranded on Tennessee hospital roof

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NASHVILLE, Tenn. (AP) — As floodwaters from Hurricane Helene quickly surrounded a small Tennessee hospital near a riverbank, workers first tried to get patients out by ambulance. Then, the road washed out.

They tried to move people to the center of the building, but they were met by water.

Once rescue boats arrived, the water was so dangerous they couldn’t leave. Ultimately, dozens of staff and patients went to the roof to wait to be taken to safety, and a few others stayed in rescue boats, as winds whipped and brown waters gushed nearby with debris beneath them.

Within a few hours, they were all rescued.

The dramatic scene at Unicoi County Hospital, in Erwin, Tennessee, near the North Carolina border, was one of several that played out across the southern U.S. in Helene’s wake. Flooding caused by its storm surge and rain sent thousands of police officers, firefighters, National Guard members and others on rescue missions. Hundreds were saved, but at least 40 died.

“It was just the grace of God we had ample amount of people to move people up to the roof,” Jennifer Harrah, the Tennessee hospital’s administrator, told WJHL-TV. “And we were able to put the non-ambulatory patients in the boats and keep them safe and have medical personnel with the patients in the boats as well. And we kind of had them in a corner, protected by a couple of walls.”

Unicoi County Hospital tried to evacuate 11 patients and 43 others Friday morning after the Nolichucky River overflowed its banks and flooded the facility, but the water was too treacherous for boats sent by the Tennessee Emergency Management Agency.

The decision was made to direct more than 50 people to the roof. Another seven had been temporarily stuck in rescue boats. Ballad Health, which operates the small 10-bed hospital, asked for people’s prayers as it provided the social media update.

After other helicopters failed to reach the hospital because of the storm’s winds, a Virginia State Police helicopter was able to land on the roof. Three National Guard helicopters with hoist capabilities were sent, officials said.

In a later post, Ballad Health said all of the staff and patients had been rescued about four hours after dozens of them were moved to the hospital’s roof. Patients were transferred to a different facility and no one remained at the hospital.

“The water there simply came up faster with more debris than was safe to operate in the rafts to ferry from a dry point back to the hospital,” said Patrick Sheehan, Tennessee’s emergency operations director.

Meanwhile in Florida, the efforts of 1,500 search-and-rescue personnel will be concentrated on securing and stabilizing affected communities through the weekend, said Kevin Guthrie, the state’s emergency operations director. The Category 4 storm made landfall on the Northwest Florida coast late Thursday, but it created flooding from storm surge all along the state’s Gulf Coast.

“As those sorts of rescue missions happen today, and continue, please do not go out and visit the impacted areas,” Guthrie said at a Friday news conference in the Florida capital of Tallahassee. “I beg of you, do not get in their way.”

The reported rescues ranged from life-threatening situations to people trapped in their homes by waist-high water and unable to flee on their own.

Five people died in Pinellas County and dozens were rescued after the storm surge hit an unprecedented 8 feet (2.4 meters), forcing some to seek shelter in their attics. Sheriff Bob Gualtieri said the deaths all occurred in neighborhoods where authorities told residents to evacuate, but many ignored the warnings.

He said survivors told deputies they didn’t believe the warnings after other residents told them the surge wouldn’t be that bad.

“We made our case. We told people what they needed to do, and they chose otherwise,” Gualtieri said.

Gualtieri said his deputies tried overnight to reach those who had been trapped, but in some neighborhoods it just wasn’t safe. Pinellas County includes St. Petersburg.

“I was out there personally. We tried to launch boats, we tried to use high-water vehicles and we just met with too many obstacles,” Gualtieri said. He said the death toll could rise as emergency crews go door-to-door in the flooded areas to see if anyone remains.

In neighboring Hillsborough County, which includes Tampa, the sheriff’s office rescued more than 300 people overnight from storm surge. Spokesperson Amanda Granit said those included a 97-year-old woman with dementia and her 63-year-old daughter, who got surprised by the surge and needed help fleeing their flooded home; and a 19-year-old woman whose car got stuck as she drove in the rising water and couldn’t get out.

Granit said deputies were conducting rescues in such large numbers they had to request county transit buses to get the people to safety.

“Deputies couldn’t move them fast in enough in their patrol vehicles,” Granit said.

In the Tampa Bay-area city of South Pasadena, rescue video shows a house burning early Friday amid flooded streets. Other counties along the Gulf reported more than 100 rescues.

When water from the storm surge reached Kera O’Neil’s knees inside her Hudson home, 45 miles north of Tampa, she knew she and her sister needed to flee with her two cats.

“There’s a moment where you are thinking if this water rises above the level of the stove, we are not going to have much room to breathe,” she said.

O’Neil and her sister waded into the chest-deep water with one cat in a plastic carrier and another in a cardboard box. They found refuge on a neighbor’s more elevated property before Pasco County firefighters on a raft rescued them and three others.

“I’m a Florida girl, and we have been here since we were kids,” she said. “We have never experienced anything like this.”

At sea, the Coast Guard said it rescued three boaters and their pets from the storm in separate incidents. In a Thursday helicopter rescue captured on Coast Guard video, a man and his Irish setter were stranded 25 miles offshore in the Gulf on their 36-foot sailboat in heavy seas.

The video shows the man putting his dog into a yellow rescue vest and pushing it into the raging sea before jumping in himself. A Coast Guard swimmer helped them into a rescue basket and they were hoisted into the copter.

In North Carolina, more than 100 swift-water rescues had occurred as Helene’s rains caused massive flooding Friday, particularly in the state’s western section. Gov. Roy Cooper said the flash floods are threatening lives and are creating numerous landslides.

“The priority now is saving lives,” Cooper said, begging people to stay off the roads unless they were seeking higher ground.

“With the rain that they already had been experiencing before Helene’s arrival, this is one of the worst storms in modern history for parts of western North Carolina,” Cooper said.

In Georgia, Gov. Brian Kemp said crews are working to rescue people trapped in more than 115 homes.

Helene’s rains flooded homes in Hanover West, a neighborhood in north Atlanta. Emergency personnel rescued several people from their homes, said Richard Simms, a resident in a nearby neighborhood.

___

Spencer reported from Fort Lauderdale, Florida. Associated Press reporter Beatrice Dupuy contributed to this report.



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Alberta Energy Regulator to hold Rocky Mountain coal hearings despite legal challenge

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Alberta’s energy regulator will go ahead with hearings on coal exploration in the Rocky Mountains despite concerns about the legality of the applications from the province’s top court.

“While we have the discretion to grant an adjournment, we are not persuaded that doing so in this case is appropriate,” the Alberta Energy Regulator said Friday in a letter to the Municipal District of Ranchland, which had asked for the adjournment.

Ranchland wanted an adjournment for public hearings on applications from Northback Holdings for coal exploration in the Crowsnest Pass area. It said the hearings should wait until the Alberta Appeal Court rules on whether those applications were legally accepted.

Ranchland argued that the court’s decision may invalidate the applications, rendering hearings on them a waste of time.

The Australian-owned company is trying to develop a coal mine at the site in southwest Alberta area despite the fact the same project, under a different company name, has previously failed to pass an environmental review. As well, the Alberta government has issued an order blocking coal development in the Rockies.

But in November 2023, Energy Minister Brian Jean wrote the Alberta Energy Regulator suggesting Northback’s applications be accepted. He said because the project had previously come before regulators, it should be considered an “advanced project” and exempt from the order.

The regulator then accepted Northback’s three applications.

In accepting Ranchland’s appeal application, the court said it needs to weigh Ranchland’s argument that a project, once rejected by a regulatory body, no longer exists and can’t be considered advanced. The court also said the regulator may have placed too much weight on Jean’s letter.

But on Friday, the regulator said an undetermined delay until court proceedings were complete would be inefficient.

“We should proceed to consider the applications in a fair, prompt and efficient manner,” the letter says. “We would not be doing that if we attempt to ‘peer into a crystal ball’ and halt our process … because of something that might occur in the future.

“The requested adjournment, which would likely result in a lengthy delay, would make this proceeding less efficient.”

A representative of Ranchland declined to comment, saying the municipality will focus its efforts on the appeal. No date has been set for it.

The company has been pressing for the hearings to be held as soon as possible.

This report by The Canadian Press was first published Sept. 27, 2024.

The Canadian Press. All rights reserved.



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Ontario education minister to schools ahead of Oct. 7: keep ‘biases’ out of classroom

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TORONTO – Ontario Education Minister Jill Dunlop is telling school boards to keep classrooms free of “political biases” ahead of the anniversary of a Hamas attack on Israel that triggered the war in Gaza.

Dunlop says in a memo to boards that as Oct. 7 approaches, she wants all school boards to “be vigilant in ensuring classrooms remain safe, inclusive, and welcoming for all students and staff.”

She says it is particularly important as the province, including its schools, sees a rise in intolerance, racism, antisemitism and Islamophobia.

The memo comes as the Ministry of Education investigates a Toronto District School Board field trip that saw students from 15 schools attend a protest on mercury contamination that is affecting a First Nation community in the north.

Videos on social media showed some march participants chanting pro-Palestinian slogans, which prompted Premier Doug Ford earlier this week to call it a “Palestinian rally” and complain that teachers were trying to indoctrinate children.

Dunlop says the focus in schools must always be learning.

“This means our schools and school-related activities should never be used as vehicles for political protests that enable inflammatory, discriminatory, and hateful content,” she wrote.

“While everyone is entitled to their own political opinions, they are not entitled to disseminate political biases into our classrooms.”

This report by The Canadian Press was first published Sept. 27, 2024.

The Canadian Press. All rights reserved.



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