Glenfred Gas Wells Limited - Order to prevent discharge of contaminants

The Director is considering the issuance of an order under section 18 of the Environmental Protection Act to Glenfred Gas Wells Limited (Glenfred), located at 1016 Haldimand Road 55, Jarvis, Ontario.

Glenfred is a company involved in the extraction and distribution of natural gas deposits in Haldimand County and in the vicinity of Jarvis, Ontario. Glenfred is the licensee under Oil, Gas and Salt Resources Act (OGSRA) for the Wells that are the subject of this Order and operated the Wells in question for decades. There are currently no living directors or officers of the company, as the two persons listed as directors in the corporate profile report are now deceased. Glenfred commenced insolvency proceedings in 2021 under the Bankruptcy and Insolvency Act before the Ontario Superior Court of Justice.

Ministry of Natural Resources and Forestry (MNRF) conducted inspections of the Wells in 2021 that identified a number of hazards due to leaks, lack of monitoring and maintenance which resulted in three separate orders issued by MNRF requiring the plugging of the 62 wells licensed to Glenfred, and the repair of leaks on 43 of these wells.

In September 2022, a licensed trustee in bankruptcy was appointed for the company. Although the Wells remain active, the trustee in bankruptcy informed MNRF that they are not taking responsibility for the care or maintenance of the wells in accordance with compliance obligations under the OGSRA.

To date, none of the plugging or repair work on the Wells has been completed. Given the ongoing leaks, deteriorated well heads and continued use by some of the residents connected to the unlicensed distribution system, MNRF has determined that the risks associated with the Wells are becoming increasingly urgent.

MNRF reached out to the Ministry of the Environment, Conservation and Parks (MECP) in 2023 to seek assistance in addressing its concerns regarding the risks of adverse effects that may result from the discharge of contaminant, namely methane and/or hydrogen sulfide, from the Wells into the natural environment. The adverse effects include the impacts resulting from a potential explosion.

The requirements of this Order are intended to require a Qualified Person to forthwith implement the Work Plan in the order to prevent or reduce the risk of a discharge of a contaminant, namely methane and/or hydrogen sulfide, into the natural environment. The Work Plan requires substantially the same work as required by MNRF Order I35-21-13113-002, dated December 17, 2021, namely the inspection, repair and shutting-in of the Wells, with the addition of the requirement for the shutting-in of Wells to address the increased risks since that order’s issuance.

A separate notice will be issued under section 147 of the EPA concurrently with this Order to require that the work required by this Order will be caused to be done by the Director. The Director has arranged for MNRF to carry out the work in the order. That notice is being issued on the basis that it is in the public interest to do so and that the person required to do the work in this Order is not likely to comply with the Order promptly, given that there is no director, officer or other person with authority who is currently making decisions on behalf of Glenfred.

A copy of the draft order can be found under supporting materials.