The ending of operations by Trident Exploration Corporation and Trident Limited Partnership will have a "significant" impact on Mountain View County’s (MVC) tax revenues, council heard during last week's regularly scheduled meeting.
Trident Limited Partnership owes $393,600 in outstanding municipal taxes, $110,000 in school taxes, $9,600 in seniors' housing requisitions, $3,000 in designated industrial taxes, and $50,700 in tax arrears, for a total of $567,700, council heard.
Trident Exploration Corporation owes $9,100 in municipal taxes, and a total of $10,270.
“The impact on Mountain View County’s tax revenue will be significant and will continue to be as these wells will remain assessable for an estimated period of three years,” administration said in a briefing note to council.
“Administration will apply to both the provincial education requisition credit and the designated industrial requisition credit programs for reimbursement of the uncollectable Alberta School Foundation Fund and the designated industrial requisition portion of the outstanding tax amount.
“Administration will not be seeking legal advice at this time as per recent court decisions have demonstrated that as an unsecured creditor, we do not have recourse. Every effort will be made to collect the tax arrears from the new owners should the wells be sold.”
MVC deputy reeve Angela Aalbers said: “This is obviously a terrible thing for Mountain View County from a tax point of view. I’m sure there are a lot of others feeling the same. It’s a terrible thing.”
Council received administration’s report for information.
The county has posted additional information on the Trident situation on its website, including contact information for landowners who may have questions.
In a press release, Trident said it has terminated all of its 33 employees and 61 contractors.
“Trident’s total estimated abandonment and reclamation obligations are approximately $329 million. Behind these obligations, we do not anticipate any recovery for shareholders and unsecured creditors. Likewise, any recovery for secured lenders is highly uncertain,” the release states.
In a separate release, the Alberta Energy Regulator said, in part, that it will “pursue all options to ensure that Trident’s infrastructure is transferred to responsible operators, safely decommissioned, or, as a last resort, transferred to the Orphan Well Association. Many of Trident’s wells were still operating, and once transferred to responsible operators, can still contribute to royalties.”
