tag:blogger.com,1999:blog-31415271.post6234905711298447150..comments2023-09-22T06:22:50.820-06:00Comments on Ken Chapman: Some Perspectives on Foreign Investment in Alberta's Oil Sandskenchapmanhttp://www.blogger.com/profile/11384045981190810115noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-31415271.post-54294239636237480192007-07-16T13:21:00.000-06:002007-07-16T13:21:00.000-06:00julien,Uh uh. No Superfund for reclamation. Comp...julien,<BR/><BR/>Uh uh. No Superfund for reclamation. Companies are committed to remediating the land as a condition of receiving oil sands leases. If you take a look at the financial statements of a company like Canadian Oil Sands Trust, you will see a line item that says "reclamation and remediation". I believe they allocate a certain $ amount per barrel into a fund to cover reclamation obligations. One can argue whether or not the amount being reserved is adequate; most of us (including myself) are not qualified to make that judgement. But it is not encumbent on government to cover a cost that is a contractual committment of a private entity.<BR/><BR/>I don't believe you should be arguing on the one hand for some "alternative price" for oil, and on the other saying that the province and the federal government should be helping company's cover their environmental obligations.<BR/><BR/>I admit, I don't understand your notion of it "not making sense to sell oil to China or the U.S. at a market price". At what price would you sell it?. You need to have a buyer, and no buyer is going to buy oil at a price higher than that offered by the market, unless you offer some long term supply contract.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-31415271.post-29565213350232747442007-07-16T09:17:00.000-06:002007-07-16T09:17:00.000-06:00It does not make sense for oil companies and gover...It does not make sense for oil companies and governments to sell oil to the US or China or however at market price. That price does not include the heavy environmental repair and capital costs that will be necessary. Of course, one can argue that royalties paid to the government by the oil extractors and sellers are in place to cover those costs? I believe that those royalties are barely covering for the opportunity use of this non-renewable resource... not for the replenishment of the environmental vacuum. Perhaps, oilsands companies will create a superfund for environmental repair - on top of exercising their responsibility of repairing the damages on their own properties. Such fund should be supplemented with federal and provincial contributions as both governments greatly benefit from direct and indirect taxes generated by the exploitation of the Alberta oilsands.Anonymousnoreply@blogger.com