By Sheldon Spackman

Looking Into It

Lacombe County considering tax break request for carbon capture project

May 18, 2020 | 4:25 PM

A Calgary-based energy development company looking for tax relief from Lacombe County for its carbon capture project near Clive, will have to wait a little bit longer for an answer.

On Thursday, following a presentation from officials with Enhance Energy Inc, council tasked administration with creating a report so council could better understand the financial ramifications of accommodating the request, and bring it back to council at a later date.

Nicole Plewis, communications coordinator for Lacombe County, says the staff report will include comments on the statutory, financial and economic impacts on the County if such a request was granted.

“The report will also include comment on the equity and fairness of granting a request to a single taxpayer and the impacts that would have on the remaining taxpayers in the County,” she explains.

According to company officials, their Enhanced Oil Recovery (EOR) project would see CO₂ suppliers from industrial sites northeast of Edmonton ship the gas through a pipeline to a facility near Clive, where the CO₂ would be injected into the ground at a mature, legacy oilfield site to recover untapped oil reserves.

Last seen Nov. 28

Missing: Jimmy Eagle, 27, of Maskwacis

Dec 14, 2025

the situation is dire

Two deaths, possibly from cold exposure, raise alarm amid Red Deer shelter situation and plight of homeless community

Dec 12, 2025

Lace-'Em Up!

Red Deer's outdoor rinks returning for another season

Dec 12, 2025

The project is part of the Alberta Carbon Trunk Line which aims to reduce greenhouse gas emissions by permanently sequestering CO₂ and producing low carbon energy by turning waste carbon dioxide into a value-adding commodity. That, in addition to revitalizing the mature oilfield and extending its productive life by 40 to 50 years.

Company officials say a large portion of the capital dollars spent on the project would remain in the community with local contractors performing the work whenever possible. It’s also hoped the project would create local skilled jobs and lead to meaningful, local economic development.

However, company officials note the COVID-19 pandemic and concurrent oil price war have caused energy prices to fall to levels not seen in decades; and as a result, Enhance’s operations in Lacombe County are currently unsustainable from a cash flow perspective.

“We are seeking to justify continuing to operate and invest in our mature oil fields in Lacombe County by targeting cost reductions in all areas: cost deferrals, third party service reductions, reduction in regulatory and red tape costs, land access costs, internal salary reductions, as well as municipal fees and taxation costs,” reads a statement in the company’s presentation. “In order to ensure that Enhance is a continuing contributor to the community we will be looking to ourselves and our stakeholders to do more with less.”

Company officials say Enhance’s capital program would help to replace the void in the County’s property tax base left by other producers.

Enhance’s proposal includes a temporary waiver of the Drilling Tax for new drilling projects for the next five years; removal of the obligation to pave existing approaches—which started in 2019—from road-use approvals; and a three-year property tax holiday on any new assessments related to CO₂ EOR developments.

“Enhance has invested significantly in Lacombe County and remains a significant future source of capital investment,” the statement continues. “We are asking for your participation in near term cost reductions to secure new and existing jobs and growth in the tax base for the local community for generations to come.”