By rdnewsNOW staff

Win-Win

Vesta Energy to repurpose former City of Lacombe lagoons

Jan 20, 2021 | 2:01 PM

The City of Lacombe has entered into a 20-year agreement with Vesta Energy Ltd., which will repurpose three of the City’s former lagoon cells into revenue-generating properties.

Vesta Energy Ltd. is an Alberta-based oil and gas company whose operations are focused in central Alberta.

“This is a win-win for the City and Vesta Energy – a local business,” said Mayor Grant Creasey, in a press release. “The repurposing of this underutilized property aligns perfectly with council’s goal of increasing business tax revenue – easing the burden on residential taxpayers. Additionally, a local business can expand operations in our region, creating local jobs in our community.”

Once it has obtained regulatory approvals, Vesta Energy is expected to use the decommissioned and currently underutilized City lagoon cells to store water for hydraulic fracturing throughout the region.

“Vesta strives to deliver economic benefits within the areas where we operate,” stated Ryan Crawford, Vesta’s President and CEO. “The agreement with the City assists Vesta by offering a reliable water storage system close to our operating area, and we believe the economic return to the City provides a strong example of Vesta’s commitment to the communities that we live and work in.”

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“Vesta appreciates the willingness of the City to explore new approaches to working with local businesses, and we look forward to working with the City on the implementation of the agreement,” added Crawford.

City officials say Lacombe residents will benefit from the deal, with Vesta contributing a minimum $100,000 annual payment starting in 2023 for the use of the lagoon cells, in addition to paying the applicable property taxes on the land.

“Council has given administration clear direction to ensure that municipal properties are being utilized to the fullest extent. This is a mutually beneficial agreement that takes an otherwise unusable portion of land and turns it into a tax-generating, business-producing property,” Director of Operations and Planning Jordan Thompson said.

Once regulatory approvals have been obtained, City officials say a preliminary outline plan has Vesta beginning operations in the third quarter of 2022.