Released on July 28, 1997
TransGas Limited, a subsidiary of SaskEnergy Incorporated, announced
today that the sale of two surplus salt caverns near Melville to
Plains Environmental has been approved to proceed.
The salt caverns will be used by the oil industry to store naturally
occurring oil by-products in a safe and environmentally responsible
manner. TransGas will receive $600,000 from the sale, as well as
future financial considerations.
"This sale helps support Saskatchewan's thriving oil industry, which
needs facilities like these to safely expand oil production in
southeastern Saskatchewan," said Plains Environmental Inc. President
Bob Lawrence. "It will also give an economic boost to the Melville
area as the caverns are converted."
Work on site will commence immediately, with environmental licensing
and completion of reconditioning scheduled for Fall 1997.
"TransGas operates in a fiercely competitive marketplace, and needs to
operate as efficiently as possible," said SaskEnergy President and
Chief Executive Officer Ron Clark. "The sale proceeds from this
surplus asset will help keep TransGas competitive into the future -
keeping our province attractive for economic development, investment
and jobs."
The new caverns will join two other Saskatchewan oil by-product
storage sites now operated by Husky Oil at the provincial
upgrader in Lloydminster and by Canadian Crude Separators at a
site near Unity. Plains Environmental will convert the facility
consistent with standard industry practices in Saskatchewan, and
will be required to adhere to strict environmental, safety and
operational regulations, as required by law.
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For more information, contact:
Ron Podbielski
Acting Director, Corp. Affairs
SaskEnergy
Regina
Phone: (306) 777-9432