November 30, 2012 / 2:24 PM / 6 years ago

Canada rejects Cenovus gas project in Alberta

OTTAWA (Reuters) - The Canadian government blocked on Friday a proposed shallow gas infill development project in Alberta proposed by Cenovus Energy Inc.

Cenovus wanted to drill up to 1,275 new shallow gas wells at Canadian Forces Base Suffield National Wildlife Area over a three-year period, but federal Environment Minister Peter Kent told reporters: “The environmental impacts are simply too great.”

A government statement said the Cenovus project would essentially have doubled the existing 1,154 gas wells installed there before the area was declared a national wildlife area.

The proposal would have included pipelines, access trails and other infrastructure. Kent said he took into account the recommendations of an independent joint review panel, which was appointed in November 2006. He said he agreed with its conclusions on the significance of the environmental impacts.

Reporting by David Ljunggren; Writing by Randall Palmer; Editing by Gerald E. McCormick

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