Ponoka County declines company shares as proposed tax repayment

Ponoka County declines company shares as proposed tax repayment

Energy company attempt to pay taxes turned down but penalties were waived

A resource production corporation had its proposed plan to deal with some outstanding taxes was declined.

Essex Oil Corp. based out of Airdrie informed Ponoka County in a letter brought up at a recent county meeting, that the company’s financial difficulties are getting worse. It is looking for a way to resolve the outstanding tax balance as well as look at this year’s taxes.

Essex president Rick Martin explained that the main issue for the company is the long-term low price natural gas market, which has forced many companies to shut-in wells and stop production as the wells are costing money instead of creating revenue.

“As a consequence, the company is not generating enough revenue to manage its payable accounts in the short term,” Martin stated in the letter.

Essex proposed to hand over more than 31,000 Class A shares in the company — equivalent to 20 cents per share — to pay for the 2017 taxes owed, which amount to around $6,200 not including interest and penalties.

In addition, Essex asked for an extended payment time, until the end of 2018, for the $8,600 in taxes and penalties accumulated to date. The proposal also noted the company is not making any capital spending until its commitments are met.

In bringing the topic before council, CAO Charlie Cutforth noted the letter was presented simply to inform councillors about the situation as the county is not able to accept the idea as proposed.

“The municipality is not able to hold shares in this manner. But, this is an indication of the economy in Alberta and it’s simply a way the company is trying to pay the bill,” Cutforth said.

He added that a meeting will be set up with Essex to go over the situation.

“We’ll treat them just like any other taxpayer that is experiencing difficulties,” Cutforth said.

So, in that interest, council approved a recommendation to waive the penalties incurred for 2017 and 2018 as well as make an agreement with Essex for a repayment schedule that will best fit the situation.

Ponoka County

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

(File photo)
Town of Ponoka makes changes to monthly tax payment plan

Ponoka town council has approved changes to the town’s monthly tax payment… Continue reading

Katherine Swampy
Maskwacis chiefs are opposed to RAPID Response

Alberta Treaty 6 First Nations say they were not properly consulted

A empty classroom is pictured at Eric Hamber Secondary school in Vancouver, B.C. Monday, March 23, 2020. The Alberta government says schools in Calgary will move to at-home learning starting Monday for students in grades 7 to 12.THE CANADIAN PRESS/Jonathan Hayward
Calgary schools to shift to at-home learning for grades 7 to 12 due to COVID-19

The change, due to COVID-19, is to last for two weeks

A man wears a protective face covering to help prevent the spread of COVID-19 as he walks past the emergency entrance of Vancouver General Hospital in Vancouver, B.C., Friday, April 9, 2021. THE CANADIAN PRESS/Jonathan Hayward
COVID-19 spike in B.C. could overwhelm B.C. hospitals: modelling group

There are 397 people are in hospital due to the virus, surpassing a previous high of 374 seen in December

Ron Rauch and his wife Audrey are photographed at their home in Victoria, Friday, March 5, 2021. Their daughter Lisa Rauch died on Christmas Day 2019 when a tactical officer with the Victoria Police Department shot her in the back of the head with plastic bullets after barricading herself in a room that was on fire. THE CANADIAN PRESS/Chad Hipolito
B.C. families push for changes as special committee examines provincial Police Act

Solicitor General Mike Farnworth acknowledged the need to update the legislation last year

Major-General Dany Fortin, left, looks on as Minister of Public Services and Procurement Anita Anand provides an update on the COVID-19 pandemic, in Ottawa, Tuesday, Dec. 15, 2020. The Public Health Agency of Canada has set aside up to $5 billion to pay for COVID-19 vaccines. THE CANADIAN PRESS/Sean Kilpatrick
Canada negotiating contracts to secure COVID-19 booster shots for next year: Anand

Most of Canada’s current vaccine suppliers are already testing new versions against variants

(Government of Canada)
Liberal MP caught stark naked during House of Commons video conference

William Amos, in Quebec, appeared on the screens of his fellow members of Parliament completely naked

Health Canada headquarters in Ottawa. (Sean Kilpatrick/The Canadian Press)
Health Canada releases guidelines for reducing COVID-19 transmission at home

Improve indoor air quality by opening up your windows and doors, among other encouraged ventilation measures

Alberta Premier Jason Kenney updates media on measures taken to help with COVID-19, in Edmonton on Friday, March 20, 2020. Alberta is set to join three other provinces in exploring the feasibility of small modular reactors as a clean energy option. THE CANADIAN PRESS/Jason Franson
Four provinces to sign memorandum of understanding to explore small nuclear reactors

Alberta government said in August that it would enter into the agreement to help diversify its energy sector

Sharis Carr, a nurse at the Aaron E. Henry Community Health Service Center in Clarksdale, Miss., holds a box containing doses of the Johnson & Johnson COVID-19 vaccine Wednesday, April 7, 2021. The U.S. is recommending a “pause” in using the single-dose Johnson & Johnson COVID-19 vaccine to investigate reports of potentially dangerous blood clots. (AP Photo/Rogelio V. Solis)
EXPLAINER: What’s known about COVID vaccines and rare clots

These are not typical blood clots – they’re weird in two ways

Most Read