Ponoka County is out $125,000 after an oil and gas company, Quattro Exploration, went bankrupt. Black Press file

Ponoka County out another $125,000 in taxes

Energy company failure forces county hand in giving up on getting paid

The total failure of an Alberta oil company has Ponoka County writing off another big chunk of property taxes.

At its meeting on Oct. 25, council passed a motion to cancel $125,000 from 2018 that was incurred by the now bankrupt energy company Quattro.

CAO Charlie Cutforth explained that when the company filed for bankruptcy in February 2017, the county took $250,000 in taxes off the books.

READ MORE: County chooses lesser of two evils by compromising

However, the county was only recently notified that there is now zero hope of recovering any money and that the current write-off is on installations that were still in Quattro’s name. It also includes one year’s worth of non-payment penalties.

Quattro Exploration is due to have all of its remaining debts — after one financial creditor received a small amount of funds — cancelled and all monitoring and work by the receiver halted through a court order. The date for that final discharge was supposed to be Oct. 25, but has been delayed by the court for an unknown reason.

A number of the oil and gas assets owned by Quattro have been handed over to more than a dozen companies during the bankruptcy process. However, a number of other oil and gas sites remain abandoned.

RELATED: Ponoka County seeing almost $2 million in unpaid taxes

Cutforth did note that the county will make an application to the province in an attempt to recover the school tax portion, but he wasn’t optimistic.

Last year, the county set aside a $500,000 reserve fund to cover off these kind of losses, but Cutforth believes the county will be able to absorb the $125,000 within the current budget.

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

Just Posted

Revenue Canada, RCMP don’t accept Bitcoin: police

RCMP issue Bitcoin warning posters

Mat program not quite ready to open its doors

Committee hopes to bring people out from the cold with overnight shelter program

Ponoka County writes off quarter of a million in taxes

Bankrupt energy companies hitting county financially

Rebels fight back from 3-1 Raider lead to win 4-3 in shootout

Two goals by Zak Smith key to Rebels comeback

‘Extensive’ work planned at Big Bar landslide ahead of salmon, steelhead migration

Fisheries Minister Bernadette Jordan visited the site of the slide from June

Royal deal clears way for Harry, Meghan part-time Canada move: experts

Keith Roy of the Monarchist League of Canada said the deal is exactly what Harry and Meghan asked for

PHOTOS: Eastern Newfoundland reeling, search underway for missing man after blizzard

More than 70 centimetres of new snow fell overnight, creating whiteout conditions

Prince Harry, Meghan to give up ‘royal highness’ titles

‘Harry, Meghan and Archie will always be much loved members of my family,’ says Queen Elizabeth II

RCMP Major Crimes Unit lays charges in Stettler death

Nicholas Climb Johnson, 32, of Stettler is charged with second degree murder in the death of his father

‘Manny’s Motel’ badly damaged by fire Jan. 15

Police say 40 Ave. closed due to fire, use alternate route

Most Read