Calgary—Energy firm Petrowest is set to purchase the assets of Peejay Environmental Limited Partnership, including a lease for a landfill site in northeastern British Columbia, in a multi-million dollar deal.
The acquisition includes the landfill site located approximately 108-kilometres north of Fort St. John, B.C., and the permit and environmental assessment certificate required for the landfill’s operation.
According to Petrowest, the purchase price of the assets consists of an initial payment of $5-million and subsequent earnout payments on the first 625,000-tons of waste accepted at the landfill.
The landfill site is licensed to receive up to 4.5-million tons of contaminated waste, Petrowest announced.
The assets to be acquired include a major building to receive waste and a series of site improvements required for operations, with the landfill expected to be operational within two months of the closing of the acquisition.
As part of the transaction, Petrowest has negotiated an agreement with the Doig River First Nation to ensure continued support of the project and to provide members of the First Nation with the opportunity to “participate in the direct economic opportunities” associated with the landfill.
In addition, Petrowest has negotiated a master services agreement with a major Canadian oil and gas company operating in the region to receive their contaminated soil for the next five years, at a fixed rate for the first year.
“We are extremely pleased to be able to expand our service offering to our clients in the area,” Petrowest president and CEO Rick Quigley said in a statement. “We will be able to use existing equipment and skills at the landfill and we expect to be able to generate additional construction and transportation revenue in the loading and hauling of material to the site.”
Closing of the acquisition is subject to the transfer of the lease, permit and environmental assessment certificate into the name of Petrowest Environmental Services Limited Partnership, a limited partnership established by Petrowest to acquire the assets.
Closing is expected to take place by the end of July.