Lacombe is looking at its options for reclaiming sewage lagoons that are no longer needed. Vesta Energy Ltd. has signed a deal to use three lagoons to store water for fracking.
Map from City of Lacombe

Energy company to use former Lacombe sewage lagoons to store water for fracking

Vesta Energy Ltd. will pay Lacombe more than $100,000 a year in 20-year deal

A Calgary energy company will pay City of Lacombe more than $100,000 a year to use former sewage lagoons to store water for fracking.

Vesta Energy Ltd. and Lacombe have signed a 20-year agreement to allow the company, once regulatory approvals have been lined up, to store water in three lagoons that are no longer needed by the city.

“This is a win-win for the city and Vesta Energy, a local business,” said Mayor Grant Creasey. “The re-purposing of this under-utilized property aligns perfectly with council’s goal of increasing business tax revenue – easing the burden on residential taxpayers.

“Additionally, a local business can expand operations in our region, creating local jobs in our community.”

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Vesta president and CEO Ryan Crawford said the deal provides a “reliable water storage system close to our operating area, and we believe the economic return to the city provides a strong example of Vesta’s commitment to the communities that we live and work in.”

Vesta will pay at least $100,000 a year on top of property taxes for use of the lagoons starting in 2023.

“Council has given administration clear direction to ensure that municipal properties are being utilized to the fullest extent,” said Lacombe operations and planning director Jordan Thompson.

“This is a mutually beneficial agreement that takes an otherwise unusable portion of land and turns it into a tax-generating, business-producing property.”

After getting regulatory approval for the water storage, Vesta expects to begin operations in the third quarter of 2022.



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