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Ironside Energy is trying to figure out the cost of the carbon tax, and it鈥檚 going to be high

$50,000 a year in the first year, and rising every year after that
Ironside Energy
Ironside Energy Services鈥 Danny Blackburn, left, and Chad Himmelspeck have been crunching the numbers on the carbon tax, and estimate the first full year will cost their company $50,000. Two years later, it will be double. The semi behind them was washed up on April 3 to be in the convoy protesting that carbon tax the next day.

Estevan 鈥 The day before the big convoy leading up to the Regina Rally Against the Carbon Tax, Chad Himmelspeck and Danny Blackburn were in their office, plotting carbon tax strategy while one of their workers took a pressure washer to the semi that would be taking part.

The owners of Ironside Energy Services Ltd. of Estevan had very good reason to be part of the protest, as those carbon tax numbers tallied up.

Asked why they were doing it, Himmelspeck said it was 鈥淭o draw attention to the cause, I think people really need to start hearing us out here in the West, the way the oilfield is starting to take shape here.鈥

As for the carbon tax, that was precisely what they were working on. Blackburn said, 鈥淭hat鈥檚 what we鈥檙e trying to figure out how we鈥檙e going to charge this out, because guys we鈥檙e talking to don鈥檛 want to see it on an invoice.鈥

Asked why not, he replied, 鈥淣ot sure. They just don鈥檛 want to see it, so it鈥檚 going to have to be incorporated differently.鈥

Himmelspeck said, 鈥淚t just puts us in a real tough situation. Obviously, from the oil company鈥檚 perspective, they want things as cheap as they can so they can still make it profitable.鈥

And it two years, the carbon tax will double, from $20 per tonne to $30 per tonne the next year and $40 per tonne the following year. It go up to $50 per tonne the year after that.

As they鈥檝e grown as a company, their fuel bill went from $6,000 a month to hundreds of thousands of dollars per month.

鈥淎nd that鈥檚 probably small potatoes compared to some of these other operations, so that鈥檚 going to have a huge impact on our business,鈥 Himmelspeck said.

He鈥檚 going to Calgary the following week, and expects it to be a discussion point.

They don鈥檛 qualify for a rebate, either.

鈥淥ff the top of my head, we鈥檙e looking at $50,000 a year, based on a full calendar year,鈥 Himmelspeck said. And with the escalation, it will be double that in two years.

The Department of Finance Canada website () lists light fuel oil (diesel) at 5.37 cents per litre this year, and then 8.05 cents in April 2020, 10.73 cents per litre in April 2021 and 13.41 centres per litre in April 2022.

Ironside had as many as 26 working this past winter. They try to keep most of them working through spring breakup doing shop work and maintenance, as well as working on their crew trucks. As of early April, they were at 16 staff members. Their fleet includes eight dozers, three excavators, three crew trucks and a grader.

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