Alberta Landowners Challenge Orphan Well Levy Amid Environmental Concerns

Landowners in Alberta are challenging the provincial regulator's decision to set a low levy for cleaning up orphan wells, citing environmental and worker exposure risks. The Alberta Energy Regulator (AER) set this year's industry levy at $154 million, which Ecojustice argues is too low to fund timely reclamation.

The AER claims that the levy provides additional funding endorsed by the Alberta government as part of its 2026/27 budget. However, landowners argue that the regulator is underfunding cleanup efforts and that the backlog is unprecedented.

The Orphan Well Association's (OWA) inventory lists over 7,300 wells awaiting decommissioning, with estimated total cleanup costs reaching $1.66 billion. Landowner Dwight Popowich expressed concerns about the delays, stating that his inactive well would take 10 to 12 years to reclaim.

Susanne Calabrese, Ecojustice's Alberta managing lawyer, emphasized the growing hazard faced by occupational health and safety professionals working near oil and gas sites: 'There's environmental risks. It pollutes the land, air, and water. The longer a well sits there, the more likely it is to leak.'