Alberta Landowners Challenge Regulator's 'Chronic Underfunding' of Orphan Well Cleanup

A group of Alberta landowners is taking the provincial energy regulator to court over allegations that it has chronically underfunded the cleanup of oil and gas sites with no responsible company.

The lawsuit, filed by environmental law charity Ecojustice on behalf of four landowners, claims that the Alberta Energy Regulator's Orphan Fund Levy is not enough to cover the estimated $1.66 billion needed to clean up the approximately 7,370 wells in need of decommissioning and 9,151 requiring reclamation.

The applicants argue that 'orphan wells' can leak contaminants into the soil, air, and water, posing significant health risks and causing irreversible environmental damage. They also claim that oil and gas corporations often do not pay their closure liabilities, leaving taxpayers to foot the bill.

The landowners, Dwight Popowich and Teresa Patry, as well as the Polluter Pay Federation and the Alberta Surface Rights Federation, are seeking a judicial review of the regulator's decision-making process. They argue that the regulator has improperly delegated its responsibility to set levy rates to the government and allows too much industry influence.