Alberta Landowners Sue Over Orphan Well Cleanup Funding
Alberta landowners are taking the provincial energy regulator to court over allegations of 'chronic underfunding' for orphan well cleanup.
The lawsuit, filed by lawyers at environmental law charity Ecojustice, challenges the Alberta Energy Regulator's (AER) handling of the Orphan Well Levy, which funds the cleanup of oil and gas sites with no company responsible for them.
The AER deems wells 'orphans' when a company becomes insolvent or unable to meet its obligations. The Orphan Well Association manages cleanup and is funded through an industry fee recommended by the AER to the Alberta government each year.
The current levy for 2026-27 is $154.56 million, but the well association estimates total cleanup costs at $1.66 billion. Landowners argue that this underfunding puts Albertans' health at risk and causes environmental damage.