Alberta Landowners Sue Regulator Over 'Chronic Underfunding' of Orphan Well Cleanup

Landowners in Alberta are suing the provincial energy regulator for allegedly underfunding the cleanup of oil and gas sites that have no company responsible for them. The Orphan Well Levy, which funds the cleanup, is $154.56 million this year, but the association estimates total costs at $1.66 billion.

The lawsuit claims the Alberta Energy Regulator (AER) has improperly delegated its responsibility to set the levy rates and allows too much industry influence. The applicants are also asking the court to declare the 2026-27 levy 'unreasonable' and order it to be recalculated.

Landowners Dwight Popowich and Teresa Patry, along with environmental groups, claim that orphan wells can leak contaminants into soil, air, and water, posing health risks and causing irreversible damage to the environment. They also argue that oil companies often don't pay their bills, leaving taxpayers to cover shortfalls.