Alberta Landowners Sue Regulator Over Orphan Well Cleanup Fund Shortfall

A group of Alberta landowners is taking the Alberta Energy Regulator (AER) to court over what they claim is an inadequate orphan well cleanup fund. The lawsuit, led by environmental law charity Ecojustice, alleges that the AER has shortchanged oil and gas site cleanup efforts.

The Orphan Well Association was created to oversee the cleanup of sites owned by companies that are insolvent or no longer exist. However, landowner Mark Dorin claims that the fund is grossly underfunded, with a shortfall of $1.66 billion to cover estimated cleanup costs for orphan wells.

Dorin argues that the AER has improperly given the government final say over the amount charged to industry each year and has allowed too much influence from industry in levy decisions. He also points out that if the system fails, the Orphan Well Association was created as a safety net to cover cleanup cost shortfalls.

The stakes are high, with an estimated 30,000 sites held by companies with no money to pay for cleanup. The landowners claim that this will put a huge burden on Alberta taxpayers and potentially break the province if not addressed.