Alberta Landowners Sue Regulator Over Orphan Well Funding
A group of Alberta landowners is taking the province's energy regulator to court over what they claim is an inadequately funded program for cleaning up orphan wells. The Orphan Well Association (OWA) steps in when companies can no longer meet their cleanup obligations, and the levy on oil and gas companies set by the Alberta Energy Regulator (AER) has been criticized for being too low.
The landowners argue that the 2026/27 levy of $154.56-million is insufficient to cover the OWA's estimated closure liabilities of $1.66-billion. They point out that the number of orphan wells on the OWA's books increased by 13% in the 2025/26 fiscal year, while funding grew by only 7%. The landowners also claim that the AER improperly considers industry finances and commodity prices when setting the levy.
The landowners have been trying to get an orphaned well on their property cleaned up for years, but their efforts have been dismissed. They are now seeking a judicial review of the levy in the Court of King's Bench.