Alberta Landowners Sue Regulator Over Underfunded Orphan Well Cleanup Levy

A group of rural landowners is taking the Alberta Energy Regulator (AER) to court over its underfunded orphan well cleanup levy. The AER set the levy at $154.56 million for this year, a 7% increase from last year, but it still falls short of the estimated $1.66 billion in closure costs.

The landowners, led by Susanna Calabrese and Dwight Popowich, argue that the levy is not sufficient to cover the cleanup costs and is a violation of the Oil and Gas Conservation Act. They are asking the Court of King's Bench to order the AER to recalculate the levy.

Teresa Patry, a farmer and rancher who has two oil wells on her property leaking methane, highlighted the human cost of allowing orphan wells to accumulate. 'When people hear words like orphan wells or liability management, it can sound like a policy debate. For those of us living beside these sites, it's not a matter of policy; it's personal and it affects our daily lives,' she said.

The AER has been criticized for its handling of the orphan well issue, with some arguing that the regulator is influenced by input from government and industry advocates.