Alberta landowners sue regulator over orphan well cleanup funding

A group of Alberta landowners, supported by the environmental law charity Ecojustice, has filed a Request for Judicial Review against the Alberta Energy Regulator (AER) in the Calgary Court of King’s Bench. The legal action alleges that the regulator is failing to meet its legal obligations under the Oil and Conservation Act by shortchanging oil and gas site cleanup efforts.

The dispute centers on the funding for the Orphan Well Association, a non-profit that manages the cleanup of wells and facilities left by insolvent or defunct companies. While the AER recommended a $154 million fee for the 2026-27 fiscal year, plaintiffs argue this amount is insufficient to address an estimated $1.66 billion in cleanup costs.

The lawsuit further alleges that the AER improperly allowed the provincial government to have the final say on industry levy amounts and permitted excessive industry influence in decision-making. Landowners argue the current levy structure fails to provide the necessary safety net to protect taxpayers from the massive costs of reclaiming abandoned sites.