Alberta landowners challenge Alberta Energy Regulator over orphan well cleanup funding
Landowners filed a judicial review Tuesday against the Alberta Energy Regulator, arguing the Orphan Well Levy is chronically underfunded despite cleanup costs reaching $1.66 billion.
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Alberta landowners and industry groups filed a judicial review application Tuesday against the Alberta Energy Regulator, arguing the Orphan Well Levy is chronically underfunded and unsustainable.
Applicants Dwight Popowich and Teresa Patry, along with the Polluter Pay Federation and Alberta Surface Rights Federation, are represented by Ecojustice, an environmental law charity. They challenge the levy amount recommended by the AER to the Alberta government, which manages cleanup through the Orphan Well Association.
Orphan wells are oil and gas wells where the operator became insolvent, defunct, or unable to meet closure obligations. The latest provincial inventory counts more than 7,300 orphan wells, with cleanup costs now totalling $1.66 billion. The 2026-27 Orphan Well Levy stands at $154 million, up from $144 million the previous year. A Long Run Exploration Ltd. receivership added more than 4,000 wells to the inventory.
Susanne Calabrese, managing lawyer at Ecojustice's Alberta office, said: "There's almost double the amount of orphans currently in its inventory than the Orphan Well Association has ever cleaned in its entire history of existence. So we're getting to a point where it's becoming completely unsustainable."
The applicants' court document states: "It will take decades to clean up orphans based on the value of this year's levy. It will take even longer if more wells are declared orphans over the next several years."
Dwight Popowich, a landowner in Two Hills east of Edmonton, was told last year his inactive well reclamation would take 10 to 12 years. The Orphan Well Association estimates cleanup of the full inventory will be completed between 2037 and 2040. Applicants argue the wells pose risks including leaking contaminants into soil, air, and water; putting Albertans' health at risk; causing irreversible environmental damage; affecting property values and land use; and creating unpaid bills to municipalities and landowners.
A previous internal challenge against the levy amount was dismissed on procedural grounds last year.
How much funding would plaintiffs argue is necessary to make cleanup completion achievable within a reasonable timeline?
What did staff at the Alberta Energy Regulator recommend for the levy amount before the government approved the $154.56 million figure?
We'll update this story as answers emerge.
The facts
Who filed the judicial review against the Alberta Energy Regulator?
Dwight Popowich and Teresa Patry, along with the Polluter Pay Federation and Alberta Surface Rights Federation, filed the judicial review on Tuesday, September 8, 2026. They are represented by Ecojustice, an environmental law charity.
How many orphan wells does Alberta currently have?
The latest provincial inventory counts more than 7,300 orphan wells, with cleanup costs totalling $1.66 billion.
What is the 2026-27 Orphan Well Levy amount?
The 2026-27 Orphan Well Levy stands at $154 million, up from $144 million the previous year.
