Alberta Energy Regulator orders Calgary oil company to abandon 581 wells, 108 facilities over non-compliance

The Alberta Energy Regulator issued a formal abandonment and reclamation order against Calgary-based MAGA Energy Ltd. on September 4, requiring the company to decommission 581 wells, 108 facilities and 801 pipeline segments across multiple sites northeast of Edmonton.

The order followed months of deteriorating compliance. In April, the AER issued a suspension order directing MAGA to shut in wells, turn off facility equipment and shutter pipelines. Instead of improving, MAGA's non-compliance worsened. On August 24, a pipeline leak occurred approximately 10 kilometres west of Edmonton; four days later, inspection found MAGA had taken no steps to clean up the hydrocarbon spill. The company failed to address breakdowns of critical pipeline and venting safety systems, received failing field inspection ratings, and failed 19 out of 24 recent inspections.

"Allowing MAGA to maintain control of its infrastructure poses an unacceptable risk to public safety and the environment," Jon Keeler, director of field operations at the AER, stated in the order.

MAGA's liabilities mount: 74 inactive wells left in non-compliant state, missed site liability assessments, failure to meet 2024–25 closure quotas, unpaid municipal taxes, and two years of skipped payments on AER administrative fees and orphan fund levies. "The AER has repeatedly advised MAGA that it is not in compliance with its regulatory obligations, and despite repeated communications, MAGA has failed to return to compliance," Keeler wrote.

MAGA has until September 30 to submit a detailed abandonment plan and until October 15 to submit a comprehensive reclamation plan. The majority of affected sites are located in Strathcona County and Lamont County. The regulator concluded that MAGA lacks the capacity or intent to meet its legal obligations, making the abandonment order necessary to protect public safety and the environment.