'If you make a mess, you clean it up': Alberta landowners take energy regulator to court over orphan well levies
Alberta landowners have filed a lawsuit against the Alberta Energy Regulator, claiming that the levy charged to oil and gas companies for cleaning up orphan wells is insufficient. The plaintiffs argue that the current funding model fails to cover the actual costs of environmental remediation.
Why it matters
This case highlights the tension between industrial environmental responsibilities and regulatory oversight in the energy sector, with significant implications for taxpayer liability.
A group of Alberta landowners is taking the province’s energy watchdog to court, arguing that a levy the regulator charges oil and gas companies is so low that it chronically underfunds a program that cleans up old wells with no owners.
The levy in question bankrolls the Orphan Well Association (OWA), which steps in to close wells, oil and gas facilities, and pipelines when companies can no longer meet their cleanup obligations, for example, in the case of a bankruptcy. The Alberta Energy Regulator (AER) sets the levy, collects it from industry and passes it to the OWA.
Alberta has for years grappled with a rising number of orphan wells. Those on the OWA’s books increased by 13 per cent in the 2025/26 fiscal year, yet funding through the levy grew by just 7 per cent, to $141.3-million, according to the AER’s annual report.
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