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Alberta energy company fights regulator over seizure of thousands of wells

Click to play video: 'Premier asks energy minister to prioritize oil well cleanup'
Premier asks energy minister to prioritize oil well cleanup
WATCH (July 11, 2023): Alberta Premier Danielle Smith is telling her energy minister to focus on oil well cleanup. She wants Brian Jean to look into incentives for oil companies to clean old oil wells and she wants that plan to respect the polluter pay principle. Some aren't sure that's possible. Saif Kaisar explains. – Jul 11, 2023

An embattled Calgary energy company is fighting the provincial regulator’s decision to seize thousands of its inactive wells.

AlphaBow Energy has complained to the Alberta ombudsman and the province’s information and privacy commissioner over the Alberta Energy Regulator transferring control of more than 6,000 wells, pipeline segments and other facilities to the Orphan Well Association.

Earlier this month, the regulator barred AlphaBow employees from attending any of those sites without approval from the association.

AlphaBow has had a long list of regulatory problems and field inspections in August found only 42 per cent of sites were satisfactory.

But AlphaBow maintains it exceeds industry averages on reclamation spending.

It says the regulator’s decision will result in increased greenhouse gas emissions and prevent it from paying the municipal taxes it owes.

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Click to play video: 'Danielle Smith promises to advocate for rural Alberta at RMA conference, addresses unpaid oil and gas taxes'
Danielle Smith promises to advocate for rural Alberta at RMA conference, addresses unpaid oil and gas taxes

AlphaBow also says the regulator has made information about the company public that should have remained private.

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“The Alberta government and the Alberta ombudsman must intervene immediately to assess the situation impartially,” said AlphaBow CEO Ben Li.

“Every day that passes further harms AlphaBow and its employees, thus increasing the possibility that municipalities and surface landowners will never recoup the money owed to them.”

Privately held AlphaBow was created after the 2018 collapse of Calgary-based Sequoia Resources, which also resulted in several energy facilities being transferred to the Orphan Well Fund.

AlphaBow’s entire environmental liability is estimated at $154 million.

Click to play video: 'More transparency needed when it comes to oil well cleanup in Alberta, says researcher'
More transparency needed when it comes to oil well cleanup in Alberta, says researcher

 

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