The Alberta Energy Regulator (AER) has instructed MAGA Energy Ltd., an oil and gas company, to halt its operations due to unresolved environmental issues and non-compliance problems, which include outstanding taxes and orphan well cleanup fees. This directive was issued by the AER on Thursday, giving the Calgary-based company a two-week deadline to cease production activities at its wells and facilities, as well as to stop using active pipelines.
With 581 wells, 108 facilities, and 801 pipeline segments under its ownership, MAGA Energy must address a set of requirements outlined in the order before it can resume operations. These obligations include remedying issues at multiple sites, fulfilling outstanding field inspections, and allocating the minimum required funds for inactive site cleanup.
In response to the situation, Sturgeon County revealed that MAGA Energy owes over $356,000 in property taxes and penalties, emphasizing the importance of companies meeting their tax obligations. The county expressed concerns about recovering funds if the company dissolves, pointing out that as of December 31, 2025, oil and gas companies collectively owed Sturgeon County more than $6.8 million in unpaid property taxes.
Furthermore, a previous ministerial order in 2023 aimed to prevent the transfer of wells or licenses to companies with overdue municipal taxes. Despite this, the AER approved the transfer of wells, facilities, and pipeline licenses to MAGA Energy in September 2024.
Mark Dorin, a landowner in Edmonton, whose wells were transferred to MAGA Energy, criticized the company’s actions, highlighting the need for faster regulatory responses. Notably, MAGA Energy had not responded to CBC’s request for comment at the time of the report.
Energy Minister Brian Jean’s office defended the decision to suspend MAGA Energy’s operations, emphasizing the importance of meeting environmental and taxpayer obligations. However, Janetta McKenzie from the Pembina Institute raised concerns about the regulator’s timeliness in enforcing responsibilities on oil and gas companies.
McKenzie underscored the financial and environmental risks associated with orphan wells and urged for increased levies to cover cleanup costs. She warned that inadequate measures could lead to health hazards from pollutants leaking into the environment.
Meanwhile, Dorin plans to seek compensation through the Land and Property Rights Tribunal, highlighting the growing financial burden resulting from MAGA Energy’s actions.
