The Alberta Energy Regulator (AER) has directed 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 fees for cleaning up orphan wells.
The AER made this announcement on Thursday after issuing the order a day earlier. MAGA Energy, based in Calgary, has a two-week deadline to cease operations at its wells, shut down equipment at its facilities, and stop using active pipelines, as stated in the agency’s directive.
Currently, MAGA Energy holds a total of 581 wells, 108 facilities, and 801 pipeline segments, according to the AER.
In response to the situation, the AER emphasized that the action was taken to safeguard the public and the environment. The agency cited MAGA’s failure to pay municipal taxes, debts owed to the AER and Orphan Well Association, and its inability to meet obligations as reasons for the directive.
The order outlines specific tasks that MAGA must complete before it can resume operations. These include addressing remediation concerns at various sites, resolving pending field inspections, and allocating the minimum required funds for cleaning up inactive locations.
Sturgeon County, in a statement to CBC News, revealed that MAGA Energy has a significant outstanding balance exceeding $356,000 in property taxes and associated penalties. The county expressed concerns about the potential difficulty of recovering these funds if the company goes out of business.
Furthermore, Sturgeon County indicated that as of December 31, 2025, oil and gas companies collectively owed the county over $6.8 million in unpaid property taxes. In a related development, a ministerial order from 2023, signed by then-energy minister Peter Guthrie, aimed to prevent the AER from approving well transfers to companies with substantial tax arrears.
Despite these issues, in September 2024, the AER approved the transfer of wells, facilities, and pipeline licenses to MAGA Energy. Concerns have been raised by individuals like Mark Dorin, whose land is affected by these transfers, urging quicker action from regulators.
MAGA Energy had not responded to CBC’s request for comment at the time of reporting. The Energy Minister’s office highlighted that the order against MAGA Energy demonstrates the effectiveness of Alberta’s policies and regulations in addressing environmental and taxpayer concerns.
Janetta McKenzie from the Pembina Institute suggested that the regulator may need to act more promptly in enforcing rules for oil and gas companies. A recent report indicated that a significant amount of unpaid taxes from these companies may be difficult to recover.
McKenzie emphasized the need for changes, particularly in relation to orphan wells and the associated levy charged to oil and gas companies. Failure to address these issues could result in financial and environmental consequences for Albertans.
Dorin plans to seek compensation from MAGA Energy through legal channels, anticipating a lengthy process given the accumulating costs. He emphasized the importance of holding companies accountable for their obligations to prevent negative impacts on communities and the environment.