AER Directs Orphan Well Association to Immediately Assume Management of Sequoia Resource Sites

The Alberta Energy Regulator has directed the Orphan Well Association (OWA) to assume control of the majority of Sequoia Resources Corp.’s (Sequoia) sites. The reasonable care and measures (RCAM) order issued on January 29, 2025, directs the OWA to immediately take responsibility for the care of about 2500 sites that the AER has now orphaned for closure.

“Our top priority is to protect the public and the environment while ensuring the safe closure of upstream oil and gas infrastructure left behind by companies no longer in business,” said Laurie Pushor, President and CEO of the AER.

On March 1, 2018, the AER ordered Sequoia to properly abandon all its inventory after the company indicated it was ceasing operations. The bankruptcy trustee in place since 2018 recently discharged about 2500 wells, facilities, and associated pipelines that went unsold in its sales process. The discharged inventory represents the bulk of Sequoia’s remaining inventory.

The AER’s direction to the OWA helps to ensure that sites discharged are closed and reclaimed in a safe, efficient, and orderly manner and that the responsible parties are held to account for their share of the costs of those activities.

Among the Sequoia sites discharged and orphaned, around 550 wells and facilities have industry partners, known as working interest participants (WIPs) who hold obligations for closure. WIPs must pay their share of the costs when the OWA performs work to close sites (decommission, remediate, and reclaim) or may be ordered to assume the care and closure for specific sites.

To learn more about reasonable care and measures orders, see aer.ca.

About the Alberta Energy Regulator

The AER ensures the safe, efficient, orderly, and environmentally responsible development of energy and mineral resources in Alberta through our regulatory activities.

Contact

Email: [email protected] | Media line: 1-855-474-6356

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