Alberta Company Fights Regulator Over Thousands of Well Closures

The Calgary-based energy company, AlphaBow Energy, is fighting Alberta’s decision to take over thousands of its abandoned wells.

More than 6,000 wells, pipeline segments, and other assets were transferred to the Orphan Well Association by the Alberta Energy Regulator, and AlphaBow Energy has filed complaints with the Alberta ombudsman and the province’s information and privacy commissioner.

The regulator banned AlphaBow workers from visiting those locations without prior authorization from the association earlier this month.

AlphaBow has a long record of issues with regulators, and August field inspections indicated that only 42% of locations met the requirements.

However, AlphaBow insists that their spending on remediation is above average.

It argues that a decision by the regulator will lead to higher emissions of greenhouse gases and block it from paying the municipal taxes it owes.

Additionally, AlphaBow claims that the regulator has improperly disclosed confidential data.

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

“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.”

The failure of Calgary-based Sequoia Resources in 2018 led to the establishment of privately held AlphaBow and the transfer of various energy facilities to the Orphan Well Fund.

It is anticipated that AlphaBow’s total environmental liability is $154 million.