The Alberta Energy Regulator (AER) has instructed oil and gas company MAGA Energy Ltd. to halt its operations due to unresolved environmental issues and non-compliance problems, including outstanding taxes and orphan well cleanup fees.
On Thursday, the AER disclosed that the directive was issued the day before. The company, headquartered 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 outlined in the agency’s order.
MAGA Energy currently manages 581 wells, 108 facilities, and 801 pipeline segments, according to the AER’s statement. The AER emphasized that the action was taken to safeguard the public and the environment.
The order specifies several conditions that MAGA must rectify before it can recommence operations. These requirements include addressing remediation concerns at various sites, resolving pending field inspections, and allocating the minimum mandatory funds for the cleanup of inactive sites.
Sturgeon County, in a statement to CBC News on Friday, stated that MAGA Energy owes over $356,000 in property taxes and penalties. The county expressed concerns about recovering these funds if the company ceases operations.
According to the county, as of December 31, 2025, oil and gas companies collectively owed Sturgeon County over $6.8 million in unpaid property taxes. In 2023, a ministerial order was issued to prevent the AER from approving well transfers to companies with outstanding municipal tax arrears.
In September 2024, the AER sanctioned the transfer of 170 wells, 30 facilities, and 47 pipeline licenses to MAGA Energy. Landowner Mark Dorin, who had wells transferred to the company, urged for swifter regulatory actions.
MAGA Energy did not respond to CBC’s request for comment at the time of the publication. Energy Minister Brian Jean’s office stated that the order against MAGA Energy demonstrates the effectiveness of Alberta’s regulations.
Janetta McKenzie from the Pembina Institute criticized the regulator for potential delays in enforcing responsibilities. A recent report highlighted challenges in recovering unpaid taxes from oil and gas companies in Alberta.
McKenzie emphasized the need for changes, citing the increasing number of orphan wells and insufficient levies. She warned that unresolved well issues could pose health and environmental risks to residents and livestock.
Dorin plans to seek compensation from MAGA Energy through the Land and Property Rights Tribunal, under the Surface Rights Act, foreseeing a lengthy process and growing financial burden.