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, such as outstanding taxes and orphan well cleanup fees. This directive was issued by the AER a day prior to the announcement made on Thursday. MAGA Energy, headquartered in Calgary, has been given a two-week timeline to cease operations at its wells, facilities, and pipelines, as mandated by the regulatory agency.
With a current portfolio of 581 wells, 108 facilities, and 801 pipeline segments, MAGA Energy must address several requirements outlined in the order before it can resume its activities. These obligations include rectifying remediation concerns at multiple sites, resolving pending field inspections, and allocating the minimum mandated funds for the cleanup of inactive sites.
Sturgeon County revealed that MAGA Energy owes over $356,000 in unpaid property taxes and penalties. The county expressed concerns about the possibility of recovering these funds if the company dissolves. Municipalities like Sturgeon County emphasized the importance of enforcing tax obligations to ensure property taxes are given priority, especially as of the end of 2025 when oil and gas companies collectively owed over $6.8 million in unpaid property taxes.
In a move dating back to 2023, a ministerial order signed by Peter Guthrie, the then-energy minister of Alberta, aimed to prevent the AER from approving the transfer of wells or licenses to companies with substantial municipal tax arrears. Despite this, in September 2024, the AER granted MAGA Energy the transfer of 170 wells, 30 facilities, and 47 pipeline licenses.
Mark Dorin, a landowner in the Edmonton area with wells transferred to MAGA Energy, expressed dissatisfaction with the company’s delayed actions and lack of tax payments. Stating there was no public benefit from these operations, Dorin urged for quicker regulatory intervention.
Despite CBC’s attempt to reach out for comments, MAGA Energy had not responded at the time of publication. Energy Minister Brian Jean’s office applauded the AER’s decision to suspend MAGA Energy, highlighting that companies failing to meet environmental and taxpayer obligations would face shutdowns.
Janetta McKenzie from the Pembina Institute raised concerns over regulatory effectiveness, suggesting that oil and gas firms were receiving leniency in complying with rules. McKenzie emphasized the financial and environmental burdens that Albertans might bear due to inadequacies in the orphan well levy system and the subsequent risks associated with orphan wells.
Dorin indicated plans to seek compensation through the Land and Property Rights Tribunal, under Alberta’s Surface Rights Act, to address the growing financial implications resulting from MAGA Energy’s actions.