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, including outstanding taxes and fees related to orphan well cleanup. The AER issued the order the day before the announcement on Thursday. According to the directive from the agency, MAGA Energy has a two-week timeframe to cease operations at its wells, facilities, and pipelines.
MAGA Energy currently possesses 581 wells, 108 facilities, and 801 segments of pipelines, as disclosed by the AER. The AER stated in a press release that it is taking action to safeguard the public and the environment. The AER emphasized that due to MAGA’s failure to meet financial obligations, including unpaid municipal taxes and debts to the AER and Orphan Well Association, the company lacks the capacity to fulfill its regulatory responsibilities and liabilities.
The order specifies a set of conditions that MAGA must address before resuming operations, including rectifying remediation issues at various 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 property taxes and penalties, expressing concern about the potential challenges of recovering these funds if the company dissolves.
The county emphasized the importance of companies fulfilling their tax obligations, stressing the need for more robust enforcement mechanisms to ensure that property taxes are given priority. As of December 31, 2025, oil and gas companies collectively owed Sturgeon County more than $6.8 million in unpaid property taxes. Additionally, in 2023, a ministerial order was issued to restrict the AER from approving well transfers to entities with significant municipal tax arrears.
Despite concerns raised by landowners like Mark Dorin, who criticized the slow regulatory response, MAGA Energy had not responded to CBC’s request for comment at the time of reporting. Energy Minister Brian Jean’s office highlighted the effectiveness of Alberta’s policies in enforcing environmental and taxpayer obligations, indicating that non-compliant companies would face shutdowns.
Janetta McKenzie, from the Pembina Institute, expressed concerns about regulatory leniency towards oil and gas companies, suggesting that the regulator may not be promptly enforcing its duties. A recent report disclosed that a substantial amount of unpaid taxes may not be recoverable from oil and gas companies. McKenzie underscored the need for increased levies on oil and gas firms to cover orphan well costs adequately.
McKenzie warned that the financial and environmental burdens of orphan wells could ultimately fall on Albertans if proper action is not taken. Dorin, the landowner, plans to seek compensation through the Land and Property Rights Tribunal, citing the extensive financial toll resulting from MAGA Energy’s actions.