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, which include outstanding taxes and orphan well cleanup fees.
The AER’s directive, issued a day prior to the announcement on Thursday, requires the Calgary-based firm to cease operations within two weeks. This involves shutting down wells, equipment at facilities, and discontinuing the use of active pipelines, as specified in the order by the regulatory agency.
With a current portfolio of 581 wells, 108 facilities, and 801 pipeline segments, MAGA Energy must address a list of requirements outlined in the order before resuming operations. These obligations include rectifying remediation issues at various sites, settling pending field inspections, and allocating the minimum required funds for inactive site cleanup.
Sturgeon County revealed that MAGA Energy owes over $356,000 in property taxes and penalties. The county expressed concern about recovering these funds if the company dissolves, emphasizing the importance of companies fulfilling their tax obligations to municipalities.
According to a previous statement, as of December 31, 2025, oil and gas companies collectively owed Sturgeon County more than $6.8 million in unpaid property taxes. In a related development, a ministerial order in 2023 constrained the AER from approving well transfers to companies with significant tax arrears.
Despite concerns raised by landowners like Mark Dorin regarding MAGA Energy’s tax delinquency, the company had not responded to CBC’s request for comment at the time of reporting.
Energy Minister Brian Jean’s office commended the suspension of MAGA Energy operations, underscoring the significance of meeting environmental and taxpayer responsibilities to avoid shutdowns. Meanwhile, Janetta McKenzie from the Pembina Institute noted that regulatory bodies may need to enhance enforcement to ensure timely compliance by oil and gas firms.
Reports highlighting substantial unpaid taxes in the oil and gas sector and inadequacies in the orphan well levy system have underscored the need for policy adjustments. McKenzie stressed the potential financial and environmental burden on Albertans if corrective measures are not promptly implemented.
Dorin, the affected landowner, intends to seek compensation through legal channels to address the mounting costs resulting from MAGA Energy’s actions, emphasizing the need for prompt resolution.