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, such as outstanding taxes and orphan well cleanup dues. This instruction, issued by the AER on Thursday, requires the Calgary-based company to cease well operations, shut down equipment at its facilities, and stop using active pipelines within two weeks.
MAGA Energy currently manages 581 wells, 108 facilities, and 801 pipeline segments, as disclosed by the AER. The regulator stated that its action aims to safeguard the public and the environment, citing MAGA’s failure to meet financial obligations and regulatory commitments.
The AER’s order outlines specific conditions that MAGA must rectify before resuming operations, including addressing remediation concerns at various sites, resolving pending field inspections, and allocating the necessary funds for inactive site cleanup as mandated by law.
According to Sturgeon County, MAGA Energy owes over $356,000 in property taxes and penalties. The county emphasized the importance of companies fulfilling their tax obligations promptly to support local communities. 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 from 2023 restricted the AER from approving the transfer of wells or licenses to companies with significant tax arrears. Despite this, the AER approved the transfer of wells, facilities, and pipeline licenses to MAGA Energy in September 2024.
Mark Dorin, a landowner affected by these transfers, expressed concerns about the delayed regulatory actions. He criticized the lack of public benefit from operations by companies like MAGA Energy that fail to meet their financial obligations.
Notably, MAGA Energy did not respond to CBC’s request for comments. Energy Minister Brian Jean’s office affirmed that the suspension of MAGA Energy operations underscores the effectiveness of Alberta’s regulatory framework. Janetta McKenzie from the Pembina Institute highlighted the need for stricter enforcement to ensure timely compliance by oil and gas companies.
McKenzie emphasized the potential risks associated with orphan wells and insufficient levies, stressing that both financial and environmental burdens could impact Albertans in the long run. Dorin intends to seek compensation through legal channels, anticipating a prolonged process to address the financial repercussions of companies like MAGA Energy neglecting their responsibilities.