Fiscal Responsibility
The OWA is funded by Alberta’s oil and gas industry. Since OWA operations began in 2002, total industry funding of $844 million has been collected through an AER-directed levy on oil and gas licenses, with a levy on large industry facilities added in 2021. The orphan well levy for 2024/25 is set at $135 million and zero for the orphan large facility levy. We expect the levy will remain consistent over the next several years.
Maximizing efficiencies
After risk-assessing and prioritizing our inventory to ensure public safety and environmental protection, we look for opportunities to bundle projects regionally to maximize efficiencies.
Bundling projects
We deploy contractors so that, wherever possible, they work on several projects in an area, approaching them as one larger initiative from a workforce and supply-chain view, regardless of the corporate holder of orphaned sites. Once high-risk sites are prioritized, we round out our plans with medium- and low-risk sites to maximize the efficiency of our operations.
Funding & expenditures
Our expenditures are shifting toward site reclamation, as our inventory moves to this final stage of the closure process.
Average costs
Our average costs to decommission a well and reclaim a site fluctuate over time and can vary significantly depending on the complexity of the site.
- In 2023/24, the average cost of decommissioning a well was $16,500.
- In 2023/24, the average cost of reclaiming a site was $27,400.
Levies and Fees
The OWA is primarily funded by the annual Orphan Fund Levy, which is paid by the oil and gas industry in Alberta. The levy is based on estimated decommission and reclamation activities for the upcoming year and is set by the AER in consultation with the OWA.
Read our annual report for more detailed information about funding and expenditures.
