Designating an Orphan

Not all sites licensed to a defunct operator are orphaned by the AER. The OWA maintains a list of orphan sites in its inventory. A site is not an orphan if:

• It is inactive or suspended due to technical or economic reasons, but still has a viable operator or owner.
• It is managed by a third party during an insolvency process, such as a receivership. These sites may eventually be sold to a responsible operator.
• The defunct operator of record – the company that appears on the site signage – has viable partners that hold some working interest in the well, pipeline or facility. These working interest partners (WIPs) are the legally responsible parties for managing site closure and can then apply to the OWA to recover the portion of the costs for the defunct operator.