What to Expect
Before a site is designated an orphan, the licensee may be active but no longer complying with regulations. The OWA can become involved before an insolvency process begins when the AER directs the OWA to ensure protection of public safety and the environment through a Reasonable Care and Measures (RCAM) order.
While a company is in an insolvency process, it may appear that there is no licensee activity on the site; however, at this point in the process, it is not an orphan. Often, landowners are not aware that a site on their land is in an insolvency process, but will stop receiving compensation and may begin to notice an absence of activity. Information is posted on third-party websites about insolvency processes.
A site is designated an orphan
When a site is designated as an orphan, it becomes the responsibility of the OWA to safely decommission and reclaim the land similar to its original state.
The OWA hires contractors to perform this work, choosing companies that are experienced, with excellent safety records. We strictly adhere to AER, Alberta Environment and Protected Areas and Alberta Occupational Health and Safety regulations and requirements.
The length of time to close an orphan site varies depending on the complexity of the site, with higher risk sites prioritized. Generally, you can expect the following steps to take place if a site on your land is designated an orphan:
- Notification
- A landowner or registered occupant receives an information package from an OWA representative indicating there is a well or facility on their property that has been assigned to the OWA for decommissioning and/or reclamation. The information package includes information about the OWA, the orphan site, a landowner feedback form and a self-addressed, stamped envelope.
- OWA call
- An OWA representative calls to review the information package with the landowner/occupant.
- Site inspection
- If there is a well or facility on the site, the OWA will schedule a site inspection to assess the condition and safety of the site. Inspections generally occur within one year of the well, pipeline or facility being assigned to the OWA, given current inventory levels. Sites with no remaining infrastructure are typically reviewed at time of environmental assessment, which may be longer than one year.
- Site maintenance
- The OWA may schedule site maintenance and surface clean-up to remove potential safety hazards. Nuisance issues, such as weeds, are not typically addressed until the reclamation stage.
- Decommissioning
- An OWA contractor will decommission the site.
- Remediation and reclamation
- Remediation and reclamation begins when an OWA representative assesses the site through desktop information reviews and field work. Landowners may request that certain infrastructure be left in place, if desired, including access road or roadway approaches.
- Reclamation Certificate
- Ultimately, the OWA applies for a reclamation certificate from the AER. Once received, the land can be used as it was before the infrastructure was there.
If you have questions about reclamation that the OWA is progressing on your land, please leave your contact details at (403) 297-6416 or email us at info@orphanwell.ca. An OWA representative will respond within ten business days.
Compensation concerns
If surface access payments are outstanding, the landowner can apply to the Land and Property Rights Tribunal to receive these payments. While processing can take time, the payments will continue until the site receives a reclamation certificate. Under current regulations, the OWA cannot provide surface lease payments to landowners.
FAQs
How do I know if the inactive well on my land is an orphan?
Landowners receive an information package from the OWA if the wellsite on their land has been designated an orphan. The OWA also has a list of orphan sites updated monthly that can be downloaded from the Orphan Inventory section of our website.
If you have not received a letter from the OWA, it is likely that another party (e.g., a minority partner) is responsible for the site. Please contact the AER at LiabilityManagement@aer.ca for more information.
When will an orphan well on my land be decommissioned?
We assess each orphan site and prioritize it within our existing inventory to ensure public safety and environmental protection. We aim to complete decommissioning and remove equipment so that landscape and environmental reclamation work can begin within three years of receiving a site, although timing may vary depending on the complexity of the project and our inventory levels.
After decommissioning is complete, remediation and reclamation of the site begins. Timelines for this process are also variable depending on environmental and landscape considerations.
See Closing Sites for more details.
Will the OWA manage weeds on the orphan wellsite?
The OWA is facing an unprecedented rate of wellsites declared as orphans, which has made it necessary to direct funding toward direct decommissioning and reclamation. This approach allows us to remove orphan sites from the landscape as quickly as possible.
Typically, the OWA will not control weeds on orphaned sites until the reclamation stage. This is a requirement prior to applying for a reclamation certificate. We will control weeds prior to the reclamation stage only if we believe that failure to do so will significantly impact our pending reclamation program.
I have multiple sites on my land. Will the OWA handle all of these?
The OWA is only authorized to decommission and reclaim sites and assets that have been designated as orphans by the AER. To learn more, see Who Closes a Defunct Site?
Can I acquire or purchase some of the equipment from the site on my land?
Any equipment associated with an orphan site becomes the property of the OWA and helps us offset costs when it is sold. The OWA’s first priority is safety, so some of the equipment and piping on lease sites may need to be sampled or cleaned to ensure it can be sold. We will always work with landowners when there is safe equipment that may be appropriate for release or sale; however, we typically use a competitive bidding program. Other equipment may be purchased from the OWA through our salvage program.