February 27, 2025
The Alberta Energy Regulator has ordered the Orphan Well Association to provide reasonable care and measures (RCAM) for the sites licensed to Sunshine Oilsands Ltd., escalating enforcement against the oil sands operator.
The AER previously issued an RCAM order on November 14, 2024, regarding the Sunshine Oilsands’ licenses and sites. Ongoing inspections since that time have determined that the company has not provided reasonable care and measures to prevent impairment or damage of the sites, nor has it complied with the November order requirements.
As a result, on February 24, 2025, the AER issued a new RCAM order directing the Orphan Well Association to provide reasonable care and measures for all sites licensed to Sunshine Oilsands for a period of eight weeks to prevent impairment or damage of the sites and to ensure emergency response capability.
A copy of the most recent order can be found on the AER’s Compliance Dashboard.
November 18, 2024
AER issues order to Sunshine Oilsands Ltd.
On November 14, 2024, the AER issued an order requiring Sunshine Oilsands Ltd. to suspend its wells, facilities, and pipelines; post a security deposit; and provide reasonable care and measures for its sites as the company has repeatedly failed to comply with regulatory requirements and address compliance issues in a timely manner.
The AER’s order requires Sunshine Oilsands to take a number of actions:
- Suspend all wells, facilities, and pipelines.
- Immediately report any hazards that present a risk to public safety or the environment.
- Ensure that any containment devices or equipment are depressurized, emptied, and rendered safe in a manner sufficient for winter conditions and acceptable to the AER.
- Submit a reasonable care and measures plan to demonstrate that reasonable care and measures are being provided at the sites.
- Post a security deposit in the amount of $6 091 318, which represents 100% of Sunshine’s estimated inactive liability.
The AER has issued this order to ensure that the sites licensed to Sunshine Oilsands will not pose a risk to public safety or the environment. Failure to comply with this order may result in escalation of enforcement, which could include an abandonment order.
A copy of the order issued to Sunshine Oilsands can be found on the AER’s Compliance Dashboard.