Panel upholds Alberta regulator's orders against embattled energy company

Pumpjacks pump crude oil near Halkirk, Alta. on June 20, 2007. THE CANADIAN PRESS/Larry MacDougal

CALGARY -

A hearing panel for Alberta's energy regulator has upheld two orders against a company that had thousands of inactive oil and gas wells seized last year.

The regulator transferred control of more than 6,000 wells, pipeline segments and other facilities to the Orphan Well Association in September 2023, citing AlphaBow Energy's failure to comply with the two orders.

An order issued in March 2023 called for AlphaBow to demonstrate reasonable care and measures at its sites.

Three months later, the Alberta Energy Regulator ordered the company to suspend its licences and sites over what it said was a failure to comply with the earlier order.

AlphaBow's requests for regulatory appeals were granted, and a public oral hearing was held late last year.

In a news release announcing its decision, the hearing panel says it found that the regulator did not breach procedural fairness in issuing the orders and that it did not exercise its discretion to issue the orders in a manner that was unreasonable.

AlphaBow was not immediately able to provide a response.

This report by The Canadian Press was first published Feb. 28, 2024.