Alberta
Alberta landowners fear repeat of orphan well crisis as renewable energy booms

By Amanda Stephenson in Calgary
Once bitten, twice shy.
It’s an old adage that explains why Jason Schneider, the elected reeve of Vulcan County, Alta., is jittery about the renewable energy boom under way in his province.
Like many in rural Alberta, Schneider is still smarting over the way municipalities were left holding the bag when an oil price crash nearly a decade ago resulted in billions of dollars of unfunded liabilities left behind by bankrupt fossil fuel companies.
In Vulcan County alone, the landscape is littered with hundreds of wells with no owners that need to be cleaned up, and the municipality itself is owed more than $9 million in back taxes left unpaid by insolvent oil and gas firms.
So Schneider has a hard time looking at acre upon acre of massive wind turbines or solar panels without fearing a repeat of Alberta’s orphan well crisis, or wondering who’s going to fix everything if something goes wrong.
“These are large industrial developments, and the reclamation costs are going to be substantial,” he said.
“We can see the warning signs, and we are being ignored.”
Across rural Alberta, concerns are growing about the long-term implications of the province’s renewable energy boom — the speed and scale of which has been nothing short of stunning.
A province that not that long ago was largely reliant on coal for electricity, Alberta is now home to more than 3,800 MW of wind and solar capacity, 1,350 of which came online in just the last 12 months. An additional 1,800 MW of capacity is currently under construction, putting the province on track to meet or exceed the target it set in 2016 to generate 30 per cent of its total electricity from renewable sources by 2030.
In Schneider’s Vulcan County, which is home to both the country’s largest solar farm and one of Western Canada’s largest wind farms, renewable energy developments now account for more than 40 per cent of the local tax base, displacing oil and gas as the number one source of revenue for the local municipal government.
But while many in rural Alberta welcome the economic activity, and farmers and ranchers enjoy the extra income that playing host to solar panels or wind turbines can bring, others are sounding the alarm.
For example, the Rural Municipalities of Alberta recently passed a resolution calling on the provincial government to protect taxpayers from incurring costs associated with the potential decommissioning of renewable energy infrastructure.
Specifically, the association wants to see the government mandate the collection of securities for reclamation from developers before a project goes ahead. That way, municipalities won’t be footing the bill if a developer becomes insolvent and walks away.
“What we’ve learned, and what Albertans have learned, is that the cheapest way to get out of reclamation is going bankrupt,” said Paul McLauchlin, president of the Rural Municipalities of Alberta.
“Some of these solar installations are being installed by one company, sold to another company … I talked to a gentleman who’s on his fifth owner, and his solar installation has been there maybe two years. So we’re seeing small companies owning these, and whether they have the wherewithal for reclamation, that’s really what’s driving this conversation.”
In Alberta, the Orphan Well Association is an industry-funded organization tasked with decommissioning old oil and gas infrastructure and returning the land to its prior state. (It’s currently backlogged, in spite of a $200 million loan from the federal government. In 2020, the feds also provided $1 billion for well clean-up to active companies under Alberta’s Site Rehabilitation Program.)
But there’s no equivalent for the renewable energy industry, though renewable energy companies are required to provide an overview of how they plan to cover decommissioning and reclamation costs before they can receive the go-ahead for their project.
However, for a landowner, entering into a wind or solar lease is entirely voluntary. That’s very different from oil and gas, where under Alberta law, property owners are not allowed to refuse companies seeking to develop the fossil fuels that lie under the surface of their land.
Evan Wilson, director of policy and government affairs for the Canadian Renewable Energy Association, said that because solar and wind leases remain private civil contracts between the developer and the landowner, the onus is on the landowner to ensure the inclusion of some kind of provision to mitigate risks associated with the project’s end-of-life.
But he added many companies do offer landowners some form of reclamation commitment, either in the form of a letter of credit or bond.
“Landowners do have the ability to veto these projects being built on their land,” Wilson said.
“So that puts a lot of pressure on our members to ensure that landowners do feel comfortable with the terms.”
Sara Hastings-Simon, an expert in energy, innovation and climate policy at the University of Calgary’s School of Public Policy, said it’s understandable that municipalities have concerns.
However, she said it’s odd that there’s a push to enforce new regulations for the renewable sector, when the scope of the orphan well problem shows the oil and gas regulatory system could also use an overhaul.
According to the Alberta Energy Regulator, there are more than 83,000 inactive oil and gas wells in the province currently, and close to 90,000 more that have been sealed and taken out of service, but not yet fully remediated.
A report released last year by the Parliamentary Budget Officer estimated that the cost of orphan well clean-up in Canada will reach $1.1 billion by 2025.
“Obviously we need to make sure that all of our industrial development is done in a way that doesn’t offload costs to the public,” Hastings-Simon said.
“But it would make a lot of sense for the province to look at energy development holistically, rather than just picking the one that right now perhaps has more growth.”
This report by The Canadian Press was first published Jan. 29, 2023.
Alberta
Alberta’s province wide state of emergency ends as wildfire situation improves

Wildfires and smoke are shown in British Columbia and Alberta in this satellite image taken Thursday, May 18, 2023. Alberta’s public safety and emergency services minister says a province wide state of emergency that was declared nearly a month ago to deal with unprecedented wildfires will end Saturday night at midnight. THE CANADIAN PRESS/HO – Co-operative Institute for Research on the Atmosphere (CIRA) at the University of Colorado and the National Oceanic and Atmospheric Administration
Alberta’s public safety and emergency services minister says a provincewide state of emergency that was declared nearly a month ago to deal with unprecedented wildfires ended Saturday at midnight.
Mike Ellis told a news conference the wildfire situation in Alberta remains serious but, overall, things have improved significantly and it’s anticipated they will continue to improve.
He says support will not stop for communities affected by active wildfires, including Fort Chipewyan, which remains evacuated due to a large fire burning about seven kilometres away.
The state of emergency was implemented May 6 to expedite co-ordination of firefighting resources and support for evacuees.
Christie Tucker with Alberta Wildfire says the Rocky Mountain wildfire which threatens Fort Chipewyan remains a top priority and 85 Canadian troops were on the way to the area on Saturday afternoon
Tucker told the news conference the blaze was quiet on Friday until the evening, but crews are working to prevent flames spreading to the community and rain is expected in the area in the next day or so.
This report by The Canadian Press was first published June 3, 2023.
Alberta
Saskatchewan landowners fight against illegal drainage washing out land, roads

WAWOTA, Sask. — Lane Mountney spreads a map over his kitchen table at his farmhouse in southeast Saskatchewan, pointing to yellow and orange arrows slithering across the document.
Many of the arrows represent existing channels and ditches, moving across fields and out of wetlands to drain water. The arrows eventually make their way to a creek, causing what he describes as a deluge of problems downstream.
“All these years, guys have gotten away with draining water and the next guy figures he can get away withit,” Mountney said in an interview at his farm near Wawota, Sask., about 200 kilometres southeast of Regina.
“If this keeps going like it has, I don’t know what Saskatchewan’s going to look like in 10 years.”
Mountney’s map depicts what’s called the Wawken Drainage Project, a plan developed by the local watershed group that has since been taken over by the Water Security Agency, which is responsible for overseeing drainage in Saskatchewan.
The project is nearly 14 square kilometres and contains 880 wetlands of various sizes representing a total of 2.4 square kilometres of water.
A project document indicates that 88 per cent of these wetlands have been drained, partially drained or farmed. About 12 per cent remain intact.
Most of this water is supposed to flow into a creek that runs through a parcel of Mountney’s land.
The plan developers believe the creek can handle the flows, but Mountney is not convinced.
Last year, he and his wife, Sandra Mountney, dealt with flooding ontheir horses’ pasture. They decided not to use their well water at the time because it was yellow.
“They were very excited to tell us that nobody inside the project area is going to lose acres, but they haven’t even looked at who’s going to lose acres miles down the line.” Sandra Mountney said.
Brent Fry, who farms grain and livestock, said it’s common for his land to flood for three days when people upstream get 50 millimetres of rain.
He said it has caused roads and access points to erode.
“There are about four farms out there and all they’re doing is draining whether they’ve got permission or not,” Fry said. “I don’t even know what to do because the government’s not doing anything — they’re siding with the big guys.”
Farmers have drained water in Saskatchewan for generations and many have done so illegally by digging ditches without permits.
Most producers drain because it allows them to grow more crops, helping them pay for land that has become increasingly expensive. However, it has caused yearly flooding for people downstream. Roads also wash out and habitat gets lost.
At the Saskatchewan Association of Rural Municipalities convention in February, reeves passed a resolution asking the Water Security Agency to require those who are illegally draining to remediate their unapproved works.
Saskatchewan legislation requires upstream landowners to receive permission from those downstream when they want to drain, but many say that’s not happening.
Sandra Mountney said the Water Security Agency hasn’t been taking concerns seriously.
“It’s hard to know who’s really protecting our waterways,” she said.
The Wawken project began about three years ago but hasn’t been completed. It’s among many drainage projects underway.
Daniel Phalen, a watershed planner, worked on the project as technician before he left for another job.
He said landowners had been draining water with no permits before the plan. His job was to determine how many wetlands were drained and what works had already been done.
Phalen said the plan was to put in structures that would slow down the drainage to reduce problems downstream.
It’s unclear what work had been done on the Wawken project to mitigate flows since Phalen left. The Water Security Agency did not respond to a request for comment.
Phalen said projects can get held up if affected landowners don’t come to an agreement. Expropriation is allowed but it’s rare, he said.
Another nearby drainage plan, known as the Martin project, has stalled because of landowner concerns.
Researchers have estimated Saskatchewan has lost half of its total wetlands over time for crop production.
Phalen, who also worked on the Martin plan, said it was concerning to see the number of wetlands sucked out.
“The Water Security Agency doesn’t have the manpower to do much about it,” Phalen said. “There’s such low enforcement already that if they had any policies in place, people would just drain anyways. It’s kind of a scary problem to be in.”
Sandra Mountney said she’s worried about losing wetlands because they help recharge groundwater supplies and filter contaminants — particularly important when it’s dry.
The Water Security Agency has released a drainage management framework that aims to prevent flooding and ensure Saskatchewan retains a “sufficient” number of wetlands.
Leah Clark, the Interim Executive Director of Agriculture Water Management, told attendees at a Saskatchewan Farm Stewardship Association meeting earlier this year that 43 per cent of wetlands are retained within approved projects. She added the province has “thriving” wildlife populations.
However, she said under the policy, landowners would be able to select which wetlands to retain.
“It will achieve a working landscape for landowners to continue to use their land for farming and ranching. This approach will allow for new development while retaining current drainage,” she said.
Phalen said Saskatchewan could look to Manitoba for solutions to retain wetlands.
Manitoba has historically drained most of its wetlands in the agricultural regions, he said, but the province has since developed a policy where landowners are paid for retaining them.
“You know, $100 an acre is not a ton of money, but it’s another incentive to help producers,” he said. “It’s such a complex problem where you got this huge financial incentive to drain.”
Lane Mountney said regulations just need to be enforced.
“It’s almost too late,” he said. “They should have been out there checking stuff before we got this point.”
This report by The Canadian Press was first published June 4, 2023.
Jeremy Simes, The Canadian Press
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