A new version of a government-commissioned report about Alberta’s inactive oil wells now recommends that the province manage a new insurance fund, rather than backstop it with taxpayer funding.
Critics and environmentalists had raised concerns last month after a draft of the report was leaked to media, saying the report’s recommendations would mean Alberta would let oil and gas companies off the hook for reclaiming wells.
The Alberta government says it has no plans to use taxpayer funds to clean up wells on behalf of oil and gas companies.
It says the recommendations are now being reviewed and the government will say which recommendations it will move forward with in the coming months.
Besides a new insurance program, the report also recommends creating companies to take over inactive or waning oil and gas wells and use any resource extraction profits to fund cleanup efforts.
The Alberta Energy Regulator says there are nearly 500,000 licensed oil and gas wells across the province, although only about 50,000 are active.
This report by The Canadian Press was first published April 3, 2025.