The Alberta Energy Regulator (AER) has issued a shutdown order against MAGA Energy Ltd., a privately owned Calgary-based oil and gas company, citing numerous regulatory violations including incomplete cleanup of contaminated well sites and unpaid municipal taxes.
The directive, issued on April 22, requires MAGA Energy to cease all operations within two weeks. The company must shut in and secure all of its wells and facilities, discontinue any active pipelines, and inspect all equipment for leaks, among other measures. MAGA holds 581 well licences, 800 pipeline sections, and 108 facilities, according to the AER.
The decision was made to protect the public and the environment, as stated in a social media post by the regulator. The 52-page order, signed by Jon Keeler, the AER's director of field operations, outlines multiple field issues, including failure to act on remediation plans for contaminated well sites and ongoing pipeline deficiencies. Some sites were contaminated before their licences were transferred to MAGA, but later inspections found no evidence of remedial work.
“Based on MAGA’s unpaid municipal taxes, AER and Orphan Well Association debt, and failure to meet its commitments, the director assessed that the licensee does not have the capacity to fulfil its regulatory and liability obligations,” the order states. The company’s failure to meet commitments and adhere to timelines raised concerns about its ability to operate while remaining compliant.
NDP MLA Marlin Schmidt has questioned why the AER allowed the transfer of 170 well licences to MAGA in 2024 when the company owed over $200,000 in unpaid taxes to Sturgeon County. Schmidt said the AER has not provided requested documents to support its decision, which may contradict a ministerial order prohibiting licence transfers to companies owing $20,000 or more in back taxes. Sturgeon County records show MAGA owed $225,000 in unpaid taxes as of July 31, 2023, plus an additional $160,000 in taxes and penalties that year. In August 2023, county councillors rejected the company’s proposal to pay $7,000 monthly for the remainder of the year and $15,000 monthly starting in January 2024.
The AER stated that all requirements of the April 22 order must be met before MAGA can resume operations.
