In Alberta, a troubling legacy of abandoned oil and gas operations—ranging from wells and pipelines to mines—is casting a long shadow over the province’s landscapes. Thousands of these derelict sites pose risks of pollution, compromise farming operations, and threaten the health and safety of locals. Cleaning up this environmental mess is projected to cost an eye-watering tens of billions of dollars and will likely take decades to complete.

At the helm of overseeing this prolonged cleanup is the Alberta Energy Regulator (AER), an independent agency financed by the industry itself. This agency has faced significant scrutiny over the years, with regular accusations of inadequate oversight and lack of transparency. In response to these concerns, the AER has started to embrace transparency, recently publishing a liability monitoring report that details the status of cleanup efforts and identifies companies that are neglecting their financial responsibilities for remediating old oil and gas infrastructure.

In Alberta, it is mandatory for oil and gas companies to allocate a minimum amount yearly toward the decommissioning and cleanup of old wells, in addition to contributing to a levy that supports the Orphan Well Association. This organization deals with the cleanup of abandoned wells left by bankrupt companies.

While the AER’s reports may appear as a step towards accountability by identifying delinquent companies, a closer examination reveals a complex web of ownership and responsibilities that obscures the true picture. For instance, who owns these companies? Who makes the critical decisions? Are they legitimate corporations or mere fronts for more prominent firms?

To address these questions, The Narwhal, an investigative outlet, spent weeks developing a comprehensive database to uncover the truth behind these delinquent companies. This effort commenced with a list of companies flagged by the AER for failing to meet cleanup requirements.

The challenge was significant; delving into corporate registry documents required extensive time and nearly $4,000 to gather data on the delinquent companies listed for two consecutive years. The lack of publicly available information on the ownership structures of these smaller, less recognized companies left many questions unanswered, particularly for firms like Topanga Resources and New North Resources, which few people could identify, let alone understand.

The meticulous process involved sorting through the corporate records of companies on the delinquency lists and identifying associated entities and individuals behind these companies. This sometimes revealed more significant networks of corporate control, complicating the narrative surrounding each firm’s financial obligations and accountability.

Take Topanga Resources, for example. Although it was flagged for not fulfilling its financial duties in both 2022 and 2023, diggings into corporate documents unveiled that it operates under the control of another firm, North Shore Petroleum. Following this trail exposed even greater liabilities, effectively doubling the financial woes attributed to Topanga and highlighting the interconnectivity among companies within the oil and gas sector.

The data revealed that individuals behind these companies often remain concealed behind multiple corporate layers. Some are well-known figures in other industries, connected to influential public and private sectors. This means the responsibility for environmental and financial damages can be significantly diluted or obscured, making accountability nearly impossible, especially when the regulations focus more on company names than the individuals operating them.

As Alberta wrestles with the implications of these delinquent companies, the potential for more oil and gas sites proliferating across the province raises alarms about who will ultimately be held liable for their cleanup. Despite increasing transparency initiatives, questions loom around whether the AER is equipped to enforce accountability for companies with a history of neglect and legal loopholes that allow them to evade consequences.

Looking ahead, The Narwhal plans to continue unraveling this tangled web by identifying prominent individuals associated with the delinquent companies named by the AER, shedding light on unpaid taxes and leases. Maintaining this database will prove vital, especially as the AER removes previous year records from public view following annual updates.

The findings raise concerning doubts over the adequacy of the AER's oversight, calling into question the effectiveness of reforms aimed at assigning risk to financially unstable companies. The situation emphasizes the need for heightened scrutiny and transparency, as the public remains oblivious to who is truly pulling the strings behind Alberta's oil and gas sector. Without significant changes, the alarming prospect of abandoned infrastructure and unresolved environmental liabilities could haunt the province for generations to come.