AER orders Sunshine Oilsands to suspend wells and pipelines

The Alberta Energy Regulator has issued an order that Sunshine Oilsands Ltd. obliged to suspend its wells, facilities and pipelines because the company has failed to meet its legal obligations.

The AER says the order, issued on Nov. 14, is intended to ensure sites licensed to the Calgary-based company do not pose a risk to public safety or the environment.

Sunshine must also post a bond of approximately $6.1 million – representing its total estimated inactive liability – and provide reasonable care and safeguards for its locations.

The AER says the company must report any hazards that pose a risk to public safety or the environment.

The regulator says Sunshine has “repeatedly failed to meet regulatory requirements and failed to address compliance issues in a timely manner.”

It warns that failure to comply with the order could lead to further enforcement, such as a cease and desist order, requiring a company to permanently dismantle its energy infrastructure.

This report by The Canadian Press was first published Nov. 19, 2024.