The Alberta government plans to relax a rule that requires energy companies seeking to buy viable wells from bankruptcy proceedings to first pay all the failed producer’s outstanding taxes.
In March 2023, Jean’s office issued an order to the energy regulator requiring it to consider whether an energy company’s tax payments were up-to-date before the company’s licences could be transferred to another owner. But an April 11 letter from the regulator’s staff to CEO Laurie Pushor identified “unintended consequences.”
“If the continues to be applied as written … there is a high risk that any sales processes contemplated will either not be initiated or will not be successful in transferring assets to new parties,” the letter says. “Our ministry will be leading a broad multi-prong consultation with industry, rural municipalities and landowners this fall to work on solutions to increase reclamation and promote responsible development of legacy oil and gas assets in central and southern Alberta,” he said.
But changes to the order aren’t going to get those taxes paid, he said. Nor is it going to speed well cleanup.