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know your property rights as they relate to

orphan sites

An orphan site can be a well, a facility or pipeline, or an area requiring restoration as a direct or indirect result of oil and gas activity. It will be designated as such by the Oil and Gas Commission if the operator is insolvent (bankrupt or under creditor protection) or if the OGC is unable to identify the operator and the site has been abandoned.

The industry pays an orphan site restoration tax to the Oil and Gas Commission, which in turn has established a fund to pay the cost of restoration and compensation to landowners.

If there is an abandoned site on your property, your first step is to contact the Oil and Gas Commission. If the Commission is satisfied that the area requires restoration, it can pay the cost of restoration from the fund.

For more information, see the Oil and Gas Activities Act, Part 4 – Section 44 (link opens in a new window)

 

Your property rights form the basis for compensation related to orphan wells.