Calgary-based Sumerian Oil and Gas alleges the Alberta Energy Regulator failed to ensure its wells on Canadian Forces Base Wainwright were shut in before the Oct. 17 grass fire that killed four soldiers and injured dozens more, and says it plans legal action against the regulator.
Military officials have said there is no evidence that energy infrastructure was involved in the fire. Military investigators have said there is no indication it was caused by oil or natural gas infrastructure, or that a gas line was struck. Three separate investigations are under way, and military officials said they have no new information on Sumerian's assets.
The dispute centres on an Oct. 5 regulator order that placed all of Sumerian's assets, including more than 300 well licences on the base, under the care of the Orphan Well Association (OWA). The order required the association to shut in the sites within 14 days. Sumerian says it warned the regulator that timeline was impossible because of the process needed to access sites on an active military base.
"So far as Sumerian can determine, between Oct. 5 and Oct. 17 the OWA did not attend a Sumerian site on the range, shut in no well, and isolated no pipeline," the company told CBC News in a statement.
Sumerian says it called the association's emergency line on the night of the fire to report that its wells were inside the fire area. The company says the association's designated contact told it that none of the wells had been shut in and that the association did not plan to attend the base until Oct. 27.
Lars DePauw, the association's president, said in a statement to CBC News on Friday that all Sumerian wells on the base have been inspected and shut in. He did not say when the work was finished or whether it was before or after the fire. The association was not involved in emergency response during the fire, he said, and it continues to work on new compliance issues it has identified.
The regulator has declined to comment on Sumerian's allegations, saying it cannot answer questions about the Wainwright incident while it is under investigation. It has not responded to questions about the status of the wells or how they have been managed since Sumerian lost access. The company's website appeared to have been taken offline as of Tuesday.
Sumerian says the regulator has unfairly targeted it for months. It has pledged to file a regulatory appeal and seek a court injunction to regain operational control of its assets. It has also asked Energy Minister Brian Jean to order a ministerial review of the regulator's conduct and is demanding a regulatory audit of its assets. Jean's office has not responded to repeated requests for comment.
The Oct. 5 order followed enforcement actions, unpaid regulatory fees and two crude leaks, in Wainwright and Killam, that allegedly went unaddressed. When announcing it, the regulator said Sumerian may not be able to provide reasonable care and measures to protect public safety and the environment. The regulator first ordered Sumerian to suspend operations in July, but the company obtained a temporary stay from the Court of King's Bench.
Sumerian says the problems pre-date its November 2025 acquisition of the assets of Cleo Energy Corp. and that the regulator knew it. It also says the regulator departed from its own policy of proportionate enforcement and attributed third-party or non-existent assets to it.
Mandy Olsgard, a risk assessment specialist and former senior environmental toxicologist with the regulator, criticized the company's approach. "They clearly were not managing their wells in a manner that was sufficient for the Alberta Energy Regulator and that's why they no longer have control of them," she said.
Comments (0)
Please log in to comment.
No comments yet.