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Announcement - May 12, 2025

AER issues abandonment order to Sunshine Oilsands Ltd.

On May 9, the Alberta Energy Regulator (AER) issued an abandonment order to Sunshine Oilsands Ltd. (Sunshine), requiring the company to submit and implement approved plans to abandon and reclaim its sites.

The AER issued this order following Sunshine’s failure to comply with previous orders from November 2024 and February 2025. All three orders are available on the AER’s Compliance Dashboard.

On November 14, 2024, the AER issued an order to Sunshine due to concerns that it was unable to provide reasonable care and measures at its sites and a high risk of being unable to meet its regulatory obligations.

On February 24, 2025, the AER issued another order directing the Orphan Well Association (OWA) to manage all Sunshine-licensed sites for eight weeks to ensure public safety and environmental protection.  

The abandonment order ensures that sites licensed to Sunshine do not pose a risk to public safety or the environment, and that specified land is conserved and reclaimed. The OWA retains care and custody of Sunshine’s sites to ensure public safety and environmental protection. The order requires Sunshine to provide an abandonment plan for its wells and facilities. The AER must approve the plan before Sunshine can implement it. Sunshine remains the licensee of record.

Details on the abandonment order can be found on the Compliance Dashboard.

For more information on the AER’s Compliance Assurance Program, visit Compliance and Enforcement.