The operations of Revitalize Energy Inc. including oil well sites in the Lloydminster area are now under the control of the Orphan Well Association (OWA).
The Alberta Energy Regulator (AER) ruled on Nov. 14, the oil producer's operations pose a safety risk and must be abandoned.
The ruling means all pipelines and more than 200 wells previously operated by Revitalize across Alberta and Saskatchewan are shut down.
In addition, the company's staff is not allowed to access any of its operations without permission from AER.
"[Due to] outstanding non-compliances, compliance history, lack of timely and meaningful communication with the AER, and with the additional risks of freezing during the upcoming winter season, the manager is of the opinion that Revitalize is not capable of providing reasonable care and measures to prevent impairment or damage in respect of the sites," the order states.
Revitalize is based in Calgary with a field team in Lloydminster.
The ruling follows the company's extensive financial troubles and multiple AER compliance failures.
The contraventions date back to last November when the AER flagged the company as unable or unwilling to comply with regulatory requirements.
The list of non compliance includes missed inspections, unclean conditions, wells operating without a licence and fire safety failures.
The recent ruling notes Revitalize will be responsible for all costs an expenses incurred by OWA required to prevent impairment of damage to the sites.
The OWA has more than 2,462 sites for decommissioning including 1,651 wells and 7,395 sites in need of reclamation.
The OWA works with industry, government and public stakeholders to manage the safety and environmental risks of oil and gas sites that do not have a legally or financially responsible party.
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