When the permit holder of an oil and gas site is deemed insolvent or is unable to be identified, the site may be designated an orphan by the Commission. The Commission is then authorized to assume management of the site, taking over its maintenance, safety and restoration.
As a land owner with an orphan site on your property, be assured the Commission plans to complete restoration work at the site, and will ensure the ongoing protection of public safety and the environment.
While the Commission does have authority under the Oil and Gas Activities Act (OGAA) to cross your land and enter the site to complete this work, the intention is to do so in a manner respecting both you and your use of the land, while still meeting our responsibilities for the restoration of the site.
When a site has been designated an orphan and the land owner is no longer receiving rental payments from the previous permit holder under the surface lease agreement, the Commission may, under section 46 of OGAA, provide compensation to a land owner that is owed rental payments for an orphan site.
The link below, ‘How to Apply for Compensation’, provides guidance to land owners wishing to apply for compensation owed under a surface lease agreement.