The Alberta Energy Regulator has issued an order requiring Sunshine Oilsands Ltd. to suspend its wells, facilities and pipelines, saying the company hasn’t met its regulatory obligations.
The AER says the order, issued Nov. 14, is meant to ensure that sites licensed to the Calgary-based company will not pose a risk to public safety or the environment.
Sunshine must also post a security deposit of about $6.1-million – representing its total estimated inactive liability – and provide reasonable care and measures for its sites.
The AER says the company must report any hazards that present a risk to public safety or the environment.
The regulator says Sunshine has “repeatedly failed to comply with regulatory requirements and address compliance issues in a timely manner.”
It warns that failure to comply with the order could result in further enforcement such as an abandonment order, which requires a company to permanently dismantle its energy infrastructure.