DATE ISSUED: Apr. 22, 2025

EFFECTIVE DATE: Immediately

The BCER is committed to ensuring responsible energy resource activities in B.C. across their lifecycle, from site planning to restoration. As part of this oversight, we have a robust liability management framework in place to ensure permit holders are responsible for the financial and environmental risks related to their operations and that industry pays for the costs of restoration.

Erikson National Energy Inc. is an oil and natural gas company with assets in northern B.C.

Since 2020, Erikson has been non-compliant with orders and has failed to meet the regulatory and financial obligations incumbent on it as a permit holder. This has included failure to complete decommissioning at a frac water storage facility, issues related to suspending oil and gas sites, deactivating pipelines, and failure to pay security, fees and levies.

The BCER has been closely monitoring this matter, including prioritizing inspections to ensure Erikson’s assets are in a safe state and completing work to drain and decommission the frac water storage facility to ensure environmental protection.

In September 2024, Erikson entered insolvency proceedings and has pursued a sales process in efforts to divest its assets. Those efforts continue; however, a portion of Erikson’s portfolio – comprising 53 sites and associated infrastructure located in the Peace region of northeast B.C. - has been identified as being of no interest to any potential purchasers. As such, on March 31, 2025, the BCER exercised its authority under section 45 of the Energy Resource Activities Act to designate those sites and associated infrastructure as orphans, transferring them under BCER management.

Under a court appointed monitor, Erikson continues to maintain care and control of its remaining assets, including completion of ongoing maintenance while it pursues opportunities to transfer its remaining assets to a solvent operator.

The BCER continues to monitor the situation and work with affected First Nations and landowners.

Orphan Sites in B.C.

Orphan sites are wells, facilities, pipelines, roads and associated areas where an oil and gas company is insolvent or cannot be located.

An orphan site designation gives the BCER the option of using the Orphan Site Reclamation Fund (OSRF) to decommission and clean up the site. This provides assurance the site will be restored in accordance with current standards and requirements, and all known contamination risks or hazards have been addressed.

The addition of the 53 Erikson sites means the BCER is now responsible for 872 orphan sites in B.C., of which 249 have been fully reclaimed. Orphan sites comprise less than four per cent of all energy resource sites in the province. The rest are in the care and control of viable companies.

The BCER’s orphan program – fully funded by industry – has spent more than $17.4 million during 2024/25 to conduct restoration work on orphan sites. This work includes the completion of nearly 300 restoration activities on approximately 250 orphan sites.

If you have any questions regarding this Information Update, please contact:

Mike Janzen
Executive Director, Orphans & Restoration
BC Energy Regulator
Mike.Janzen@bc-er.ca
250-419-4464