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“Amending the Bankruptcy and Insolvency Act would be a win for Canada’s environment, a win for Canadian communities and a win for responsible energy producers.”

The Redwater case saw the courts effectively decide revenue from the sale of a bankrupt company’s assets does not have to be used to pay for its environmental liabilities, such as cleaning up old wells.

The trustee in such matters can sell off producing wells to generate money for secured creditors, but don’t have to take over non-producing wells.

These abandoned wells end up in the lap of the Orphan Well Association (OWA), an industry-funded group that plugs and remediates such facilities that don’t have an active owner to foot the bill.

The ruling gives priority to the rights of secured creditors over the requirements of the Alberta Energy Regulator (AER) to clean up these wells.

Since the May 2016 Redwater decision, other receivership cases have used the precedent to renounce such assets, the minister said in her letter.

This has led to more than 1,600 licensed energy sites being disclaimed, with an estimated value of more than $100 million, according to the AER.

The Supreme Court will review the decision next year following an appeal by the province’s regulator and the OWA.

The fallout from the original ruling has been profound, taking place against the backdrop of low commodity prices and the failure of several petroleum producers.

In March 2016, the association had 705 abandoned wells on its books. The number now sits at 1,870, while another 1,082 wells are under the group’s care, custody or have been suspended.