How B.C. Is Tackling Its Orphan Well Backlog

B.C.’s energy regulator ramps up a major orphan well cleanup, backed by a $24 million industry levy and hundreds of restoration projects

9 Mar 2026

British Columbia is ramping up one of North America’s most ambitious orphan well cleanup efforts. The BC Energy Regulator says more than 450 decommissioning and restoration activities will take place across roughly 400 sites in 2026.

Much of the work is centered in the Peace River region of northeast B.C., long a hub of oil and gas development. Nearly 2,300 individual restoration activities are planned there this year, making it the focal point of the province’s cleanup campaign.

The expanded effort is supported by a stronger funding base. In November 2025, the regulator raised its annual Orphan Site Restoration Levy on oil and gas permit holders from $15 million to $24 million.

The increase followed a surge in the number of designated orphan sites. After 129 new sites were added in December 2025, the province’s total climbed past 1,000. The BC Energy Regulator estimates the minimum cost of restoring the current inventory at about $218 million.

Officials say the model is designed to keep responsibility within the industry. Companies pay into the levy based on their total deemed liability, ensuring cleanup costs are not pushed onto taxpayers.

Mike Janzen, executive director of orphans and restoration at the BC Energy Regulator, says the approach reflects a clear principle. The life cycle costs of the energy industry, he says, should ultimately be borne by the industry itself.

The work unfolds in six stages, beginning with site deactivation and well plugging. Crews then remove equipment, test for contamination, carry out remediation, and finish with revegetation to return land to a natural state.

Progress is visible but incomplete. By early 2025, about 80 percent of orphan wells in the province had been decommissioned, while only 30 percent had reached full restoration.

For contractors in well plugging, decommissioning, and environmental remediation, the program offers a steady pipeline of work. Around 40 local contractors are already involved, directing investment into communities across northeast B.C.

With regulators across North America under pressure to address aging oil and gas infrastructure, British Columbia’s industry levy model is drawing attention. The 2026 program suggests the cleanup cycle is gaining momentum rather than slowing down.