The Alberta Energy Regulator (AER) has issued an order requiring Sunshine Oilsands to suspend its wells, facilities and pipelines.

This action follows Sunshine Oilsands' repeated failure to comply with regulatory requirements.

The order includes a mandate to post a security deposit of $6.09m, representing its estimated inactive liability, and ensure reasonable care and measures for its sites.

The AER order specifies several actions for Sunshine Oilsands including the suspension of all wells, facilities and pipelines, and immediately reporting any hazards that risk public safety or the environment.

The company must also ensure containment devices are safe for winter conditions and submit a care and measures plan.

The AER aims to ensure that Sunshine's sites do not pose a risk to public safety or the environment. Noncompliance may lead to further enforcement including an abandonment order.

The report also highlighted other non-compliance issues such as Sunshine Oilsands’ contravention of the EPEA Approval monitoring and reporting conditions 19 times between April 2022 and September 2024.

The company also failed to submit its 2023 Annual Water User Report on time.

Sunshine Oilsands did not fully pay the Orphan Fund Levy and Administration Fee for 2022, 2023 and 2024 by the deadlines.

Additionally, 17 of its wells were non-compliant with inactive well requirements as of 22 October 2024.

The company also received a notice of non-compliance for not reporting three active steam releases from pipeline licence 55095. Sunshine Oilsands did not investigate these releases or maintain the right-of-way, as required by the Pipeline Act and Rules.

Furthermore, the company lacked a leak detection programme and could not provide pipeline integrity management documentation as mandated by the Pipeline Act and Rules.