The BCER has designated former Erikson National Energy Inc. sites and associated infrastructure as orphans. Additionally, following an application by the BCER, the court has placed the company in receivership. The receiver is able to pursue sales of these sites and any that aren’t transferred will be restored by the BCER, paid by the industry-funded Orphan Site Reclamation Fund.
Background
Erikson National Energy Inc. (Erikson) 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.
In September 2024, Erikson entered insolvency proceedings, pursuing a sales process in efforts to divest its assets.
On March 31, 2025, the BCER, having determined a portion of Erikson’s portfolio – comprising 53 sites and associated infrastructure located in the Peace region of northeast B.C. – would be of no interest to any potential purchasers, exercised its authority under section 45 of the Energy Resource Activities Act to designate those sites and associated infrastructure as orphans. On May 5, 2025, the BCER designated the remaining 331 Erikson sites and associated infrastructure as orphan sites, which are largely located in the greater Fort Nelson area and have been the subject of an ongoing sales process.
Also on May 5, 2025, the Alberta Court of King’s Bench issued an order placing Erikson into receivership. The receiver manager will settle the affairs of the company and pursue any sales and transfers to a solvent operator. The BCER will undertake site clean-up and restoration work of any sites that cannot be sold, paid for through the industry-funded Orphan Site Reclamation Fund.
Orphan Sites in B.C.
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 industry pays for the costs of restoration.
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 industry-funded Orphan Site Reclamation Fund 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.
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