Alberta to enforce consequences for delinquent oil firms

Alberta Premier Danielle Smith has announced new actions against oil and gas companies that do not pay their municipal taxes. She made this announcement during a speech at the Rural Municipalities of Alberta spring convention in Edmonton. Smith stated that the province will create a new complaints process. Municipal Affairs will act as a link between local governments and the Alberta Energy Regulator (AER). This will help municipalities quickly identify companies failing to meet their tax obligations. Smith emphasized the importance of municipalities in reporting these “bad actors.” Recent surveys show that, as of late 2024, oil and gas companies owe over $253 million in unpaid taxes. This amount represents a significant increase from previous years. Smith admitted that the current system for collecting these debts is not effective and pledged to make improvements. The new strategy will involve quicker communication from municipalities to Municipal Affairs. Once reported, the AER will verify the debts and take action to ensure payment. Smith warned that companies that do not pay will face serious consequences, as the AER has various means to enforce compliance. Rural municipal leaders have expressed frustration over unpaid taxes and the lack of accountability for delinquent companies. They argue that the system allows some companies to continue operating while they owe significant amounts of money. Smith has acknowledged these concerns and asked local leaders to work closely with the province to tackle the issue. Municipal Affairs Minister Ric McIver also spoke at the convention, echoing Smith's sentiments. He noted that businesses in other sectors would be forced to cease operations if they failed to pay taxes, highlighting that the energy sector seems to operate under different rules. Rural leaders hope the new measures will lead to better outcomes for municipalities affected by these unpaid debts.