"The Supreme Court of Canada has prioritized paying clean up costs before creditors when extractive companies go bankrupt. This outcome reinforces the growing understanding that polluters are responsible for their clean up obligations.

“However, the Supreme Court's decision does not alleviate broader challenges posed by insolvent operations. While the Supreme Court's decision ensures bankrupt companies' remaining assets first go to clean up, those assets are often insufficient to cover full costs. Canadian taxpayers are already paying billions to clean up former operations including the Faro Mine in the Yukon, the Giant Mine in the Northwest Territories, and numerous mines in B.C.

“Over the last five decades Alberta's clean up obligations have steadily grown, and now include over 80,000 inactive oil and gas wells, facilities, and pipelines as well as 1.4 trillion litres in fluid oilsands tailings. The Government of Alberta officially estimates it will cost CAD$57 billion to cleanup these sites, though there are ongoing concerns about the accuracy of this figure. Conversely, only $1.2 billion is currently held in securities to protect the public. 

"There are tools available to reduce the risk exposure of Canadian taxpayers and communities. Before we can chart solutions, however, everyone needs to be on the same page about the problem. The Alberta government has long neglected its obligation to collect and release precise information on oil and gas liabilities. All political parties in the province must make clear commitments on how they will substantively address this issue moving forward.”