A buyer is purchasing an Alberta property near an abandoned oil well. What specific due diligence should the buyer conduct regarding the well?

Q: What is the correct answer to: A buyer is purchasing an Alberta property near an abandoned oil well. What specific due diligence should the buyer conduct regarding the well?

The correct answer is The buyer should verify the well's abandonment status with the AER, check for any setback restrictions on building, and assess potential environmental liability from the well. Buyers should verify well abandonment status with the AER to confirm proper procedures were followed, check AER Directive 079 setback restrictions that limit building proximity to wells, and assess environmental liability from potential contamination. Improperly abandoned wells can leak methane or fluids, and setback zones can significantly restrict buildable area on the property.

Q: What background knowledge is needed for this Land Use & Planning question?

The Alberta Energy Regulator maintains records of all wells in the province. AER Directive 079 establishes setback distances between wells and developments. The Orphan Well Association handles wells with no responsible licensee. Phase I ESAs should include well searches. Well abandonment has multiple stages, and reclamation certificates confirm final cleanup is complete.

Q: What is a good way to remember the answer to this Land Use & Planning question?

For wells near property, remember AER: check Abandonment status, Environmental liability, and building Restrictions (setbacks). All three must be verified before purchase. When the exam mentions abandoned wells, run through the AER checklist: abandonment status, environmental contamination risk, and setback building restrictions.

Q: What exam tip applies to this Land Use & Planning question?

Abandoned wells require three checks: AER status verification, setback distance review, and environmental contamination assessment. Never assume 'abandoned' means 'no risk.'

Q: How does this Land Use & Planning concept apply in real world practice?

A family wants to build a home on acreage near Leduc. A title search reveals an abandoned well on the property. The AER records show incomplete abandonment, and Directive 079 setbacks prevent building within 100 metres of the well, eliminating half the buildable area. A Phase I ESA reveals soil contamination requiring remediation.

Question

Land Use & PlanningABMEDIUM

A buyer is purchasing an Alberta property near an abandoned oil well. What specific due diligence should the buyer conduct regarding the well?

Answer Options

A

No due diligence is needed for abandoned wells

B

The buyer should verify the well's abandonment status with the AER, check for any setback restrictions on building, and assess potential environmental liability from the well

C

The buyer should only check if the well is currently producing

D

The municipality is responsible for all abandoned well issues