The Alberta Energy Regulator has received word the Supreme Court of Canada will hear their appeal of a decision that could have wide ranging implications.

In May of last year, an Alberta Queen’s Bench Judge ruled proceeds from the sale of assets from bankrupt energy companies should go first to secured creditors, not necessarily to cleaning up abandoned well sites.

Ryan Bartlett with the Alberta Energy Regulator says there's a lot at stake.

"The Redwater decision allows receivers and trustees to disclaim the assets that are licensed to them and then they can avoid abandonment and reclamation obligations," he says. "We feel that's resulted in an unacceptable risk to Albertans and really to all Canadians because it can be applied in other industrial sectors like pulp and paper mills and and other types of mines."

Bartlett says since the original decision about 1,600 AER licensed sites have been disclaimed, an estimated liability of about $100 million.

He says that all contributes to the Orphan Well Association's current inventory.

"Disclaiming those unprofitable sites allows creditors to avoid the legislated requirements that licenses's would have to follow if they weren't in receivership or bankruptcy," Bartlett says. "So it puts them in a better position through insolvency by enabling them to reap the benefits of producing Alberta's natural resources while avoiding the cost to repair the land and that permanently impacts the environment, the economy and the safety of Albertans."

The Alberta Energy Regulator has been told the hearing will be expedited but there's no word on when it will happen.