Archive for February, 2012

Competing uses of geological space: resolving conflicts between production and natural gas storage interests

Wednesday, February 29th, 2012

PDF version: Competing uses of geological space: resolving conflicts between production and natural gas storage interests 

Decision commented on: Kallisto Energy Corp. Application for a Well Licence Crossfield East Field, 2012 AERCB 005, February 24, 2012

This decision deals with the potential for conflict between conventional oil and gas operations and natural gas storage projects.

The idea of resource use or landscape level conflicts is familiar to us in the context of the use of the surface. Consider, for example, the conflicts between recreation and forestry interests, between forestry and oil sands or conventional oil and gas exploration. The idea of competing uses of the subsurface is less familiar but our search for new resources or the application of new technologies to known resources is increasing the potential for those subsurface conflicts. High pressure fracturing operations to stimulate production either from shallow oil formations or deeper shale gas formations raises concerns about the effect of these operations on potable groundwater resources, and proposals to sequester carbon dioxide in saline formations or depleted oil or gas reservoirs raises concerns of sterilizing hydrocarbon resources. The province’s new CCS regime explicitly addresses this scenario through a provision in the Oil and Gas Conservation Act, (OGCA) RSA 2000, c O-6, s 39(1.1) which provides that the ERCB “may not approve a scheme for the disposal of captured carbon dioxide to an underground formation …. unless the [applicant] satisfies the Board that the injection of the captured carbon dioxide will not interfere with (a) the recovery or conservation of oil or gas, or (b) an existing use of the underground formation for the storage of oil or gas.”

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I Fought the Law: Civil Disobedience and the Law in Canada

Monday, February 27th, 2012

PDF version: I Fought the Law: Civil Disobedience and the Law in Canada

Cases commented on: Calgary (City) v Bullock (Occupy Calgary), 2011 ABQB 764;
Batty v City of Toronto, 2011 ONSC 6862; R v SA, 2011 ABPC 269; R v Charlebois, 2011 ABPC 238, etc.

On February 1, 2012, I participated in a public forum entitled “Civil Disobedience: Concept, Law and Practice” organized by the Sheldon Chumir Foundation for Ethics in Leadership. This post is an elaboration of my remarks at the forum on how civil disobedience is handled under Canadian law. I will review some recent cases on civil disobedience, including the Occupy litigation, to examine issues such as whether civil disobedience may be protected under the Charter, and if not, what sorts of sanctions protestors might expect to face.

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Federal Court of Appeal confirms that a SARA protection statement must offer the critical habitat of a listed species real legal and non-discretionary protection

Thursday, February 23rd, 2012

Case commented on: Minister of Fisheries and Oceans v. David Suzuki Foundation (the Killer Whale case) 2012 FCA 40

PDF Version: Federal Court of Appeal confirms that a SARA protection statement must offer the critical habitat of a listed species real legal and non-discretionary protection

A unanimous Federal Court of Appeal in a decision authored by Justice Mainville has largely affirmed Justice Russell’s decision at trial in a case dealing with the legal protection of the critical habitat of two populations of killer whale listed as threatened or endangered under the terms of the Species at Risk Act (SARA), SC 2002, c 29. ABlawg’s post on the trial decision is available here: “SARA has a spine as well as teeth.”

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Refining Vexatious Litigant and Vexatious Spokesperson Jurisprudence

Tuesday, February 21st, 2012

Case considered: Allen v Gray, 2012 ABQB 66

PDF version: Refining Vexatious Litigant and Vexatious Spokesperson Jurisprudence

Alberta’s new vexatious litigant provisions have been in force for almost five years now and a useful body of precedent has been developed. Novel points continue to arise, but these tend to be minor ones. Nevertheless, Allen v Gray makes three useful legal points: (1) case law from before the 2007 amendments continues to be useful, in part because the term “vexatious” is undefined; (2) it is irrelevant whether the alleged vexatious litigant is prosecuting (or defending) his or her own action or acting as an agent for another person (the “vexatious spokesperson”); and (3) the new provisions are of no help in preventing vexatious administrative proceedings.

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British Columbia Supreme Court Releases Reference Decision on Polygamy – One Alberta Connection

Wednesday, February 15th, 2012

PDF version: British Columbia Supreme Court Releases Reference Decision on Polygamy – One Alberta Connection

Case comment on: Reference re: Criminal Code, s. 293, 2010 BCSC 1588

In 2005, Brian Seaman, Melissa Luhtanen and I, on behalf of the Alberta Civil Liberties Research Centre (ACLRC), were engaged by Status of Women Canada to research and comment on specific issues with regard to Criminal Code section 293 (anti-polygamy provision). Our conclusions may have been surprising to some people because it appeared that we erred on the side of equality at the expense of civil liberties. However, the recent British Columbia Supreme Court (BCSC) decision, at least temporarily, as it may be overruled on appeal, seems to have vindicated our position. Looking at the list of intervenors (11 of them) and the length of the judgment itself, it seems that the Court dealt with the issues in a comprehensive manner.

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Deep rights, shallow rights and the interpretation of a purchase and sale agreement

Monday, February 13th, 2012

PDF version: Deep rights, shallow rights and the interpretation of a purchase and sale agreement 

Case commented on: Nexxtep Resources Ltd v Talisman Energy Inc, 2012 ABQB 62

The oil and gas industry splits petroleum and natural gas rights by substances to create severed estates in gas and petroleum but it also splits rights along the vertical axis into different formations. Split rights may be created along the vertical axis for several reasons. In some cases the Crown or other lessor initiates the severance in order to encourage exploration (e.g. deep and shallow rights reversions - explore non-producing horizons in your lease or lose them). In other cases rights will be severed as part of farmout agreements since farmors will be reluctant to allow the farmee to earn interests in formations that are deeper (and in some cases shallower) than those formations to which the test well is to be drilled. But these vertical splits cannot always be determined with accuracy and in some cases the Energy Resources Conservation (ERCB) may be asked to classify or reclassify whether a pool is part of deeper rights or shallower rights for the purposes of different conservation rules including, spacing rules, first well in the pool rules etc.: see Oil and Gas Conservation Act, RSA 2000, c O-6, s 33.

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Supreme Court of Canada Saves Timing for the Alberta Information and Privacy Commissioner

Thursday, February 9th, 2012

PDF version: Supreme Court of Canada Saves Timing for the Alberta Information and Privacy Commissioner 

Decision considered: Alberta (Information and Privacy Commissioner) v Alberta Teachers’ Association, 2011 SCC 61

This case has been followed closely by those interested in information and privacy procedures. The issues raised by the decision were discussed in my previous blog (see here). [Editor’s note, also see Alice Woolley’s ABlawg on this decision True Questions of Jurisdiction: Administrative Law’s Unicorns]

In sum, the Information and Privacy Commissioner (IPC) received complaints that the Alberta Teachers’ Association (ATA) had disclosed personal information in contravention of Alberta’s Personal Information Protection Act, SA 2003 c P-6.5 (PIPA). At the relevant time, subsection 50(5) provided that an inquiry must be completed within 90 days of the complaint being received, unless the IPC notified the parties that he or she was extending the time period. The IPC took 22 months from the initial complaint before extending the date on which the inquiry would be concluded. Then, seven months later, an adjudicator issued an order on behalf of the IPC, finding that ATA had contravened the PIPA. The ATA applied for judicial review, arguing for the first time that the IPC had lost jurisdiction for failing to extend the time period for the inquiry within 90 days of the complaint being received. The chambers judge quashed the adjudicator’s decision on the basis of timing, and the majority of the Court of Appeal upheld the chambers judge’s decision. As noted in the blog above, this decision prompted the rare move on the part of the IPC, who publicly expressed concern about the implications of the Court of Appeal ruling.

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The severance of a water right from a purchase and sale of land

Tuesday, February 7th, 2012

PDF version: The severance of a water right from a purchase and sale of land 

Case commented on: Royal Bank of Canada v Hirsche Herefords, 2012 ABQB 32 

This decision concludes that a provincial water licence can be contingently severed from the land or undertaking to which it is appurtenant by way of an agreement of sale and the subsequent registered transfer. The contingency is the Director’s approval of the transfer of the water licence to another party under the terms of sections 81 - 82 of the Water Act, RSA 2000, c W-5. The decision also confirms the emergence of a water rights market in southern Alberta.

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Senate Reform on the Horizon: Does the Parliament of Canada have the power to unilaterally change the terms and selection method of Senators?

Monday, February 6th, 2012

PDF version: Senate Reform on the Horizon: Does the Parliament of Canada have the power to unilaterally change the terms and selection method of Senators? 

Legislation considered: Bill C-7, An Act respecting the selection of senators and amending the Constitution Act, 1867 in respect of Senate term limits (”Senate Reform Act”), 41st Parliament, 1st Session

After a very long journey, Canadians may be reaching the end of the long road to Senate reform. In the recently introduced Senate Reform Act the federal government is proposing a framework for electing senate nominees, and proposing to significantly reduce Senator term limits. Questions have been raised about Parliament’s unilateral ability to effect these reforms without provincial consent. This comment will explore the constitutional validity of the Senate Reform Act in terms of Parliament’s jurisdiction to unilaterally amend the Canadian Constitution. It will be suggested that while the proposed term limit is likely constitutionally valid, the proposed framework and legal obligation of the Prime Minister to consider elected Senate nominees is beyond Parliament’s sole power.

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The Northern Gateway Joint Review Panel and the Governor in Council

Thursday, February 2nd, 2012

 PDF version: The Northern Gateway Joint Review Panel and the Governor in Council

Documents commented on: (1) An open letter from the Honourable Joe Oliver, Minister of Natural Resources, on Canada’s commitment to diversify our energy markets and the need to further streamline the regulatory process in order to advance Canada’s national economic interest, January 9, 2012;

(2) National Energy Board Act, RSC 1985, c N-7, s 52;

(3) Canadian Environmental Assessment Act, SC 1992, c 37, s 37.

On January 9, 2012, the day before the hearings by a Joint Review Panel (JRP) were due to open for the proposed Northern Gateway pipeline (NGP), the federal Minister of Natural Resources, Joe Oliver took the extraordinary step of issuing an Open Letter to Canadians. He followed this up with a series of media appearances. In his letter Minister Oliver made four main points. First, Canada needs to diversify its export markets for many products including oil. Second, “environmental and other radical groups” seek to block this opportunity and any underlying projects. Third, these “radicals” will “hijack our regulatory system,” stack public hearings, “kill good projects,” exploit any opportunity they can to delay project reviews. These radicals have access to foreign money to implement their goals. The delays that ensue are unacceptable. Fourth, Canada needs a fair and independent process to assess projects based on science and the facts - but the current system is out of balance and “is broken.”

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