PDF version: Waiver of Dispute Resolution under the New Rules

Case considered: IBM Canada Limited v Kossovan, 2011 ABQB 621.

In IBM Canada Limited v Kossovan, Mr. Justice Bryan E. Mahoney provided the first judicial interpretation of an important new provision in the Alberta Rules of Court, Alta Reg 124/2010 (New Rules). The provision in question - Rule 4.16(2) — governs applications to waive the dispute resolution processes mandated by Rule 4.02(e) of the New Rules. As Justice Mahoney notes (at para 4), “[w]hile the New Rules contemplate circumstances wherein the requirement might be waived, as yet, there is little guidance from our Court as to how this Rule is to be interpreted.” Using case law from other jurisdictions that have adopted similar mandatory dispute resolution procedures, this decision begins to provide that guidance. However, as much of that guidance is based on anecdotal evidence and intuitions about the effectiveness of dispute resolution, it is to be hoped that the mandatory dispute resolution provisions of the New Rules will be empirically evaluated for both costs and benefits in the near future.

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PDF version: Carbon capture and storage in Alberta: draft offset Protocol

Document and regulations commented on: Government of Alberta, Draft Quantification Protocol for the Capture of CO2 and Storage in Deep Saline Aquifers, December 2011 and Specified Gas Emitters Amendment Regulation, Alta Reg 139/2007, Alta Reg 127/2011 at pp. 448 - 451.

While there has been some suggestion that the post-Stelmach provincial government is less enthusiastic than its predecessor about carbon capture and storage (CCS) as a silver bullet to deliver on provincial plans to reduce greenhouse gas emissions, the province will go ahead with at least three of the four short-listed CCS projects that are to receive provincial government financial support: the Alberta Carbon Trunkline Project, Shell’s Quest Project and the Swan Hills Synfuels project. The one outstanding project is TransAlta’s (TAU) Project Pioneer. The province has yet to finalize a deal with TAU (and may never do so) but I gather that this has more to do with problems with the technology that TAU\Alstom has been proposing to use than any provincial cold feet.

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PDF version: A Step Forward for CCS as a CDM Project Activity

Report commented on: Subsidiary Body for Scientific and Technological Advice (SBSTA) Technical Workshop on the eligibility of carbon capture and storage projects under the clean development mechanism of the Kyoto Protocol, released on November 8th, 2011.

In December 2010, the Conference of the Parties serving as the meeting of the Parties (CMP) to the Kyoto Protocol (KP), by its decision 7/CMP.6, decided that carbon dioxide capture and storage (CCS) in geological formations would be eligible as a project activity under the clean development mechanism (CDM), provided that the following issues could be addressed and resolved in a satisfactory manner:

- non-permanence, including long-term permanence;
- measuring, reporting and verification;
- environmental impacts;
- project activity boundaries;
- international law;
- liability;
- the potential for perverse outcomes;
- safety ,and
- insurance coverage and compensation for damages caused due to seepage or leakage.

(See also Nigel Bankes’ blog on CCS and CDM: the eligibility of carbon capture and storage projects under the clean development mechanism of the Kyoto Protocol - the Cancun Meeting of the Conference of the Parties)

Parties and admitted observer organizations were invited to submit their views on how to address and manage these issues. Ten admitted observer organizations and Australia, the Alliance of Small Island States (AOSIS), the European Union, Indonesia, Japan, Norway, Qatar, Saudi Arabia, United Arab Emirates and USA (as an observer state to KP) responded the invitation. Also, the Secretariat hosted a technical workshop with technical and legal experts to consider these submissions and to discuss the issues referred to in decision 7/CMP.6. The workshop, held in Abu Dhabi on September 7th and 8th 2011 clarified some of the technical and legal issues in its report and suggested possible solutions.

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PDF version: The theory and the practice of well abandonment and surface reclamation in Alberta: the latest episode in the dismal saga of Sarg Oils Limited

Decision commented on: Sarg Oils Limited, Review of Abandonment Orders AD 2006-17, AD 2006-17A, AD 2006-18, AD 2006-19 and AD 2006-20, November 15, 2011, 2011 AERCB 032.

Well over ten years ago Sarg Oils sold oil and gas assets to another party. The Energy Resources Conservation Board (ERCB) refused to consent to the transfer of the well licences associated with those assets and as a result Sarg was left with the responsibility of abandoning those facilities. And when Sarg refused, the ERCB did the job itself and sent the bill to Sarg; and when Sarg didn’t pay (and the Court of Appeal ruled that this was a lawful debt owing to the Board: ERCB v Sarg Oils Ltd, 2002 ABCA 174) the ERCB garnisheed other assets of Sarg (the Southern Alberta assets). Sarg didn’t like that and shut the facilities in - owing by this time in excess of $1 million. The Board informed the province of this dastardly deed and the province triggered the procedures under the Petroleum and Natural Gas Tenure Regulation (Alta Reg 267/1997, s18) to terminate the leases on those Southern Alberta assets. Since Sarg no longer had the right to exploit the resources on those terminated leases, the ERCB ordered Sarg (2006) to abandon the related wells and facilities. Sarg did nothing about this except to seek a section 40 review (this application) under the Energy Resources Conservation Act, RSA 2000, c E-10) of the Board orders. And now, five years later, the Board has concluded that the orders “are valid and will be upheld” (at para 148). And now, Sarg must really get on with it! Whew! Unless of course Sarg seeks leave to appeal.

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PDF version: The Repeal of the Long Gun Registry: A Violation of the Federal Government’s Obligations Concerning Violence Against Women?

Legislation considered: Bill C-19, An Act to amend the Criminal Code and the Firearms Act (”Ending the Long-gun Registry Act”), 41st Parliament, 1st Session

December 6, 2011 was the National Day of Remembrance for Violence Against Women, which marked the 22nd anniversary of the Montreal Massacre. The Globe and Mail’s Jane Taber indicated that “government MPs [were] purposely shut out from officially speaking at and attending an event on Parliament Hill to honour the 14 young women who were shot dead in 1989,” because the government is about to repeal the long gun registry (see Bill C-19). The Montreal Massacre was one of the pressure points for the registry, as was the use of firearms in crimes of domestic violence. When the Alberta government challenged the constitutionality of the registry, which was implemented via the Firearms Act, SC 1995, ch 39, as an amendment to the Criminal Code, the Supreme Court found that it was properly enacted under the federal government’s criminal law powers (see Reference re Firearms Act (Can.), 2000 SCC 31, [2000] 1 SCR 783 at paras 43, 59). The enactment of the law creating the registry was constitutional; but is its repeal unlawful? I think an argument can be made that the federal government’s abolishment of the long gun registry is unconstitutional on Charter grounds, as well as contrary to international law.

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PDF version: Polar Bear ‘Special Concern’ Designation Raises Some Concerns of Its Own

Decision considered: Order Amending Schedule 1 to the Species at Risk Act SOR/2011-233 October 27, 2011.

On November 10, 2011, the Federal Government released its decision to list the polar bear as “special concern” under Schedule 1 of the Species at Risk Act (Species at Risk Act, SC 2002, c 29, hereinafter “SARA”). This decision has been a long time coming. This post reflects on the significance of the decision, and specifically two concerns it raises with the listing process under SARA.

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PDF version: Why Canada should not withdraw from the Kyoto Protocol 

Rumour\decision commented on: Canada will withdraw from the Kyoto Protocol

Rumours abound that Canada will withdraw from the Kyoto Protocol later this month. While Canada’s Minister of the Environment, Peter Kent, will not confirm these rumours (Montreal Gazette, November 29, 2011) there is reason for thinking that withdrawal is being actively considered if not already decided on (see “Canada to pull out of Kyoto Protocol next month“?

This post discusses four questions. First, what is the law pertaining to withdrawal from an international environmental agreement (MEA)? Second, why is withdrawal being considered and what other options are available? Third, what might be some of the ramifications of a Canadian withdrawal? And fourth, what is the legal nature of the current commitment: whom does it bind?

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PDF version: The property rights debate in Alberta 

Document commented on: “Albertans asked for property rights input,” Government of Alberta Press Release, November 24, 2011

Premier Redford has announced the creation of a task force to ask “Albertans for their concerns regarding property rights.” According to the Press Release, Premier Redford has “heard concerns from landowners that their property rights need to be better respected,” and takes the view that “We need to move towards a more common-sense approach when it comes to property rights.”

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PDF version: Cost Decision from Canadian Human Rights Commission Case: Implications for Albertans 

Decision considered: Canadian Human Rights Commission v Canada (AG), 2011 SCC 53 (”Mowat“)

The Supreme Court of Canada’s (”SCC”) decision about costs in the Mowat case was released in October, and this will have significant ramifications in cases under the Canadian Human Rights Act, RSC 1985, c H-6 (CHRA). (See my blog on the decision of the Federal Court of Appeal for a discussion of the facts of the case here). The issue of costs in the context of human rights cases is significant, as it may become an access to justice issue, especially in cases with public interest issues.

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PDF version: What is the effect of an invalid caveat? What is the effect of the lapse of an invalid caveat?

Case commented on: Humford Developments Ltd. v 1026451 Alberta Ltd., 2011 ABQB 655

The decision of the Alberta Court of Appeal in Holt Renfrew & Co. v Henry Singer Ltd., (1982), 20 Alta LR (2d) 97 (CA) tells us that an old caveat protecting an old lease cannot protect a new lease, and that an invalid caveat purporting to protect an agreement for sale cannot protect the priority of that interest as against a subsequent caveat filed to protect the new lease. In this case (Humford) Justice Clackson concludes that a caveat that was invalid ab initio can protect the assignee of a lease against a new registered owner and that the lapse of such a caveat is immaterial. I think that the first part of this conclusion is mistaken.

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