Author: Nigel Bankes Page 59 of 88

Nigel Bankes is emeritus professor of law at the University of Calgary. Prior to his retirement in June 2021 Nigel held the chair in natural resources law in the Faculty of Law.

The Continuing Fall-out from Stores Block: Guidance from the Alberta Utilities Commission on Utility Asset Disposition

By Nigel Bankes

On December 5, 2013

In Energy

PDF Version: The Continuing Fall-out from Stores Block: Guidance from the Alberta Utilities Commission on Utility Asset Disposition

Decision commented on: Alberta Utilities Commission, Utility Asset Disposition, Decision 2013-417, November 26, 2013

In ATCO Gas & Pipelines Ltd. v Alberta (Energy and Utilities Board), 2006 SCC 4 (Stores Block), a majority decision of the Supreme Court of Canada (per Justice Bastarache), the Court concluded that the customers of a regulated utility had no property interest in the assets of a utility company that were included in the rate base. Accordingly, when a utility sought the approval of the Energy and Utilities Board (EUB) (now the Alberta Utilities Commission (AUC or Commission)) for the disposition of a rate base asset outside the ordinary course of business, the EUB/AUC had no jurisdiction to require the utility, as a condition of the approval of the disposition, to allocate to the customers of the utility any share of the net proceeds of disposition beyond the depreciated book value of the asset in the utility’s accounts. In so ruling the Supreme Court of Canada reversed the long-standing practice of the EUB and its predecessors in sharing such gains between shareholders and customers. That long-standing practice is recounted in this decision at paras 19 – 32.

Limitations Issues in Oil and Gas Royalty Litigation

By Nigel Bankes

On December 2, 2013

In Oil & Gas

PDF Version: Limitations Issues in Oil and Gas Royalty Litigation

Case commented on: Canadian Natural Resources Limited v Jensen Resources Ltd., 2013 ABCA 399

This case involves a geologist’s gross overriding royalty (GORR). The principal issue at trial (see earlier post here) was the question of whether or not the royalty continued as against the property in question when the Crown issued oil sands leases for the oil sands rights in place of the earlier petroleum natural gas leases which were in force when the royalties crystallized. The trial judge held that the royalty did continue against these new leases and the Court of Appeal has confirmed that part of the award.

Judgment Handed Down in a Complex Petroleum and Natural Gas Lease Case

By Nigel Bankes

On November 29, 2013

In Oil & Gas

PDF Version: Judgment Handed Down in a Complex Petroleum and Natural Gas Lease Case

Case commented on: Stewart Estate v TAQA North Ltd, 2013 ABQB 691

This lengthy (121 page plus appendices) and well-reasoned decision will be essential reading for members of the oil and gas bar in Alberta. Justice Barbara Romaine offers guidance on a number of issues including the importance of having all relevant parties before the Court when seeking a declaration as to lease validity, limitations, the interpretation of the term “lack of or intermittent market” and the term “any cause whatsoever beyond the Lessee’s reasonable control”, and the measure of damages where a lessee produces on a dead lease. Given the length of the decision (much of which is taken up with a careful review of the testimony of expert witnesses) I will limit this post to the above legal questions. There are, however, a number of other issues discussed in the decision that this post does not deal with (e.g. estoppel, leave and licence, champerty and maintenance, etc).

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Cancellation of a Nova Scotia Exploration License for Failure to Tender a Work Deposit

By Nigel Bankes

On November 11, 2013

In Oil & Gas

PDF Version: Cancellation of a Nova Scotia Exploration License for Failure to Tender a Work Deposit

Case commented on: Shin Fan F & P Inc v Canada-Nova Scotia Offshore Petroleum Board, 2013 NSSC 341

In this straightforward decision Justice Gregory Warner of the Nova Scotia Supreme Court declined to grant judicial review of a decision of the Canada-Nova Scotia Offshore Petroleum Board to cancel Shin Han’s exploration license (EL) for failure to tender a work deposit.

Constitutional Questions and the Alberta Energy Regulator

By Nigel Bankes

On October 24, 2013

In Aboriginal, Administrative Law, Constitutional

PDF Version: Constitutional Questions and the Alberta Energy Regulator

Decisions commented on: (1) ERCB Letter Decision, April 18, 2013, re Fort McKay First Nation, Notice of Question of Constitutional Law; (2) ERCB Letter decision, May 23, 2013, reasons for decision in relation to Fort McKay First Nation, Notice of Question of Constitutional Law; (3) 2013 ABAER 014, Dover Operating Corporation, Application for a Bitumen Recovery Scheme Athabasca Oil Sands Area, August 6, 2013; and (4) Fort McKay First Nation v Alberta Energy Regulator, 2013 ABCA 355

The Alberta Court of Appeal has granted leave to the Fort McKay First Nation (FMFN) to appeal two questions of law or jurisdiction in relation to decisions made by the Energy Resources Conservation Board (ERCB) (the predecessor to the Alberta Energy Regulator (AER)) and the AER itself in approving, subject to the further approval of the Lieutenant Governor in Council, Dover’s application for a major steam assisted gravity drainage (SAGD) bitumen recovery project. The two questions on which leave was granted are as follows:

(a) Whether the Tribunal erred in law or jurisdiction by finding that the question whether approval of the project would constitute a meaningful diminution of the Treaty rights of the Fort McKay First Nation and therefore be beyond provincial competence was not a question of constitutional law as defined in the Administrative Procedures and Jurisdiction Act;

(b) Whether the Tribunal erred in law or jurisdiction by finding that it had no jurisdiction to consider constitutional issues other than those defined as “questions of constitutional law” in the Administrative Procedures and Jurisdiction Act.