Author: Nigel Bankes Page 67 of 89

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.

Court of Appeal confirms QB decision that coalbed methane forms part of the natural gas title and not the coal title

By Nigel Bankes

On September 21, 2012

In Energy, Natural Resources, Property

PDF version: Court of Appeal confirms QB decision that coalbed methane forms part of the natural gas title and not the coal title

Case Considered: Encana Corporation v Devon Canada Corporation, 2012 ABCA 271, aff’g 2011 ABQB 431.

The Court of Appeal in a unanimous memorandum of judgment (Justices McFadyen, O’Brien and O’Ferrall) has affirmed Justice Kent’s decision at trial in a case dealing with section 10.1 of the Mines and Minerals Act, RSA 2000, c M-17 (as am by SA 2010, c 20) (MMA). That section declared that coalbed methane (CBM) is and always has been natural gas. Justice Kent applied the new section 10.1 to grant summary judgement in competing actions brought by the coal owners and the natural gas lessees seeking declaratory relief as to the ownership of CBM in certain lands. The actions in question had all been commenced before the amendment was introduced and passed. The Court held that section 10.1 was a complete answer to the competing claims and concluded that the natural gas lessees were entitled to a declaration that the coalbed methane had been granted to them under the terms of their natural gas leases. I blogged on the trial judgment here.

Issuance of a Notice of Abandonment under Clause 1201 of CAPL is an Attempt to Exercise a “Right to Remedy” within the Meaning of the Typical Stay Provisions of a Receivership Order

By Nigel Bankes

On September 13, 2012

In Bankruptcy and Insolvency, Oil & Gas

PDF version: Issuance of a notice of abandonment under clause 1201 of CAPL is an attempt to exercise a “right to remedy” within the meaning of the typical stay provisions of a Receivership Order

Case Commented On: Baytex Energy Ltd. v Sterling Eagle Petroleum Corporation, 2012 ABQB 539

The Facts

Baytex and Sterling held 50% working interests in certain properties by way of various agreements of 1995 and 1996. The properties were also subject to the terms of the CAPL Operating Procedure. There were a number of producing wells on the joint lands and four non-producing wells. Sterling was placed in receivership in June 2011 and the terms of the Receivership Order were brought to the attention of Baytex in August 2011. Revenues from the producing wells continued to be paid to the Receiver. The Order, conventionally, provided that:

The letter decisions of the Energy Resources Conservation Board

By Nigel Bankes

On September 6, 2012

In Administrative Law, Natural Resources

PDF version: The letter decisions of the Energy Resources Conservation Board

Decision commented on: Reasons for July 17, 2012 Decision on Notice of Question of Constitutional Law, Osum Oil Sands Corp., Taiga Project, August 24, 2012.

In a letter decision of August 24, 2012 the Energy Resources Conservation Board (ERCB or Board) decided that it lacks the jurisdiction to determine whether or not the Crown in right of Alberta had discharged its duty to consult and accommodate the Cold Lake First Nation (CLFN) with respect to the impacts of a proposed SAGD bitumen project (the Taiga project).

Who decides if the Crown has met its duty to consult and accommodate?

By Nigel Bankes

On September 6, 2012

In Aboriginal, Administrative Law, Constitutional, Natural Resources

PDF version: Who decides if the Crown has met its duty to consult and accommodate?

Decision commented on: Reasons for July 17, 2012 Decision on Notice of Question of Constitutional Law, Osum Oil Sands Corp., Taiga Project, August 24, 2012.

In a letter decision of August 24, 2012 (hereafter LD) the ERCB decided that it lacks the jurisdiction to determine whether or not the Crown in right of Alberta had discharged its duty to consult and accommodate the Cold Lake First Nation (CLFN) with respect to the impacts of a proposed SAGD (steam assisted gravity drainage) in situ bitumen project (the Taiga Project).

Nova Scotia exploration well approval case

By Nigel Bankes

On August 30, 2012

In Administrative Law, Environmental, Oil & Gas

PDF version: Nova Scotia exploration well approval case

Decision commented on: Margaree Environmental Association v Nova Scotia (Environment), 2012 NSSC 296.

In this case Justice MacAdam of the Nova Scotia Supreme Court denied a statutory appeal from a decision of the Nova Scotia Department of the Environment to grant an approval to drill an exploration well on a 383,000 acre block in the area around Lake Ainslie. There is nothing particularly remarkable about the case but I blog it here for these reasons: (1) it’s an oil and gas case and there are surprisingly few oil and gas cases involving judicial review or statutory appeals from decisions to issue (or not issue) a well licence or equivalent; (2) it’s a decision from a non-traditional oil and gas jurisdiction, Nova Scotia.

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