PDF version: Back to square one: summary judgement on an oil and gas lease validity issue set aside
Case considered: Desoto Resources Limited v. Encana Corporation, 2011 ABCA 100
In this decision the Court of Appeal set aside lower court decisions (Master and the Court of Queen’s Bench) granting the lessor summary judgement in an oil and gas lease validity case.
At issue in this case is the validity of certain petroleum and natural gas leases granted by PanCanadian (Encana’s predecessor in title) in 1974 to Desoto’s predecessor in title. The fact pattern was complicated by Jofco’s (Desoto’s previous corporate name) bankruptcy in 1999. As part of the judicially approved bankruptcy settlement it appears that PanCanadian was prepared at that time to forego its position that the leases had terminated.