Author: Nigel Bankes Page 77 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.

Alberta Makes Significant Progress in Establishing a Legal and Regulatory Regime to Accommodate Carbon Capture and Storage (CSS) Projects

By Nigel Bankes

On November 3, 2010

In Carbon Capture and Storage

By: Nigel Bankes

PDF Version: Alberta Makes Significant Progress in Establishing a Legal and Regulatory Regime to Accommodate Carbon Capture and Storage (CSS) Projects

Legislation Commented On: Bill 24, Carbon Capture and Storage Statutes Amendment Act, 2010, The Legislative Assembly of Alberta, Third Session, 27th Legislature, 59 Elizabeth II

On November 1, 2010 the Minister of Energy introduced in the legislature Bill 24, the Carbon Capture and Storage Statutes Amendment Act. If and when enacted, the Bill will amend four of the provinces’s energy statutes, the Energy Resources Conservation Act (ERCA), RSA 2000, c.E-10, the Mines and Minerals Act (MMA), RSA 2000, c. M-17, the Oil and Gas Conservation Act (OGCA), RSA 2000, c.O-6 and the Surface Rights Act (SRA), RSA 2000, c.S-24, all in a bid to accommodate CCS projects and provide clear legal and regulatory rules for such projects. This blog focuses on the amendments to the MMA and the OGCA.

The Supreme Court of Canada clarifies the role of administrative tribunals in discharging the duty to consult

By Nigel Bankes

On November 2, 2010

In Aboriginal, Administrative Law, Energy

PDF version: The Supreme Court of Canada clarifies the role of administrative tribunals in discharging the duty to consult

Case considered: Rio Tinto Alcan Inc. v. Carrier Sekani Tribal Council, 2010 SCC 43

In the 1950s British Columbia authorized Alcan to develop the Nechako and Kemano Rivers for power purposes to supply Alcan’s aluminum facility at Kitimat. This development occurred in the traditional territory of the Carrier Sekani Tribal Council (CSTC) First Nations. There was no consultation at that time. Since then Alcan has sold excess power from its facilities to BC Hydro (a Crown corporation) and in 2007 the parties negotiated an energy purchase agreement (EPA) to cover the period up until 2034. Sales have been growing in recent years as Alcan has found it more profitable to generate electricity than make aluminum: Kitimat (District) v. British Columbia (Minister of Energy and Mines), 2008 BCCA 81.

Injunction Denied in Oil and Gas Right of First Refusal Case

By Nigel Bankes

On October 5, 2010

In Oil & Gas

PDF version: Injunction denied in oil and gas right of first refusal case

Case considered: NAL GP Ltd. v. BP Canada Energy Company, 2010 ABQB 626

NAL was the successor in interest to an agreement between BP and Spearpoint which afforded each party mutual rights of first refusal (ROFR). The agreement (which was not a Canadian Association of Petroleum Landmen (CAPL) form) apparently covered a number of different properties. In July 2010 BP announced that it had reached an agreement with Apache to sell certain assets including the assets subject to the ROFR. There were negotiations surrounding the possible waiver of the ROFR but on September 1 NAL requested that BP prepare the ROFR notices required by the agreement. BP did so. The notices (12) were delivered September 20. The aggregate value of the 12 packages was $1.56 billion. The total sale price was $3.25 billion (US). The agreement required the ROFR to be exercised within 15 days.

In this application NAL sought a declaration that the notices were deficient or alternatively a temporary injunction. NAL also sought to examine documents relating to the sale and oral discovery of representatives of BP and Apache and sought to abridge the 15 day notice period.

What’s the Next Step when Shallow Rights Become Deep Rights?

By Nigel Bankes

On September 22, 2010

In Oil & Gas

PDF version: What’s the next step when shallow rights become deep rights?

Cases considered: Talisman Energy Inc. v Energy Resources Conservation Board, 2010 ABCA 258; ERCB Decision 2009-050, Nexxtep Resources Ltd., Pool Delineation Application: Redesignation of the Lower Mannville C Pool to Rock Creek, Wilson Creek Field, August 7, 2009; ERCB letter decision, June 23, 2010, unpublished, available here.

The purpose of this note is to update readers on the developments in a set of facts that first came before the courts in 2007 and on which I blogged in July 2008.

The Facts

The facts, as outlined in my earlier blog, were as follows:

“Nexxtep purchased certain petroleum and natural gas rights under Crown oil and gas leases from the base of the Mannville through the Rock Creek formation to the base of the Pekisko pursuant to a purchase and sale agreement (PSA) of March 2004 with Talisman. The assets included a horizontal well but not a more prolific vertical well which, at the time of the PSA, both parties assumed to be producing from above the base of the Mannville. Subsequent investigations by Nexxtep established that the vertical well was producing from the Rock Creek formation below the Mannville. When Nexxtep’s requests that Talisman shut in the vertical were unsuccessful, Nexxtep commenced an action [the QB action] and brought an application for an injunction requiring Talisman to shut in the vertical well below the Mannville. Talisman in turn sought an order for summary judgment and in the alternative security for costs.”

How Should Society Deal with the Question of Long Term Liability for Carbon Capture and Storage?

By Nigel Bankes

On August 27, 2010

In Carbon Capture and Storage

By: Nigel Bankes

PDF Version: How Should Society Deal with the Question of Long Term Liability for Carbon Capture and Storage?

Report Commented On: Report of the Interagency Task Force on Carbon Capture and Storage, August 2010

I don’t often sing the praises of government reports. Often written in turgid prose, they seem more concerned to find the lowest common denominator that all can live with rather than to identify and evaluate the policy problem and policy options to address that problem. This is even more likely to be the case where you have an “inter-agency” report; a report cobbled together by multiple cooks and authors, where the LCD really is the way to go. But I like this report of the United States federal Interagency Task Force on Carbon Capture and Storage, which came out earlier this month. It should be compulsory reading, not just for CCS wonks, but also for anybody engaged in formulating public regulatory policy in response to any new technology.