Author Archives: Nigel Bankes

About Nigel Bankes

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 Rejects the Constructive Trust Analysis in Brookfield

Case considered: Brookfield Bridge Lending Fund Inc. v. Vanquish Oil and Gas Corporation, 2009 ABCA 99, reversing 2008 ABQB 444

PDF version:  Court of Appeal rejects the constructive trust analysis in Brookfield

The Court of Appeal by a 2:1 majority (Justices Frans Slatter and Patricia Rowbotham for the majority, Justice Ronald Berger dissenting) has overruled the decision at trial by Justice Bruce McDonald to impose a constructive trust on the assets of an operator beyond the express trust provided for by clause 507 of the CAPL Agreement. Continue reading →

Successful application for summary dismissal in an oil and gas lease validity case

Case considered: Desoto Resources Limited v Encana Corporation, 2009 ABQB 337

PDF version: Successful application for summary dismissal in an oil and gas lease validity case

In this case Jodie L. Mason, Master in Chambers, granted summary dismissal of an action brought by Desoto as proceedings to justify the continuation of its caveat. I have blogged on this fact pattern on a previous occasion as a comment on the Board’s decision to suspend Desoto’s licence.

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Rights of first refusal in a package sale of oil and gas properties: a follow up to Chase Manhattan

Cases considered: Bearspaw Petroleum Ltd. v. ConocoPhillips Western Canada Partnership, unreported judgement of Master Hanebury, February 26, 2009
Bearspaw Petroleum Ltd. v. ConocoPhillips Western Canada Partnership, 2009 ABQB 202 (Master in Chambers)

PDF version: Rights of first refusal in a package sale of oil and gas properties: a follow up to Chase Manhattan

The rationale for the right of first refusal (ROFR) in the context of jointly owned oil and gas properties is well understood. ROFRs are typically included in a variety of oil and gas agreements and in particular the operating agreement (see Article 24 of the various iterations of the Canadian Association of Petroleum Landmen (“CAPL”) form). But they are messy, especially in so-called package sales where a party is disposing of a number of assets in a particular deal. Current versions of the CAPL form provide a procedure for dealing with package deals but the provisions are not free of difficulty and older forms offer little if any guidance.

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The Tromsø Meeting of the Parties to the 1973 Agreement on the Conservation of Polar Bears: A Comment on Three Aspects of the Meeting Report

By: Nigel Bankes

PDF Version: The Tromsø Meeting of the Parties to the 1973 Agreement on the Conservation of Polar Bears: A Comment on Three Aspects of the Meeting Report

Document Commented On: Meeting of the parties to the 1973 Agreement on the Conservation of Polar Bears, Tromsø, Norway, 17 – 19 March 2009 Outcome of Meeting

A few weeks ago (March 17 – 19, 2009) the parties to the 1973 Polar Bear Agreement met in Tromsø to consider the further implementation of the Agreement. This is a significant breakthrough. Apart from a meeting of the parties back in 1981 when the Parties decided to continue the Agreement in force as contemplated by Article X(6) of the Agreement and in informal meeting of the range states in 2007, the parties have never considered the further implementation of this Agreement.

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Extraordinary Times Justify Extraordinary Remedies: Interim Measures under the AIPN Standard Form Operating Agreement

Cases Considered: BG International Limited v. Canadian Superior Energy Inc., 2009 ABCA 127; BG International Limited v. Canadian Superior Energy Inc., 2009 ABCA 73 (Justice Carole Conrad, chambers)

PDF Version: Extraordinary times justify extraordinary remedies: interim measures under the AIPN standard form operating agreement

This is the first Alberta and indeed Canadian decision to consider the standard form operating agreement of the Association of International Petroleum Negotiators (AIPN) (2002). The Court of Appeal has upheld the order of Justice Barbara Romaine [unreported, February 11, 2009] sitting in chambers to issue an interim receivership order with respect to Canadian Superior Energy Inc’s (CSEI) interest in an exploration property in the offshore area of Trinidad and Tobago. In the course of doing so the order effected a change of operatorship and provided significant interim relief to BG International (BGI) in order to preserve the jointly owned property and to ensure continued drilling and testing operations.

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