By: Drew Yewchuk
Decision Commented On: AER Administrative Penalty 202304-03, Ovintiv Canada ULC
PDF Version: Administrative Penalties at the Alberta Energy Regulator: A Gentle Slap on the Wrist for Ovintiv
I recently turned my mind to the subject of how the Alberta Energy Regulator (AER) makes decisions on financial penalties to companies that contravene the conditions of their project approvals. This post is the first in what may become a series of blogs on the question. Continue reading
Regulatory Documents Commented on: Auditor General of Alberta, “Liability Management of (Non-Oil Sands) Oil and Gas Infrastructure”, March 2023
By: Drew Yewchuk, Shaun Fluker, and Martin Olszynski
PDF Version: Polluter Pays Principle at Risk: Auditor General Finds Alberta’s Oil and Gas Liability Regime Still Badly Deficient
Late last week, the Auditor General of Alberta released a scathing report that concludes that, notwithstanding some ongoing reforms, the management and regulation of end-of-life oil and gas liabilities by the Alberta Energy Regulator (AER) remains seriously deficient in several key areas. This assessment of the AER is one of four components of the Auditor General’s March 2023 report, and is set out as Section 2 Liability Management of (Non-Oil Sands) Oil and Gas Infrastructure (AG AER Report). The AG AER Report audited AER operations to assess (1) whether the AER’s current liability management system effectively mitigated the risks associated with the closure of oil and gas infrastructure and (2) whether the AER appropriately identified the risks and gaps in the previous liability management system and prepared an implementation plan for changes to effectively mitigate those risks and gaps. This comment focuses on the findings that the AER’s oil and gas liability management regime remains deficient in key areas. Continue reading
Regulatory Documents Commented on: Directive 088: Licensee Life-Cycle Management (February 2023) and Manual 23: Licensee Life-Cycle Management (February 2023)
By: Drew Yewchuk
PDF Version: Updates to the Oil and Gas Liability Management Framework: The New Closure Nomination and The Renamed Closure Quotas
The Alberta Energy Regulator (AER) continues to work towards implementing the Government of Alberta’s new Liability Management Framework. This post goes into the details of this implementation, on the assumption the reader is familiar with the ongoing reforms. For some background, see ABlawg’s post from February 2021 here, and my 8 November 2022 post. This post covers the February 2023 updates from the AER: a new Directive 088: Licensee Life-Cycle Management, a new Manual 23: Licensee Life-Cycle Management, responses to an engagement survey on Directive 088, and the Fall 2022 Engagement Session Q&A on Closure Nomination. The AER also released a new explanatory video. Continue reading
Commented On: Alberta Energy Regulator Announcement – March 02, 2023: Alberta Energy Regulator Actively Investigating and Responding to Imperial Oil Kearl Site Incident; and Letter to the Office of the Information and Privacy Commissioner Requesting an Investigation of AER Emergency Disclosure Policy
By: Drew Yewchuk
PDF Version: The Alberta Energy Regulator and the Disclosure Without Delay Rule in FOIP
The Alberta Energy Regulator (AER) has been aware that industrial effluent has been seeping from a tailings pit at Imperial’s Kearl oilsands mine since May 2022. (They should not be called tailings ‘ponds’ – they may be pits or lakes, but ‘pond’ implies they are small, which they absolutely are not). The AER chose to make this information public on February 4, 2023, when an estimated 5,300 cubic meters of “[s]torage pond overflowed off lease” and the AER began investigating Imperial for “[f]ailure to comply with conditions of an approval and release of industrial watewater [sic] from an unapproved location” (AER compliance dashboard, incident number 20230311 and investigation number 2023-009). Continue reading
By: Nigel Bankes and Drew Yewchuk
Case commented on: Canadian Natural Resources Limited v Harvest Operations Corp, 2023 ABKB 62 (CanLII)
PDF Version: Worrying About Reclamation and Abandonment Obligations in the Context of Property Assignment Consents
This decision is principally about when a court can or should grant partial summary judgment. For that reason alone, we anticipate that it will be appealed. But the underlying concern that led to this litigation was (and still is) the decision of Canadian Natural Resources Limited (CNRL) to contest assignments pursuant to a purchase and sale agreement (PSA) between Harvest Operations as the vendor and Spoke Resources as the purchaser. CNRL and Harvest were parties to some 170 agreements affected by the PSA, including 133 land agreements, 30 facility agreements, and 7 service agreements. Continue reading
