Author: Martin Olszynski Page 2 of 19

B.Sc. in Biology (Saskatchewan), LL.B. (Saskatchewan), LL.M. Specialization in Environmental Law (University of California at Berkeley).
Assistant Professor.
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The Liabilities Go Up and the Security Stays the Same: The Oilsands Mine Financial Security Program in 2024

By Martin Olszynski

On October 4, 2024

In Energy, Oil & Gas

By: Drew Yewchuk and Martin Olszynski

Documents Commented on: Mine Financial Security Program – Security and Liability (2024); Annual Mine Financial Security Program Submissions 2024 Submissions for 2023 Reporting Year

PDF Version: The Liabilities Go Up and the Security Stays the Same: The Oilsands Mine Financial Security Program in 2024

This is our annual update post in response to the Alberta Energy Regulator (AER) posting the annual submissions for the Mine Financial Security Program (MFSP). The MFSP is ostensibly Alberta’s system for obtaining financial security for the closure of oilsands and coal mines. See last year’s post here, and a lengthy discussion of the problems with the MFSP in our 2023 paper coauthored with Andrew Leach, “Not Fit for Purpose: Oil Sands Mines and Alberta’s Mine Financial Security Program”.

The Premier’s Review of the AER: A Recipe for How Industry Can Have its Cake and Eat it too

By Martin Olszynski

On May 30, 2024

In Energy

By: Drew Yewchuk, Shaun Fluker, Martin Olszynski, and Nigel Bankes

Commented on: Final report: Premier’s Review of the Alberta Energy Regulator (May 2024)

PDF Version: The Premier’s Review of the AER: A Recipe for How Industry Can Have its Cake and Eat it too

The UCP government continues to overhaul energy policy and regulation in Alberta with no meaningful opportunities for public scrutiny or input. In January 2023, Premier Danielle Smith appointed a five-person Premier’s Advisory Council on Alberta’s Energy Future (Energy Future Council) to prepare a report on Alberta’s energy future. The terms of reference for this Energy Future Council were set by Ministerial Order 02/2023, which was only released to the public in response to a FOIP request (see When Does a Ministerial Order Have to be Published?). The Energy Future Council submitted its report to the Premier in June 2023, but that report has never been made public. In response to this non-published report, the Minister of Energy and Minerals initiated another panel, similarly closed to public input, to review and report on the Alberta Energy Regulator (AER). On May 22, 2024, the Government of Alberta elected to release this second report (the AER Report) under the names of two of the five members of the Energy Future Council, David Yager and Bob Curran. As was the case with the recission of the 1976 Coal Policy, the AER Report demonstrates that the UCP government takes its instructions on the direction of energy policy primarily from industry, rather than from the public it serves.

Premier Smith Converts a Legal Pause on Renewable Energy Projects Into a De Facto Moratorium of Uncertain Duration

By Martin Olszynski

On March 1, 2024

In Energy

By: Nigel Bankes and Martin Olszynski

Matter Commented On: Policy Guidance to the Alberta Utilities Commission, February 28, 2024

PDF Version: Premier Smith Converts a Legal Pause on Renewable Energy Projects Into a De Facto Moratorium of Uncertain Duration

In August 2023, the Government of Alberta (GoA) stunned most commentators and the renewable energy sector in Alberta by announcing that it would be instructing the Alberta Utilities Commission (AUC) to withhold approval of all new renewable energy projects in the province for seven months. We commented on that announcement here: “An Incredibly Ill-Advised and Unnecessary Decision”.

Inextricably Linked: Climate Policy and the Oil and Gas Sector’s Closure Liabilities

By Martin Olszynski

On February 21, 2024

In Energy, Environmental, Oil & Gas

By: Martin Olszynski

Matter Commented On: Study on Emerging Issues Related to the Senate Standing Committee on Energy, Environment and Natural Resources’ Mandate: Climate Change – Canadian Oil & Gas Industry

PDF Version: Inextricably Linked: Climate Policy and the Oil and Gas Sector’s Closure Liabilities

On February 15, 2024, I appeared before the Senate Standing Committee on Energy, Environment and Natural Resources’ (ENEV) in the context of its study into emerging issues related to its mandate. As has been my practice in the past (see here and here), what follows are my prepared remarks, modified only for formatting purposes and to include hyperlinks to supporting resources where relevant. A recording of the hearing is available here; a hearing transcript should also be available upon translation.

Grading the AER Liability Management Performance Report

By Martin Olszynski

On February 8, 2024

In Energy, Oil & Gas

By: Shaun Fluker, Drew Yewchuk, and Martin Olszynski

Report Commented On: Liability Management Performance Report

PDF Version: Grading the AER Liability Management Performance Report

On January 17, 2024 the Alberta Energy Regulator (AER) published a Liability Management Performance Report. This is the first published AER report to the public on progress being made by industry under the Liability Management Framework to reduce Alberta’s massive unfunded closure liability in the conventional (non-oil sands) oil and gas sector. The last comparable report from the AER on liability management was from September 2005. Somewhat predictably, in its news release, the AER reflected positively on industry’s performance and indicated that this will be an annual report with the objective of “. . . improving transparency of industry’s management of conventional oil and gas liabilities as well as to develop performance measure baselines and ongoing assessments of the industry as a whole and licensees specifically.” The response elsewhere was less enthusiastic. Some, like the Rural Municipalities of Alberta, reserved judgment pending further analysis; while others more critically noted that the Report curiously understates the overall liability amount, using a liability calculation method from 2015 that subsequent analysis by the AER revealed to be a vast under-estimation. The Report provides some aggregated data and licensee-specific information and accordingly gets partial marks for some transparency, but it absolutely fails to give the public adequate context to fully understand whether this should be read as good or poor performance by industry and says almost nothing at all about the AER’s performance. Secrecy and capture continue to govern liability management in Alberta.